The Economics of Sanitation Initiative

http://www.wsp.org/wsp/content/east-asia-economic-impacts-sanitation

Economic costs of poor sanitation and hygeine in East Asia as $9.2 billion USD

The study found that sanitation interventions have very favorable socio-economic returns to households and society, contributing improved health, clean environment, dignity and quality of life, among many other benefits. In addition, while the study showed sanitation options that protect the environment are more costly to provide, the benefits are highly valued by households, tourists and businesses. When environmental benefits to downstream populations of proper wastewater management are valued, it can considerably increase the economic returns.

In Cambodia 

Phase 1: Key findings - economic impacts of poor sanitation

• Poor sanitation leads to economic losses of US$ 448 million per year, which translates into per capita loss of approximately US$32.
• The economic losses are equivalent to 7.2% of Cambodia’s GDP in 2005.
• This amount is roughly equivalent to the contribution of the fishery sector to the GDP, or twice the forestry’s contribution.
• While these economic costs are not all tangible, the immediate money ‘in the hand’ losses (financial losses) amount to about US$160 million per year, which is roughly 2.5% of the GDP, being equivalent to nearly US$12per capita

Phase 2: Key findings - economic potential of good sanitation

• Economic returns are potentially high—in excess of US$ 2 return per dollar invested—especially in rural areas where low-cost on-site solutions are feasible.
• Economic efficiency of improved sanitation and sustainable behavior changes results can be optimized by improving program performance through cost-effective implementation and close monitoring of project costs and impacts.
• Improved hygiene and sanitation conditions in institutions, public places and tourist sites are important to attract more businesses and tourists to Cambodia.

Developments 

2004 - Only 17% of Cambodians had access to improved sanitation

2005 - This had improved to 22%

P20 - Perceived benefits improved status-prestige is a small proportion 18% and higher in rural areas. Hygiene-clean is over 80% in urban areas.