Issues in the Allocation of Resources in the Health Sector of Developing Countries

Abstract

The pattern of resource allocation in the health sector of developing countries often suggests excessive distortions in the balance of expenditure, interregionally and between urban-rural areas. This reflects the reliance on a "medical referral system." This paper examines the theoretical rationale underlying such a system and argues that policy analysis must examine the operating characteristics of such a system in order to appraise its efficiency and equity. As a case study, the Tunisian medical referral system is evaluated in terms of the distribution of resources, structure of referral capacity and the extent of actual referral.