[BLANK_AUDIO] In this next video, we're going to look at global coverage statistics using data from the World Bank's living standard measurement surveys. The J and P coverage indicators that we looked at in the last video, were a major improvement over the data previously available globally, and provide us a much more accurate picture of global water and sanitation coverage. But they don't enable us to look carefully at how coverage among different infrastructure services changes as a function of income. And for this we're going to turn to the LSMS surveys. The World Bank's Living Standard Measurement Surveys are unique from several perspectives. First, they use multiple infrastructure services for the same household. In other words, they collect data on electricity, water, sewers, and telephone services for the same household in the survey. Also they probably provide us with the best information on household income and expenditures. Most of the surveys instruments are devoted to collecting income and expenditure data. So this is very high quality data, enables us to look at coverage as a function of income or expenditures. Like the JNP, the LSMS use similar survey protocols across different countries. And they've been implemented in many countries, and finally they've been accompanied by community surveys. So we have the option with the LSMS surveys of combining household data with community data, which enables us to get some new and powerful insights into infrastructure coverage. I'm going to be showing you some data and some analysis that I did with Kristin Komives and Wu Xun, Wu Xun is now a director of water policy at the Lee Kuan Yew school of public policy, the national university of Singapore. And we're going to be looking at four questions. The first question is who has infrastructure services, who's covered? This second is, who has access to infrastructure services and chooses not to use them? Third, what households, what do households prefer most? Which infrastructure services are most valuable to them? And which did they choose if they have options to choose among different infrastructure services. And then finally what do households do when they're not served by formal infrastructure services. It's important to emphasize at the LSMS data used in these analysis are not a random sample of households around the world, they're only available for some countries. This slide shows you the countries for which LSMS data and Asia, it's Pakistan, Vietnam, and Nepal. There's a heavy concentration of countries in the eastern Europe and central Asia. In fact, it's easy to see that eastern Europe and central Asia are over represented in this date set. And in Africa, it's just South Africa, Cote d'Ivoire, and Ghana. This next slide will be familiar to you because you tried to draw these lines in the exercise, after the introductory video. As you can globally in the LSMS data, electricity is on top. More households have electricity in all levels of income than any of the other infrastructure services. Note also that the lines don't cross. Electricity is always on top. Followed by water. Then sewer. And lastly, telephone. And, I have to emphasize that these data most of them come from the 1990s, this was before the era of the cell phone, so these telephone data are really for landlines, and as you know, cell phone coverage has spread like wildfire through the developing world. This next slide shows you, the number of cell phones per households in different countries as a function GDP per capita. Notice that the vertical axis actually exceeds 100%, which means that some households have more than one cell phone. So these are, the coverage of cell phones has exploded over the last decade or two, and is much higher now than for other infrastructure services. So, I'm going to go back now to looking at the LSMS data, and look at coverage in urban areas. Notice in this graph that if you live in an urban area most households have coverage of electricity, but this is not true for the other three infrastructure services. Piped water, telephone and sewers all have very low coverage at low income levels. And if we look at rural areas, at low income levels, households have almost no water service, piped water services, telephones, or sewers. But this is not true for electricity. About a third of the household in the sample at the very low end of the income distribution do have electricity coverage. I mentioned that the LSMS data provide us with community surveys. And the community surveys enable us to get more finely tuned looks at what's going on in different countries, in terms of which services were choosing when they have access. So the community surveys tell us whether or not there is infrastructure service in a community, and they also tell us whether households are using those services. So this next slide shows you coverage among urban households that have access. We know they have access because the data, from, because of the date from the community surveys. So here, if I, you can see that, if a household lives in an urban area, and it has access to electricity, it's going to get electricity. Almost every household has electricity, when it's available. But this is not true for the other infrastructure services, for water and sewer, telephone. These infrastructure services may be in a neighborhood, but the poor households may not have them. But, as income goes up, GDP per capita goes up, we have more and more households getting covered. This next slide shows you rural coverage among households that have access. In other words, again by access I mean that they could connect if they wanted to. And, here you see that the household has access to electricity, in rural areas and it's very poor. It's highly likely that they're going to connect to electricity, but that's not true for the other infrastructure services. So, a question in you mind might be, does this mean that households prefer electricity to water and sanitation services? Well, it's not easy to see the answer to this from this graph, because we don't know what prices people are paying for