Abstract
Abstract This editorial argues that the use of the three ‘T's financing source framework (taxes, tariffs and transfers) leads us to ignore key costs to the customer, especially the poor customer, of accessing an adequate level of the water, sanitation and hygiene (WASH) service. These costs include household investment (HI) for self-supply (commonly excluded from tariffs). We propose an adaptation to the framework, which we call ‘HI and the three T's’.
Highlights
This editorial argues that in order to properly understand financial flows in water, sanitation and hygiene (WASH) and develop appropriate policies that there is a need to explicitly add household investments (HIs) to the vocabulary of the three ‘T’s financing source framework
A stronger emphasis on research that enables a better understanding of HIs on WASH is needed
We propose a change of vocabulary from the three ‘T’s to ‘HIs and the three ‘T’s’
Summary
Based on survey responses by 25 national governments in 2016/17, the Global Analysis and Assessment of Sanitation and Drinking-Water (GLAAS) reports that an estimated 66% of US$ 43 billion of annual WASH expenditure (i.e. US$ 28 billion) is from household contributions (WHO a). The corresponding household contribution figures for 2018/19 from 35 responses were 66% of $52 billion (i.e. 34 billion) (WHO ). Household contributions refer to both tariffs (as defined above) and HIs in selfsupply. The UN-Water/WHO TrackFin initiative is trying to address major information gaps by encouraging countries to adopt a methodology to track financing to the WASH sector, referred to as WASH accounts (WHO b). User expenditure on self-supply is one of six defined financing types alongside five others, i.e. Donations, (iv) voluntary contributions/grants and (v) repayable financing
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