Promoting health and confronting disease challenges requires effective action across a range of activities in the health system. Managing scarce resources and health care effectively and efficiently is an important part of this story. This volume presents six regional reviews of country level experience in improving resource allocation and strategic purchasing in low- and middle income countries.
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Great progress has been made in recent years in securing better access and financial protection against the cost of illness through collective financing of health care. Managing scarce resources effectively and efficiently is an important part of this story. Experience has shown that, without strategic policies and focused spending, the poor are likely to get left out. The use of purchasing to enhance public sector performance is well-documented in other sectors. Extension to the health sector of lessons from this experience is now successfully implemented in many developing countries. This publication is one of a series on ways to make public spending on health care more efficient and equitable in developing countries. It reviews the underlying economics in terms of agency theory, behavioral science, contract theory, transaction costs, and public choice theory. It provides a synthesis of the institutional environment needed for countries to shift to strategic purchasing, organisational incentives that need to be in place, and management capacity that needs to be strengthened.
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