Page 129 - Azerbaijan State University of Economics

THE JOURNAL OF ECONOMIC SCIENCES: THEORY AND PRACTICE, V.71, # 1, 2014, pp. 127-139

2012 only 1,2 percent of the gross domestic product (GDP) was spent on healthcare expenditures –

very low below the world average of 6.1 percent [The World Bank Health Indicators, Website

http://data.worldbank.org/ Health Indicator public health expenditure in % of GDP of Azerbajan vs.

World Index]. The public health expenditure in percentage of the total healthcare expenditure ranked

at 22,8% - compared to a world spending of 59,8% in 2012[The World Bank Health Indicators,

Website http://data.worldbank.org/ Health Indicator public health expenditure in % of total health

expenditure of Azerbajan vs. World Index]. The 2012 per capita spending for healthcare

expenditures is at very low 398,2 US$ (world average 1.030,40 US$ and Germany 4.683,20 US$)

while life expectancy is in the AR at a world average level of 70,6 years (2012, male and female mix)

compared to a 2012 life expectancy in Germany of 80,9 years [The World Bank Health Indicators,

Website http://data.worldbank.org/ Health Indicator per captita spending and life expectancy].

The share of the small budgetary allocations for health in the AR is controlled by 60% by the

Ministry of Health and the remaining 40% go to the 65 local government administrations which

fund primary and secondary state facilities within their district boundaries [Ibrahimov F et al:

Health system review. Health Systems in Transition 2010;12(3). http://www.euro. who.int/__

data/assets/ pdf_file/0004/118156/E94132.pdf].As there is no mechanism for the redistribution of

funds between districts, the funds allocated for the local government administrations act as 65

separate pools. Fragmentation of pooling is an issue in terms of efficiency, but also equity as

funding for services is not linked to health needs of the population. Shortfalls in state funding for

services mean therefore a steady growth in out-of-pocket payments which hinder equity and access

for poorer households [Lewis M. Informal health payments in central and eastern Europe and the

former Soviet Union: issues, trends and policy implications. In: Mossialos E et al (eds). Funding

Health Care: Options for Europe. Buckingham: Open University Press, 2002, pp.184–205].

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