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Operational Communications Learning Note External Affairs
Communication for Water Sector Reform Obstacles and Opportunities Karla Chaman, Tracey Miller, and Paul Mitchell
Š2012 The International Bank for Reconstruction and Development / The World Bank Operational Communications External Affairs Vice Presidency 1818 H Street NW, MSN MC9-906 Washington DC 20433 Telephone: 202-458-7955 E-mail: jmartinson@worldbank.org 1 2 3 4 15 14 13 12 The findings, interpretations, and conclusions expressed in this work are those of the author(s) and do not necessarily reflect the views of the World Bank, its Board of Executive Directors, or the governments they represent. The World Bank does not guarantee the accuracy of the data included in this work. The boundaries, colors, denominations, and other information shown on any map in this work do not imply any judgment on the part of the World Bank concerning the legal status of any territory or the endorsement or acceptance of such boundaries. Rights and Permissions The material in this work is subject to copyright. Because the World Bank encourages dissemination of its knowledge, this work may be reproduced, in whole or in part, for noncommercial purposes as long as full attribution to this work is given.
Contents Background
v
Abbreviations
vi
1. Overview
1
What is Strategic Communication? 2. Water Sector Reform: Obstacles and Opportunities Utility Issues Labor Issues Sector Issues
2 4 4 6 8
3. Three Principles of Communication for Water Sector Reform
9
Principle 1: Get to Know Existing and Potential Customers Principle 2: Build Awareness Around the Need for Reform Principle 3: Build in Support and Systems for Change
9 9 10
4. Conclusion
13
References
14
Appendix: Definitions of Communication
15
Authors
16
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Background This Learning Note is published by the Operational Communications Division in the World Bank’s External Affairs Vice Presidency. It aims to help task managers communicate with service providers as they prepare for an urban water supply reform project. The focus is on how strategic public communication programs can help governments and stakeholders improve the delivery and sustainability of water supply services. The note will also be helpful for government officials, policy makers, utility managers, communication specialists, and NGOs who are navigating the social and political issues associated with water reform and who want to improve the commercial viability of the services. It does not prescribe solutions for how services should be delivered, but examines how integrating strategic communication programs into the broader reform agenda can help achieve better development results. The authors summarize more than a decade of experience from the World Bank’s former Development Communication Division, which supported more than 25 governments as they reformed their water supply services. It draws upon information and research from three separate surveys with task managers, including one that looked at key areas of proj-
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ects for which communications plans were considered relevant; the audiences for which the communication activities were designed; the activities and tools used; and the support provided by the World Bank. This note gives an overview of the unique challenges that professionals in the water sector face. It also provides some general guidelines and lessons to be aware of when designing and implementing a communication campaign. It is not a step-by-step guide for developing a strategic communication program. Rather, it focuses on the specific tools needed for governments and practitioners to better understand their customers, how to build a case for support, and how to build a culture of communication within the utility management and among employees. These authors hope these lessons will help practitioners integrate communication tools into the overall development process to support reform objectives. The authors would like to thank the following people for their support and input: Vivien Castro, Mark Ellery, and Vandana Mehra from the Water and Sanitation Program; Cledan Mandri-Perrott, Sharon Felzer, Leonora Aquino Gonzales, Colleen Gorove-Dreyhaupt, Bill Kingdom, Seema Manghee, and Chris Walsh from the World Bank; and Fritz Brugger, BHP— Brugger and Partners Ltd.
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Abbreviations CBA CBO KUWSIP NGO PSP PSIAs TUC
vi
communication-based assessment community-bases organization Karnataka Urban Water Sector Improvement Project nongovernmental organization private sector participation poverty and social impact analyses Trades Union Congress (Ghana)
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1. Overview Reforming an urban water supply system is a complex, unpredictable, and highly political process. Because water is an essential good, political risk is almost unavoidable when service providers pursue unpopular measures, such as increasing tariffs to improve commercial viability of the utility. Many politicians also use water as a political tool during campaigns, making promises that are hard to deliver. Public service providers, who have had to compete with private companies over the last 20 years, are now adopting a more commercial approach to utility management. This change was largely driven by the need to spend on infrastructure, which many governments felt they could not afford, but another important issue was utility efficiency. The commercial approach has led to a bigger focus on customers, who play a critical role in making the utility financially viable, along with tariff reviews to make utilities more commercially viable, more targeted subsidies, better overall management, and a stronger consumer focus. An appropriate cost structure, which might include subsidies or a community-based provision approach, will benefit current customers. It will also encourage potential customers—in this case poorest ones—to take an acceptable level of financial responsibility for a service that will have longlasting benefits for the development of their community. Whether a utility is publicly or privately run, putting the customer at the heart of reform is good business, and good for the sustainable operation of the utility. Satisfied customers pay their water bills, which pays for new investments or expanded service. Opinion research and stakeholder engagement helps governments learn why people pay or don’t pay, their level of knowledge about how the utility operates, what makes it viable, and the climate for private sector participation. Understanding
