A/66/255 areas, such as slums or other informal settlements, where initial costs are high and short-term returns on investment are low, States may be the only actors willing and able to deliver on a major scale. 27. Second, government funding in the form of subsidies may be necessary to improve the affordability of services in low-income households. One issue with major human rights implications is whether government subsidy programmes should be universal or targeted in nature. 32 Targeted subsidies aimed at reaching only those in need reflect the reality that budgetary limitations restrict the resources that States can devote to any given sector. 33 Those who are able to contribute on their own, meanwhile, should be expected to do so. Accordingly, States may undertake measures such as means testing to identify those eligible for support. 28. Ensuring that targeted subsidies reach the intended beneficiaries can, however, be complicated and expensive. It is especially important to ensure that targeted subsidies are not a mask for favouritism of certain groups based on political connections, or subject to capture by the elite, as this could reinforce disparities among groups or regions. In this regard, it is especially important that the targeting process and eligibility criteria be fair, reasonable, objective and transparent. 34 Where identifying the persons in need is difficult, a universal system of subsidies may be appropriate in order to guarantee that those most in need of assistance actually benefit. With no system of means testing, universal systems can also be cheaper to administer. Essentially, States must have a system in place to ensure that households requiring assistance in accessing water and sanitation obtain such assistance, taking into account the needs of present and future generations as well as the efficient use of resources. 29. Where individuals or households manage their own localized services, it may be necessary to provide grants or subsidies to ensure sustained access to water and sanitation. In some cases, subsidies are available for the construction of water points or latrines, but seldom for their operation and maintenance. Very little support is provided by Governments to assist households in managing the safe disposal of excreta. Lack of attention to sustainability runs the risk of retrogression and, potentially, violations of human rights law. Approaches such as community-led total sanitation have provided valuable lessons, especially in terms of allocating funding towards capacity-building for the community rather than direct subsidies for latrine construction to ensure that latrines will be both maintained and used effectively. 3. International aid 30. Where household contributions and government spending are insufficient to realize the rights to water and sanitation, international aid frequently contributes to __________________ 32 33 34 11-44364 In her forthcoming report to the Human Rights Council on good practices (to be issued as A/HRC/18/33/Add.1), the Special Rapporteur describes common types of subsidies used by States to support the affordability of water and sanitation services. Thandika Mkandawire, “Targeting and universalism in poverty reduction”, Social Policy and Development Programme, paper No. 23 (United Nations Research Institute for Social Development, December 2005). Report of the independent expert on the question of human rights and extreme poverty (A/HRC/11/9), para. 39. 11