Models of Subsidies for Water and Sanitation Services for Vulnerable People in South American Countries: Lessons for Brazil

Abstract

Access to water and sanitation services (WSS) in developing countries is constrained by the conditions of social inequality and the services affordability for the poorest households. Therefore, public policies related to WSS need to broaden in scope given the challenge of reaching all customers, especially the most vulnerable, in order to achieve a balance between the social and financial objectives of WSS. This paper will contribute to the understanding of the main access and subsidy policies in South American countries focusing on the Brazilian case study. The different experiences in this region have provided some interesting lessons about these issues for Brazil; the conclusion is that the current indirect and cross-subsidy policies are important, but the needed practices for expanding pro-poor access require direct demand-side subsidies. A more proactive intervention through public authorities is also needed. A new subsidization model for Brazil is highlighted and discussed.

A Qualitative Analysis of Factors Influencing Household Water Treatment Practices Among Consumers of Self-Supplied Water in Rural Ethiopia

“…Cash access among primary caregivers is a critical component of consistent water treatment and in the context of endemic poverty, the lack of access to cash may constitute the only barrier to continued use for many. 30 Community values are a collection of priorities representing one's feelings of connection to a community. To the degree that they associate with a specific group, individuals are more likely to accept a community's values as their own.…”

“… 29 Given that a repeatedly documented obstacle to sustained use has been the lack of affordability of water treatment products, it seems likely that attempts to minimize the cost of such products or to keep the price as low as possible could increase their use. Evidence suggests that public subsidies have worked in other countries, 30 despite the Ethiopian policy that stipulates zero subsidies for household water treatment products. This indicates that some flexibility concerning water subsidies might be needed in Ethiopia.…”

“…Cash access among primary caregivers is a critical component of consistent water treatment and in the context of endemic poverty, the lack of access to cash may constitute the only barrier to continued use for many. 30 …”

Access to Water and Sanitation Services in Brazilian Vulnerable Areas: The Role of Regulation and Recent Institutional Reform

“…In Brazil, approximately 21% of the population is enrolled in the program for social assistance of the federal government (CadÚnico). Nevertheless, many do not benefit from social tariffs, either because they do not require it or are not eligible or even because they are not connected to the WSS [40]. The national WSS policy aims to guarantee adequate means to connect the dispersed rural population and irregular areas, along with other vulnerable populations.…”

“…In addition, the pressure to increase the value of tariffs is clear, which, along with the mandatory connection, can put strain on the budgets of low-income households. Please note that the average tariff in Brazil is already high considering the context of the country and the reality of other regional countries, which constrains the affordability of the population [40].…”