June 2013: The Water and Sanitation Program (WSP) of the World Bank, through the Economics of Sanitation Initiative (ESI), has published a research brief suggesting that low-cost technologies, particularly wet and dry pit latrines, are satisfactory alternatives for low-income groups in Lao People’s Democratic Republic (PDR).

The ESI is a multi-country study launched in 2007 to address the economic costs of poor sanitation in various countries, including Bangladesh, Cambodia, China, India, Indonesia, Lao PDR, Nicaragua, Pakistan, the Philippines, and Viet Nam, as well as over 20 African countries.

Recalling that in 2010, about 37% of the population in Lao PDR did not have access to improved sanitation facilities, the Initiative aims to inform decision makers on the costs and benefits of several sanitation options in different contexts. Phase I of the ESI indicated that overall economic costs of poor sanitation in Lao PDR were, in 2006 prices, around US$34 per person per year, which represents 5.6% of gross domestic product (GDP).

Phase II of the study analyzes options, such as dry pit latrines, wet pit latrines (private and shared), and toilets with septic tanks (private and shared), and indicates that all options improving sanitation have the benefit of saving time, avoiding health care costs, and benefiting tourism. Overall, it recommends: increased access to improved sanitation in rural areas; focus on least expensive solutions with highest benefits (noting that the highest net returns were for wet and dry pit latrines in rural areas and wet pit latrines in urban areas); and the promotion of equitable access to improved sanitation.

Acknowledging that net benefits of sanitation interventions vary, the study recommends the analysis of site conditions before implementing interventions. [Publication: The Economic Returns of Sanitation Interventions in Lao People’s Democratic Republic]