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Social policies and water sector reform

Prasad, Naren
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Abstract
"Increasing coverage and maintaining infrastructure are two of the biggest challenges confronting the water supply sector in both industrialized and developing countries. The last two decades have witnessed reform in this sector that has resulted in increased private sector participation (PSP), and it is now time to investigate whether such reform has managed to increase access without creating additional burdens, especially on the poor. A research project carried out by the United Nations Research Institute for Social Development (UNRISD), Social Policy, Regulation and Private Sector Involvement in Water Supply, has demonstrated the shortcomings of concession-type contracts and how regulation in developing countries is faced with major challenges. Based on this research, the present paper demonstrates that, in such circumstances, regulation should be complemented by social policies when reforming the water sector. This paper draws lessons from seven country studies: Brazil, Burkina Faso, Colombia, Great Britain, France, Hungary and Malaysia. All of these country studies show the shortcomings of PSP and how social policies are crucial in addressing the issues of access and affordability. The choice of social policies varies from country to country. In France and Great Britain, heavy public investment was used to ensure universal access to piped water. In these countries, even with high regulatory capacity, social policies in the water sector have been crucial. For example, in France, they consist mainly of ex-post assistance to those who cannot afford to pay their water bills, operating a fund for rural water supply and prohibition of disconnection. Social policies in Great Britain include income support based on property values, subsidies, a ban on disconnections, various forms of social security support and social assistance in paying water bills. In addition, there exists an effective and independent economic regulatory body."(pg 3)
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Date
2007-09
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With permission of the license/copyright holder
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