Promoting Sanitation Markets at the Bottom of the Pyramid in Peru : A Win-Win Scenario for Government, the Private Sector, and Communities

Abstract

Launched in 2007, the Creating Sanitation Markets (CSM) initiative is a multi stakeholder effort led by the World Bank's water and sanitation program to explore new alternatives for increasing access to quality household sanitation in Peru. The approach is premised on a market-based system for sanitation at the bottom of the pyramid, introducing a new paradigm for local sustainable development with the participation of private enterprise. The model seeks to build an equitable and harmonious relationship between supply and demand, through development of products and services that meet the expectations and needs of populations, encouraging the state to assume a promotional role for the development of local entrepreneurship and the education of citizens, and development of financial options that allow the matching of supply and demand. The smart lesson below shows what authors have learned from four pilot projects in Peru-urban and rural areas that have contributed to innovation in the sanitation sector by adding new players and resources and opening new opportunities for improving access to sanitation while moving the agenda beyond coverage and poverty.