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the social and political climate for reform helps governments communicate with customers, potential customers, and stakeholders. Good communication is even more critical when government’s role shifts from provider to regulator of water provision. New institutional objectives require a new focus on internal communications, which are crucial both for the success of the reforms and for ongoing support of the new entities. The traditional view is that communication is a one-way process of information dissemination that is peripheral to the development process. The updated view is that two-way communication between providers and customers is a critical part of development itself. Service providers should inform themselves about the concerns and needs of customers and potential customers, as well as their attitudes about payment. With this information, providers can realistically promote the benefits of proposed reforms, earn public support and trust for them, and create an environment that allows for real changes in water service delivery. Social media and the Internet have created more opportunities for communication and transparency, and have strengthened citizens’ role as watchdog. Governments, civil society, and policy makers are increasingly embracing citizen-driven, social accountability processes to strengthen transparency, governance, accountability, and service delivery. Recovering the cost of providing services, at least for operations and maintenance, is a stated objective of water utilities around the world. As urbanization increases, the drive towards cost recovery is even more urgent. Both internally generated revenues and investment are essential for maintaining the quality of existing networks and expanding services on a sustainable basis. From the supply side, service providers need to impose and collect tariffs that are high enough to recover costs and remain
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financially sustainable. From the demand side, the ability of consumers to pay tariffs affects the fiscal capacity of utilities to expand access and ensure service quality (Ying et al. 2010). In many cases, utilities are reluctant to set tariffs high enough to cover costs or fund development. There are a number of reasons for this, but the main one is usually political. Politicians are reluctant to counter a long history of low or subsidized prices by raising them. Raising prices too high too quickly can threaten a politician’s status. Lawmakers may take other irresponsible actions like raising prices without increasing or improving service, especially if there is no regulatory agency in place. Political action by poverty groups may also create a reluctance to raise prices, and customers will resist higher prices without careful justification. Finally, corruption is a problem at all levels, including billing, collection, and installation of new services. Water service providers are increasingly aware that to be successful, they must balance their interests with those of customers and other relevant interest groups. Providers are learning that time and money invested in strategic communication programs early in the process of reform will outweigh political risks. A World Bank study on lessons on infrastructure recommends that “before reforms are launched, extra attention should be given to (a) analyzing who will win and who will lose; (b) reducing the risks of corruption; and (c) understanding public perceptions and adopting a ‘communications strategy’” (World Bank 2006). A good communications strategy can help service providers develop a successful customerfocused approach and mitigate political risk. When communication programs are not integrated as part of a reform initiative, there could be serious repercussions, including the following: • social conflict as a result of poor timing, lack of information or misinformation, or a communications vacuum that creates uncertainty 2
• project delays because of power struggles, social conflict, or miscommunication of expectations • consumer opposition due to (justified or unjustified) fears about tariff increases, levels of service, or affordability • customer dissatisfaction when hyped expectations of the outcomes of reform are not tempered by communication between the service provider and its customers.
What is Strategic Communication?
Strategic communication is a business process that helps governments and water service providers engage with stakeholders at all stages of a reform. More specifically, strategic communication uses two-way communication programs designed to take stakeholders’ views into project design consideration, and influence the voluntary behavior of key audiences to achieve development and management objectives. Through stakeholder mapping and opinion research, input from customers and other stakeholders can help solidify proposed policy changes or create new solutions, and ultimately can strengthen the relationship between the utility and its customer base to improve the performance of the utility. Reforms usually express the perspective of the implementing institution and not of the people whose lives are directly affected by these reforms (Mitchell and Chaman-Ruiz 2007). A strategic communication program can help inform policy makers and enable them to base their decisions on a clear understanding of beneficiaries’ perspectives. This perspective can both support business objectives and help increase accountability and transparency. In addition, an effective communication strategy helps mitigate political, social, economic, technical, and even commercial risk and should be an integral part of a risk management strategy. Strategic communication can also counter misleading resistance to reform. Governments should implement proactive communication
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Box 1.1. Water Reforms in Panama A recent case study on the political economy of water reforms in Panama recommends the need for comprehensive communication aimed at changing cultural beliefs and attitudes toward water: “Transforming IDAAN into a financially sustainable entity implies raising tariffs at some point, even if this could be delayed for a while, or gradually increased. Communication strategies need to be devised before, during and after a reform to convince consumers of the need to pay, as well as taking measures to compensate those people who are substantially hit by increased tariffs—e.g. through better targeted subsidies.� Source: World Bank 2012.
campaigns before opposition derails a water reform process. For example, in Bolivia, a water sector reform project was derailed because misinformation was used for individual gain, and there was no mechanism to counteract it. In Ghana, after years of delay, opinion research helped the government build its case for reform by giving policy makers a clearer understand-
ing of the level of support they had for various types of private sector investment. This note lays out some of the key areas in water supply reform where communication tools can be useful to support reform and mitigate risk. Since these tools come in many forms, the following discussion outlines some underlying principles that service providers should
Table 1.1. The Role of Strategic Communication What strategic communication can do
What strategic communication cannot do
Identify and manage barriers to reform
Guarantee passage of a piece of legislation or implementation of reform
Help build local ownership through engagement
Convince all those with a vested interest in the status quo to support reform
Contribute to sustainability through ownership building
Serve as a stand-alone activity, absent of efforts to build advocacy coalitions as part of a public-private dialogue
Change mindsets, allay fears, and persuade stakeholders of benefits
Guarantee consensus
Ensure that solution design is informed by stakeholder needs and interests and an understanding of winners and losers of reform
Change mindsets and opinions without a trusted messenger
Deliver a credible, relevant, and compelling message to persuade, educate, and call stakeholders to action
Act as a substitute for local ownership
Engage and mobilize stakeholders with little clout, enlist public support, and target decision makers
Act as a substitute for leadership
Manage expectations
Cover up service delivery failures
Help clarify messages based on listening to stakeholders
If the performance and behavior does not match the message, cannot convince stakeholders
Source: World Bank.
