World Bank Water Governance Index: 67% of Low-Income Nations Score Below Minimum Threshold
Objective
Assess the state of water governance frameworks in low-income nations and the relationship between governance quality and financing access.
Methodology
Cross-country analysis of World Bank Water Governance Benchmarking data for 128 low and lower-middle income nations. Regression analysis linking governance scores to financing terms from DFI loan records.
Findings
World Bank Water Governance Benchmarking 2023 finds 67% of low-income nations score below the minimum threshold for bankable water infrastructure. Nations below threshold access financing at interest rates 340 basis points higher than threshold-compliant peers. Governance deficits cost low-income nations an estimated $18B/year in foregone concessional financing. Targeted governance capacity-building programs show 4-year average time to reach threshold.
Limitations
- •Governance scores are partially self-reported
- •Causal direction between governance and financing access is bidirectional
- •Threshold definition is normative and subject to revision