Resource Allocation in Ethiopia, Nigeria and India

The following sections are included:Resource allocation has mainly focused on equity but needs to also focus on effectiveness and efficiency, since the equitable distribution of poor-quality services is unlikely to achieve positive results.The allocation of central resources to sub-national regions is necessary to achieve equity but should be based on need-based formulas and effective incentives, and multiple resource flows should be avoided.To facilitate effectiveness and efficiency, it is essential to have a good understanding of the normative costs of services.Resource allocation must take into account the role of the private sector in terms of service financing and provision, the role of health insurance as a financing mechanism, and the impact of user fees.Generally, the only way to increase government funding for primary health care (PHC) is to allocate a larger share of additional budgetary resources. If external funding is used, the government should commit to take over these costs.