Since 2016, the World Bank’s Water andGovernance Global Practices have been implementing thePolicy, Institutional and Regulatory (PIR) IncentivesInitiative to gain deeper insight into the dynamics betweenwater supply and sanitation (WSS) sector incentivemechanisms. PIR is a global framework for understandingfactors that can contribute to positive sector outcomes atthe country level. This knowledge brief uses a PIR frameworkto provide a snapshot of the experiences of five countriesin South America: Argentina, Brazil, Chile, Colombia, andPeru. The brief showcases the wide variety of incentivescreated by governments to successfully motivate people (asindividuals or as part of an institution) to do their partin an integrated PIR system and how a lack of suchintegration may produce perverse incentives that prohibitthe achievement of sector goals. Governments looking tostrengthen the WSS sector should, therefore, take a holisticapproach to sector reform and one that seeks to align PIRincentives through integrated interventions. This alignmentincludes harmonization between sector objectives, rules ofthe game, and mechanisms for implementation. Of criticalimportance is the financial and human resource capacity ofsector institutions. Countries in South America need to movebeyond the technical solutions that enabled them to achievethe MDGs and in the process carefully consider the driversfor reform and the best fit for the prevailing institutional context.
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