Water and Sanitation: The Business Case
A paper prepared by Business Action for Sustainable Development (BASD)
August 2002 – WSSD Johannesburg
JOHANNESBURG, 28 August 2002 - Water and sanitation are essential for Sustainable
Development
- Poverty alleviation and preventative health care (SOCIAL)
- Economic growth (ECONOMIC)
- Ecology and environmental improvement (ENVIRONMENT)
Investing in water and sanitation is an investment in Public Health! Therefore
sanitation must be added to the UN Millennium goals for water.
Business and industry is action oriented. With the rest of society it wants
to accelerate the pace of improvement. To do this it offers some key messages
to government.
KEY MESSAGES
- Add sanitation to the UN Millennium goal for water
- Create an enabling environment to encourage essential investment
in water infrastructure
- Use ODA more effectively to assist local communities to build
capacity to manage water efficiently and attract private sector
investment
- Involve all water stakeholders, including business as a key partner,
in water decision making at all levels
- Full cost recovery to ensure that water services are sustainable
and continue to operate
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Good water, sanitation and hygiene in the community unlock opportunities
in many cross-cutting issues: e.g. education, gender, youth, biodiversity….
There is a business case for investment in water and sanitation. It is
time to move from words to action. Improving water, sanitation and resulting
hygiene means healthier and more productive employees and customers who
can participate in wealth generation and sustained economic growth. Business
prefers to operate in areas where its customers and employees are not at
risk from a lack of safe drinking water and basic sanitation and poor health
and hunger that follows. Business needs access to water in order to produce
goods and services.
To make progress there is a need to create an enabling environment to encourage
new investment in water infrastructure. This requires governments to put
in place:
- Effective water law and regulatory mechanisms to provide an investment
friendly environment
- A decision making process that is open, transparent and accountable
to water service customers
- Improve governance and stamp out corruption
- Full cost recovery for water services so that water systems are sustainable
– governments will decide how to finance these costs through user
charges and general revenue
- Appropriate pricing policies to send conservation and investment signals
– recognizing that special arrangements will be needed for those
unable to pay the full cost
More effective targeting of Overseas Development Assistance (ODA) can help
local and national governments in creating this enabling environment. Use
ODA:
- To build capacity and improve governance
- To assist those who cannot pay the full cost of service
- To leverage additional private sector investment in water and sanitation
infrastructure
Since Rio industry has been active and made significant progress. In 1998,
in cooperation with UNEP, WBCSD published 20 case studies demonstrating
how industry has reduced water consumption per unit of production, recycled
water, and reduced pollution and actively encouraged water conservation.
(Industry, Freshwater and Sustainable Development). Industry is committed
to continuous improvement of water management in all sectors.
At the World Summit in Johannesburg, WBCSD launched its third water report,
Water for the Poor which is an action oriented road map for delivering water
services to the poor. The key messages are:
- Accelerate the introduction of public-private-partnerships to improve
and expand water service to the poor through an open and democratic process
- Improve the basic framework conditions at local and national levels
to encourage greater private sector investment and participation in water
services through a wide-range of partnerships
- Create regulatory mechanisms and good governance systems to (1) protect
the public interest from excessive charges, (2) ensure that water service
providers recover the full cost of providing the service, and (3) ensure
service levels promised are delivered.
Governments must own and control water on behalf of all their citizens.
Business is advocating efficient delivery of water services by everyone
including the private sector.
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