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address in their communication programs. These principles include (i) getting to know your customer, or potential customer; (ii) building awareness around the need for reform; and (iii) building a culture of communication within the utility and between the service provider and the population it serves (see section 3).
2. Water Sector Reform: Obstacles and Opportunities Service providers need a clear understanding of the knowledge, attitudes, and perceptions of customers and potential customers. With customer feedback, providers can begin to address the complex issues that trigger consumer opposition to reform, such as corruption and poor service. Resolving those issues is crucial to improving financial performance and quality of service.
Utility Issues Accountability to Customers Many public water agencies or utilities resist tariff reform because of an aversion to accountability. On the other hand, decentralization of water services can bring local governments and providers closer to people, empower citizens to be part of the reform process, and build stronger accountability. The switch to local provision is an opportunity to create a new mindset for delivering services in a more commercially viable manner, including service improvements and expansion to new customers. Political interests can also be involved with institutional change. Policy makers can be enlisted to support necessary price increases when they understand that improved development outcomes, expanded coverage, better quality services, and other reforms can be politically advantageous. Politically driven change can unsettle institutions and break the cycle of opposition to reform (World Bank 2008a).
4
The situation is more critical when the role of government changes from provider to regulator of water services. The institutional reforms imply that service providers will be allowed greater independence in the form of a corporatized entity, and the government will regulate that entity either through a new, dedicated agency or by strengthening the current institutional setup. In either case, internal planning for the transition and the appropriate internal communication activities are crucial for the success of the reform. Workers must appropriate the new tasks involved in the new regulatory agency, and government must interact with customers and use information and communication tools to achieve its new regulatory objectives. Pricing and Payment The price of water plays a key role in recovering costs whether the utility is public or private, but raising tariffs is not an easy choice. Governments may also be reluctant to charge higher tariffs because of political pressures to keep tariffs artificially low. However, making a utility financially viable will often require some type of rate increase, even if it is gradual. Tariffs also serve other goals beyond raising revenues to cover all or part of costs. They are also used to ensure access across socioeconomic groups, to send price signals to users about the relationship between water use and water scarcity, and to ensure fairness in water service delivery (Cardone and Fonesca 2003). A 2009 evaluation of water sector projects by the World Bank Independent Evaluation Group found cost recovery to be among the issues that have not yet been sufficiently tackled. The evaluation reported that only 15 percent of the water supply and sanitation projects that attempted full cost recovery had actually achieved this goal (World Bank 2010).Closing this gap requires not only charging higher water fees, but also improving the collection ratio. Autonomous organizations (for example
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Box 2.1. Communication Strategy for Karnataka Urban Water Sector Improvement Project In Karnataka state in India, a communication-based assessment (CBA) was carried out in five pilot cities where the government aimed for continuous water supply as part of the Karnataka Urban Water Sector Improvement Project (KUWSIP). The CBA results showed that the clear majority of citizens did not believe an upgrade in service from a few hours a day to an uninterrupted water supply was possible and residents were worried about escalating water prices in the new system, particularly with the new proposed meter systems. There was also a lack of trust between the service provider and the consumer, which created an environment of cynicism. The communication strategy included direct engagement with potential consumers; education about the volumetric tariff; and partnerships strategies to build consensus and gain the participation of NGOs, the media, and other influential citizens. The focus on the “customer” helped the pilot areas go from “virtually no collection” to an 80 percent collection rate. The CBA concluded that: “An intensive, contextual and evolving social inter-mediation and communications campaign played a decisive role in establishing an enabling environment for implementation of tariff reforms, especially metering and volumetric tariffs. It immensely contributed in making the project commercially viable, efficient and reliable.” Source: Prakash 2012.
a utility set up under a regulator) that have strong user participation and are transparent about setting water charges are more likely to achieve high collection rates (World Bank 2010). Opposition to water sector reform often comes from the urban middle class, who benefit from existing subsidies. It is common that 30–35 percent of connected users pay below the cost price for water (World Bank 2008a). Opposition to reforms can often also come from the agriculture community, which often pays almost nothing for water. Broader sociopolitical research about the political climate, level of trust of government, reputation of the service provider, and behavior towards alternatives means to get water can help the service provider determine whether customers are satisfied with the quality and availability of services and are willing to pay more. Despite recent advances in data collection, such as poverty and social impact analyses (PSIAs), policy makers are not sufficiently informed of the effects of consumer behavior (Ying et al. 2010).Water customers unhappy with poor quality services
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will feel less incentivized to pay, even if there are promises for better service. Opinion research can also reveal what aspects of water service are most important to customers, such as availability, quality, delivery, customer service, or pricing concerns. In Ghana, opinion research revealed the availability of water was the highest concern of citizens. It showed that more citizens were concerned about the availability (41 percent) and quality of service (32 percent) then the price (5 percent) (see figure 1.1). Opinion research in Nigeria showed that 59 percent of people would definitely pay for improved water supply and 20 percent said they would probably pay. Only six percent said they would not pay (Wonukabe 2005). This data helped the government gauge the potential response to price increases and gave them confidence to move forward with reform. In Botswana, a recent survey showed that in rural areas 68 percent of people were dissatisfied with the availability (41 percent) of water but only 58 percent were concerned about the price (Adam Smith International 2012).
