To improve access to water and sanitation (MDG 7) has various impacts on the overall social and economic development of societies: amongst other things, it contributes to poverty reduction, alleviating hunger, improving health and primary education, and environmental sustainability. According to the fundamental role of water in people’s life, the improved access to water and sanitation also contributes to a number of other Millennium Development Goals. Expanding access to water and sanitation is a moral and ethical imperative (UNMP-TWS 2005; PEP 2006).
The Millennium Development Goal 7 stipulates to improve environmental sustainability by integrating sustainable development in country policies, by reducing the biodiversity loss, by halving the proportion of people without access to safe water and sanitation and by improving lives of at least 100 million slum dwellers (UN 2010).
Expanding access to domestic water supply and sanitation services will bring the international community closer to meeting a number of other MDGs – in fact, for many of the targets, it is difficult to imagine how significant progress can be made without first ensuring that poor households have a safe, reliable water supply and adequate sanitation facilities. Meeting the target on access to water and sanitation is particularly vital in terms of the poverty, gender, and health Goals, and also has a significant impact on other Goals (UNMP-TWS 2005). According to UNDP, overall human development is more closely linked to access to water and sanitation than any other development driver, including spending on health or education, and access to energy services (UNDP 2010).
(Adapted from UNMP-TWS 2005)
Improved access to water and sanitation and Integrated Water Resources Management (IWRM) has various impacts on social and economic development of millions of people. Here are some key development issues which are affected by improved access to water and sanitation, and by Integrated Water Resource Management (IWRM):
Improving water supply and sanitation services can have substantial economic benefit: the WHO estimated some years ago that each $1 invested would yield an economic return of between $3 and $34, depending on the region (HUTTON / HALLER 2004). The UNDP estimated recently that an investment in water supply yields an average economic return of $4.4 to $1 and investment in sanitation a return of $9.1 to $1 (UNDP 2010).
The health-related costs avoided would reach $7.3 billion per year, and the annual global value of adult working days gained because of less illness would rise to almost $750 million. Better services resulting from the relocation of a well or borehole to a site closer to user communities, the installation of piped water supply in houses, and latrines closer to home yield significant time savings. The annual value of these time savings would amount to $64 billion if the target is met (HUTTON / HALLER 2004).
As an example, the World Bank’s Water and Sanitation Program estimated that inadequate sanitation caused India economic losses equivalent to 6.4% of India’s GDP in 2006 at US$53.8 billion. The report indicates that premature mortality and other health-related impacts of inadequate sanitation were the most costly with 72% of total impacts, followed by productive time lost to access sanitation facilities or sites for defecation with 20%, and drinking water-related impacts with 7.8% (WSP 2010).
MDG 7, which demands environmental sustainability, is considered to be a key goal and a prerequisite for overall MDG achievement. Hence it is not an isolated goal in itself, but instead forms an integral goal for all the MDGs. The provision of safe water and basic sanitation and also improved IWRM can have various, significant impacts on hunger alleviation, health, education or environmental conditions.
But still MDG 7 is displaying insignificant progress because of lacking internalisation of environmental components in socio-economic development. This is needed to protect valuable ecosystem services, such as biodiversity, fish habitats and pollination. Such services can determine the long-term capacity of human societies to buffer or absorb sudden environmental shocks, such as droughts and floods. And there is a growing realisation that huge challenges, such as eradicating hunger, will have to be achieved through environmentally sustainable solutions (SEI 2005).

HUTTON, G.; HALLER, L. (2004): Evaluation of the Costs and Benefits of Water and Sanitation Improvements at the Global Level. Geneva: World Health Organisation (WHO). URL [Accessed: 01.11.2012]. PDF
POVERTY-ENVIRONMENT PARTNERSHIP (PEP) (Editor) (2006): Linking Poverty Reduction and Water Management. New York: United Nations Development Programme / Stockholm: Stockholm Environment Institute. URL [Accessed: 07.06.2011]. PDF
SEI (Editor) (2005): Sustainable Pathways to Attain the Millennium Development Goals: Assessing the Key Role of Water, Energy and Sanitation. Stockholm: Stockholm Environmental Institute. URL [Accessed: 30.03.2011]. PDF
UN (Editor) (2010): Millennium Development Goals. URL [Accessed: 14.04.2011].
