A/66/255 aligning aid priorities with the national policy frameworks of their development partners. 43 35. In addition, money for water and sanitation is mobilized through loans and grants from international financial institutions and donors. These actors must work to eliminate inappropriate conditionalities attached to these financing agreements. 44 When money for development hinges on the enactment of particular macroeconomic policies, it can lead to cuts in public expenditures that could otherwise support the realization of the rights to water and sanitation. 45 Privatization of government assets, including providers of water and sanitation services, may also feature in conditionalities. While private sector participation is not prohibited under human rights law, without the simultaneous implementation of specific measures to regulate service provision and to maintain affordable access for all, there is significant risk that such participation could reduce incentives to expand and improve access in under-served areas while contributing to lower accountability and higher household costs. 4. Private sector and non-governmental support 36. Private sector financing mainly comes into play to cover gaps in service resulting from a lack of government support. Water vendors, for instance, play a significant, albeit frequently informal, role in unserved communities. In the case of sanitation, private actors are involved in the construction, management or maintenance of individual or public latrines as well as in selling soap and other cleaning products. More generally, the private sector may be involved in bridging financing gaps, offsetting some of the costs associated with the provision of water and sanitation services. Financing by the formal private sector, however, is generally provided on the understanding that such funds will be recouped, which can be a disincentive to delivering services to low-income settlements. Similarly, non-governmental organizations can play an important role, but their contribution in terms of overall financing remains minimal. The Special Rapporteur has addressed in detail the role of the private sector in supporting the realization of the rights to water and sanitation (see A/HRC/15/31), reiterating that human rights law is neutral with respect to economic models and that States are the primary duty bearers and, as such, are responsible for the effective contracting and regulation of private actors. C. Benefits of investing in water and sanitation 37. In discussing the costs of investing in water and sanitation it is easy to lose sight of the benefits. Indeed, the economic costs of not spending more on water and sanitation are potentially much higher. In developed nations, advances in life expectancy and child mortality accompanied economic growth only after governments began making substantial investments in water supply and, more importantly, in sanitation. 46 __________________ 43 44 45 46 11-44364 Paris Declaration, para. 16. Accra Agenda (A/63/539, annex), para. 18. See report of the independent expert on the effects of foreign debt and other related international financial obligations of States (A/65/260), sect. B. UNDP, Human Development Report 2006, pp. 28-31. 13