Water scarcity has always been a serious problem
impinging on food production and water security
of many water short regions and nations. Virtual
water may be considered as a new form of water
resources which, if intelligently utilized could be
employed to alleviate the water shortage pressure
that a region or nation is facing. The adoption of
virtual water trade strategy in a nation or region
may only be effective when the adoption is
coupled with an appropriate transition or
restructuring of its economic or production
composition. Adverse effects could be a mismatch
of labour skill within industries leading to massive
labour force surplus or shortage of particular
industrial sectors. Transition of an economy from
one state to another is also a long time process,
making virtual water strategy difficult to be
implemented promptly and effectively. A flexible
water pricing policy that would automatically
adjust various input substitutions is preferable.
Nonetheless, a water scarce nation or region may
set a long-term goal of re-allocating the resources
of her economy resulted from the impact of virtual
water trade with an aim of achieving long-term
water security.