Infrastructure Under Stress: Water Service And Connection Challenges In Eastern Europe And Central Asia During The 2008-2009 Crisis

This paper examines the impact of the 2008–2009 global financial crisis on water service quality challenges experienced by firms in Eastern Europe and Central Asia. Using data from the World Bank’s BEEPS IV and V surveys, this study analyzes applications for new water connections, the proportion of firms experiencing insufficient water supply, and the frequency and duration of service disruptions during and after the global financial crisis. The results indicate a significant decline in the number of manufacturing and service sector firms applying for new water connections during the post-Crisis period. However, there was no statistically significant difference in the proportion of manufacturing firms reporting insufficient water supply for production between the two periods. In terms of service disruptions, the number of incidents of inadequate water supply decreased significantly in the years following the crisis. On average, firms reported 6.06 incidents during the Crisis period, compared to 3.84 post-crisis. Similarly, the average duration of each incident declined from 17.67 hours during the Crisis to 10.31 hours afterward—a statistically significant reduction. These findings suggest that while new water connection applications declined—likely due to reduced business formation, post-Crisis—firms faced more frequent and prolonged water supply issues during the Crisis period compared to the postCrisis period.