How do low- or no-cost government family planning programs affect commercial sector growth?
There is a strong correlation between the percentage of public sector clients who receive free family planning services and commercial market share, particularly in low-income countries.19 When all or most public sector clients receive services at no charge from government or NGO sources, the commercial sector cannot compete and is likely to be small. When subsidized programs grow, commercial market share often shrinks. In Senegal, for example, the commercial share of the contraceptive market fell from about 50 percent to 25 percent as the number of donor-provided contraceptives increased during the late 1980s.20 One of the most significant steps governments can take to encourage commercial sector growth is to stop providing free or subsidized services to those who can afford to pay.21 How does the regulatory and tax environment influence commercial sector growth? An array of regulations, taxes and import duties discourages the commercial sector from providing family planning services
