Piloting of a market-based approach to rural sanitation in Vietnam EASAN Vietnam Task Force November...
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Transcript of Piloting of a market-based approach to rural sanitation in Vietnam EASAN Vietnam Task Force November...
Piloting of a market-based approach to rural
sanitation in Vietnam
EASAN Vietnam Task ForceNovember 2007
Background
• Challenges in achieving MDGs & national targets for sanitation with conventional approaches
• Resources available from community and private sector
• Potential market for sanitation
The Project• Some figures:
– 3 years (2003-2006), US$ 538,000 (DANIDA), IDE supported
– 30 coastal communes, 6 districts, 2 provinces– 54,000 rural families, 19% poor
• Two research questions:(i) would rural families invest in latrines when a
range of low-cost models are available?(ii) can promotional campaigns influence
household decisions to invest and change their sanitation practices?
The Approach• Treat poor people as potential customers,
rather than recipients of charity No material subsidy or handout
• Using business principles to facilitate unsubsidized market systems in which the rural poor can participate Project to be implemented through profitable private sector/small micro enterprises
Conventional vs. MarketBased Approaches
Conventional Approaches Market-based ApproachesHeavy subsidies for capital cost Subsidies for market
development. Full capital cost recovery from users
Standardization of models A range of affordable optionsDecision making by external agencies
Users decide what and how to buy
Focus on infrastructure target Focus on behavioral targetsFocus on centralized service provision
Focus on diversified local service provision
Project ProcessesSituational Analysis1
Market Assessment2
Development of Market-Based Solutions3
Monitoring & Evaluation5
Implementation of Interventions4
Key Market-Based Activities• Conduct market assessment• Select/adapt appropriate technology options
for the poor• Build capacity for private sector service
providers (local masons)• Develop, test and deliver marketing
campaigns to stimulate demand and adoption of hygiene practices
• Facilitate demand-supply linkages
Supply
MasonMason
MasonMason
MasonMasonDemandHHHH
HHHH
HHHH
HHHH
HHHH
HHHH
HHHH
HHHH Household without a hygienic latrine
Implementation StructureDistrict Steer. Com.
Commune Steer. Com.
Commune Steer. Com.
VP VPVP
VPVP
VP Village Promoter
Project Results• Coverage increase: from 16% (2003) to
46% (mid 2006)• ~16,000 latrines/per year: ~4 times
compared with average previous 4 years• Families invested more than USD 1 million • Leverage ‘Project : Household’ ratio = 1:2• 90 masons involved: 250,000 USD profit
Lessons Learned• The market-based approach CAN work for
sanitation: Poor people’s willingness to pay can be
stimulated Local private sector can respond to
market demands• Market-based approach shown to be
more cost-effective and sustainable
Way Forward• Test/pilot ways to scale up recommendations in
the WSP-supported study 2005 (not initiated yet)
• Test scaling up at the provincial level (initiated in one northern province)
• Replicating market-based approaches to very poor, ethnic minority communities (on-going in a central province)
• Disseminate to other countries (planned for Cambodia next year through SAWAP)
Challenges to Scaling-up
• High degree of segmentation requires tailored strategies and designs
• Limited buy-in from social sector• Limited grass roots level implementation
capacity