In his book The Ultimate Resource 2, Julian Simon claimed that there is a strong correlation between government corruption and lack of sufficient supplies of safe, clean water. Simon wrote, "there is complete agreement among water economists that all it takes to ensure an adequate supply for agriculture as well as for households in rich countries is that there be a rational structure of water law and market pricing. The problem is not too many people but rather defective laws and bureaucratic interventions; freeing up markets in water would eliminate just about all water problems forever... In poor water-short countries the problem with water supply—as with so many other matters—is lack of wealth to create systems to supply water efficiently enough. As these countries become richer, their water problems will become less difficult". This theoretical argument, however, ignores real-world conditions, including strong barriers to open water markets, the difficulty of moving water from one region to another, inability of some populations to pay for water, and grossly imperfect information on water use. Actual experience with peak water constraints in some wealthy, but water-short countries and regions still suggests serious difficulties in reducing water challenges.
