ANIMAL HEALTH-SERVICES - FINDING THE BALANCE BETWEEN PUBLIC AND PRIVATE DELIVERY

Growing fiscal deficits and greater awareness of the huge economic cos t of often-inefficient government activities have renewed interest in transferring the delivery of important services from the public to the private sector in developing countries. This article, drawn from a lo nger study, offers a framework for determining the appropriate roles o f the public and private sectors in delivering animal health services, such as veterinary surveillance, disease vector control, vaccination, clinical treatment of sick animals, inspection of livestock products, and veterinary research and extension. The profitability and therefor e the supply of private veterinary services is governed by several fac tors arising from economies of scale, such as the size of the livestoc k enterprises in the locality, the nature of potential or actual disea ses, and the types of animals raised in the production systems. Thus, in areas where private veterinary work is unprofitable or where other types of market failure occur, economic or social concerns may make so me type of public intervention necessary. The transfer of animal healt h services from the public to the private sector must be done selectiv ely, and government support may be needed to ensure the success of suc h transfers.