We know that, in poorer countries, effective public services are vital for poverty reduction. Episodes of ill-health, often caused by poor water quality or sanitation and lack of access to good healthcare, are a major reason why people fall into poverty. Education appears to be the single most important route for exiting poverty (Krishna 2007).
In most countries, the responsibility for adequate provision of such basic services lies with the state. Yet stateprovided public services often fail poor people. When poor people turn to an unregulated private sector to access services, they are hit twice – they frequently pay more than the better-off for services that are often of poorer quality.
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