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Submitted by Shanta on

Good question, Dev. Insofar as sanitation is a local public good, the local community should finance it. But there are variations to this precept. For instance, the externality could spill over to the neighboring community. And the power relations within the community may mean that the community decides not to spend on sanitation and instead rebuild the village head's house. For these reasons, it is probably better if a higher-level government at least monitor and, if necessary, finance part of the sanitation program. Regards, Shanta