Low livestock productivity in many developing countries is commonly conside
red to reflect, among other factors, the inadequate supply of services to c
ontrol disease. Veterinary services have traditionally been provided by the
state, but public finance constraints have limited the availability and ef
fectiveness of public services. The author explains how economic theory can
be used to identify alternative delivery systems (beyond the state) for pr
oviding animal health care and proposes new roles for the state and private
sector in service delivery. The author highlights a number of barriers tha
t currently limit the potential Contribution of the private sector to servi
ce delivery, and describes a variety of approaches that have been used by t
he state to create an enabling environment for the private sector.