High-Level Panel on Water and Financing
Given the colossal challenge of reaching the Millennium Development Goals on water and sanitation, new ways of financing at the local level must be urgently brought forth. While a wide range of experiences exist, there is a need to synthesize this information and make it available to national and district level leaders in many developing countries. Secondly, there is also a need for better understanding on the role of NGOs, businesses and government in promoting, supporting and developing micro-water water financing opportunities. Thirdly, bridges must be built between the micro-financing community and the water supply and sanitation community. This bridge can help to develop new financing products and services that are tailored to address local needs and deal with specific issues around developing water supply and sanitation. The setting-up of a High Level Panel on Water and Financing will help to synthesize the existing experiences and communicate the successes and opportunities of the application of micro-finance for access to water and sanitation.
The Panel which met at the 5th World Water Forum provided an opportunity for decision-makers to discuss how to increase the overall funding for the water sector, at a time of increasing social, economic and environmental challenges. Amidst voices from the floor contesting the legitimacy of the panel, international water and financial experts called upon governmental leaders and private institutions to make bigger and more strategic investments in water. The panel recommended that investment in water infrastructure be included in the fiscal stimulus packages currently being developed to address the economic crisis. In fact, the panel optimistically suggested that the water sector can actually benefit from the financial crisis, because it can force greater efficiency and innovation in resource management, stimulate growth, generate jobs and yield high returns against relatively low risk.