This paper analyzes development trends in water and sanitation policies and strategies of donor organizations and developing countries. The review covers Finnish development assistance and recent water and sanitation sector policies of Kenya, Zanzibar, Sri Lanka and South Africa. Donor agencies have earlier concentrated on fashionable issues that have once been considered crucial, but a holistic and systemic approach has been lacking. Integration of water and sanitation policies with other sector policies is important. Implementation of reform processes in the field has often failed, because involvement and commitment of stakeholders at all levels has been inadequate. It is essential to build the capacity of sector professionals, civil society and communities to understand, commit to and promote the new policies. Successful policy and reform implementation requires political will and facilitation, but technical, economic, environmental and social considerations are also important. The impediments to implementation are complex, and effective solutions are demanding and highly interrelated. Futuristic systems thinking and visionary approach are useful tools in dealing with the complex institutional environment and assessment of future reform impacts.
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