Economic Impacts of Sanitation in Southeast Asia Summary: A four-country study conducted in Cambodia, Indonesia, the Philippines and Vietnam under the Economics of Sanitation Initiatives (ESI)

The Sanitation Impact Study was conducted in Cambodia, Indonesia, the Philippines and Vietnam. A study is ongoing in Lao PDR. The study was led by the East Asia and Pacific office of the World Bank’s Water and Sanitation Program (WSP), with the contribution of WSP teams in each of the participating countries. The study took one year to complete, and has undergone two major peer review processes. This summary report is based on four fulllength country reports and a full-length synthesis report.




This study examines the major health, water, environmental, tourism and other welfare impacts associated with poor sanitation in



Cambodia, Indonesia, the Philippines and Vietnam. By examining the economic impacts of poor sanitation, and the potential gains from improved sanitation, this study provides important evidence to support further investments in sanitation. The goal of this report is to show decisionmakers at the country and regional levels how the negative impacts

of poor sanitation can be mitigated by investing in improved sanitation.




The study is based on evidence from other investigations, surveys and databases. The impact measurement reported in the study focuses mainly on a narrow definition of sanitation - human excreta management and related hygiene practices. The measurement of water resource impact included release of gray water to water bodies, and the measurement of environmental impact included poor solid waste management.














Indonesia, Vietnam and the Philippines lose an estimated US$9 billion a year because of poor sanitation (based on 2005 prices). That is approximately 2% of their combined Gross Domestic Product (GDP), varying from 1.3% in the Philippines and Vietnam, to 2.3% in Indonesia and 7.2% in Cambodia. The annual economic impact is approximately US$6.3 billion in Indonesia, US$1.4 billion in the Philippines, US$780 million in Vietnam and US$450 million in Cambodia. With the universal implementation of improved sanitation and hygiene, it is assumed that all the attributed impacts are mitigated, except health, for which 45% of the losses are mitigated. Universal sanitation would lead to an annual gain of US$6.3 billion in the four countries, as shown in the figure below. The implementation of

ecological sanitation approaches (fertilizer and biogas) would be worth an estimated US$270 million annually.

Daftar Isi:

Executive Summary
1. Introduction
2. Methods
2.1 Study Approach
2.2 Scope of ’Sanitation’
2.3 Impacts Evaluated
2.4 Impact Mitigation
3. Results
3.1 Health Impacts
3.2 Water Impacts
3.3 Environmental Impacts
3.4 Other Welfare Impacts
3.5 Tourism Impact
3.6 Overall Economic Impacts
4. Recommendations