electricity and, and water and sanitation services. It could be, for example, that electricity is much cheaper than water and sanitation services, and that's why households are selecting electricity, but in fact we know that that's not true. It's almost never the case that electricity bills are less than water and sanitation bills. Water and sanitation services tend to be heavily subsidized. And the monthly bills for households are, again quite low. Now we're going to look at some data from Nepal, from the living standard measurement surveys, and we're going to look at data just for households that have access to electricity, water, and sewer, and then see what they chose as a function of income. So this graph shows that for very poor households. They had access, 70% of them chose electricity but they did not choose water or sewer. And it's income goes up more and more people chose electricity and gradually more and more households choose water and sewer as income goes up. But electricity is always higher for coverage among these households that have access. So this does suggest that households prefer electricity to water in this situation. Notice also that for a few of the graphs, at the sort of middle income levels,. The more households have connections to the sewer system than to the water system. For many people in industrialized countries this might seem like a puzzle. You may have never seen a situation where people have sewer connections but they don't have piped water connections. Actually, in parts of South Asia this is not that unusual. People may be getting their water from neighbors or other sources and carry it into their homes, and using part of that water to flush pour flush toilets, that could be connected to sewers. So again, some places, sewers are put in neighborhoods and households. And sometimes, households connect to the sewer lines before they connect to the water lines. This next slide shows primary water source by urban population decile. And by decile, I mean here income decile. So, on the left, you have the lowest 10% of the income distribution. Then you have 20% of the income distribution, 30% of the income distribution and so on. What you see in this slide is for urban areas, piped water connections increase steadily as income goes up. You also see that if households don't have pipe connections they do have other improved sources in urban areas. There are very few households in this data set that are relying on unimproved water sources and live in urban areas. This next slide shows the same data for rural areas, and as you can see, as income goes up, more and more households have piped water connections. In rural areas, the most prevalent water source is an improved source. But, in contrast to urban areas, many more rural households actually are using unimproved sources. So, this picture looks quite different than the urban coverage by income that we looked at last. This next slide shows you budget shares of the rich and poor. For different categories of expenditure. Food is the biggest category of expenditure, but you can see that from the LSMS data the water and energy expenditures are actually quite small, as a share of monthly income. This next slide shows you a different way at looking at the data, it actually shows you infrastructure bundles versus income, and I'm going to show you for a few, this, these data for a few regions. The black line shows you that households get all of these services as income goes up. And that as income goes up, having only one service, one infrastructure service declines rapidly. So, if you like at the line that's dashed for no infrastructure services, you see this falls off dramatically. As income goes up. While, at the same time, the solid dark line, which are for households that have all of these bundles, it goes up steadily. This next graph shows you the same data for Africa. And again, it's the same story. As income goes up, more and more households have all of these infrastructure services. And, households that have only one of these services falls off quite rapidly. In the final slide here, for these infrastructure bundles, shows you for Pakistan, Vietnam and Nepal. Here again, the households that have no infrastructure services falls off with income, as households that have all the infrastructure services, the whole bundle of infrastructure services, rises quickly to about, when income reaches about 300 US dollars per month. And then levels off quite dramatically. So to conclude, let me say some things about this, that, what we see from the LSMS coverage data. First, electricity is the only infrastructure surface that has significant penetration among poor households. But coverage for electricity, water, and sewer all rise rapidly between $100 and $250 per month household income. Household at all income levels that can choose among the four services appear to choose in this order. First electricity, then piped water, then sewer and then telephone. Again this data is for landline not for cellphones. Most of the households with access to electricity connect. But this is not true for the other infrastructure services. There are actually few households that use unimproved sources or water vendors as their primary water source in these data. And at all income levels expenditures on infrastructure services represent, a small percentage of household consumption. Households spend much more on energy, for example, than on water. Finally the majority of households in our sample, these countries with incomes less than $100 per month, do not have any of the four infrastructure services. In the parent ranking of coverages again electricity, water, sewer, land line. And this held across all income levels. Again the lines don't cross. So thank you for listening to this video. In the next video we're going to look at some projections of coverage statistic. The JMP and the LSMS data that I've shown you, are really descriptions of the status quo. So, for the next video we're going to look ahead and see where we think coverage is likely to go, over the next several decades. [BLANK_AUDIO]
