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The challenge of financing sanitation for meeting the Millennium Development Goals

This paper identifies the key issues and steps in developing a public finance strategy to meet the Millennium Development Goals (MDGs) for sanitation. It notes that a shift in sanitation financing is required from financing 'subsidies and grants for sanitation facilities' to funding 'sanitation promotion and leveraging resources'. Experience suggests that the immediate focus for leveraging needs to be on household and community resources, with market based resources mobilized only in the medium to long term. Potential directions and critical elements for scaling up are identified. Key challenges to be addressed by national and local decision makers in developing a public finance strategy for sanitation are: institutional fragmentation, trade-offs in the allocation of public resources, and long-term commitment. The role of global and regional support agencies is critical for: advocacy, support through a continuing review and dissemination of global experiences, and funding the initial steps in developing a public finance strategy.

TitleThe challenge of financing sanitation for meeting the Millennium Development Goals
Publication TypeMiscellaneous
Year of Publication2004
AuthorsKnapp, A., Mehta, M.
Pagination32 p. : 18 boxes
Date Published2004-03-01
PublisherWater and Sanitation Program - African Region
Place PublishedWashington, DC, USA
Keywordscommunity participation, evaluation, financing, health education, implementation, institutional aspects, literature reviews, millennium development goals, models, monitoring, policies, private sector, programmes, sanitation, sdipol, sdisan, uemk
Abstract

This paper identifies the key issues and steps in developing a public finance strategy to meet the Millennium Development Goals (MDGs) for sanitation. It notes that a shift in sanitation financing is required from financing 'subsidies and grants for sanitation facilities' to funding 'sanitation promotion and leveraging resources'. Experience suggests that the immediate focus for leveraging needs to be on household and community resources, with market based resources mobilized only in the medium to long term. Potential directions and critical elements for scaling up are identified. Key challenges to be addressed by national and local decision makers in developing a public finance strategy for sanitation are: institutional fragmentation, trade-offs in the allocation of public resources, and long-term commitment. The role of global and regional support agencies is critical for: advocacy, support through a continuing review and dissemination of global experiences, and funding the initial steps in developing a public finance strategy.

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