Economic and health effects of increasing coverage of low cost household drinking-water supply and sanitation interventions to countries off-track to meet MDG target 10 : background document to the "Human Development Report 2006"

This study models the economic and health impacts of low cost water supply and sanitation improvements in countries where the predicted coverage in 2015 falls short of the water supply and sanitation MDG targets, with the aim of focusing existing budgets as well as new resource allocations on the achievement of the Millennium Development Goal targets in these off-track countries.
Results are presented for 6 non-OECD developing world regions, based on the UNDP classification. Predicted reductions in the incidence of diarrhoeal disease are calculated for each intervention based on the expected population receiving these interventions and the relative risk reductions of populations moving to lower risk exposure scenarios. Deaths averted are estimated based on a region- and age-specific case fatality rate for diarrheal disease. The costs of the interventions include the full investment and operation and maintenance costs of the selected low-cost interventions. The benefits of the interventions include time savings associated with better access to water and sanitation, gain in productive time due to less time spent ill, economic gains associated with saved lives, and health sector and patient costs saved due to less health seeking
An important caveat of a global study such as the one presented here is the uncertainty in the results. While cost-benefit analysis can be carried out to identify all the beneficiaries and the (potential) financers, the analysis does not provide direct answers to the question of who is able to pay. A wide variety of financing mechanisms to encourage the necessary improvements is imperative.