'The poor not getting benefits from utility subsidies'

Panellists of the videoconference representing Bangladesh, India, Nigeria, Kenya, Uganda and the USA took note that most existing utility subsidies are general subsidies to all residential customers and the poor are not necessarily getting the expected benefits.

In fact, slum-dwellers in Dhaka pay many times more for pure drinking water than their affluent counterparts who enjoyed 1,000 litres of Wasa-supplied water at Tk five only.

The participants also noted that many Dhaka residents misuse the precious subsidised water in car wash and gardening while poor get little access to pure water.

The World Bank Washington Office organised the videoconference on a recently published book titled 'Water, Electricity and the Poor.' The videoconference was held at the World Bank Bangladesh Office at Agargaon from 4:30pm to 7:30pm.

One of the co-authors of the book, Vivien Foster, and World Bank water engineer Meike van Ginneken anchored the videoconference and gave expert views from Washington DC while over 30 representatives of Civil Society Organisations (CSOs) from the participating countries took part in the lively and interactive discussions.

Subsidies for utility customers are popular among policy makers and the general public. Despite persistent belief that subsidies favour the poor, a recent World Bank study shows that they actually tend to benefit the middle class and well-to-do.