Discussion 5

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University Of Arizona *

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Economics

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May 4, 2024

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docx

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How can the integration of WaSH into the private sector advance the WaSH agenda? The financial burden of an effective WASH system and services on developing countries is a key issue as to why they still lack clean water and sanitation. According to UNICEF (2022), “ WASH services require strong national policies, financial systems, and monitoring in order to be sustainable, resilient and accountable”. Since in developing countries, institutional structures are still unstable, investment from the private sector would allow for a larger budget for WASH services and systems, especially WASH infrastructure (UNICEF, 2022). Since the private sector can be held accountable for up to 60% of a country’s GDP (Gross Domestic Product), it is evident that the private sector does have the financial means to contribute to public infrastructure (Aidoo, 2022). According to the UN, to reach their SDGs (Sustainable Development Goals), it will cost upwards of USD$4 trillion per year for developing countries to have adequate infrastructure for WASH by 2030 (Aidoo, 2022). The private sector has the power to meet these goals globally if they wish, however there is little incentive for them to invest in a low yield return such as WASH, however, in Ghana, the president met with key players of the private sector to incentivize them to invest in public infrastructure (Aidoo, 2022). The public sector along with the government can also help enable the private sector to invest more heavily in WASH by being more specific on what the private sector can invest in, whether it be specific infrastructure like waste-dumping sites, or sanitation system construction (Mason et al., 2022). If we can show the private sector what areas of WASH have the “biggest payout” or highest promise, they may be more compelled to assist financially. (Mason et al., 2022). References: Aidoo, D. (2022, July 27). Private sector, a beacon to accelerate wash services for Agenda 2030 in Ghana . Citinewsroom. https://citinewsroom.com/2022/07/private-sector-a-beacon-to- accelerate-wash-services-for-agenda-2030-in-ghana/ Mason, N., Matoso, M., & Smith, W. (2015). Private sector and WASH. In Private Sector and water supply, sanitation and hygiene (pp. 43–50). ODI. http://www.jstor.org/stable/resrep50854.9 UNICEF. (2024). Strengthening water, sanitation and hygiene (WASH) systems . https://www.unicef.org/wash/strengthening-systems
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