Developing countries could save billions of dollars if they start to invest in sanitation now, according to a new World Bank report which stated that investment in Water and Sanitation Program (WSP) in Asian countries would yield a rate of return from 30%-200%.
It added that between 1.3%-7.7% of Gross Domestic Product is lost because of a lack of sanitation. In five countries including Cambodia, Indonesia, Laos, the Philippines and Vietnam, economic costs amounted to over $9.2 billion a year due to poor sanitation and hygiene (in 2005 prices).
"We know from the that poor sanitation has considerable negative economic consequences for societies," said WSP's economist Guy Hutton, author of the report. "We are looking at how much of these costs can be averted, and which are the sanitation interventions that can bring the greatest economic and financial benefits and at least cost,"he said.
"The data are confirming our story for which we had little concrete evidence up to now: That investment in sanitation is an efficient use of a society's resources," WSP Regional Team Leader for East Asia and the Pacific Almud Weitz added.
"Governments not only possess the economic evidence that supports increasing budget allocations towards reducing the millions of people currently living without access to sanitation, with the analysis of a variety of investment options, they will now also be able to decide what would be the best use of additional funding made available for the sector. There is no more excuse not to act," he said, as quoted by Xinhua newsagency.
The WSP is a multi-donor partnership created in 1978 and administered by the World Bank to support poor people in obtaining affordable, safe and sustainable access to water and sanitation services.
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