Time for a Blue Economy

Only 2.5% of the world’s water is fresh water, and we are running out of it due to increasing population, urbanization, and climate change. The primary driver of increased consumption is agriculture, which uses 70% of the fresh water. Pressures are mounting for more usage. As temperatures rise across the globe, more and more land needs irrigation – arid land has increased 40% since 1970. China, Australia, and the United States are experiencing long term droughts in farming regions. This summer California reduced water allocation by 10% to the Central Valley, the nation’s largest producer of fruits and vegetables.

Up to now, national leaders have viewed water scarcity as a regional problem. Business leaders have viewed it as a limitless resource. But after a decade of global warming, leaders are becoming aware of an oncoming water shortage, giving Michigan, whose borders touch 20% of the world’s remaining fresh water, an extraordinary opportunity to create a water-based economy, a Blue Economy.

A Blue Economy is the logical successor to Michigan’s auto-centric economy, which is collapsing after a hundred year run. A Blue Economy could fill vacant factories with manufacturers of water conservation and treatment equipment. It could erect new factories for water hungry food and beverage processors and semi conductor companies, like Intel and Texas Instruments. These industries will need skilled knowledge workers and Michigan public universities can develop the necessary curriculum and operational training programs. It could build the world’s center of water expertise and technological development.

Michigan has more than an abundant supply of clean fresh water to recommend itself for this daunting task. It has a surplus of engineering/manufacturing talent, and it has a largely unemployed auto based workforce hungry for jobs. It is a signatory to the Great Lakes Compact, guaranteeing a secure supply of water for the foreseeable future. Other states have expressed an interest in Michigan’s water, but Michigan can bring thirsty people and businesses to its “water wonderland.”

There are three big roadblocks in the way of Michigan’s Blue future: its reputation for high taxes and high cost labor, a lack of proactive thought leadership, and a lack of capital. But, Michigan shouldn’t wait for someone to move these roadblocks – the time is now.

With the sponsorship of the Engineering Society of Detroit Institute (ESDI) and the Detroit Water and Sewerage Department (DWSD), a “Blue Economy” Steering Committee has formed and it includes important state and regional stakeholders. Now, it is time to move beyond dialogue. A practical first step is funding and launching NextWater, a non-profit 501(c)(3) to organize and lead the effort. Its first task is to create a detailed blueprint for a Blue Economy and Michigan’s renaissance.