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Health Care Reforms in Developing Asia: Propositions and Realities
Author(s) -
Wu Xun,
Ramesh M.
Publication year - 2009
Publication title -
development and change
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.267
H-Index - 93
eISSN - 1467-7660
pISSN - 0012-155X
DOI - 10.1111/j.1467-7660.2009.01539.x
Subject(s) - scope (computer science) , appeal , developing country , private sector , health care , economics , public economics , health sector , market failure , competition (biology) , health policy , business , development economics , economic growth , political science , health services , sociology , ecology , population , demography , neoclassical economics , computer science , law , biology , programming language
Market‐oriented reforms in the health sector continue to dominate health policy agendas in many developing countries despite growing evidence of their negative impacts. This article critically examines eight key arguments that are used to justify market‐oriented reforms and that continue to hold widespread appeal among policy makers and analysts. The authors conclude that although the axiom that health care is atypical due to pervasive market failures is widely acknowledged by reformers, the scope and depth of the negative consequences of market competition and private sector involvement are systematically underestimated in policy design and implementation, while the regulatory capacity to overcome them is overestimated. Their analysis suggests that while there is considerable scope for market‐oriented reforms, the success of such reforms depends on a tight set of conditions that are often absent in the health care sector, especially but not exclusively in developing countries.