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Subsidies

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[[Image:subsidy.jpg|thumb|right|200px|Photo: [http://sanitationupdates.wordpress.com/2012/09/ Sanitation Updates, 2012]]]
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A subsidy (also known as a subvention) is a form of financial assistance paid to an individual, a business or an economic sector in order to achieve certain policy objectives. For example, a subsidy can be used to support a service that cannot recover its full costs (e.g. through [[akvopediaTariffsTariffs|tariffs]]), which is a common problem in the water and sanitation sector. Subsidies may also be given to encourage activities that would otherwise not take place, e.g. a more sustainable sanitation technology. Subsides in developing countries flow almost exclusively from government, or via government in the case of official development assistance, and sometimes through international or national non-governmental organisations. However, to be sustainable, local subsidies are encouraged.
In sanitation and water management, subsidies are very common, and many utilities have to be subsidised as they cannot recover the full costs of their services from the users (see also [http://www.sswm.info/category/planning-process-tools/implementation/implementation-support-tools/financing/water-pricing- water pricing]). This applies to services regarding water catchment, purification and distribution of fresh water, as well as the subsequent collection, treatment and discharge or reuse of wastewater.
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