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Regarding the 2nd question on why "we expect poor rural families to pay the full cost? [of rural sanitation]", I suspect that the "we" in this case refers to supporters of CLTS and others who claim that subsidies don't work. Rural sanitation subsidies are common and can be effective if properly applied. A recent UNC review of sanitation subsidies concluded:

Global experience with well-designed and implemented sanitation programming suggests that subsidies are not necessary to dramatically reduce open defec[a]tion in many locales. However, there are other contexts in which access to finance or carefully designed, implemented, and targeted hardware subsidies may play an important role in accelerating the adoption of improved sanitation.

Source: Detailed Review of a Recent Publication: Sanitation Subsidies in Bangladesh. (WaSH Policy Research Digest ; issue 1). UNC Water Institute, July 2015. https://waterinstitute.unc.edu/files/2015/06/WaSH-Policy-Digest-july2015.pdf

Cor Dietvorst, IRC