EXECUTIVE SUMMARY
Box 3. Estimating the costs of basic services, including addressing backlogs A number of estimates of the costs of addressing backlogs in basic service provision suggest capital sums far beyond current investments. The OECD estimated the need for infrastructure investment at USD 75 trillion by 2030, nearly half of it for water and sanitation. Other sources estimate the infrastructure financing needs for low- and middle-income countries at USD 57 trillion up to 2030. Sub-Saharan Africa needs around USD 93 billion per annum in infrastructure spending, 15% of regional GDP, with two-thirds needed for capital works and one-third for operations and maintenance. For water and sanitation specifically, 21.9 billion is needed, double the current investment. In Asia, infrastructure investment of USD 4.7 trillion is needed over the next 10 years. For East and South Asian countries, total necessary investments represent between 6.5% and 7% of GDP. Significant investments are also required in high-income countries to replace aging infrastructure and adapt to new constraints (e.g. climate change and aging populations). In 2012, replacements of basic infrastructure in Canada was estimated at USD 165.6 billion; in the USA, at USD 1.5 trillion in 2009 (more than double planned spending). It is clear that for most countries and sectors, current investments are inadequate, both in terms of absolute amounts and as proportions of the levels required. The gap between needs and investment is still wider if resilience to climate change is factored in. Source: OECD (2006); Bilal (2013); Foster and Briceño-Garmendia (2010) p. 8; ADB (2012); North American GOLD III chapter.
GOVERNANCE AND MANAGEMENT OF BASIC SERVICES On decentralization and multilevel governance
On the concept of multilevel governance used here, see the introduction. Also, Claire Charbit (2011); OECD (July 2013). 10
Local governments play a critical role in basic service provision. As a result of decentralization, they are responsible for the provision of basic services in most countries, responding to local demands, ensuring accountability and transparency and often deciding on management and funding.
Basic service provision increasingly takes place within complex multi-level, multi-stakeholder governance systems, with increased interaction between levels of government, and an important role for external partners, from large international holdings to small-scale local enterprises and community organizations. The term ‘multi-level governance’ is used to describe and analyse the effectiveness of the relationships between different levels of governments (vertical coordination) and between local governments (horizontal coordination).10