A summary of the paper:
The paper seeks to
synthesize the extensive body of literature on this subject into a broad
overview, providing some examples of the historical trends in financing, and
taking lessons learned from developed to developing countries. Most of the
published literature on this topic emphasizes the need for additional financial
resources to respond to increasing demand for services. Furthermore, the
studies are limited primarily to the water supply and sanitation sector and rely
heavily on illustrating means of increasing private sector participation and
private financing. In contrast, this paper defines new challenges in the wake
of the recent global financial crisis and provides insight into improving the
efficacy of water supply, sanitation, and irrigation infrastructure finance from
public and private sources. Given that in developing countries around 75
percent of investments in water are from public resources (loans, grants,
technical assistance), this paper emphasizes the importance of efficiencies in the
investment and monitoring of public spending. In many instances, additional
financial resourceswill not necessarily
result in increased access and better services, but efficiency improvements
will reduce overall financing needs; a crucial factor in this era of financial
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