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Figure 1.1. Ghana Urban Water Sector Reform Public Opinion Research (June 2004) 41
40 35
32
30 25 20
16
10
4
ce
2
an C
us
M
to m
ai
er
se
nt en
y iv er
lit y ua
el D
Av a
ila
bi
lit
y
0
Pr ic e
5
5
rv ic e
15
Q
Percentage of respondents
45
Most important aspect of water service Source: World Bank.
Private Sector Participation Any water reform program, especially those that include private sector participation, will bring heightened scrutiny to all the business practices of a water utility. Proposals to hire the private sector to manage water services will most likely lead to ideological debates, particularly if foreign operators are involved. The term “privatization” is often used as catchall for any type of private sector participation, although many public utilities already contract out to private companies for specific services such as metering and billing. Service providers should not make the mistake of “trying to sell” private sector participation (PSP) without gauging the level of consumer support for private sector interventions or investments to provide water services. Often customers know very little about the public operation and are then asked to support private sector interventions. In the past these have come from large international companies with little local reputation, and sometimes with little experience in the water sector. It is important for the government to communicate both the risks and rewards of their reform options to 6
all stakeholders. This may mean working with the media to clarify the types of partnerships (for example, concession or lease); educating the public on the various types of PSP models; and presenting case studies of both the success and challenges of PSP. For example, customers will need to know if the private provider is responsible for payment collection, or the government. Similarly, is the private provider responsible for determining increasing tariffs, or is it the regulator? Who owns the assets? What are the contractual obligations? Opinion research can uncover the motivations behind opposition to PSP as well as the level of support and knowledge for various levels of public-private partnerships. Policy makers can then disseminate good information before rumors and misinformation heats up in the media and fear sets in.
Labor Issues
Engaging with workers in an open and structured dialogue early in the process is one of the most important aspects of reform. Internal communication is often lacking but is critical as uncertainty among staff about job losses will
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result in fears and mistrust and ultimately a lack of support. Utility employees should not learn about restructuring efforts from sources other than their employer. This is true not only of government-owned companies that may need to reduce the labor force, but also in the cases in which government agencies move from being a water provider to the regulator of water providers. Often a water utility is overstaffed when politicians use jobs to reward constituents; this creates ties between unions and the political establishment. Unions may also see reform as a direct threat to membership and may lead opposition to protect their positions. In the Ghana water reform program, the trade unions representing workers in the utility were fully supportive of the reform efforts, mainly because they knew retrenchment was necessary and saw the reform as perhaps the only way these employees would receive adequate compensation. But the Trades Union Congress (TUC), the overall labor organization in Ghana, was opposed. These differences within the labor movement underscore the importance of disaggregating audiences, even within an identified stakeholder group. Opposition from labor unions may fade once unions are offered opportunities as part of retrenchment programs, such as severance packages, retraining programs, and so forth. To manage the transition from a supply driven to a demand driven organization, a good internal communication strategy is critical to inform employees and new entities about their roles and responsibilities and to solicit feedback. Service providers should focus on gauging how possible options for restructuring are perceived among staff (and customers) as governments devolve responsibility. Providers should also build internal consensus so that reforms are not sabotaged from within the utility. This includes educating staff about how decentralization or other managerial models will affect job retention, services, and the long-term viability of the utility. December 2012
Customer Service Providing water services is similar to many businesses that must keep customers happy to maximize revenues. Utilities must have a process to respond to customer dissatisfaction about issues such as meter reading, billing and collection, setting up connections, fees, repairs, illegal connections, and service interruptions. Open, honest, and continued dialogue should not only be an initial component of reform, but also an ongoing attitude. Dialogue leads to quick responses to customer needs and thereby helps build a loyal customer base that pays on time. “A service provider is fully accountable only if users have some way of voicing their concerns (recourse) and then, if a complaint is justified, obtaining an appropriate response (redress). Complaint systems are an important vehicle through which a utility can engage with users� (Muller, Simpson, and van Ginneken 2008). In Botswana, for example, only 22 percent of people polled were happy about the accuracy of their water bills and only 23 percent were happy about the bill payment processes (July 2012). Only 21 percent of people were happy with the time it took to effect new water connections (Adam Smith International 2012). These poor customer satisfaction numbers emphasize the need for continual communication, which can keep alive support for the ongoing reform process and clearly communicate how it will affect both existing and future customers. Long-term support and acceptance of customer feedback is vital to providing quality services on a sustainable basis. Sustained two-way communication can be achieved in a number of ways. For example, point-to-point communication channels such as billing statements provide an opportunity to define the roles and responsibilities of the utility and customers alike. These channels can be identified by customers themselves though focus groups or customer surveys. In Ghana, because of the vast coverage of community radio, the utility hosted a radio show that gave customers an
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opportunity to call in and air their grievances about or support for water services. Water customers are legitimate actors with rights, obligations, and responsibilities. Establishing a customer charter is one strong way of giving customers agency. The charter should publicly affirm the roles and responsibilities of the utility and the rights of its consumers, set out the functions of the utility transparently, define each service provided by the utility, and define the obligations of each party. In Tanzania, for example, the water utility has developed a charter for the entire civil service that sets out many standards that the government will adhere to in it interactions with the public. The water utilities in Manila and Nairobi also have similar charters explicitly related to the provision of water services. An annual report is another powerful and sustainable mechanism to disseminate key data and ensure the ongoing accountability of a utility. Its publication incentivizes management to maintain systems that can manage the necessary data to assemble a report, and helps assure consumers of quality by showing that formal audit requirements have been met. In general, the annual report embodies the need to be accountable to stakeholders. Data collection and reporting systems can also be used for ongoing communication. As information for the annual report becomes available, it can be provided to consumers on demand, and widely disseminated through the media (Muller, Simpson, and van Ginneken 2008).
