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Publication Detail
UPSE DP 1999-10: The Political Economy of Decentralization: Financing of Health Services in the Philippines

Like many developing countries, the Philippines have decentralized its public health system. Despite its supposed advantages, however, the decentralization, has not led to widespread improvements in local provision. This is partly because many local government units are found financially inadequate since current revenue-sharing scheme does not factor in the distribution of the developed expenditure responsibilities across LGU. Moreover, this particular flaw in the present revenue-sharing scheme has made corrective policy measures more difficult to undertake since it is no longer sufficient to compensate those LGUs originally with financing difficulties. More crucially, it has also become politically necessary to compensate those adversely affected by the corrective policy measure. If only to avoid the added cost of further adjustments, the experience of the Philippines underscores the importance of a well-designed and carefully implemented decentralization program.

UP-School of Economics
Authors Keywords
Capuno, Joseph J.; health sector; governance; health service delivery; Local Government Units (LGUs);
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