Environmental Law, Policy & Economics

Decentralization of Water Supply and Sanitation Services in Latin America

Presented By: Morris Israel and Fred Rosenweig from United States Agency for International Development

Date: November 16, 2000

Summary:

Israel: There are different definitions of decentralization: devolution, deconcentration, and delegation. Possible objectives of decentralization are to improve water service delivery, to strengthen local governments, and to improve health and the environment. Reform of the water supply and sanitation sector is underway throughout Latin America, but different philosophies on sector reform exist within the countries and among donors. Currently, there is increased attention to water and environmental issues, but inadequate attention to the effect of reform on the less advantaged populations of rural areas and small towns. The trend is to ask municipalities to assume responsibility for service delivery. The key issues in decentralization are: cost recovery, cost effectiveness, regulation, sector planning, environmental management and health promotion. The problems are that small and medium sized towns are being neglected, the current infrastructure is inadequate and there are insufficient funds to finance new investment or adequate operation and maintenance. The institutional structure is not set up to support rural communities, which have fewer resources and less capability to deliver services. Central governments fail to involve key stakeholders in discussions of decentralization.

Rosenweig: USAID developed case studies around three themes: (1) Management models for small towns, (2) Institutional arrangements for providing backup support to rural communities, and (3) Regulation of municipal services. Rosenweig went through USAID’s findings for each of these themes. His overall observation was that decentralization is a slow process and that a key issue is who is involved in the decisions about decentralization and how these decisions are made.

Comments: Short minutes and the power point presentation are on file. These provide only a skeleton of the presentation as described above.