Health service delivery in developing countries - a different perception

Two simple objectives were framed for this paper. They are, firstly to define the status and problem of health service delivery in developing countries and secondly how the public sector health service delivery can be made more effective in developing countries. For the study, both secondary and primary data are used to analyse the problem. This paper focuses on the evidence showing two main shortcomings in government spending for services to improve health and actual improvements in health status. First, institutional capacity in service delivery is a vital ingredient in providing effective services. Second, the net effect of government health services depends on the severity of market failures. From various theoretical and empirical experience, it is found that the more severe the market failures are, the greater the potential for government services to have an impact to grow positively.