From the regression model coefficients, it is possible to estimate the average impact that each of the utility services has on the profitability of the micro-enterprise (Table 5.10). Perhaps of greatest interest are the figures which express the additional profit attributable to utility services as a percentage of the average profit of micro-enterprises that do not enjoy access to the corresponding services. These show that the value of these services to micro-enterprises is very large indeed. For example, micro-enterprises without electricity in the rural areas have profits that are 65% higher on average than micro-enterprises with electricity. The corresponding figure for water is 170%. By far the largest effect is that of the cellular telephone, which raises profitability by 1420%. This effect appears implausibly large, and it is possible that the cellular telephone is picking-up some other unobserved variable that is important for profitability and which may not be captured either by the locality population or by the municipality fixed-effect; for example, proximity to a markets.

# **5.2 Health benefits**

It is widely believed that modern infrastructure services have an important link with household health. Safe water and basic sanitation reduce exposure to waterborne diseases such as diarrhea and cholera. Garbage collection improves hygiene and reduces the presence of parasites. Use of modern cooking fuels, such as propane gas, reduces exposure to indoor air pollution.

Women participating in the qualitative poverty study, seemed to be particularly aware of the health benefits that had come about as a result of receiving access to water and sanitation services (Table 5.11).

# **<u>Table 5.11: Impressions of water and sanitation health linkages from qualitative poverty study</u>**

_‘Nosotros...antes íbamos a traer agua en los pozos que hay en los barrancos. El agua era sucia y estaba lejos, nos costaba mucho, sufrimos con el acarreo del agua... Ahora el agua llega a la casa y es limpia, eso nos ha ayudado en la salud de la familia... Ahora hay muy pocas enfermedades pero es por descuido de la gente... también hay letrinas, todo eso nos ha ayudado en nuestra salud.’_ K’iche Woman, Qualitative Poverty Study.

_‘[Tener agua] ha mejorado la salud de la familia porque no hay muchas enfermedades del estómago (diarrea)... ahora las mujeres ya no sufren... ya no van al barranco a traer agua.’_ K’iche Woman, Qualitative Poverty Study _‘El río queda lejos y se seca durante el verano... cuando no había agua se iban las mujeres por día a acarrear agua de los ríos... Antes, cuando no teníamos agua, era un sacrificio, peligroso y debajo de la lluvia. Ahora estamos mejor, antes nos bañábamos a veces hasta cada tres días y esto produce enfermedad, había mucho olor feo... Las mujeres lavan los trastos porque si no se hace esto trae enfermedad, sirve para la higiene.’_ Q’eqchi Woman, Qualitative Poverty Study.

_‘[Con el agua entubada] ha mejorado el problema de tomar agua del río crudo y hay menos niños que se enferman... en la casa cloran el agua de tomar.’_ Ladina Woman, Qualitative Poverty Study.

To gain an initial impression of the extent of the correlation between health and access to modern utilities, a series of cross-tabulations are performed. The cross-tabulations distinguish between children and infants as well as between urban and rural areas.

The first of these relates to the relationship between access to piped water and sanitation and the incidence of diarrhea among children (Table 5.12). In urban areas, no significant correlation was found 45