The question of how to finance water and sanitation is crucial. Leading international institutions emphasise the role of private finance despite major concerns. The idea that private finance can bring the needed investment is remarkably persistent in global policy circles and leads to a dangerous lack of attention to the far more realistic option of mobilising public finance for infrastructure to provide essential services for all.
A return to public forms of administration in water supplies is a phenomenon that has been spreading globally. Over the past 15 years almost 235 cities around the world, among them Paris, Berlin, Budapest, Buenos Aires and Kuala Lumpur have either terminated or have desisted from renewing the contracts with private concessionary companies. In the Netherlands, Belgium, Austria and the Scandinavian countries, for example, water delivery is, by a tradition, almost 100 percent public.