Multilateral headache

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What to do next now that private water companies are reluctant to participate in developing markets?

The multilateral banks have probably suffered the worst collateral damage as a result of the private water companies looking to reduce their exposure in difficult markets. Hitherto the World Bank and other international lending organisations had relied on the private water companies as their partners in achieving the Millennium targets for drinking water and sanitation in middle-income countries. But with Suez announcing that it wants to reduce its capital employed in emerging markets by 50%, and others focusing their investment on North America and Europe, this strategy is in jeopardy.

Forging a new partnership with the water companies and private financial institutions is going to be a priority over the next few months.