Sector Issues Regulation When a utility moves out of direct government control (whether through PSP or moving it directly out of government management), consumers are often concerned that prices will be increased or they will have no place to take their issues about water services. Whatever the form of regulation, it is important that there
8
is communication with customers and other stakeholders, that they are involved in the process, and that an environment of trust is created. Customers must trust that their costs will be commensurate with good quality service. Coordination of agencies is also critical to make sure that the public is well informed and clear on the role each agency plays. Opinion polls are a powerful tool in this regard. In many polls related to water reform, customers and other stakeholders responded that they wanted a regulatory framework developed, often before other reforms were enacted, as a form of protection, especially against price increases. For example, in the Ghana urban water reform, a public opinion poll found that 72 percent of respondents believed that the public utility regulator could offer significant protection from unreasonable price increases under a public-private partnership (World Bank 2003). Water as a Human Right The United Nations General Assembly has declared that “safe and clean drinking water and sanitation is a human right essential to the full enjoyment of life and all other human rights” (United Nations General Assembly 2010). It defines public control over water and supports the possibility of third-party participation (for example, the private sector or nongovernmental organizations) in water treatment and distribution. It also supports charging cost-recovering tariffs when effective subsidies are in place to support the poor. In contrast, several nongovernmental organizations (NGOs) and antiprivatization groups request that water should be free of cost. A number of them believe that since “water belongs to all … it is not a commodity that can be legitimately privately owned. Water should be provided by governments; it is immoral to profit from its sale” (Okonski 2009). The concept of “free water” is guaranteed to make headlines and attract potentially useful attention. Although it raises legitimate concerns
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around the availability of services, particularly for those who cannot afford to pay, it also distracts from discussion of the viability of water utilities and the relationship with those who can afford to pay. Efficient cost-sharing structures and revenue collection systems are critical to expansion, affordability, and sustainability of water services, and are increasingly at the center of debate by NGOs and policy makers. Feedback surveys around billing and payments will help to better serve poor communities. Public opinion research or willingness-topay surveys will help determine the most popular payment mechanisms and identify new opportunities for bill payment. New payment venues could include churches, local stores, or other innovative ways to make payment easier for customers, such as through mobile phones. The poor often can pay up to ten times more for water supplied by local water vendors than by utilities. Therefore, understanding appropriate delivery methods payment mechanisms is vital in situations where customers have neither addresses nor bank accounts and conventional billing systems cannot be used. For many poor customers, affordability is not simply a matter of price, but liquidity.
3. Three Principles of Communication for Water Sector Reform A strategic communication program should be an integral part of a water reform strategy. It will help policy makers or service providers base their decisions on a clear understanding of the client’s perspective throughout the process. Effective communication is founded on the three basic principles discussed below.
Principle 1: Get to Know Existing and Potential Customers
Assumptions should not be made about what customers want or how they will react. A communication-based assessment (CBA) can help
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gauge the level of support for reform among customers and other stakeholders (Mitchell and Karla Chaman-Ruiz 2007). The CBA uses conventional methodologies to gather information (including economic analysis, ability to pay, and social and environmental assessment) as well as quantitative instruments (including surveys and public opinion polls) and qualitative tools (including focus groups and indepth interviews). A two-way communication process is initiated and maintains information flow among practitioners and stakeholders. The CBA can also utilize other tools such as stakeholder mapping or political and economic analysis to gather more information. The CBA obtains relevant information from many areas that are applicable to reform. However, the following are most relevant (Mozammel and Zatlokal 2002): Governmental and political risk analysis: Provides details on political risk, transparency, and institutional capacity to interact with key audiences in which the reforms will take place. Stakeholder analysis: Assesses stakeholders’ acceptance of the government and water service providers, as well as their perceptions, interests, and priorities. Identifies, disaggregates, and tracks stakeholders’ perceptions and expectations to better understand the opportunities and limitations of the project. Social and participatory communication: Solicits stakeholder perspectives to help shape the formulation of projects and policies. Ensures that mechanisms are in place for a two-way flow of information and for building consensus among stakeholders about the development agenda (Mozammel and Zatlokal 2002).
