Many little streams make a mighty river – the 1 per cent solidarity levy

Water Justice report from World Water Week Day 2

23 August 2011

How an innovative financial scheme could help to finance international public-public water projects in the global south.

Presumably few Europeans would oppose one percent of their water bill going to international solidarity projects to help people who don’t yet have accesses to safe water and adequate sanitation. And as the Swedish proverb says, many little streams make a mighty river: the combined sums can make a real difference. In some countries a 1% solidarity levy is already common practice. It is implemented in municipalities in France, Switzerland, Italy and Spain; also in the Netherlands, a national law allows public water companies to use one percent of user’s fee for solidarity projects in the global South.

The huge potential of this approach became clear during the Stockholm Water Week seminar on ‘Implementing the Right to Water: through the 1% Solidarity Levy’. The seminar was organized by UNDP and the UN capital development fund (UNCDF), who actively promote this policy globally. The 1% solidarity levy is an innovative financial scheme that enables public water companies to implement international cooperation projects. This overcomes the hurdle that it is otherwise often difficult for public water companies to legitimize spending revenue outside of their service area. Amsterdam’s public water company Waternet, for example, uses this funding mechanism to implement public-public partnerships in Egypt, Indonesia and elsewhere.

Citizens in 80 municipalities and communities in Switzerland proudly contribute to development objectives through the 1% policy, Manfred Kaufmann of the Swiss Agency for Development and Cooperation told the seminar participants. Also NGOs working with partners in the global south play a big role in the Swiss model, which involves a national coordination body, Solidarit'eau Suisse. Projects proposed by NGOs are assessed by an independent experts committee and money collected by municipal water companies made available for those projects that are approved. Solidarit'eau Suisse raises 2 million euro annually, based on the voluntary commitment by the 80 municipalities involved, and 20 projects are implemented. The sums raised in countries like The Netherlands and France are substantially higher. Imagine if all OECD countries introduced similar financial schemes: very significant funds could be raised. This would allow public water company to play an active role in helping other utilities, on a solidarity basis. Currently, not-for-profit partnerships among water operators are depending on aid money from donor agencies. The 1% solidarity levy is the one of the ways to raise additional and more autonomous finance for not-for-profit partnership projects.

Photo by Ted van Pelt

About the authors

Satoko Kishimoto

She was an environmental activist and active in the youth environmental movement in Japan in the 1990s. She began working with TNI in 2003, at the time of 3rd World Water Forum held in Kyoto, Japan. TNI successfully organized a seminar on Alternatives to Water Privatisation, which was the starting point of the Water Justice Project. In 2005, the Reclaiming Public Water (RPW) Network was created with the contributors to the book 'Reclaiming Public Water'. TNI serves as the coordinating hub of the RPW network and Satoko is the coordinator of the network. The RPW network connects activists, trade unionists, researchers, community activists, and public water operators from around the world, and advocates progressive public water reforms and Public-Public Partnerships as the key elements for solving the global crisis in access to clean water and sanitation. 

Recent publications from Water Justice

Here to stay: Water remunicipalisation as a global trend

In the last 15 years there have been at least 180 cases of water remunicipalisation in 35 countries, both in the global North and South, including high profile cases in Europe, the Americas, Asia and Africa

The Global Ocean Grab: A Primer

This primer unveils a new wave of ocean grabbing, answering the most important questions about the mechanisms that facilitate it and the impacts on people and the environment.

Reorienting Development: State-owned Enterprises in Latin America and the World

Reorienting Development analyses what the nature, advantages, limitations and challenges of public companies are. It also offers new theoretical and conceptual insights on the nature and roles of the state and the controversial meanings of development.

Remunicipalisation

After decades of failed water privatisation, cities like Paris are starting to bring water back into public hands. Download this free 'must-read' book for policy makers and activists looking to democratise water services.