Full Cost Recovery

Full Cost Recovery

Its said that "full cost recovery means recovering or funding the full costs of a project or service" . Recovering the full costs of investments and operating costs is currently a central and dominant policy prescription ascribed by many governments, International Financial Institutions and Supranational Governance Agencies across the world. It corresponds with the promotion of minimal government, the commercialisation of public goods and services, the commodification of natural resources and a belief in low taxation levels and a reluctance to pay for essential services from general taxation. A consequence of such a policy, in the developing world, is that those unable to pay go without. Moreover, such a policy encourages cherry-picking of services and areas, leading water providers to affluent areas and discouraging them from providing for the poorest.