Promising Approaches and Tools for Reaching the Poor. August 29, 2012 Susanna Smets, Sr. WSS Specialist

Transcription

1 Promising Approaches and Tools for Reaching the Poor August 29, 2012 Susanna Smets, Sr. WSS Specialist

2 Emerging learning for three promising approaches to reach the poor Partner in analysis to support targeting Design aspirational and affordable toilets Use financing approaches to increase affordability

3 Partner in analysis to support targeting Philippines: We can learn from existing national poverty targeting systems Philippines uses FIES 2009 data for cash transfer targeting 39% rural poor 17 million, with income < 149 USD/hh/month 17% extreme poor 7.7 million with income < 108 USD/hh/month % Rural Unimproved % Rural Open Defecation monthly household income (USD) Source: FIES, 2009

4 Philippines: Red areas with high % of extreme poor households These are roughly overlapping with areas with high % of households without improved sanitation Source: National Household Targeting System for Poverty Reduction

5 Partner in analysis to support targeting By using existing data we can support governments to better target the poor 1. Work with others to identify and map the poor without access to sanitation 2. Share analysis to inform program allocations and policies to reach the poor 3. Look beyond the sector for a holistic approach, linking investments in sanitation with poverty and nutritional outcomes

6 Design aspirational and affordable toilets Kenya: Learning through a partnership approach Partnership with government, WSP, IFC, private sector, consumers Research informed design focus: - mass production - reduction of transport cost - plastic as aspirational - retro-fit and new slabs Range of products from USD 10 with 50% rural household living < 170 USD/month (adopted from KIHBS, 2005/6)

7 Design aspirational and affordable toilets Emerging learning to cater to poor consumers 1. Combining desirability, affordability, feasibility and viability in design principles 2. Consumer-driven research and partnership with private sector and government to inform the marketing mix 3. Understanding scale-issues and addressing constraints in the supply chain so that the price will fall over time

8 % of mean hh monthly consumption Use financing to increase affordability Cambodia: Lifting cash constraints with a sanitation loan for poor households poorest richest Pre-Easy Latrine Easy Latrine Easy Latrine + finance Promising results so far 43% of people expressed interest: ¾ for a credit option versus ¼ for cash 24% of orders have been closed, other loan applications being processed Source: CSES 2009

9 Use financing to increase affordability Bangladesh: Introducing installment payments through business financing Lifting working capital constraints of businesses 6 businesses with loan size from USD Equity leverage ratio > 2 10 month installments for a latrine of USD poor households use installment Scaling in wider government sanitation program supported by WB

10 Use financing to increase affordability Emerging and future learning on micro-finance 1. Researching MFI trends in country and efforts required to find partner with commercial interest in scale 2. Understanding the effectiveness of different models 3. Generating evidence on the uptake of loans by the poor

11 Use financing to increase affordability Indonesia and Peru: How can governments target subsidies for sanitation within cash transfer schemes Indonesia: Generasi Peru: Juntos Community-level cash transfer upon compliance with health and education indicators Sanitation as an additional transfer if ODF status achieved Household-level cash transfer upon compliance with behaviours Add sanitation and hygiene behaviours and outputbased bonus for latrine Thursday 14:00-17:30 No Food and Nutrition Security without WASH

12 Take away messages 1. Tools and approaches are part of the puzzle 2. Knowledge gaps on scale and effectiveness of reaching the poor need rigorous research 3. M&E for learning essential,but whenever possible embedded in government systems to track equity 4. Importance of partnerships for learning

13 Thank you