Principle 2: Build Awareness Around the Need for Reform
Once the perspectives of customers and stakeholders are better understood, a determination can be made on what to communicate about reform, who the messenger should be, and how
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to garner political support with other groups and agencies. A strategic communication campaign will help build an effective reform program that responds to stakeholders with information that resonates and arrives through the channels they trust. Service providers should build awareness around the following issues: • The “state” of the utility: It’s not politically easy to publicly state that a utility is in disrepair, but when consumers are asked to pay more for water, service providers need to communicate easy-to-understand information on the challenges and opportunities for reform and what it means to the consumer. This may include why reform is critical, including investment needs, the services available, programs for the poor, impact on water resources, the use of subsidies and who receives them, vandalism, and unaccounted water use. • The options for reform: Officials can be nervous about making information available because they fear public backlash or they want to be sure about the decision first. But if governments wait too long to make information public, they risk being accused of lack of transparency. A World Bank External Affairs communication review of opinion research in water supply projects showed that the majority of citizens within the project areas had very little knowledge of what the government had planned for reform, who provided the service, or the responsibilities and role of the regulator. Customers need to know early in the process what new services are proposed, what they will cost, and what is the new business arrangement between the utility and the customer. These details cannot wait until rate increases or levels of service change. • The rights and responsibilities: During the reform process, customers should be informed of both their rights and responsibilities. 10
Principle 3: Build in Support and Systems for Change
Communication doesn’t stop after a reform initiative is underway. A utility must build a culture of openness and transparency that continually solicits feedback, manage expectations, communicates results, and is flexible. Building this culture starts with commitment from the head of the utility, who should understand that a communication program can contribute to the utilities’ overall objectives. To leverage their communication plan, service providers need to take the following actions: Link strategic communication planning with the overall objectives and goals of the reform program and the project cycle The communication strategy should be integrally linked with the overall project objectives and goals, and be in line with the long-term utility operations of the utility. Communications are most effective and contribute most to the sustainability of results when integrated as part of the reform project cycle (World Bank 2008b). The chart above shows how the various communication processes work in a nonlinear way during a reform and the linkages between them. Monitoring and evaluation done throughout the process will facilitate adjustments based on changes in attitudes, changing political climates, and performance of the utility. Make information available and accessible Governments and implementing agencies should establish policies that support an open, transparent environment with a flow of information between the service provider and its stakeholders. This includes access to documents and information that are made public—procedural, financial, organizational, operational, legal, and regulatory. The establishment of a web portal and its constant maintenance is critical to promote transparency. Some countries have passed access to information laws that set the legal framework in which
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Figure 3.1. Framework for Strategic Communication
Source: World Bank.
the project should operate. Service providers should also have procedures in place to respond to data requests by individuals, media, and other stakeholders in a timely fashion, as well as public comment periods that allow for a stakeholder feedback. Finally, providers should have continuous round tables and other mechanisms that maintain and strengthen dialogue with critical stakeholders, especially NGOs, community-based organizations (CBOs), and other civil society organizations. Public opinion research or customer surveys can gauge how accessible customers and other stakeholders feel the utility is. For example, in the Mauritius water reform program only 39 percent of stakeholders said that the water company gave them the information they requested and only 33 percent stated that the water management authority kept them informed (Mazzei 2004). In Botswana a poll found that 60.5 percent of respondents were dissatisfied with updates from the utility regarding services and future plans. Of this number, a shocking 82.9 percent of rural respondents were December 2012
dissatisfied with the level of information they received from the water utility (Adam Smith International 2012). Understand the best communication channels and messengers Early research of public opinion can help identify the most trusted messengers or champions. These star communicators may work inside the utility, for the government, or even for an outside third party. Table 3.1 gives an example of opinion research from Ghana’s urban water reform program that assesses the levels of credibility of various agencies. Manage expectations Clarity about both stakeholders’ expectations and the government’s objectives is critical for mitigating nonfinancial risk. The value of a project is only fully recognized when the beneficiaries and stakeholders believe the project has met their expectations and has delivered as intended. The government’s job is to keep the gap between the project reality and expectations of stakeholders as narrow as possible.
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Table 3.1. Public Opinion of Agency Credibility in Ghana’s Urban Water Reform Program Respondents to opinion survey (%) Very bad impact
Somewhat bad impact
Somewhat good impact
Very good impact
National government
2
5
30
64
Local media
1
4
36
59
Religious leaders in Ghana
1
5
36
58
International NGOs
1
3
39
57
World Bank
4
8
37
52
International private sector
2
7
46
46
International Monetary Fund
5
9
40
45
Local NGOs
1
5
49
45
Local private sector
1
7
48
44
International media
2
10
46
43
Integrated Social Development Center
1
6
54
40
Rudolf Amenga-Etego
1
12
59
30
17
24
37
22
Stakeholders
Politicians
Source: World Bank. Note: The data was collected from responses to the following statement: “I am going to read out some stakeholders in Ghana. I’d like you to tell me what kind of impact they have on Ghana … a very good impact, a somewhat good impact, a somewhat bad impact, or a very bad impact.”
