Family Planning Market Segmentation in Jordan
Publication date: 2004
Family Planning Market Segmentation in Jordan: An Analysis of the Family Planning Market in Jordan to Develop an Effective and Evidence-Based Strategic Plan for Attaining Contraceptive Security By Suneeta Sharma Issa Almasarweh March 2004 POLICY is a five-year project funded by the U.S. Agency for International Development under Contract No. HRN-C-00-00-00006-00, beginning July 7, 2000. The project is implemented by The Futures Group International in collaboration with Research Triangle Institute (RTI) and The Centre for Development and Population Activities (CEDPA). ii Family Planning Market Segmentation in Jordan: An Analysis of the Family Planning Market in Jordan to Develop an Effective and Evidence-Based Strategic Plan for Attaining Contraceptive Security Suneeta Sharma Issa Almasarweh March 2004 iii Contents I. Introduction……………………………………………………………….1 II. Provider Market……………………………………………………….4 III. Consumer Characteristics……………………………………………6 IV. Comparative Analysis: 1997 and 2002…………………………11 V. Client Profiles ………………………………………………………….14 VI. Public Sector Targeting………………………………………….17 VII. Market Segments………………………………………………………19 VIII. Potential Family Planning Market…………………………………22 IX. Policy Options………………………………………………………….27 X. Conclusion……………………………………………………………….29 Abbreviations……………………………………………………………………30 1 1. Introduction Context Jordan has been successful in increasing the prevalence of modern family planning (FP) methods from 27 percent in 1990 to 41 percent in 2002 (JPFHS, 2002). As a result of population growth and continued increase in demand for FP, the number of contraceptive users is expected to increase by 78 percent in the next 13 years—from 370,000 users in 2002 to approximately 650,000 users in 2015 (POLICY Project, 2003). At any given time, 12 percent (79,000) of the approximately 660,000 married women of reproductive age are pregnant. Of these pregnancies, 15 percent (12,000) are unwanted and 28 percent (22,000) are mistimed. High fertility rates (3.7 births per woman), high unmet needs (11%), and high discontinuation rates (42.4%) demonstrate that Jordan has a long way to go to achieve the replacement-level fertility (JPFHS, 2002). Currently, the Jordanian government finances 100 percent of its contraceptive commodity requirements through donor support. The U.S. Agency for International Development (USAID) provides funding and procures and ships all of the contraceptives for the Jordanian Contraceptive Logistics System (JCLS). However, a phaseout of USAID funding for contraceptives may occur in the next two to five years. The ability of the government of Jordan to meet the coming challenges is constrained by competing priorities and lack of resources. The private sector plays an important role in the FP market. According to the 2002 Jordan Population and Family Health Survey (JPFHS), the commercial sector serves about 38 percent of modern method users, nongovernmental organizations (NGOs) have FP clinics that serve about 28 percent, and government hospitals and health centers serve the remaining 34 percent. Jordan is striving for contraceptive security1 and must mobilize all potential resources to meet the demands and needs of all men and women. Policymakers require a better understanding of the FP market2 in order to develop contraceptive secur ity strategies and interventions that would mobilize the public and private sectors to satisfy growing FP needs. Within this context, this paper presents a market segmentation analysis of the FP market to help Jordan develop an effective and evidence-based strategic plan for attaining contraceptive security. 1 Contraceptive security exists when every person is able to choose, obtain, and use quality contraceptives whenever s/he needs them. 2 The market for FP services includes contraceptive methods, consumers, and providers. Contraceptive methods extend to both modern methods of FP (such as pills, condoms, IUDs, and sterilization) and traditional methods (such as withdrawal, periodic abstinence, and vaginal douche). Consumers are defined as women of reproductive age (15–49), including those using a modern or traditional FP method and those with an unmet need for FP. Providers are defined as government, private for-profit (commercial sector), and not-for-profit (NGOs). How these components of the FP market fit together is referred to as the FP market structure (Cakir and Sine, 1997). See Cakir, V. and J. Sine. 1997. “Segmentation in Turkey’s Family Planning Market.” Washington, DC: Futures Group International, POLICY Project. 