Universal Access (UA) to Services: UNCTAD Expert Meeting November 2006

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1 Universal Access (UA) to Services: UNCTAD Expert Meeting November 2006 Human Development Report 2006 Beyond Scarcity: Power, poverty and the global water crisis Ms. Cecilia Ugaz Acting Deputy Director Human Development Report Office UNDP

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3 Human cost of the crisis Some 1.8 million children die each year as a result of diarrhoea which is 4,900 deaths a day. This is equivalent to the under-five population in London and New York combined. Deaths for diarrhoea in 2004 were about six times greater than the average annual deaths in armed conflict for the 1990s. The loss of 443 million school days each year from water-related illness. Millions of women spending up to four hours a day collecting water. Almost 50 percent of all people in developing countries are suffering at any given time from a health problem caused by water and sanitation deficits. Lifecycles of disadvantage.

4 Above all, this is a crisis of the poor

5 But today 1.1 billion people lack access to water 2.6 billion people lack access to sanitation Inequality is a central part of the story. Implications for HD The lack of water and sanitation leads to diminished opportunities to realize people s capabilities and human potential

6 Implications for the Millennium Development Goals In current trends, we will miss the MDG of halving those without access to water by 235 million people. 800 million people in total will still lack access. The sanitation target will be missed by 431 million people, with 2.1 billion in total still without decent sanitation.

7 Can we afford not to make the investments? If we take action and meet the MDG targets, more than 1 million lives could be saved over the next decade The investment required to achieve the MDGs is 10 billion USD per year. The economic benefits of meeting the MDG targets would amount to $38 billion, $15 billion of that in sub-saharan Africa. Water and sanitation suffer from chronic under-funding. Public spending is typically less than 0.5% of GDP. Water and sanitation is only 5% of total ODA.

8 Access to water for human consumption

9 The water divide

10 The poorer you are, the more you pay

11 How progressive are your subsidies?

12 Sanitation: some facts 2.6 billion people half the developing world s population--lack access to sanitation On average, only about 1 person in 3 in South Asia and in Sub-Saharan Africa has access Access to sanitation is one of the strongest determinants of child survival: the transition from unimproved to improved sanitation reduces child mortality by a third

13 Diminished opportunities and increased risks

14 Water for human consumption: key findings Inequalities based on wealth, and location, play a central role in structuring water markets. Water pricing reflects a simple perverse principle: the poorer you are, the more you pay. The debate over the relative merits of public and private sector has been a distraction from the inadequate performance of both private water providers to overcome the global water deficit. The diversity in public-private partnerships cautions against lumping all private sector involvement under the general heading of privatization. Regulation is critical to the progressive realization of the human right to water.

15 Towards universal access Legislate for water as a human right setting out investment, pricing and monitoring arrangements. Put water at the center of poverty reduction strategies have a coherent water plan. Expand pro-poor investment the bigger financial gaps are in rural areas and in urban slums. Extend life-line tariffs at least 20! Rethink and redesign cross-subsidies support standpipes. Set clear goals and hold providers to account financial penalties for non performers. Develop and expand the regulatory framework include informal providers Participation of local communities can accelerate progress local governance is important.

16 Ending the global water crisis four pillars for success: Make water a human right and mean it. Draw up national strategies for water and sanitation. Increase international aid. A Global Action Plan. Political will is essential!

17 Achieving universal access is feasible, but, political will is essential! HDR 2006 is available at UNDP Do not cite without permission.

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19 Climbing the ladder

20 The sanitation divide

21 Why does sanitation lag so far behind? The national policy barrier sanitation if ever figures prominently on the national political agenda. The behavior barrier households tend to attach higher priority to water than to sanitation. The perception barrier households often view better sanitation as a private amenity with private benefits rather than a public responsibility. The poverty barrier Nearly 1.4 billion people without sanitation live on less than $2 a day. The gender barrier women place higher value on access to private sanitation facilities but have weaker voice. The supply barrier products designed without reference to community needs and priorities and delivered through unaccountable government agencies have low uptake rates.