To manage expectations, it is essential to ensure that stakeholders are clear about: the impact of the reform on their welfare; roles, responsibilities, and lines of oversight and accountability of actors involved; and the need for ongoing updates on the schedule and status of reform processes, decisions, delays, next steps, and so forth. In the Lviv, Ukraine water project, for example, the mayor had promised during his election campaign that he would solve the city’s water problems within two years or he would resign. But the citizens’ definition of solving the water problem was to have uninterrupted service 24 hours a day seven days a week—an expectation that was impossible to fill within two years. In this case, the message of water improvement needed to be defined in terms of what could realistically be accomplished within 12
a two year time frame. Otherwise, any progress would have been seen to have failed (Mitchell and Buitano 2002). Without managing expectations it is possible that a project may deliver 100 percent of its stated project objectives and still be perceived to have failed. People may believe, for example, that they will receive improved water services even though they were not slated to benefit. When they do not see any improvements (even though there may have been to others) they will perceive that the project has failed. Communicate the reason for project delays Projects may be delayed for technical, financial, or political reasons. For example, the government might announce that 100 new homes will be connected to the water network by a certain date, but the deadline will not be met. Contin-
Technical Learning Note No. 1
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ued communication about the delay is critical to maintain trust and credibility in the project. Communicate results Officials may spend so much time defending reform efforts that they forget to communicate their accomplishments. Although new connections or improved service may not be newsworthy, local announcements about new services or improvements in the system give citizens confidence that progress is being made. The idea is to promote the small victories, especially with local groups. Do not just focus on timelines and processes—communicate the real deliverables or anticipated impact of reform. Empower the media Journalists play a key role in framing the national and political debate on water sector development. Service providers benefit by educating journalists early in the reform process so they have the capacity to report the intricacies of the project, the problems, and potential solutions. This helps the headlines to become less ideological and more driven by issues. Collaborate with local governmental and international and third parties that can advocate support The CBA helps set priorities for reform programs by identifying where early gains can be made or by indicating which types of reform have the greatest chance of success. The sociopolitical analysis can help reformers learn who belongs to their “coalitions” of support. With this knowledge, reformers can sequence reform programs in a manner that maintains and expands support among key groups. Communicate between agencies to avoid mixed messages and misinformation Different government agencies will have diverse views and interests concerning the proposed reform initiatives. It is important at both the technical/policy level and the “communication” level to develop agreement, internally and publicly. In Ghana, a Water Communications December 2012
Committee was established to coordinate and ensure consistency of messaging about the reform efforts. Members from several agencies that had responsibility over water would meet to show cohesion and coordinate key information to avoid misinformation and conflicting messages from the government. Retain professional communication capacity Even if the government commits to develop a communication program, the professional capacity to implement the program is sometimes weak and in many cases the allocation of both human and financial resources is insufficient or inadequate. Governments and service providers need to invest time and resources into hiring a seasoned communication professional to carry out the communication program. This person should have access to upper management and should participate in high-level strategy meetings.
Conclusion According to the United Nations, the international target to halve the number of people who do not have access to safe drinking water been met, five years before the 2015 deadline. However, there are still 780 million people without access to an improved drinking water source (UNICEF and WHO 2012). In urban areas, the proportion of people using piped water on premises remained almost the same in percentage terms, but the massive increases in urban populations during this time meant that the absolute number of urban dwellers using water piped to their homes grew by a billion. The number of people relying on tanker trucks and small vendors for drinking water has almost doubled over the same 20-year period, from 44 million to 85 million. The number of people using bottled water to meet their drinking water needs also increased, rising more than sixfold—from 37 million in 1990 to 228 million in 2010 (UNICEF and WHO 2012).
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The need to integrate communication into reform and the need for stronger political, social, and cultural analysis will accelerate as urbanization increases. Understanding the political climate for reform helps governments create an enabling environment that builds awareness around fears and anxieties and communicates information that resonates with customers and stakeholders groups. A genuine process of consultation and engagement with consumers helps build ownership of reform. When water service providers engage with customers early in the process, they not only build trust, but they also may learn something. Customer’s complaints, which may not make it to top levels of management, should be brought to the negotiating table. This will give customers confidence that their voices will be heard. Building a process to find out what customers want and what they are willing to pay, and targeting users with messages that meet their needs, will result in satisfied customers. Satisfied customers will ultimately make more of an effort to pay for services, and pay on time. Increased cost recovery through improvement payment will help maximize revenues and help make utilities sustainable.
Mitchell, Paul, and Mapi Buitano. 2002. Back to Office Report, Lviv Water Project. World Bank, Washington DC. Mozammel, Masud, and Barbara Zatlokal. 2002. “Strategic Communication in PRSP.” In A Sourcebook for Poverty Reduction Strategies, Washington, DC: World Bank. Prakash, Manu. 2012. “Citizen Centric Communication for Action Change: Implementation of Tariff Reforms for 24X7 Water Services in Karnataka.” Urban Water Sector Improvement Project 2012. World Bank, Washington, DC. Muller, Mike, Robin Simpson, and Meike van Ginneken. 2008. “Ways to Improve Water Service By Making Utilities More Accountable to Their Users: A Review.” Water Working Notes No. 15. World Bank, Washington, DC. Okonski, Kendra. 2009. “Is Water a Human Right?” The New Atlantis, Number 24, Spring 2009, pp. 61-73 United Nations Children’s Fund and World Health Organization (UNICEF and WHO). 2012. “Progress on Drinking Water and Sanitation: 2012 Update.” UNICEF and WHO, New York and Geneva. United Nations General Assembly. 2010. “General Assembly Adopts Resolution Recognizing Access to Clean Water, Sanitation as Human Right.” http://www.un.org/News/Press/docs/2010/
References
ga10967.doc.htm.
Adam Smith International. 2012. Public Opinion
Wonukabe, Taijo. 2005. “Public Opinion Poll for
Survey commissioned by for the Ministry of
Nigeria Urban Water Sector Reform Project.”,
Mines, Minerals Energy and Water Resources in
Poll for the World Bank. World Bank, Washing-
Botswana, May 2012.
ton, DC.