2 Objectives A market segmentation analysis can help define and promote complementary roles for the public, commercial, and NGO sectors—specifically which segments of the population each sector should cater to. This type of analysis helps answer a number of policy-relevant questions such as those listed below. § What are the key sources of FP products and services (e.g., public sector, NGOs, commercial sector)? What is the relative market share of each source of FP services? § What methods does each source offer and at what price? § Who is the intended market for each provider, both current and planned? § What is the socioeconomic and demographic distribution of current contraceptive users? § What is the profile of current public, commercial, and NGO sector clients? § What profile of the population will be most at risk if contraceptives were no longer available in the public sector? § What is the untapped potential for commercial products among users of subsidized products? § Who has access to and can afford commercial FP services and products? § Does service delivery identify whether FP clients obtain services that coincide with their ability to pay, linking subsidization with the ability of clients to pay? Answers to these questions will help establish a better match between current/potential users and the appropriate source of contraceptives, taking into account the users’ location, need, preferences, and ability to pay. The market segmentation analysis will help identify and define the target groups, potential market, and niches for the public, commercial, and NGO sectors. The information on current and potential markets will help those involved in the strategic planning process to achieve contraceptive security in Jordan. Method of Analysis An important element of the analysis is establishing households’ ability to pay for FP services. This knowledge can be gleaned from a standard of living index (SLI) that ranks households from poorest to richest. This section presents the methodological framework used to create the SLI and the market data analysis. This study presents a secondary data analysis of the 2002 Jordan Population and Family Health Survey. The sample size in JPFHS 2002 was 6,000 ever-married women ages 15–49. The wealth index constructed by MACRO was used for the market segmentation analysis. In developing a wealth index, each household asset or amenity is assigned a factor score generated through principal component analysis. In this way, MACRO defined the standard of living in terms of assets, rather than in terms of income or consumption.3 3 This method of constructing a standard of living index has become more popular in recent years. See www.worldbank.org/poverty/health/data/index.htm for a complete technical discussion of the general approach, as well as examples from other countries in the previous round of USAID-funded Demographic and Health Surveys. 3 This paper analyzes various socioeconomic and demographic characteristics—such as education, parity, age, rural/urban residence, and place of residence—across the five SLI quintiles. Method use and provider sources are compared across SLI quintiles to determine the extent to which contraceptive use patterns and provider choice behavior differed. FP providers are categorized as: · Government facilities (government hospitals, health centers, maternal and child health [MCH] centers, Jordan University Hospital, Royal Medical Services, and mobile clinics); · Commercial providers (private hospitals and clinics); · Pharmacy (pharmacies, drugstores); · Jordanian Association for Family Planning and Protection (JAFPP clinics); and · United Nations Relief Works Agency (UNRWA) clinics inside and outside refugee camps. A careful analysis of socioeconomic characteristics, method use, and provider sources across SLI quintiles by rural and urban areas helped in the formation of the market segments. Organization of the Paper This paper presents a detailed market segmentation analysis of the FP sector in Jordan. Section 2 provides an overview of the provider market. Section 3 analyzes the consumer market in terms of consumer characteristics, needs, method use, and sources of contraceptives. Section 4 studies profiles of the public-, NGO-, and private-sector clients. Section 5 presents a comparative analysis of the 1997 and 2002 markets. Section 6 assesses the current targeting behavior in the public sector. Section 7 segments the current market to establish a better match between current/potential users and the appropriate source of FP methods and services. Section 8 projects the potential demand across SLI quintiles and the potential market for the public, NGO, and commercial sectors; while Section 9 presents policy options for achieving contraceptive security based on market segmentation results. 