UNITED NATIONS, Jul 1 2009 (IPS) – Poor sanitation and hygiene costs the Lao People s Democratic Republic 193 million dollars per year, an estimated 5.6 percent of gross domestic product, according to figures from the Water and Sanitation Programme (WSP) of the World Bank.
Poor sanitation, including hygiene, causes at least three million preventable diseases and 6,000 premature deaths in Laos annually. Credit: World Bank
A May report called Economic Impacts of Sanitation in Lao PDR and compiled under the Economics of Sanitation Initiative (ESI) showed for the first time that a significant number of people living with unimproved household sanitation impose a large financial and economic loss on the Lao PDR economy, not only to private individuals but also to the public and commercial sectors.
The study found that health contributes 60 percent to overall estimated economic costs, followed by 18 percent for accessing clean drinking water, 13 percent for additional time to access unimproved sanitation, and nine percent due to tourism losses.
These impacts are expected to cause a mixture of direct financial losses as well as indirect or non-monetary economic losses to the Lao population, who have to pay for health services or for accessing clean water supplies, or who may lose income due to poor health, said Guy Hutton, the report s author and a senior economist with the WSP.
The report says that poor sanitation, including hygiene, causes at least three million cases of preventable disease and 6,000 premature deaths annually, costing the economy more than 115 million dollars per year.
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It also contributes to water pollution, adding to the cost of households accessing safe and clean water supplies, with economic costs exceeding 35 million dollars per year.
Additional time required to access unimproved sanitation and possible tourism losses cost Lao s economy 25 million dollars and 17 million dollars, respectively, due to poor sanitation.
The study also highlights the link between sanitation and the Millennium Development Goals (MDGs), which specifically include improving access to sanitation globally, but also address poverty reduction, gender equality, child health, and access to safe drinking water.
Sanitation improvement contributes to many of Lao PDR s development goals, Hutton told IPS.
The WSP economist said that improved sanitation leads to less polluted wells and surface water, which will help reach the safe drinking water access MDG.
In terms of health, improved sanitation will reduce transmission of deadly water-borne diseases.
Prevention is better than cure, Hutton told IPS. It averts the entire health burden, and avoids the treatment costs.
He added that better sanitation would also result in improved school enrollment, attendance and completion, and higher quality of life for students.
Hutton argued that improved sanitation is a driver and not just a result of economic growth, playing a significant role in reaching gender equality.
Sanitation restores dignity, especially for girls and women, and promotes equality because it is the poorest and most vulnerable who lack it, said Hutton.
Asked why sanitation is commonly neglected by governments despite the available evidence of its severe consequences, Hutton cited very limited public resources for social development. This is certainly the case in Lao PDR, one of the world s least developed countries, with many other more visible development priorities such as roads, schools, and health centres.
Another reason, according to him, is the fact that because it is a household item, governments expect people to invest in toilets themselves, with the attitude that if people really want them, they will find the means.
A large share of the allocation to water and sanitation goes to water and large-scale urban projects such as drainage, which have higher political profiles than rural provision. Sanitation is also an issue hidden from public view it is not a hot topic for debate, neither for communities to talk about, nor newspapers and politicians, said Hutton.
The World Bank economist called on governments to free up more funding for sanitation to avert the short- and long-term economic losses, as well as to improve evidence-based planning by developing a sector strategy based on better knowledge of the costs and benefits of improved sanitation.
The Sanitation Impact Study was conducted in five countries: Cambodia, Indonesia, Lao PDR, the Philippines, and Vietnam. The study took two years to complete.
