Experts call for State involvement in provision of basic services

Accra, Dec. 4, GNA - A group of international experts and policymakers met in Geneva late November to identify innovative ways for governments to work in partnership with the private sector to provide services such as safe water, energy and education and health care at reasonable cost.

The experts evaluated successful and unsuccessful policies and tools that governments have used to promote universal access to such services, independently and through public-private partnerships (PPPs). Information note emailed to the GNA on the meeting said the scope of the challenge was daunting as over one billion people lacked access to clean drinking water and over two billion lacked basic sanitation services.

Safe water is available to only 56 per cent of the population of Sub-Saharan Africa, and despite renewed international commitments and efforts, half the population of developing countries still does not have access to improved sanitation.

The note said without such foundations as schooling and good health, families had great difficulty climbing out of poverty, and local economies could not find the wherewithal and the employees to establish new businesses and grow.

"For wider economic growth, especially in an era of intense global competition, developing countries have to get such critical baseline factors in place as educated populations and widely available electricity; transportation; banking and communication services," it said.

It said without such basic needs, developing countries and their citizens have little chance of benefiting from the economic opportunities globalization offers.

"Concern over basic services is widely reflected in the targets set by the Millennium Development Goals (MDGs)." The note said the PPPs, which have been broadly advocated over the last two decades under privatization and trade liberalization programmes, have had mixed results.

"The intent was that such partnerships would stimulate competition; attract private investment; and generate access for the poor to such basic goods as water, sanitation, and electricity. "But in many cases, affordable access did not result -- fees increased, and the poor were most often those denied access," it noted. The experts recognized the rationale for government involvement in providing such services, but less agreement existed on what was the best "policy mix."

One policy recommendation that was supported across countries was that user fees were often detrimental to universal access to essential services such as education and health care.

Less common ground has been found on what clear policy guidance can be given on private sector involvement and the use of market-based policies in achieving universal access to essential services.

Although opening to foreign providers can extend access to disadvantaged and marginalized social groups, the success of private sector involvement depends on the type of services, the competitive situation in the industry concerned, and the manner in which private participation is introduced such as, public consultation, transparent decision-making, complementary policy, and regulatory involvement. It was also felt that when dealing with the provision of basic services, there was a need for caution and careful consideration of international binding commitments made under the General Agreement on Trade in Services (GATS).