Economic impacts of sanitation in Southeast Asia : a four-country study conducted in Cambodia, Indonesia, the Philippines and Vietnam under the Economics of Sanitation Initiative (ESI)

Sanitation is a neglected aspect of development in countries where spending is limited, and where many other priorities crowd the agenda. In Asia, sanitation coverage has increased gradually as economic growth has spread to the poorer countries. However, hundreds of millions of people in the region still lack access to improved sanitation, which is seen more as a result, rather than a cause, of economic growth. Few governments and households identify poor sanitation as an impediment to economic growth. The considerable socio-economic importance of sanitation shown in this study, and the links that improved sanitation has with other development goals (poverty and hunger reduction, gender equality, child health, access to safe drinking water, and quality of life of slum-dwellers) demonstrate that sanitation should receive far greater attention from governments and other development partners whose interest is the equitable socio-economic development of countries of East and Southeast Asia.
This report aims to show decision-makers at country and regional levels how the negative impacts of poor sanitation can be mitigated by investing in improved sanitation. It claims that improvements in the sanitation sector will not only result in economic savings but will also lead to gains that go beyond the simple mitigation of costs. The major health, water, environmental, tourism and other welfare impacts associated with poor sanitation in Cambodia, Indonesia, the Philippines and Vietnam are examined. The economic impacts of poor sanitation, and the potential gains from improved sanitation are elaborated, and important evidence to support further investments is provided.