IRC presentation UCLGA Focal Point Network

Working Session 15th – 19th August 2010Jean de la Harpe

This presentation

Africa – some points

Water and sanitation in context

Investing in the sector

WASH governance support

IRC programmes

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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

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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.

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At the same time 50 plus individual economies are facing very serious challenges:

150m $2500

50m $3500

600m $600

Africa – income per person per annum

Pop/income

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

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Size shows proportion of all people living on over US$ 200 ppp a dayFew 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 poorPoor 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

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Use of improved sanitation

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Use of improved drinking water

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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)

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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

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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)

Enabling Environment for Sanitation in South Africa17

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

Enabling Environment for Sanitation in South Africa18

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

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Barriers to universal and sustainable sanitation and drinking water for everyone

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Local government advocacy to target

these barriers

Focus on infrastructure rather than delivering a service

Lack of effective plans and strategies

Mounting maintenance backlogs

Poor decentralisation with insufficient resources

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 revenueThere 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

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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

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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 Title27

Makhaza Toilets: An Affront To Human Dignity and a Threat to Safety & Security

Good governance?

More effective water governanceNeeds to address:

Policy and legislative frameworks that protect water resources and ensure water for social and economic

development

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

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

Decisions making mechanisms and regulation that achieve responsible use of political power, optimal use of resources,

sustainable development and ecological sustainability

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”

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”

Getting governance right

It needs to address the entire service delivery ‘life cycle’

Good governance from policy to sustainable services

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 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

The same applies to planning services, deciding tariffs and subsidies, implementing capital projects and ultimately providing the service

Financing

Delivering WASH

services

Finance

Infrastructure

Institutional arrangements for service provision

RegulationPlanning

Policies and bylaws (enabling

environment)

IRC WASH governance support

WASH governance

Finance

Infrastructure

Institutional arrangements for service provision

RegulationPlanning

Policies and bylaws (enabling environment)

Capacity development

Capacity development

Advocacy and communicationAdvocacy and communication

Sector knowledge sharing and

learning

Sector knowledge sharing and

learning

Accountability and

transparency

Accountability and

transparency

Monitoring and

evaluation

Monitoring and

evaluation

Support to community institutions

Support to community institutions

Gender and equity

Gender and equity

Cost recovery and innovative

finance

Cost recovery and innovative

finance

Participatory and strategic approach to

local governance

Participatory and strategic approach to

local governance

Multiple use services

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

GhanaKwame Nkrumah University of Science and Technology (KNUST)

Burkina FasoCentre Régional pour l'Eau Potable et l'Assainissement à faible coût

(CREPA)

MozambiqueNational Water Directorate / Rural Water / CoWater

Thank you

Jean de la Harpe

delaharpe@irc.nl

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