Irc ucgla presentation 2010

IRC presentation UCLGA Focal Point Network Working Session 15 th – 19 th August 2010
Jean de la Harpe

This presentation
Africa – some points
Water and sanitation in context
Investing in the sector
WASH governance support
IRC programmes

Electric power is equivalent to economic activity The economy is mainly active in Europe and North America Look at the gaps in the South

Africa in an unequal world
A peculiarity of the recent economic downturn is that it affected the developed world more than the developing world
In the 2000s Africa’s economic growth has been maintained (whereas in many mature or developed markets it has declined or even been negative, for example Europe, Japan, US)
Real GDP in Africa rose by 4.9 percent a year from 2000 through 2008 – more than twice its pace in the 80s and 90s –
Construction is booming, private investment inflows are surging
Telecommunications, banking and retail are improving
We live in a highly unequal world, where economic activity varies across the regions

Poverty
Disease
Infant mortality
Wars
Natural disasters
Poor government policies
These challenges can stop or even reverse the gains made in any individual country
BUT in the long term internal and external trends indicate that Africa’s prospects are growing.
At the same time 50 plus individual economies are facing very serious challenges:

Africa – income per person per annum Pop/income 150m $2500 50m $3500 600m $600

50% of the worlds population are in China, India and Africa Goldman Sacks estimate that 70% of the worlds economic growth in the next 40 years will come from so called emerging economies

Size shows proportion of all people living on over US$ 200 ppp a day Few very high earners live in Southern Asia, Northern Africa, Eastern Europe and Central Africa

One in eight people without safe water Water and sanitation – its a global issue Water Cited as the highest priority of the poor Poor Sanitation One of the biggest killers of children
Sub-Saharan Africa is most off-track based on current MDG progress:
Water not until 2035
Sanitation not until 2108
In Sub-Saharan Africa, only the maternal mortality MDG is more off-track than sanitation

Water and sanitation - context
Sanitation and drinking water underpin all aspects of human and economic development, yet some 2.5 billion people lack access to basic sanitation with 1.1 billion practicing open defecation and 884 million lack access to clean water.
Each day, nearly 6,000 people (mostly children under five) die from preventable diarrheal diseases.
Investments are especially low in countries where access is the lowest.
Sanitation is one of the most off-track of all the MDG targets and is particularly badly off-track in Africa

Use of improved sanitation

Use of improved drinking water

The argument for investing in sanitation and drinking water
Investing in sustainable sanitation and drinking water improves health, reduces health care costs, boosts productivity and increases the return on investments in education.
The economic benefits of achieving universal access to sanitation and drinking water are estimated at US $171 billion per year globally
Meeting the MDGs on water and sanitation in Africa alone would save nearly $15 billion annually (nearly 2 percent of the region’s Gross Domestic Product).
(OECD 2010)

The total aid for water fell from 8% to 5% of total ODA between 1997 and 2008. During the same period, ODA for health increased from 7% to 12% of total ODA, while education remained at around 7%. (OECD 2010) Percentage aid for water and sanitation is declining

Commitments per capita to sanitation and water

Financing Sanitation and Water Services
Demand for financing in the sector is considerable
Aid and budget allocations in the sector are not well targeted - Only 42% of sector aid goes to low income countries - only 16% is invested in “basic” systems that primarily serve the poor
US$ 72 billion is needed per year for developing countries to achieve the MDG targets (excluding the BRIC countries – Brazil, Russia, India, China)
Current spending is short of this level – there is a large financing gap
(WHO 2010)

EU disbursements per country and access to improved sanitation 2006-2008

EU disbursements per country and access to improved water supply 2006-2008

Consequences of financing gap
Insufficient maintenance
Deteriorating services
Weak institutions
Services not being extended to those without access
Impacts on local government’s ability to deliver sustainable services

Barriers to universal and sustainable sanitation and drinking water for everyone Focus on infrastructure rather than delivering a service Lack of effective plans and strategies Mounting maintenance backlogs Poor decentralisation with insufficient resources Local government advocacy to target these barriers

How do we close the gap? Addressing costs
Increase tariffs and other sources of revenue
Improve efficiency of water and sanitation systems (ie leakage, energy efficiency)
Reduce costs (where possible) through better planning and low-cost technologies
In the last instance reconsider objectives for coverage and service levels if they are unrealistic

