EXECUTIVE SUMMARY
of government managing particular parts of the services. However, in many countries there is a need to improve coordination between levels of governments. For example, in the water sector, a recent OECD study points to significant coordination problems in policymaking, the management of finance, and technical, information and control capabilities. In recent decades, new laws or regulations for water and sanitation have been implemented in most countries of the region, as well as laws concerning solid waste in at least seven countries. Regulatory bodies have also been created to oversee basic services (water and sanitation in particular). The survey of local authorities carried out for this report confirms the need to improve the legal framework in which local governments operate, particularly with regard to clarifying the distribution of responsibilities and setting the terms for partnerships with external stakeholders (e.g. private sector operators). Access to basic services In water and sanitation, there has been a steady increase in coverage over recent years. However, of the 90% “improved water” coverage reported by the JMC, no less than 25% consists of irregular or illegal sources. Of the more than 80% “improved sanitation” coverage, 37% have only precarious access to sanitation. There are also significant disparities between services. Service quality is patchy in many countries. This deficit is particularly notable in the interior and in disadvantaged urban areas and communities. The current coverage of wastewater treatment systems, although improving, is still low, and is estimated to reach only 26.3% of the total population of the region. The collection of solid waste has also been extended noticeably over the last decade,
with coverage expanding at a faster rate than population growth. As of 2010, solid waste collection reached 93.4% of the population, though quality and technologies vary widely. Of waste collected, only 54.4% is processed in sanitary landfills, while the remaining 45.3% is disposed of in open dumps. There has been limited yet significant progress in waste sorting and recycling, but informal recycling is widespread. From the late 1980s, public transport was deregulated in almost all Latin American countries. The supply of small- and medium-capacity vehicles increased, as did very small private operators, leading to a significant deterioration of public services to the detriment of users and cities (causing traffic congestion and air pollution). However, during the last decade, there has been renewed interest from local governments in public transport. In addition to the construction or extension of metro systems (Buenos Aires, Mexico, Panama, and Sao Paulo) and the modernization of suburban trains (in Brazilian cities, Buenos Aires, Santiago) and trams (Buenos Aires), the most important initiatives have been preferential bus lanes (Bus Rapid Transit). The reference point for this new generation of transport is the Transmilenio in Bogota, opened in 2000, which became the model for other metropolises in the region. Today, many large cities in the region have one or several lines of this type. Management and financing of basic services Management During the 80s and 90s, many Latin American countries implemented policies deregulating and privatizing the markets for basic services. The involvement of the private sector aimed to bring significant innovations and investment in basic services, and to improve efficiency and effectiveness in