vice levels to "be the same as everyone else", driving infrastructure performance up. 7. Possible changes for the sustainability of current business models In reflecting on the possible implications on business models, a distinction is drawn between a generalised situation in OECD countries, transition economies such as Russia and developing economies such as China and India. As already pointed out, there exists a wide variety of business models with varying degrees of private sector participation. This reflects the differing local historical and socioeconomic trajectories as well as the local physical context. The term business model should be understood in this context as referring not just to the actual business of service provision, but also to the institutional context within which it operates. In OECD countries there is a relatively mature and stable business model in place, one that is increasingly looking for opportunities to market its knowledge and expertise within its economic sphere as well as outside. The principle of full-cost recovery is accepted and is increasingly an integral part of the regulatory framework. Affordability of the service is such that for most households, water services are invisible. The setting of tariffs is done in reference to other social objectives; thus water service providers could be given a greater degree of flexibility in their setting, in conjunction with regulators. That might also allow for other forms of revenue raising, SO as to avoid basing everything on user fees. This could be of importance when it comes to raising income to meet wider societal requirements, such as mitigating the effects of climate change or risk provision - aspects that present a society with wide risk. Raising funds and investment in the light of growing needs will be a challenge. How this is undertaken will depend on the 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 SEC