Closing the Gap - The ultimate sources of revenue
There are only three ultimate sources of revenue that can help to close the financing gap, the 3Ts:
Tariffs
Taxes, and
Transfers, ie ODA
Loans and bonds will need to be paid back and mainly serve to “bridge the gap”, by helping to cope with large up-front investment costs
Shares of tariffs, taxes and transfers (ODA) in WSS finance in various countries Source: OECD

Local government and water and sanitation services
How can local government advocate to increase investment in the sector ?
What support does local government need to:
Scale up services provision
Improve WASH governance
Deliver sustainable water and sanitation services

What should we be saying to our Ministers?
Ministers of Finance : “Increase investment in the sector”
Given constraints in household affordability and public goods aspects of water and sanitation services, significant support needs to be provided for water and sanitation through public budgets
Countries such as Armenia, Moldova and Georgia need to spend 2-5% of public budget expenditure on WSS to achieve financial sustainability and the MDGs
Investing in water and sanitation makes economic sense ...

Messages to Water Ministers
Advocate for increased funds from public budgets
Support this by making the economic case for water and sanitation to Ministers of Finance
Build and strengthen the water and sanitation sector – improve planning, provide access to capacity support, develop strong programmes linked to budget processes, strengthen sector collaboration
Provide institutional support to local government
Promote and support good governance in the sector

What is good governance?
Good governance involves constructive co-operation between the different sectors where the result is:
efficient use of resources
responsible use of power, and
effective and sustainable service provision
Good governance emerges when stakeholders engage and participate with each other in an inclusive, transparent and accountable manner to accomplish better services free of corruption and abuse, and within the rule of law

Presentation Title Makhaza Toilets: An Affront To Human Dignity and a Threat to Safety & Security Good governance?

More effective water governance
Needs to address:
Policy and legislative frameworks that protect water resources and ensure water for social and economic development Institutions for water management that facilitate participation of all stakeholders in a transparent, accountable, gender sensitive and equitable manner Decisions making mechanisms and regulation that achieve responsible use of political power, optimal use of resources, sustainable development and ecological sustainability

Getting governance right According to the Water Budget Speech all sorts of arrangements have been made to improve water governance which will allow “communities to participate in their own development”

Good governance from policy to sustainable services It needs to address the entire service delivery ‘life cycle’ Planning Implementation (infrastructure development) Policy Service Provision (sustainable services) The development of good policies require: participation, advocacy, communication, gender equity, transparency, monitoring and feedback, support, accountability, sector knowledge sharing, and so on. The same applies to planning services, deciding tariffs and subsidies, implementing capital projects and ultimately providing the service Financing Good governance

Delivering WASH services Finance Infrastructure Institutional arrangements for service provision Regulation Planning Policies and bylaws (enabling environment) IRC WASH governance support

WASH governance Finance Infrastructure Institutional arrangements for service provision Regulation Planning Policies and bylaws (enabling environment) Capacity development Advocacy and communication Sector knowledge sharing and learning Accountability and transparency Monitoring and evaluation Support to community institutions Gender and equity Cost recovery and innovative finance Participatory and strategic approach to local governance Multiple use services

IRC global programme (back out into the world) Innovation & knowledge development (based on experiences in the regions and through global programmes) Regional and country programmes with partners

How does the water and sanitation sector best serve local government across Africa?
The water and sanitation sector tends to be dispersed
It has been difficult to get networks going
A major challenge is how to ensure that local government can access and share good lessons learnt, information and knowledge about water and sanitation services

Targeting local government
WASH governance needs to be targeted to local government needs, priorities and context
Challenge is to ensure that water and sanitation knowledge and information is accessible to local government
Lessons and best practices from Africa need to be promoted and shared How do we ensure that local government receives the WASH governance support it needs?

What is WASHCost?

Four countries, five years, many partners India (Andhra Pradesh) Centre for Economic and Social Studies / LRMNI Ghana Kwame Nkrumah University of Science and Technology (KNUST) Burkina Faso Centre Régional pour l'Eau Potable et l'Assainissement à faible coût (CREPA) Mozambique National Water Directorate / Rural Water / CoWater

Thank you
Jean de la Harpe
[email_address]

Irc ucgla presentation 2010

by IRC International Water and Sanitation Centre on Feb 22, 2011

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Irc ucgla presentation 2010 — Presentation Transcript