Of All Trades • 10 implied HN points • 12 Mar 26
- There are huge economic returns to water and sanitation, but misaligned incentives and weak institutions mean new projects are often built and then neglected instead of properly maintained.
- Relying on external funding without building local capacity leaves systems fragile, so when major donors or lenders withdraw support the services quickly collapse.
- Practical institutional fixes — like giving utilities operational autonomy, enforcing billing, deploying smart prepaid meters, and tackling rent-seeking — can make water systems financially self-sustaining and reliably expand access.