Financial innovations and sanitation services: the battle between low-income users and shareholders

This article aims to show how changes in the model for financing basic sanitation affect social inequality and urban segregation, and to discuss alternatives that minimise the impact these changes have on low-income populations. The investigation focuses on mediations between sanitation policy and g...

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Main Author: De Oliveira Alberto
Format: Article
Language:English
Published: Nicolaus Copernicus University in Toruń 2020-03-01
Series:Bulletin of Geography. Socio-Economic Series
Subjects:
Online Access:https://doi.org/10.2478/bog-2020-0004
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author De Oliveira Alberto
author_facet De Oliveira Alberto
author_sort De Oliveira Alberto
collection DOAJ
description This article aims to show how changes in the model for financing basic sanitation affect social inequality and urban segregation, and to discuss alternatives that minimise the impact these changes have on low-income populations. The investigation focuses on mediations between sanitation policy and general urban policies in the more ample process of valorising capital, involving different scales of geography and forms of state action. Widespread privatisation and public–private partnerships have altered the role that rates charged to users play in financing sanitation systems. This, in turn, has an impact on low-income populations’ access to these systems. The study concludes that new models of financing tend to privilege spaces in the city that are attractive to private capital, and that investments in sanitation are supported by financial innovations that depend on the collective force of remunerating shareholders and maintaining investors’ expectations. Finally, the article approaches solutions that ensure low-income families’ access to public services, with special emphasis on subsidised rate systems based on the stratification of urban areas adopted in Colombia. The article concludes that this experiment presents both positive and negative aspects that may serve as starting points toward potential solutions for Brazil.
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issn 2083-8298
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publisher Nicolaus Copernicus University in Toruń
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spelling doaj-art-9625761e741242dca72cc2ee90ecdba52025-08-20T03:57:04ZengNicolaus Copernicus University in ToruńBulletin of Geography. Socio-Economic Series2083-82982020-03-014747637410.2478/bog-2020-0004bog-2020-0004Financial innovations and sanitation services: the battle between low-income users and shareholdersDe Oliveira Alberto0Universidade Federal do Rio de Janeiro - UFRJ, BrazilThis article aims to show how changes in the model for financing basic sanitation affect social inequality and urban segregation, and to discuss alternatives that minimise the impact these changes have on low-income populations. The investigation focuses on mediations between sanitation policy and general urban policies in the more ample process of valorising capital, involving different scales of geography and forms of state action. Widespread privatisation and public–private partnerships have altered the role that rates charged to users play in financing sanitation systems. This, in turn, has an impact on low-income populations’ access to these systems. The study concludes that new models of financing tend to privilege spaces in the city that are attractive to private capital, and that investments in sanitation are supported by financial innovations that depend on the collective force of remunerating shareholders and maintaining investors’ expectations. Finally, the article approaches solutions that ensure low-income families’ access to public services, with special emphasis on subsidised rate systems based on the stratification of urban areas adopted in Colombia. The article concludes that this experiment presents both positive and negative aspects that may serve as starting points toward potential solutions for Brazil.https://doi.org/10.2478/bog-2020-0004basic sanitationsanitation ratescross-subsidisationsocial inequalities
spellingShingle De Oliveira Alberto
Financial innovations and sanitation services: the battle between low-income users and shareholders
Bulletin of Geography. Socio-Economic Series
basic sanitation
sanitation rates
cross-subsidisation
social inequalities
title Financial innovations and sanitation services: the battle between low-income users and shareholders
title_full Financial innovations and sanitation services: the battle between low-income users and shareholders
title_fullStr Financial innovations and sanitation services: the battle between low-income users and shareholders
title_full_unstemmed Financial innovations and sanitation services: the battle between low-income users and shareholders
title_short Financial innovations and sanitation services: the battle between low-income users and shareholders
title_sort financial innovations and sanitation services the battle between low income users and shareholders
topic basic sanitation
sanitation rates
cross-subsidisation
social inequalities
url https://doi.org/10.2478/bog-2020-0004
work_keys_str_mv AT deoliveiraalberto financialinnovationsandsanitationservicesthebattlebetweenlowincomeusersandshareholders