iated infrastructure in developing countries while in developed countries the need will be to maintain and improve existing systems. As part of the relocation of economic activity there could be a reinforcement of trends towards self-supply of water services, either directly or through the transfer of funds. There is an opportunity here for increased private sector involvement to supplement local services, a trend that may well be reinforced by GATS and could represent a growth area for the water TNC/MNCs, especially if they could mobilise the necessary funding and technical expertise. However, for sound practices it would be necessary to establish property rights and robust legal and regulatory institutions. Such trends are starting to emerge in both China and India, where INFRASTRUCTURE TO 2030: TELECOM, LAND TRANSPORT, WATER AND ELECTRICITY - ISBN 92-64-02398-4 © OECD 2006 5. THE IMPACTS OF CHANGE ON THE LONG-TERM FUTURE DEMAND FOR WATER SECTOR INFRASTRUCTURE the state has sought to distance itself from service provision and reconfigure as an enabler and overseer of that service provision. It could also be envisaged as a condition of relocation that such enterprises be required to take on forms of responsibility for extending basic infrastructure and services, modifying the former communist model of enterprises embedded within communities. Public finance and investment Between 1993 and 2002 World Bank infrastructure investment lending declined by 50%, partly due to a lack of clarity on the roles of the private and public sectors in infrastructure service provision and underinvestment in country-level analysis. At the same time, private sector investment in the water sector, which accounted for less than 10% of total investment, has also declined (Hall, Iobina and de la Motte, 2003) as the private sector has become more risk-averse in relation to the water sector. Through the 1990s national governments accounted for two-thirds of capital investment in the water sector and are likely to remain the major source o