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Needs-Based Allocation of Health Resources: An Option To Consider In Ethiopia


Allocation of health resources according to needs is one of the principles to achieve distributional equity. Currently health resources from the central government to the regions are transferred using mainly the Federal block grant allocation formula which doesn't take into consideration the specific health service needs of regions. This paper tries to develop health resources allocation formula based on need that takes into consideration the relative status of health-related variables in each region to allocate health resources as opposed to the federal block grant allocation formula. Using DHS (2005) data and the principal component analysis techniques, an asset index which includes health-related variables is constructed for each region. The finding/asset index values revealed that Afar is the highest deprived followed by Somali, Benshangule-Gumize and Gambela. On the other hand, Addis Ababa is the least deprived followed by Dire Dawa and Harari. The remaining four Regions (Amhara, Oromia, Tigray and SNNP) are in between the two extremes. The finding is generally in line with the level of development of the regions in the country but different with that of the federal block grant allocation formula. These indices together with the size of the population could serve as a tool to allocate health resources among regions. Such allocation of resources promotes equity and improves health status of the country at large

Corporate Author: 
Getnet Alemu (Editor) & Ethiopian Economic Association/Ethiopian Economic Policy Research Institute
Ethiopian Economic Association (EEA)
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Cataloge Date: 
Broad Subject heading: 
Social Sector
Call Number: 
330.963 PRO 2009
Serial Key Title: 
Proceedings of the Sixth International Conference on the Ethiopian Economy
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Content type: 
Publication date: 
2013-05-27 23:09:00
Forum or Discussion date: 
2013-02-27 15:02:19
Place of publication: 
Addis Ababa, Ethiopia
Type of material: 
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