A/HRC/30/39
A.
Public finance for water, sanitation and hygiene: Who benefits and who
does not?
37.
Almost all large-scale water and sanitation systems receive some level of public
financing. For sanitation in particular, while it has long been known that the costs of not
having access far exceed the actual cost of providing access, it has been hoped that private
sector participation would be sufficient to improve access to sanitation. However, more
recently, research by the World Bank and others is beginning to show that it is unrealistic
for the private sector to fill the service gap alone. 23 States must be the driving force in
investments in sanitation, in particular to cover the costs of constructing and maintaining
infrastructure, and in some cases also for operation, for example where pit-emptying is
prohibitively expensive.
38.
In many instances, however, public financing is unequally distributed. Middle-class
households often benefit from subsidies, both direct subsidies and “hidden” subsidies.
Direct subsidies include tax breaks or financial incentives for constructing a toilet, which,
when poorly targeted tend to benefit middle-income families. Subsidies are “hidden” when
public financing is used to construct infrastructure and services that are intended to be used
by all, but in fact are only available to middle- and high-income households.
1.
Public finance for networked provision
39.
Public finance is very common in large-scale piped water and sewerage systems,
with governments (and other funders, such as multilateral and bilateral donors) investing
significantly in networks, water treatment plants, wastewater treatment plants and trunk
sewers. Provided that all households within a city are able to connect to use these services,
this may be an efficient approach to ensuring that public finances are used well for water
and sanitation service provision, even if it also results in subsidizing service provision for
those who would not need such support to ensure affordability.
40.
In the majority of developing countries, piped water and sewerage systems are
accessible only to a minority of those living in urban areas – and to very few of those living
in rural areas.24 Focusing public finance on networked provision thus disproportionately
benefits comparatively better-off households, unless specific action is taken to extend
networked provision to all residents.
41.
Public finance may also be provided for the maintenance and extension of water and
sanitation services and facilities, including for connection charges. Where extensions are
expected to reach all households, they can be an appropriate form of providing support to
low-income households, as they will ensure more affordable and regular charges for water
and sanitation than charges of informal provision.
23
24
World Bank, Keynote Speech at the 2014 Sanitation and Water for All High Level Meeting by Shanta
Devarajan, Chief Economist, World Bank, April 11th 2014, available from
http://sanitationandwaterforall.org/?download=663; Guy Norman, Catarina Fonseca and Sophie
Trémolet (2015), “Domestic public finance for WASH: what, why, how?” Finance Brief 1, Public
Finance for WASH, available from
http://www.publicfinanceforwash.com/sites/default/files/uploads/Finance_Brief_1__Domestic_public_finance_for_WASH.pdf .
World Health Organization (WHO)/United Nations Children’s Fund, Joint Monitoring Programme,
“Progress on Sanitation and Drinking Water 2015 Update and MDG Assessment” (Geneva, 2015),
pp. 8-9.
11
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