Urban Water Service Delivery in Emerging Economies: Fiscal Sustainability, Cost Recovery, and Governance Performance

Abstract

Emerging economies are increasingly challenged by rising public debt, subsidy dependence, and growing urban service demands. This study assesses financially sustainable public service delivery models by comparing subsidy-dependent and market-based approaches across Pakistan, Kenya, Egypt, Morocco, Bangladesh, and Senegal over 2019–2024. Drawing on secondary data from IMF, World Bank, FAO, and OECD, the analysis employs metrics including fiscal burden, cost recovery, operational deficits, affordability, service coverage, fiscal efficiency, and weighted fiscal sustainability scores. Results indicate that market-based models supported by institutional autonomy, regulatory oversight, and cost-recovery mechanisms achieve higher operational efficiency, reduced subsidy reliance, and improved service affordability. Kenya and Senegal exemplify financially robust systems, whereas Egypt and Pakistan remain constrained by high subsidies and operational deficits. The study provides a quantitative framework linking market design, governance, and fiscal performance, offering evidence-based guidance for designing sustainable, equitable, and resilient public service delivery systems in resource-limited contexts.