Development Aspects Impressum Editors

Institutional quality

The effectiveness of the legal framework of the sector depends on the bases and the technical consistency of the instruments it comprises. This would not be enough, however, if it is not implemented by a specialized institutional organiza- tion which is experienced, stable, capable, independent and objective. Services should be provided by a diligent, efficient and transparent operator. Bearing in mind the considerable economic resources involved in the sector, the achievement of effectiveness in this context requires efficient anti-corruption measures. The sector’s performance, therefore, is heavily dependent on institutional quality. Chile and Uruguay, which are well qualified in indicators of perception of corruption and governance, are also noteworthy for their high levels of coverage and quality in drinking water supply and sanitation services.

4. Urbanization

Growing urbanization in the countries of the region, together with rising levels of exclusion and poverty, have made it more difficult to progress towards the targets of universal service coverage and improved quality. As a result, the countries have been faced with growing unmet demands. In most cases, this has delayed yet fur- ther the progress towards the agreed targets.

5. Payment culture

Chile has an outstanding payment culture and, since tariffs fully cover the cost of service provision and consumers are billed on the basis of the quantities used, the economic cost of services is properly valued and there are incentives to use them efficiently. In the Buenos Aires Metropolitan Area, however, tariffs do not cover operating costs. Moreover, payment is in the form of a fixed charge and the micro-metering of consumption is not widespread, leading to bad habits of waste- ful water use.

Popular recognition that having drinking water and sanitation services avail- able entails monetary costs which must be paid by service users is an important condition for the sustainability of the system and a clear signal to the responsible authorities that they must act in accordance with that behaviour.

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