would be weakened with poor standards prevailing. Service levels and the financial viability of the service providers would decline, leading to increased levels of customer dissatisfaction and localised improvisation as a means to overcome shortcomings. Health concerns and environmental pollution levels would increase. The cost to the economies, on the basis of previous studies, could amount to 3% of GDP or more. There could be increased pressure from some economic sectors for continuing subsidies, for example in agriculture, as these perform a social as well as economic function. Other effects could be the loss of intellectual capital and curtailing of investment in research and development. On a macro scale there could be a limiting of the international communities' ability to provide FDI as well as donor assistance to developing countries, further weakening their position and ability to extend water services provision. The attainment of the MDG for many countries would be considerably postponed. In OECD countries the impact of a slowdown would be less marked but economic difficulties could in Europe prompt a re-examination of environmental and other legislation that would be perceived to be adding considerable costs without the necessary concomitant benefits. This would have a direct effect on the provision and operation of water infrastructure. Globalisation and changes in economic structure Globalisation, together with changes in economic structure, will drive the relocation of industrial and manufacturing activity, which in turn will impact on demand patterns. The industrialisation of the developing world will result in increased levels of water demand and consumption, partly as a result of increased activity and partly as a result of a decrease in water productivity. At the same time developed economies will become more service and amenity oriented, placing a higher value on water and SO dampening consumptive use. This will reinforce the requirements for increased expansion of water resources and the assoc