Last week, on April 20th, Matt Damon, co-founder of Water.org, addressed ministers of finance, water, and sanitation from across the world at the Sanitation and Water for All (SWA) Finance Ministers’ High Level Meeting at the 2017 World Bank-IMF Spring Meetings. The meeting focused on finding ways to fill the enormous financing gap via innovative financial solutions. Mr. Damon urged ministers to consider the full breadth of financing options to achieve the goal of providing safe, affordable, and sustainable water and sanitation for all.
It’s been 27 years since I have been to Sweden, backpacking my way around the country and marveling at its beautiful natural environment. So it was with real excitement that I set off for the SIWI World Water Week in Stockholm that ran between 23-28 August. I was especially keen to understand better the big issues that the world is facing, particularly since the theme this year was “Water for Development.”
My World Bank colleagues, and particularly those from the Water Global Practice, were well represented and participated in 13 of the events during the week, so the stage was set for serious discussion. As part of that discussion, I presented on the challenges of financing for development in the water sector. I wanted to leave the audience with three key messages. These were that (1) water is physically but not financially transparent; (2) financial innovation has to be conducted in parallel with and reflect the transitional nature of capital markets and (3) other sectors can give us guidance.
The World Bank at World Water Week 2015
As the global focus shifts to the Sustainable Development Goals (SDGs), and achieving universal access to water and sanitation, there will clearly be a need to mobilize private capital to help finance the necessary infrastructure. The Global Water Practice at the World Bank has been working with key public and private sector partners in over ten countries to mobilize domestic credit and address operating inefficiencies which negatively impact on the delivery of water and sanitation. To scale up (“billions to trillions”) it will be necessary to consider the incentives needed to attract and sustain such capital flows.