Waugh issued his appeal in the aftermath of the West Indies' heavy two-nil loss to Australia in the three-match Test series which ended recently, reports CMC.
While the West Indies moved up to the top of the T20 rankings earlier this month, they are languishing at the bottom in Test and One-Day International ratings.
"We have to ensure the West Indies are a force to be reckoned with because you can't play Test cricket between three or four decent nations," said Waugh said.
"Someone must ensure they get back to the level they were (once) at."
Waugh has likened the International Cricket Council's (ICC) apparent failure to pull the West Indies out of its hole to a scenario in the sport of rugby.
"Someone has to step up and say: 'We can't let this happen to the West Indies',"said Waugh who played 168 Test matches and scored 32 centuries.
"It's a bit like watching the All Blacks wither and die on the vine."
However the former Australian skipper says the biggest issue was the failure of crowds to attend Test matches.
He is suggesting a uniform payment for all Test teams, saying that was something ICC could impose.
"I think the ICC needs to put a fee on Tests and ensure everyone is paid equally," he said.
"They have to do that if they want to save Test cricket."