F. Hagos, T. Slaymaker, J. Tucker, E. Ludi, E. Boelee & S. Awulachew: Poverty impacts of improved access to water and sanitation in Ethiopia

It is often argued that investments in water supply and sanitation (WSS) generate wide-ranging economic benefits. At the household level improved access to WSS is expected to lead to significant improvements not only in human health and welfare but also in levels of production and productivity. Investments in WSS are therefore considered important instruments for poverty reduction, but empirical evidence to support this remains quite limited. This study presents micro-evidence from a survey of 1500 households in Ethiopia on the economic impacts of improved access to WSS. We found that access to improved WSS has a strong statistical association with increased household water consumption and decreased average time spent to fetch water. Because of this time saving, household members with access to improved sources were also found to be more likely to participate in off-farm/non-farm employment. We also found strong evidence of positive impacts of improved access to WSS on health; although there are indications some type of illnesses may also have increased (e.g. water borne diseases). This evidence clearly shows that improving access to water supply infrastructure alone is not sufficient to bring about desired public health benefits. Interestingly, households with access to improved water supply and agricultural water were found to have significantly lower overall and food poverty levels in terms of incidence, depth and severity of poverty. Therefore, the pathways through which improved access to water supply has impacted poverty reduction in the study areas had to do with direct improved health benefits and through time-saving benefits induced increased participation of households in off/non-farm employment and irrigation. Determinants of off/non-farm employment and poverty were systematically analysed and factors identified and recommendations made to enhance these poverty impacts of water supply improvements. [authors abstract]