4 2. Provider Market Women use a wide range of service providers in Jordan. Public, commercial, and NGO sectors play an equally important role in the delivery of FP methods and services (see Figures 1 and 2). Public Sector The public sector serves 34 percent of the current users of modern methods in Jordan. It supplies all methods and is almost completely subsidized by the government and donors. FP methods and services are delivered by a wide network of Ministry of Health (MOH) facilities, including 347 primary health centers, 20 comprehensive post partum (CPP) clinics, and 28 hospitals. In addition, 81 ambulatory care centers, 5 clinics, and 10 hospitals of the Royal Medical Services (RMS) and one Jordan University Hospital (JUH) provide FP services and methods. RMS serves public security and armed forces staff and their dependents. NGO Sector The NGO sector is quite strong and serves about 30 percent of the current users of modern methods in Jordan. The NGO sector supplies all methods except sterilization and is financed partially by donors and partially by fees charged to clients. There are a number of NGOs, including the JAFPP, the Jordanian Hashemite Fund for Human Development, the Soldiers Family Welfare Society, the Arab Women’s Organization, and the Noor Al-Hussein Foundation. JAFPP serves 20 percent of current users with 19 clinics and two mobile units. JAFPP provides free contraceptives and charges a nominal price for FP services. For example, JAFPP charges only 4.50 JDs4 for an IUD insertion. In addition to several NGOs, there are some donor-owned and operated facilities, the largest being the United Nations Relief Works Agency. It serves about 7.5 percent of the FP users (who are Palestinian refugees), through a network of 23 clinics both inside and outside refugee camps. All services and methods provided by the UNRWA are free. 4 1 JD (Jordanian Dinar) = $1.485 Figure 2: Sources of Family Planning Methods among Current Users of Modern Methods in 1997 Public 28% Pharmacy 14% Private doctor 19% JAFPP 24% Other 7% Private hospitals/ clinics 8% Figure 1: Sources of Family Planning Methods among Current Users of Modern Methods in 2002 Public 34% Pharmacy 11% Private doctor 20% JAFPP 20% Other 8% Private hospitals/ clinics 7% 5 Commercial Sector The commercial sector provides all methods and is completely financed by clients’ fees. It serves about 38 percent of the current modern method users through private hospitals (6.5%), private doctors, (19.5%), and pharmacies (11%). The commercial sector provides FP services and methods through a large network of about 56 private hospitals, 200 obstetricians-gynecologists, 700 general practitioners, and 1,500 pharmacies. The private sector facilities and providers are mainly concentrated in Amman. The commercial sector prices vary greatly across the different types of providers. For example, prices charged for an IUD insertion range from 20 to 60 JDs. Jordan provides a favorable policy environment for private sector growth and expansion. In 2001, duties, tariffs, and sales tax on imported contraceptives were abolished by the government, making the commercial sector an affordable source for many potential FP clients. 6 3. Consumer Characteristics This section analyzes the consumer market in terms of socioeconomic and demographic characteristics, method use, place of residence, and provider sources. Socioeconomic and Demographic Profile Analysis of the level of education across SLI quintiles indicates that, overall, wealthy women attain a higher level of education than poor women. In Jordan, the level of education increases with the increase in economic status. Table 1 shows that about 14 percent of the women in the lowest quintile never attended school, as compared with less than 2 percent of women in the uppermost quintile. Only 8 percent of the poorest women attained higher secondary education in