Decentralization of Water Supply and Sanitation

Services in Latin America Role of USAID

Morris Israel

Fred Rosensweig

Objective

Share findings of current USAID activities on decentralization of water supply and sanitation in Latin America

Overview of Session

Definition of decentralizationObjectives of decentralizationContextKey issuesProblemDescription of activityKey findingsThe future

Definition of Decentralization

DevolutionDeconcentrationDelegation

Possible Objectives of Decentralization

Improve service deliveryStrengthen local governmentImprove health and the

environment

Context

Decentralization of WS&S is not separate from the overall reform of the State

Reform of the WS&S sector is underway throughout the region

Different philosophies on sector reform exist within countries and among donors

Increased attention to water and environment issues

Inadequate attention is being paid to effect of reform on the less advantaged populations – rural areas, small towns, and peri-urban areas.

Increasingly municipalities are asked to assume responsibility for service delivery

Key Issues

Cost recoveryCost effectiveness: economies

of scale and scopeRegulationSector planningEnvironmental managementHealth promotion

Problem

Small and medium size towns (5,000-30,000) have been largely neglected

Infrastructure is inadequate and funds don’t exist to finance new investment or adequate O&M.

Inadequate institutional structure to provide support to rural communities.

Represents a significant percentage of the population.

Small towns and rural communities have fewer resources and less capability.

Sanitation is almost completely neglected.

Most countries lack an effective regulatory framework

Central governments do not adequately involve key stakeholders in the discussion.

USAID Regional Activity

Developed case studies around three themes:

Management models for small town

San Julian, El Salvador

Itagua, Paraguay

Marinilla, Colombia

Institutional arrangements for providing backup support to rural communities

TOM Program, Honduras

Municipal Promoter, Nicaragua

Regulation of municipal services

Findings

Overall Findings Reinforced key lessons learned over

the past 20 years Importance of autonomy Role of legal and regulatory reform Role of external assistance in

technical assistance and financing Sanitation lags behind water supply Health and environment largely

secondary concerns

Specific FindingsManagement models for small

townsEnlightened local leadershipImportance of accountabilityRole of private sectorScale-up linked to sector reform

and support for decentralization

Institutional arrangements for RWSS

Cost of programmatic infrastructure

Need for a clearly defined system

Presence of a capable institution with clear responsibility

Role of local government

RegulationNo country surveyed provides a

good exampleProceed slowlyRole of municipal regulation

Overall observations

Decentralization is a slow process and not a panacea for all problems

Success of decentralization is context and situation specific

Key issue is who is involved and how decisions about decentralization are made

The Future

Track experimentation that is going on

Impact of paying more attention to sanitation

Innovative solutions to lack of financing for capital investments

Ways to address health and environment concerns