UNDP (Editor) (2010): GOAL WaSH Programme: Country Sector Assessments Volume 2. Governance, Advocacy and Leadership for Water, Sanitation and Hygiene. New York: United Nations Development Programme. URL [Accessed: 29.03.2011].
UN MILLENNIUM PROJECT TASK FORCE ON WATER AND SANITATION (UNMP-TWS) (Editor) (2005): Health, Dignity and Development: What Will it Take?. London: United Nations Development Programme. URL [Accessed: 28.03.2011]. PDF
WSP (Editor) (n.y.): The Economic Impacts of Inadequate Sanitation in India. New Delhi: Water and Sanitation Program (WSP), World Bank. URL [Accessed: 29.03.2011]. PDF
WHO (Editor); UNICEF (Editor) (2010): Progress on Sanitation and Drinking-Water. 2010 Update. Geneva: World Health Organisation (WHO) / New York: UNICEF. URL [Accessed: 14.04.2011]. PDF

UNICEF (Editor); WHO (Editor) (2012): Progress on Drinking Water and Sanitation. Update 2012. New York/Geneva: United Nations International Children’s Emergency Fund (UNICEF)/World Health Organisation (WHO). URL [Accessed: 19.04.2012]. PDF
There are still 780 million people without access to an improved drinking water source. And even though 1.8 billion people have gained access to improved sanitation since 1990, the world remains off track for the sanitation target. It is essential to accelerate progress in the remaining time before the MDG deadline, and I commend those who are participating in the Sustainable Sanitation: Five Year Drive to 2015. This report outlines the challenges that remain. Some regions, particularly sub- Saharan Africa, are lagging behind. Many rural dwellers and the poor often miss out on improvements to drinking water and sanitation. And the burden of poor water supply falls most heavily on girls and women. Reducing these disparities must be a priority.
HUTTON, G. (2012): Global costs and benefits of drinking-water supply and sanitation interventions to reach the MDG target and universal coverage. Geneva: World Health Organization. URL [Accessed: 01.11.2012]. PDF
The present study aimed to estimate global, regional and country-level costs and benefits of drinking-water supply and sanitation interventions to meet the MDG target in 2015, and to attain universal coverage. This report updates previous economic analyses conducted by the World Health Organization, using new WSS coverage rates, costs of services, income levels and health indicators.
POVERTY-ENVIRONMENT PARTNERSHIP (PEP) (Editor) (2006): Linking Poverty Reduction and Water Management. New York: United Nations Development Programme / Stockholm: Stockholm Environment Institute. URL [Accessed: 07.06.2011]. PDF
This paper analyses how water management can contribute to reduce poverty and makes policy recommendations. Contains a detailed assessment of water’s potential contribution to all of the seven MDGs - not just that one which explicitly refers to water.
SEI (Editor) (2005): Sustainable Pathways to Attain the Millennium Development Goals: Assessing the Key Role of Water, Energy and Sanitation. Stockholm: Stockholm Environmental Institute. URL [Accessed: 30.03.2011]. PDF
This report highlights the importance of the environment in achieving all MDGs. It focuses on three core aspects of goal fulfilment, namely freshwater to eradicate hunger and sustain ecosystems, energy and sanitation for poverty alleviation, health improvements and environmental sustainability.
UN (Editor) (2011): (The) Millennium Development Goals Report 2011. New York: United Nations (UN). URL [Accessed: 17.10.2011]. PDF
This document annually informs about the progresses concerning the Millennium Development Goals (MDG's) of the United Nations.
UNICEF (Editor); WHO (Editor) (2011): Drinking Water: Equity, Safety and Sustainability. New York and Geneva: United Nations Children's Fund (UNICEF) and World Health Organization (WHO). URL [Accessed: 05.03.2012]. PDF
The report investigates access to and use of drinking water in greater detail than is possible in the regular JMP progress reports, and includes increased disaggregation of water service levels and analyses of trends across countries and regions. It focuses on the three key challenges of equity, safety and sustainability.
UN WATER (Editor) (n.y.): Sanitation is Vital for Good Health. United Nations Water (UN WATER). URL [Accessed: 17.10.2011]. PDF
This factsheet shows the links between improved sanitation and health in a short overview.
UN WATER (Editor) (n.y.): Sanitation Brings Dignity, Equality and Safety. United Nations Water (UN WATER). URL [Accessed: 17.10.2011]. PDF
This short factsheet informs about how sanitation is connected with questions of dignity, equality and safety, including questions of gender, disabilities, etc.