comparison to 44 percent of the women in the wealthiest quintile. About 32 percent of the poor women live in rural areas, whereas wealthy women are mainly concentrated in urban areas (92%). Table 1: Sociodemographic Indicators Across SLI Quintiles Quintiles Poorest Second Middle Fourth Richest Total LEVEL OF EDUCATION None 13.7 5.8 5.0 3.5 1.6 6.1 Primary 17.6 11.3 11.3 10.8 5.8 11.5 Preparatory 24.6 23.8 21.7 18.8 12.3 20.5 Secondary 36.3 39.1 37.4 36.8 36.2 37.2 Higher 7.9 19.9 24.6 30.1 44.1 24.7 Total 100% 100% 100% 100% 100% 100% URBAN/RURAL RESIDENCE Urban 67.9 77.8 80.6 85.1 92.2 80.3 Rural 32.1 22.2 19.4 14.9 7.8 19.7 Total 100% 100% 100% 100% 100% 100% PARITY 0 10.3 10.3 9.0 7.3 7.2 8.9 1 14.8 13.4 11.1 7.4 8.6 11.2 2 13.2 14.8 13.7 12.9 12.2 13.4 3 14.5 17.1 15.4 16.0 15.4 15.7 4 13.8 10.9 16.1 15.8 15.9 14.4 5+ 33.5 33.6 34.8 40.6 40.7 36.4 Total 100% 100% 100% 100% 100% 100% AGE GROUP 15–19 5.1 1.8 2.4 1.8 1.8 2.6 20–24 19.0 15.2 11.7 7.1 5.6 12.0 25–29 21.6 23.6 21.0 16.8 12.7 19.4 30–34 21.5 24.0 25.2 22.4 17.2 22.2 35–39 15.0 18.3 17.4 19.6 19.4 17.9 40–44 10.1 9.4 14.0 18.5 22.9 14.6 45–49 7.7 7.8 8.3 13.8 20.4 11.2 Total 100% 100% 100% 100% 100% 100% PLACE OF RESIDENCE Central 55.8 61.8 62.8 69.1 78.5 65.1 North 29.5 28.1 28.8 23.1 16.2 25.5 South 14.7 10.1 8.4 7.8 5.3 9.4 Total 100% 100% 100% 100% 100% 100% 7 In Jordan, a large proportion of women (33–40%) have five or more children regardless of their economic status. Interestingly, rich women tend to have more children. Family Planning Use The percentage of women using modern contraceptives increases as economic status increases. About 41 percent of the currently married women in Jordan use modern contraceptives, varying from 30 percent in the bottom quintile to 48 percent in the top quintile (see Figure 3). About 15 percent of the married women of reproductive age rely on traditional methods, and folk methods (0.1%) are rare. The use of traditional methods is more or less the same across quintiles. About 44 percent of the women use no method at all, varying from 57 percent of the poorest quintile to 37 percent of the wealthiest quintile. This indicates that a considerably higher proportion of poor women as compared to rich women do not use any FP method. The most commonly used modern methods are IUD (24%; more than 60% of modern methods); the pill (7.5%); male condom (3.4%); female sterilization (2.9%); lactational amenorrhea, or LAM (2.6%); and other modern methods (1.2%). The use of the pill ranges from 6 to 8 percent across quintiles. The use of IUDs increases significantly as wealth increases. The wealthiest women (30%) are two times more likely than the poorest women (13%) to use IUDs (see Figure 4). The difference in modern method use is mainly due to a much higher use of IUDs among the richer women. The use of condoms ranges from 2.5 percent in the bottom quintile to 4 percent in the top quintile. The use of LAM drops significantly with the increase in wealth. Only 1 percent of the women in the top two quintiles use LAM as compared with 4 percent of the women in the bottom two quintiles (see Table 2). Table 2: Method Use Among Currently Married Women Across Quintiles Poorest Second Middle Fourth Richest Not using 57.0 49.6 45.4 43.9 36.7 Pill 7.1 5.6 7.8 6.9 8.3 IUD 13.2 21.9 20.7 27.7 30.2 Condom 2.5 2.7 4.0 3.1 4.0 Female sterilization 2.2 2.2 3.2 3.3 3.6 Lactational amenorrhea (LAM) 3.6 4.0 1.9 1.2 1.4 Other methods 1.5 0.9 1.7 1.1 0.5 Traditional 13.0 13.1 15.3 12.8 Total 100% 100% 100% 100% 100% Figure 4: FP Use by Currently Married Women Across SES Quintiles 0 5 10 15 20 25 30 35 Poorest Second Middle Fourth Richest Quintiles P er ce nt Pill IUD Condom Female sterilization Figure 3: Method Use among Current Users by SES 0 10 20 30 40 50 60 Poorest Second Middle Fourth Richest Quintiles P er ce nt Traditional method Modern method 8 In recent years the percentage of couples using FP for spacing has increased (54%), while the percentage using FP for limiting has decreased (46%). Wealthy women are more likely to opt for sterilization (3.6%) than the women in the bottom quintiles (2%). The use of Norplant, foam, and jelly are negligible in Jordan. A comparative analysis of rural/urban areas and different regions presents significant disparity in the use of methods and sources. About 65 percent of the poorest women in rural areas use no modern method at all, compared with 57 percent of their urban