...y. In this context, inadequate financial resources and inappropriate financingmechanisms are often cited as constraints to scaling up sector reforms. However, the lack of comprehensive understanding of the existing flows of financial resources often makes it difficult to assess their links with sector reforms. This understanding is particularly relevant in the context of Millennium Development Goals (MDGs) and is also identified as one of the key reasons for the weak representation of the water and sanitation sector in thepreparation of the poverty reduction strategy papers (PRSPs) and the linked budget process through the medium term expenditure framework (MTEF). It is in this context that theregional study aims to: a) develop a framework to assess the WSS related financial resource flows, and b) develop a benchmarking tool to assess the sector financial performance. The main outcomes of the regional work are to develop a better understanding of the water sector finance for its improved integration with the PRSP and MTEF and contribute to the development of a country-level financing strategy. The central premise of this study is that these outcomes are essential to develop more meaningful country level action plans for achievement of the MDGs

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