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world development report 2004. Making Services Work for Poor People. Messages. Services are failing poor people. But they can work. How? By empowering poor people to Monitor and discipline service providers Raise their voice in policymaking
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world development report 2004 Making Services Work for Poor People
Messages • Services are failing poor people. • But they can work. How? • By empowering poor people to • Monitor and discipline service providers • Raise their voice in policymaking • By strengthening incentives for service providers to serve the poor
A framework of relationships of accountability Poor people Providers
A framework of relationships of accountability Policymakers Poor people Providers
A framework of relationships of accountability Policymakers Poor people Providers
Decentralizing • Make services closer to clients ? • Make government closer to citizens ? • Or Make government closer to services ?
Decentralization National policymakers Local policymakers Poor people Providers
Decentralization and the service delivery framework Center Devolution Sub-national government Policymaker Politicians Politicians Policymaker Voice Delegation Compact Deconcentration Citizens/clients Providers Poor Non Poor Organizations Frontline Client’s power
What is to be done? Tailor service delivery arrangements to service characteristics and country circumstances
So what about health services Multiple outputs, different nature of services -Population Oriented services -Family Oriented services -Individual Oriented services
Homogenous needs and easy to monitor by policymaker/ government ? YES
Population Oriented Outreach • Providers • Integrated in clinical services (clinics, GP) • Integrated in schools, workplace • Outreach health post • Mobile Activities • Home visits, door to door activities Lower Asymmetry of information Less Transaction intensive Low discretion: standards Public good nature or network externality Lever: Collective action: Government Primarily
Population Oriented Services • Needs for services are homogeneous in the population. Periodic Outreach by skilled health staff to poor populations has been shown to work : campaigns, mobile/itinerant clinics, home visits, site inspections. • Decentralization can pose problems as economies of scale can be important for those services because of network externalities (eg: needs for a logistic chain for immunization or itinerant services) or public good nature of services (eg: control of vectors, air/ water quality)
Family Oriented Support to self care Providers Retail Community based organizations/ associations Cooperatives Social marketing, media, Women’s groups, associations etc Low asymmetry of information Transaction light High discretion in taste/ values Lever: Imitate the market Direct control of users
Family Oriented Services • Needs are heteregeneous: differences in culture and values. Asymmetry of information is low : no need for skilled health staff. Use of market/ community/civil society channels has been shown to work for poor people. • Decentralization likely to benefit those services when addressing the geographical heterogeneity of health needs and risk factors linked to cultural behaviors.
Heterogeneous needs and difficult to monitor by both users and government ? YES
Providers: Hospitals Clinics Individual practitioners (licensed or not…) Individual Oriented Clinical Care High asymmetry of information Transaction intensive High discretion Levers: Direct control of users Self Regulation Sophisticated purchasing capacity
Individual Oriented Services • Needs are heteregeneous (biological as well as lifestyle differences) and difficult to predict. Financing through insurance thus possible. High discretion:clients are sole observers of the transaction. High asymmetry of information: contracting requires a sophisticated purchasing function and/or intrinsically motivated skilled health providers. Need of a combination of monitoring mechanisms : client control, government regulation and professional self regulation. • Decentralization may help address some geographical heterogeneity but risk of reducing crossubsidies/size of risk pool and difficulties in developing the local technical capacity for strategic purchasing of services.
world development report 2004 Making Services Work for Poor People