counterparts. The disparity in IUD use is more prominent among the lowest two quintiles (see Figures 5 and 6). About 9 percent of the currently married women, who belong to the richest quintile, use pills in urban areas as compared with only 4 percent in rural areas. Source of Contraceptives Nearly two-thirds of the FP users rely on the private sector, including the commercial sector (38%) and NGOs (28.5%). About 34 percent of FP users obtain contraceptives from the government sector, varying from 52 percent in the bottom quintile to 18 percent in the top quintile (see Figure 7). A significant proportion (28.5%) of women in all of the categories relies on NGOs, varying from 33 percent in the bottom quintile to 20 percent in the top quintile. The use of the commercial sector varies considerably across the wealth categories and demonstrates economically rational behavior by the clients. Use of the commercial sector increases fourfold from the poorest to the wealthiest quintile. About 15 percent of women from the bottom quintile and 62 percent of women from the top quintile obtain contraceptives from the commercial sector. Pill users obtain pills from the government (37%), private sector (47%), and NGOs (16%). While 37 percent of the pill users obtain pills from the government sector, it varies from 62 percent in Figure 6: IUD Use in Urban and Rural Areas 0 5 10 15 20 25 30 35 Poorest Second Middle Fourth Richest Quintiles P er ce n t Rural Urban Figure 5: Pill Use in Urban and Rural Areas 0 2 4 6 8 10 Poorest Second Middle Fourth Richest Quintiles P er ce nt Rural Urban Figure 7: Source of Modern Methods by Quintiles 0 10 20 30 40 50 60 70 Poorest Second Middle Fourth Richest Quintiles P er ce nt Government NGOs Commercial 9 the bottom quintile to 10 percent in the top quintile (see Figure 8). Use of the commercial sector increased more than four times, as about 17 percent of the pill users from the bottom quintile and 74 percent from the top quintile obtain pills from the commercial sector. IUD users rely more on the NGO sector (38%) than the commercial (34%) and government sectors (28%) for IUD insertion. This is due to the relative availability of female physicians in the private sector. About 44 percent of the IUD users from the bottom quintile and 26 percent from the top quintile obtain IUDs from NGOs (see Figure 9). Use of the commercial sector for IUDs varies between 12 percent from the bottom quintile and 59 percent from the top quintile. Use of the government sector for IUDs declines threefold from the bottom to the top quintile. Sterilization services are mainly provided by the government sector, varying from 96 percent in the bottom quintile to 47 percent in the top quintile. Unmet Need In Jordan, the unmet need among women of reproductive age is about 13 percent. Poor women have a much higher unmet need in comparison to rich women. About 19 percent of women in the bottom quintile have unmet needs as compared to 9 percent in the top quintile (see Figure 10). About 11 percent of women in the poorest quintile have an unmet need to space births and 8 percent have an unmet need to limit. Among the 11.7 percent of married women of reproductive age (MWRA) who are currently pregnant, 43.1 percent of their pregnancies are unintended—they are either mistimed (27.8%) or unwanted (15.3%). Similarly, one-third of births in the last five years were either unwanted (15.9%) or mistimed (17.2%). About 18 percent of the poorest women wanted to have the ir last child later (mistimed) and 20 percent did not want the child at all (unwanted). Among 14 percent of the wealthiest women, the last birth was mistimed and one-fourth of the women reported it as unwanted. Except for the Figure 9: Source of IUDs Across SES Quintiles 0 10 20 30 40 50 60 Poorest Second Middle Fourth Richest Quintiles P er ce nt Government Commercial NGOs Figure 8: Source of Pills Across SES Quintiles 0 20 40 60 80 Poorest Second Middle Fourth Richest Quintiles P er ce nt Government NGOs Commercial Figure 10:Unmet Need to Space and Limit Across SES Quintiles 0 5 10 15 20 Poorest Second Middle Fourth Richest Quintiles P er ce n t 10 higher unmet need for limiting among the wealthiest women, the consequences of unmet needs for spacing and limiting do not vary significantly across the socioeconomic categories. Cost Paying Mechanisms Question 428A in the survey provides information on who paid for most of the costs of the last and