Financing of rural water supply systems from a rights perspective:
A case study of the rope pump in Nicaragua
Rachel Blackman
A report based on dissertation for
MSc Poverty Reduction and Development Management 1998-9
International Development Department
School of Public Policy
University of Birmingham
United Kingdom
Abstract
More than one billion people worldwide currently lack access to safe drinking water. This study examines the issue of payment for water supply systems in rural areas from a rights perspective, focusing on the rope pump in Nicaragua. This low-cost, appropriate water-lifting technology was pioneered in Nicaragua, largely by the private sector, and has proved to be something of a success. Indeed, worldwide interest in the technology has now been raised. This study aims to facilitate the transfer of the technology by addressing issues surrounding financing of the rope pump.
As the global effort to ensure that all had access to safe drinking water during the 1980s was slow and wasted resources, the World Bank is now promoting the Demand Responsive Approach (DRA), led by beneficiary willingness to pay. The intended result is twofold. First, cost-recovery means that limited government and donor budgets can be spread further. Secondly, a sense of ownership resulting from user-financing encourages user maintenance and repair, which contribute to sustainability of the water supply system. Alongside the promotion of the DRA is growing recognition among development actors of the rights approach to development. These two phenomena could be in conflict.
This study aims to answer a number of questions. How does the rope pump meet the needs of rural Nicaraguans? In what ways is user-financing of capital and recurrent costs beneficial? Is user-financing a precondition for sustainability of the water supply system? Could user-financing result in exclusion of the ultra-poor? Should credit be used to facilitate user-financing of capital costs? Does user-financing conflict with the right to clean drinking water?
This study finds that the rope pump has user and institutional acceptance in Nicaragua. The common belief that sustainability is dependent on recovery of capital costs is brought into question because rope pump users take responsibility for maintenance and repair regardless of whether they paid the capital cost of the pump, facilitated by fact that this is simple and cheap to do. Therefore government donation of rope pumps to beneficiaries should not come under fire, although the study finds that this limits coverage, especially as subsidies are not targeted effectively. Where possible, user-financing of the capital costs of the rope pump should be encouraged, especially as its low-cost is affordable for many. Findings show that credit programmes have been successful at facilitating this, although the importance of a flexible repayment mechanism is emphasised. The study finds that user-financing does not have to conflict with the labelling of water as a basic right. The state has a responsibility to see rights met, but other development actors, including the people themselves, have an obligation to contribute to the practical fulfilment of rights. This study concludes by applying these findings from the experience in Nicaragua to a wider setting. It makes recommendations with respect to payment to those considering transferring, promoting and implementing rope pumps in other southern countries.