TAILIEUCHUNG - Making the Poor Pay for Public Goods via Microfinance Economic and Political Pitfalls in the Case of Water and Sanitation

Just under a third (31%) of overall activity in this sector is in manufacturing, with the highest levels of manufacturing in the Wind and Carbon Capture & Storage sectors ‐ the latter a reflection of the current drive to prove the technology through pilot projects. Given the size of the LCEGS sector and its growth rate in both domestic and global markets, environmental activities offer an attractive opportunity for the UK’s manufacturing base to exploit current and emerging technologies. There are 54,835 companies active in the LCEGS sector in the UK, of which 17,303 are involved in manufacturing. About of the companies in the sector are SMEs. . | MAX-PLANCK-INSTITUT FUR GESELLSCHAFTSFORSCHUNG MAX PLANCK INSTITUTE FOR THE STUDY OF SOCIETIES MPIfG Discussion Paper 11 14 Making the Poor Pay for Public Goods via Microfinance Economic and Political Pitfalls in the Case of Water and Sanitation Philip Mader MPIfG Discussion Paper Philip Mader Making the Poor Pay for Public Goods via Microfinance Economic and Political Pitfalls in the Case of Water and Sanitation MPIfG Discussion Paper 11 14 Max-Planck-Institut fur Gesellschaftsforschung Koln Max Planck Institute for the Study of Societies Cologne September 2011 MPIfG Discussion Paper ISSN 0944-2073 Print ISSN 1864-4325 Internet 2011 by the author s Philip Mader is a researcher at the Max Planck Institute for the Study of Societies. mader@ MPIfG Discussion Papers are refereed scholarly papers of the kind that are publishable in a peer-reviewed disciplinary journal. Their objective is to contribute to the cumulative improvement of theoretical knowledge. The papers can be ordered from the institute for a small fee hard copies or downloaded free of charge PDF . Downloads Go to Publications Discussion Papers Max-Planck-Institut fur Gesellschaftsforschung Max Planck Institute for the Study of Societies Paulstr. 3 50676 Cologne Germany Tel. 49 221 2767-0 Fax 49 221 2767-555 info@ Mader Making the Poor Pay for Public Goods via Microfinance iii Abstract This paper critically assesses microfinance s expansion into the provision of public goods. It focuses on the problem of public goods and collective action and refers to the specific example of water and sanitation. The microfinancing of water and sanitation is a private business model which requires households to recognise internalise and capitalise the benefits from improved water and sanitation. This requirement is not assured. Water and sanitation being closely linked to underlying common-pool resources are public goods which depend on collective governance solutions. They also

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