IRC Summer Debate 2 - Subsidies for Sanitation?
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Every year, diarrhoea kills more children in developing countries than AIDS, malaria and measles combined. Sanitation subsidies are a common tool used to motivate households to construct toilets. This seems an obvious response: many who lack access to sanitation are extremely poor and the potential public health benefits of universal access to safe sanitation are immense. But what is a subsidy? All programmes have some form of subsidy – so the question is HOW to use them effectively. On the 11th of September, IRC debated the pros and cons of sanitation subsidies. The debate started with these short presentations for and against sanitation subsidies. After that, discussions shifted towards a common definition of a subsidy and improvements to ensure subsidies contribute to sustainable services. For a summary of the discussions go to: http://www.source.irc.nl/page/74287
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IRC Summer Debate 2 - Subsidies for Sanitation?
- 2. Subsidies for sanitation? Chair – Catarina Fonseca Rational and Pro position – Marielle Snel Against position – Kristof Boestoen 2 IRC debate – – sustainability clause – Aug 2012 IRC debate Subsidies for sanitation?- Sep 2012
- 3. Subsidies for sanitation? YES! 3 IRC debate – – sustainability clause – Aug 2012 IRC debate Subsidies for sanitation?- Sep 2012
- 4. What is subsidy? 1) Monetary assistance by a government to a person or group for an enterprise or good in the public interest. 2) Financial assistance given by one person or government to another Subsidy can be direct or indirect 4 IRC debate - Subsidies for sanitation? - Sep 2012
- 5. Why subsidy for sanitation? 5 IRC debate - Subsidies for sanitation? - Sep 2012
- 6. WHY? First : to give access to excluded: • Ultra-poor: no money • Elderly without caring relative : no labour, no money to hire it • Chronically sick, people living with HIV/AIDS: Medical expenditures! • Disabled people: if adjusted toilet beyond their means 6 IRC debate - Subsidies for sanitation? - Sep 2012
- 7. OTHER REASONS: • Pro-poor markets: Strengthen local business/banks to serve poor • Compensate costs of national standard: sanitation service levels set by national sanitation policies are not affordable to the poor • Increase basic services • High benefits: health, economics, social 7 IRC debate - Subsidies for sanitation? - Sep 2012
- 8. Why Subsidy for Sanitation? Sanitation is a human right! Human right to sanitation Obligations Principles Criteria: • Respect • Non- • Safe • Protect discrimination • • Full-fill and equality Physically • Meaningful accessible participation • • Accountability Affordable & • Culturally transparency sensitive 8 IRC debate - Subsidies for sanitation? - Sep 2012
- 9. Subsidy for sanitation: YES ! If: • Subsidy serves public interest • Subsidy is only for lowest acceptable level of service • Subsidy is ‘smart’ • Subsidy is strategic 9 IRC debate - Subsidies for sanitation? - Sep 2012
- 10. Why direct subsidies should not be used in sanitation. IRC Internal debate
- 11. Total Sanitation Campaign People targeted are below the povrty line Budget allocation US$ 3,888 million Budget allocation hardware subsidy : 88% Budget allocation software : 12 % Source: A decade of TSC. A rapid assessment. WSP 2010 11 IRC debate - Subsidies for sanitation? - Sep 2012
- 12. 12 IRC debate - Subsidies for sanitation? - Sep 2012
- 13. India (Bihar) Bangladesh Subsidy approximately INR Subsidy approximately 3,900 (Euro 55) Thaka 1,500 (Euro 15) 13 IRC debate - Subsidies for sanitation? - Sep 2012
- 14. Conclusions • Health requires general coverage; • Any subsidy distorts the market; resulting in inappropriate design and cost • Lack of financial suitability progress last as long as the subsidy • Current mechanism fail often to target the poor • Often create expectation which can not be fulfilled • suppress demand • Subsidies for construction distort the market • Subsidies to the poor link some technologies with the poor stigmatizing technology 14 IRC debate - Subsidies for sanitation? - Sep 2012
- 15. This was: “an Obituary for sanitation subsidies” 15 IRC debate - Subsidies for sanitation? - Sep 2012
Editor's Notes
- (e.g. as money or materials for a toilet) or indirect, e.g. as a voucher for free materials from a defined or free to choiseenterpreneur,(type 2): to a program after it has supported the target groups to complete the latrine (ODA or ooutput based aid
- Benefits: beter health, lower health costs to gvt and people, fewer workdays lost, higher economic returns, social benefits for women and girls, gender and social equity
- : they help to maximize public health benefits, protect the environment, and/or increase access by groups who are persistently excluded- especially for the very poor- but also avoiding distortions to the market thereby leaving room for households to make incremental improvements over timeSmart: if direct, given to the needed only, with public transparency and accountability, e.g. : selected on the basis of clear criteria, with local participation and public ‘display’ with possibility of error evidence ( ‘should not be in’/’is missing)Strategic: not for HHs, but used to show enterprises that the poor are a market and train them on low-cost toilet models and suitable financing strategies for poor HHs