How to make water subsidies reach more people

This article is an excerpt from the UN World Water Development Report 2021

　　The role of water in homes, schools, workplaces and healthcare facilities is often overlooked or not given a comparable value to other uses. Water is a basic human need, a resource necessary to secure drinking, maintain hygiene and cleanliness, and sustain life and health, and access to water and sanitation is a human right. Directly expanding access to water, sanitation and hygiene services not only improves access to education and labour productivity, but also contributes to a life of dignity and equality. Water supply, sanitation and hygiene services can also add value indirectly by creating healthier environments.

　　The cost of achieving universal access to safe drinking water and sanitation (SDG targets 6.1 and 6.2) in 140 low- and middle-income countries from 2016 to 2030 is estimated to be around US$1.7 trillion, or US$114 billion per year. In most regions, the benefit-cost ratio for this investment has shown a significant positive return. The returns are even higher for personal health, as in many cases personal health services can significantly improve health outcomes and require little additional construction of expensive infrastructure.

　　In 2020, the global spread of the novel coronavirus pneumonia epidemic will hit hardest the world's most vulnerable groups, many of whom live in informal settlements and urban slums. Hand hygiene is extremely important to prevent the spread of the new coronavirus. Globally, over 3 billion people and 2 in 5 health facilities lack adequate hand cleaning facilities.

　　As access to water, sanitation and hygiene services is vital to life and public health, many countries (even high-income countries) have incorporated this work into their governments and provide government subsidies.

　　However, subsidies do not necessarily ensure that poor people also have access to these basic services. Subsidies for water supply may end up benefiting people who are already connected to the urban supply and drainage network, many of whom are not poor. As a result, on the one hand, the poor do not benefit from the subsidies, and on the other hand, water service providers lose revenue from water bills that they could have received from better-off households. The value lost by water service providers through lower incomes is not mitigated by the negative effects of school and work absenteeism due to lack of access to water, sanitation and hygiene services.

　　It is important to look at the affordability of water services from the perspective of vulnerable groups, including their income, location and the socio-economic challenges they face.