Cash Rewards Spur Poor Communities to Pay for Sanitation Projects | Source: by Nicole Wallace, Philanthropy.com – Sept 11, 2012
An international aid charity is taking an unorthodox approach to helping people in Cambodia and Vietnam improve sanitation and hygiene: It asks beneficiaries to help pay for the construction of latrines and hand-washing stations, but then gives them cash rewards when they get results. The effort will now spread, thanks to a $10.9-million grant from the Bill & Melinda Gates Foundation.
The East Meets West Foundation, in Oakland, Calif., works with local groups to provide hygiene education, train masons to build high-quality latrines, and broker low-cost loans that families can use to install latrines and hand-washing devices. Families receive a $10 rebate to help offset construction costs after an independent group has verified that the latrine is in place.
Communities also get incentives: They receive cash awards to be put toward public-works projects, such as roads and sanitation facilities in schools, when the percentage of households that have latrines and hand-washing devices hits 30 percent, and the communities receive more money when those rates reach 95 percent.