next-to-the- last births by insurance type. This information was used to analyze the source of payments for different socioeconomic groups. Women reported the use of government insurance, private insurance, and out-of-pocket expenditures to pay for reproductive health care services. About 35 percent of women have government health insurance. More than 55 percent of the women made out-of-pocket payments for MCH services (see Table 3). Table 3: Payment Mechanisms for MCH Services in 2002 Government JAFPP UNRWA Private Providers Pharmacies Other Total Government insurance 46.2 44.6 20.0 13.5 21.3 48.7 34.7 Private insurance 4.5 10.4 2.2 12.6 10.1 4.5 7.7 UNRWA 1.3 0.0 3.7 1.5 0.0 1.3 1.2 Respondent/ family 47.5 45.0 74.1 70.9 67.5 44.8 55.8 Other 0.5 0.0 0 1.5 1.2 0.6 0.7 Total 100% 100% 100% 100% 100% 100% 100% Poor women are more likely to have insurance coverage. Forty-four percent of women in the poorest quintiles have government insurance, compared with 18 percent in the top quintile. Cost payer mechanisms for the poorest include government insurance (44%), private insurance (3%), UNRWA (1%), and out-of-pocket (52%). Cost paying mechanisms for the richest women are government insurance (18%), private insurance (16%), UNRWA (1%), and out-of-pocket (65%) (see Figures 11 and 12). Figure 12: Insurance Coverage among the Richest in 2002 Private insurance 16% Government insurance 18% Out-of- Pocket/Free 65% UNRWA 1% Figure 11: Insurance Coverage among the Poorest in 2002 Private insurance 3% Government insurance 44%Out-of- Pocket/Free 52% UNRWA 1% 11 4. Comparative Analysis: 19975 and 2002 Although all of the sectors have experienced large growth, the source mix has changed considerably from 1990 to 2002 (see Table 4). The government sector gained market shares at the expense of the commercial sector, probably due to improvements in the availability of FP methods and in the quality of services. The overall number of users increased due to an increase in contraceptive prevalence and in the number of MWRA. The public sector market share increased from 24 percent in 1990 to 34 percent in 2002. Due to the increase in contraceptive prevalence, the number of MWRA, and market share, the number of public sector users increased threefold: from 30,000 to 92,000. The NGO sector market share remained about the same during the period, but its users doubled during the reference period. Although the commercial sector market share declined from 45 percent in 1990 to 37 percent in 2002, its users increased substantially. Overall, the absolute number of commercial users doubled during the period (see Table 4). Table 4: Use of Service Delivery Points for Family Planning Services, 1990, 1997, and 2002 1990 1997 2002 Outlets % of FP users who use a given source % of all married women who use a given source Number of FP users who use a given source % of FP users who use a given source % of all married women who use a given source Number of FP users who use a given source % of FP users who use a given source % of all married women who use a given source Number of FP users who use a given source Government 24.3 6.5 30,000 28.1 10.6 62,000 33.9 14.0 92,300 NGOs 30.1 8.1 38,000 29.5 11.1 66,000 28.5 11.7 77,140 Commercial sector 45.1 12.1 57,000 42.3 15.9 95,000 37.4 15.4 101,530 Total 99.5 26.7 125,000 99.9 37.7 223,000 99.8 41.1 270,970 Notes: Calculations based on the following formulae: Percent of all married women = (percent of FP users)*(modern method FP prevalence) Number of FP users = (percent of all married women)* (number of married women) Table 5 analyzes the change in source mix for major methods from 1990 to 2002. The public sector market share for pills increased fourfold at the expense of the commercial sector: from 8.5 percent in 1990 to 37 percent in 2002. The commercial sector pill market share declined from 80 percent to 47 percent in the last 12 years. The government sector has more than doubled its share of the IUD market. In regard to the IUD market, the public sector increase was at the expense of the NGO sector and to a lesser extent the commercial sector. In the case of female sterilization, the commercial sector picked up the market share from 1990 to 1997 but lost market share from 1997 to 2002. Overall, the commercial sector’s market share increased from 26.5 percent in 1990 5 Almasarweh, I. and W. Winfrey. 1999. “Segmentation of Family Planning Services by Sector in Jordan.” Washington DC: National Population Commission and POLICY Project. 