Cardone, R., and C. Fonseca. 2003. “Financing and
World Bank. 2003. Ghana Urban Water Reform
Cost Recovery.” Thematic Overview Paper 7. IRC
Project, Public Opinion Poll. World Bank, Wash-
International Water and Sanitation Center, Delft,
ington, DC.
the Netherlands.
World Bank. 2006. Infrastructure at the Crossroads:
Mazzei, Leonardo. 2004. “Public Opinion Poll and Findings for Mauritius PSP in Water and Sanitation.” World Bank, Washington, DC.
Lessons from 20 years of World Bank Experience. Washington, DC: World Bank. World Bank. 2008a. “The Political Economy of
Mitchell, Paul, and Karla Chaman-Ruiz. 2007.
Policy Reform: Issues and Implications for Policy
“Communication Based Assessment for Bank’s
Dialogue and Development Operations.” Social
Operations.” Working Paper 119. World Bank,
Development Department, Report No. 44288-
Washington, DC.
GLB. World Bank, Washington, DC.
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World Bank. 2008b. “World Bank Sustainable Infrastructure Action Plan: Fiscal Years 2009–2011.” World Bank, Washington, DC. World Bank. 2010. “Cost Recovery for Water Supply and Sanitation and Irrigation and Drainage Projects” Brief. World Bank, Washington, DC. World Bank. 2012. “Panama: Governance and AntiCorruption in Infrastructure.” Political Economy in Urban Water Series, Number 1, May. World Bank, Washington, DC. Ying, Yvonne, Heather Skilling, Sudeshna Banerjee, Quentin Wodon, and Vivien Foster. 2010. “Cost Recovery, Equity, and Efficiency in Water Tariffs in America.” World Bank, Washington, DC.
Appendix: Definitions of Communication These three aspects of strategic communication vary and are contextual. Stakeholder’s opinions change continually, as does the climate for reform, so the communication will change as the process moves forward. A 2007 survey with task managers showed that many of the terms used to discuss “communication for reform” needed more clarity, as many of them were used synonymously and without a clear definition of their differences and complementarities. This is because usually all these types of communication are needed in a reform program but at different stages and to different degrees. The following types of communication may all be used for different target audiences and to accomplish different goals throughout the process. Corporate communication Explains what an organization is and does. It builds a base of trust, allowing the institution to engage in dialogue and to strengthen belief in its work. Corporate communication is usually one-way communication used to build institutional reputation, but it should also serve the goals of the stakeholders. In the case of water sector reforms, the regulatory agencies play a crucial role in the corporate image of
December 2012
their providers. Just by disclosing information related to firms’ performance in water service provision or in the complaints’ solution system, the regulatory agency can affect seriously the firm’s image, if the firms do not do what they say will do. Internal communication Looks to build internal capacity in the government or a utility to improve its communication and rapport with different audiences, especially with civil society. This is done through providing the skills and strategic tools to align reform objectives and activities with those of the institution in charge of providing the service. It also builds common internal messages and helps to eliminate differences of views between government departments. In water sector reform programs, internal communication has been a constant challenge, given the complex nature of reforms, especially when they involve PSP. Communication for behavior change Includes communication tools and activities aimed to modify behavior of key audiences. Changing behavior is critical for large-scale reform efforts, where just increasing awareness about a development issue is usually not sufficient to achieve the changes necessary for positive outcomes. People must have a base of knowledge about the reform and motivation to make changes themselves, or accept change at a broader level (as in the case of PSP). Simple behavior changes can take place over a short period of time (for example, getting parliament to vote for a reform effort); others may need long-term continuous communication to effect (for example, getting people to pay for water at the right price). Dissemination Focuses mainly on one-way communication. It has been traditionally used to increase knowledge or understanding on issues of interest. Media and press are the main channels used for this approach. Dissemination and increased
Communication for Water Sector Reform
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awareness about water issues usually is the first step in the process of behavior change, which is the goal of certain water sector reforms. It is designed to decrease misinformation and disinformation. Advocacy Puts the reform program on the public agenda and builds political and public will. NGOs, think tanks, media, and other CSOs often have an exclusive role advocating about specific topics such as water for free. Therefore, part of the strategic communication or integral approach towards water sector reforms or similar initiatives should be devoted to advocacy. Participatory communication Participation and empowerment are two key dimensions of this approach and play a critical role in design implementation. Sharing of knowledge and experiences and joint assessment of the situation are more important than messages or media.
Authors Karla Chaman, a Peruvian citizen, is a strategic communication professional, with more than 14 years experience in designing, implementing, and supervising communication strategies for a variety of development initiatives. She was the water and sanitation liaison for the Development Communication Unit at the World Bank, where she worked for six years before moving to the Inter-American Development Bank. She is currently Senior Public Affairs officer at the International Monetary Fund. Tracey Miller worked for the World Bank for 10 years advocating the importance and benefits of communication tools in water sector reform. She worked in corporate and development communication, knowledge management, and was the program manager for the Water Media Network, a global program to educate journalists about water policy issues. She is currently a freelance writer and the director of the Food and Health Forum. Paul Mitchell has worked in international development for more than 30 years with the United Nations, the World Bank, and the Asian Development Bank. He is a specialist in communication for development and political risk management and now runs a private consulting company.
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Technical Learning Note No. 1
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