Abstract

This paper explores aid effectiveness by studying the effect of aid, aid volatility, and key development indicators, focusing on safe access to water and sanitation (W&S) in both urban and rural ar...

Highlights

  • Pressure for sustainable development has grown in recent decades

  • We focus on the effect of W&S—targeted aid and aid volatility, whilst taking into consideration the different factors that affect the development of water and sanitation subsectors

  • Global concern relating to W&S and the realization of its role in alleviating poverty, promoting economic development and health is apparent in the proportion of water aid in bilateral aid over the period 2001–2016, which is approximately 9% of the official development assistance (ODA)

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Summary

Introduction

Pressure for sustainable development has grown in recent decades. The World Bank and other international institutions are increasingly concerned with the role of water in economic development. The first message links the improvement of water resources to growth and concludes that poor countries with good access to water resources and sanitation exhibited annual economic growth of 3.7% whereas those with poor water and sanitation (W&S) saw growth of 0.1% These two subsectors are highly affecting the health sector, where the WHO (2008) estimated that, globally, more than 80% of diarrhoea accompanied with 1.5 million deaths each year is caused by inadequate sanitation, polluted water or by poor access to safe water. Hutton, Haller, and Bartram (2007) in a cost benefit analysis of improved W&S concluded that benefits exceed costs in all world sub-regions and the return on a US$1 investment was between US$5—US$46 in developing regions They estimated that a US $1 invested in safe water supply, sanitation and hygiene (WASH) gives a payback US$8 economic benefit. $357,788 (95% $345,509 -$370,067) in out-of-pocket diarrhoea treatment expenditure

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