Sanitation & Business

Almost two in every five people in the world lack access to adequate sanitation. A recent Water and Sanitation Program study showed that the lack of sanitation has cost countries anywhere from 1 percent to 7 percent of their GDP.¹¹ Losses due to lack of safe water and sanitation are substantial in some of the world’s poorest countries. “Sub-Saharan Africa loses about 5% of GDP, or some $28.4 billion annually, a figure that exceed[ed] total aid flows and debt relief to the region in 2003.”¹² On the other hand, “every $1 spent in the sector creates on average another $8 in costs averted and productivity gained.”¹³

A World Health Organization study recently showed that a dollar invested in water and sanitation could give an economic gain of between $3 USD and $34 USD, depending on the nation.¹⁴

Poverty stricken communities are disproportionately dependent on natural resources in order to live and generate income and therefore endure a heavier burden due to lack of adequate sanitation. At any given time, nearly half of the population of the developing world suffers from illness caused by lack of access to safe water and sanitation.¹⁵

Due to the high rate of diarrheal diseases worldwide as a result of inadequate sanitation, many are forced to miss work. In many places, sick individuals choose to work rather than lose pay. Their places of work often lack sanitation facilities and open defecation is practiced, exposing fellow workers and the community to disease and illness.

Safe water and adequate sanitation are vital inputs for economic development.