In Section I of this paper we present an analytical paradigm by which to evaluate health and medical care services in underdeveloped countries. In Section II, we apply this framework to an analysis of the health policies of one developing country, China. In Section III, we evaluate the Chinese health and medical care policies within the framework of a cost-benefit analysis and argue that these policies are appropriate to China's factor proportions and health needs. Finally, in Section IV, we raise a number of questions to be considered in any more detailed studies on the transferring of the Chinese services to other developing countries.
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