The Economic Impacts of Poor
Sanitation in East Asia
Economics of Sanitation Initiative Phase 1
Guy Hutton
Dollar per capita per annum
Impact per person is greatest
in the lowest coverage countries
200
180
160
140
120
International Dollar (ID)
100
United States Dollar (USD)
80
60
40
20
0
Cambodia
Lao PDR
Indonesia
Average
Philippines
Source: Economic impacts of sanitation in Southeast Asia. WSP/World Bank. 2008.
Vietnam
2
Poor sanitation has major
and diverse impacts
8
7
6
Tourism
User preferences
Environment
Water
Health
5
4
3
2
1
0
Cambodia
Lao PDR
Indonesia
Philippines
Source: Economic impacts of sanitation in Southeast Asia. WSP/World Bank. 2008.
Vietnam
3
Sanitation is a good buy!
14
12
10
8
Including
value of health
(diarrhea) and
access time
gains only –
the return on
investment is
at least 6
times
Sanitation
WSS
6
4
2
0
Sub-Saharan
Africa
East Asia &
Pacific
South Asia
Non-OECD
Source: Global cost-benefit analysis of countries off-track to meet WSS MDGs. WHO. 2004.
4
Sanitation is a good buy!
Economic Rates of Return – the most consistently
available economic indicator in the preparation of WB, AfDB, AsDB
grants & loans - were
from 10% to 40% in 15 African and
Asian countries most off-track to meet the WSS MDG target
Economic rate of return (%)
60%
50%
40%
30%
20%
10%
0%
1
2
3
4
5
6
7
8
9
10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38
Source: preparation of economic briefings for High Level Meeting on Sanitation and Water for All:
a Global Framework for Action, UNICEF & WaterAid.
5