UN WATER (Editor) (n.y.): Sanitation Sustains Clean Environments. United Nations Water (UN WATER). URL [Accessed: 17.10.2011]. PDF
This factsheet shortly describes how sanitation can add to sustainability in an environmental way.
UNW-DPAC (Editor) (2010): The MDG Target on Water and Sanitation Reader. UN-Water Decade Programme on Advocacy and Communication (UNW-DPAC). Zaragoza: UN Office to Support the International Decade for Action ‘Water for Life’ 2005-2015. URL [Accessed: 31.03.2011]. PDF
Compiled by the UN-Water Decade Programme on Advocacy and Communication (UNW-DPAC), this reader is intended for all those interested in getting familiar with issues related to the achievement of target 7c of the MDGs. It provides basic references for easy reading and some of the latest and most relevant United Nations publications on issues related to the accomplishment of the Millennium Development Goals (MDGs) as they relate to water and sanitation. Link is provided when the publication is available online.
WHO (Editor); UNICEF (Editor) (2010): Progress on Sanitation and Drinking-Water. 2010 Update. Geneva: World Health Organisation (WHO) / New York: UNICEF. URL [Accessed: 14.04.2011]. PDF
This well illustrated report describes the status and trends with respect to the use of safe drinking-water and basic sanitation, and progress made towards the MDG drinking-water and sanitation target. It presents some striking disparities: the gap between progress in providing access to drinking-water versus sanitation; the divide between urban and rural populations in terms of the services provided; differences in the way different regions are performing, bearing in mind that they started from different baselines; and disparities between different socioeconomic strata in society. Each JMP report assesses the situation and trends anew and so this JMP report supersedes previous reports (e.g. from 2004, 2006 and 2008).

WSP (Editor) (n.y.): The Economic Impacts of Inadequate Sanitation in India. New Delhi: Water and Sanitation Program (WSP), World Bank. URL [Accessed: 29.03.2011]. PDF
Inadequate sanitation causes India considerable economic losses, equivalent to 6.4 percent of India’s GDP in 2006 at US$53.8 billion, according to The Economic Impacts of Inadequate Sanitation in India, a new report from the Water and Sanitation Program (WSP). The study analysed the evidence on the adverse economic impacts of inadequate sanitation, which include costs associated with death and disease, accessing and treating water, and losses in education, productivity, time, and tourism. The findings are based on 2006 figures, although a similar magnitude of losses is likely in later years.

SIWI (Editor) (2005): Driving Development By Investing In Water And Sanitation. Five Facts Support the Argument. Stockholm: SIWI. URL [Accessed: 24.08.2011]. PDF
This short pamphlets presents five key facts highlighting the importance of water for development, amongst them increasing economic productivity, reducing hunger and illness, and benefits for the environment.
http://thewaterchannel.tv/ [Accessed: 07.06.2011]
Girls in Burkina Faso lose one to two years of lessons during their school life because of the time they spend collecting water each day. This short video shows how improvements in the rural water supply are designed to bring about change and provide better development opportunities, especially for women and children.
http://www.devinfo.info/ [Accessed: 22.03.2011]
The DevInfo system has been endorsed by the UN Development Group and is being used in many countries to help track the MDGs and other national priorities. It delivers significant enhancements for easy access to information on human development. The system has been developed under UN partnership and is distributed royalty-free to all end users.
http://www.wssinfo.org/ [Accessed: 22.03.2011]
The homepage of the Joint Monitoring Programme (JMP) of WHO and UNICEF for Water Supply and Sanitation (WSS) offers three tools to build dynamically water supply and sanitation data representations in the form of maps, graphs and tables by choosing between geographical area, level of aggregation, type of data, year and urban/rural setting. Specific country files are available in the documents section.
www.wsp.org/economic-impacts-sanitation [Accessed: 01.11.2012]
The Economics of Sanitation Initiative (ESI) was launched in 2007 with a WSP study from East Asia, which sparked public awareness and Government action in several countries. ESI further analyzed the costs and the benefits of alternative sanitation interventions for various countries in Africa, East Asia and South Asia.
https://improveinternational.wordpress.com [Accessed: 06.06.2013]
This is an ongoing compilation of statistics to show that failure rates for water systems, latrines, and hygiene promotion campaigns are still high after decades of intervention.