12 to 32 percent in 2002. In spite of the increase in the government sector’s market share in female sterilization from 1997 to 2002, its share declined from 73.5 percent in 1990 to 68 percent in 2002 (see Table 5). The government sector’s share in female sterilization is expected to increase again now that tubal ligation services have become free to all clients. Table 5: Sources for Family Planning 1990, 1997, and 2002 Disaggregated by Major Method* Pills IUDs Female Sterilization Outlets 1990 1997 2002 1990 1997 2002 1990 1997 2002 Government 8.5 20.7 36.5 11.5 23.9 28.0 73.5 59.1 68.0 NGOs 9.4 10.9 16.3 48.9 41.7 37.7 0.0 0.0 0.0 Commercial sector 80.0 68.4 47.0 37.6 34.4 34.3 26.5 40.9 32.0 Don’t know 2.1% - - 2.0% - - - - - # of cases 285 358 426 942 1,265 1,349 356 235 173 * Percentages/cases in this table will not match those in the final report of the JPFHS 2002 because of slightly different definitions and observations that are not included in this data set because of missing variables. The source mix has changed significantly among the poorest women. In 2002, about 52 percent of women in the bottom quintile obtained FP methods from the government sector as compared to about 38 percent in 1997. This led to a significant reduction in the dependence on the commercial sector among the poor quintile. There is a very slight change in the source mix among the wealthiest quintile. Table 6 clearly indicates that the government sector’s market share increased across all of the quintiles from 1997 to 2002. The shift toward the public sector was not equal among all of the quintiles. Specifically, poor women substantially increased their reliance on the government sector. It is encouraging that the government sector resources were better targeted and directed to the poor in 2002 (see Table 6). Table 6: Source of Family Planning Methods across SES Quintiles Poorest Second Middle Fourth Richest Outlets 2002 1997 2002 1997 2002 1997 2002 1997 2002 1997 Government 52.2 38.2 41.2 31.7 35.9 29.1 29.5 24.0 17.9 17.3 NGOs 32.7 30.6 37.4 29.2 27.9 32.5 27.2 34.5 20.2 19.6 Commercial 15.1 31.2 21.4 39.1 36.3 38.4 43.4 41.5 61.9 63.1 Total 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% The change in source mix for specific FP methods is quite significant across socioeconomic status (SES) quintiles. About 62 percent of the women in the poorest quintiles obtained pills from the government sector in 2002, compared with only 28 percent in 1997. It is encouraging that a larger proportion of the poorest women who use pills are being served by the government sector. Similarly, an increasing proportion of IUD users are being served by the public sector, and the shift from the commercial sector to the public sector is prominent among the bottom 13 quintiles (see Figures 13 and 14). In the case of sterilization services, women from the top quintiles are relying more on the government sector. As very few women opt for sterilization in Jordan, this shift is only slightly affecting the use of public sector services. Figure 14: Percent of IUD Users Who Obtained Supplies from the Government Sector 0 10 20 30 40 50 Poorest Second Middle Fourth Richest SES Quintiles P er ce nt 2002 1997 Figure 13: Percent of Pill Users Who Obtained Supplies from the Government Sector 0 10 20 30 40 50 60 70 Poorest Second Middle Fourth Richest SES Quintiles P er ce n t 2002 1997 14 5. Client Profiles This section presents socioeconomic and demographic profiles of the government, JAFPP, UNRWA, private providers, and pharmacy clients (see Table 7). Public Sector About 53 percent of government sector clients belong to the middle (22%), upper middle (19%), and richest (12%) quintiles. About 47 percent are from the bottom quintiles. This shows that highly subsidized government services and commodities are also being used by clients (31%) who can afford to pay commercial sector prices. About one-fourth of the government sector clients are from rural areas. About 54 percent of the clients live in central Jordan, 34 percent live in the north, and 12 percent live in the southern part of Jordan. About 18 percent of the public sector clients have less than a primary level of education. Approximately 32 percent of the public sector clients are in the 15–29 age group. More than 50 percent of clients already have four or more children. The public sector clients mainly use IUDs (50%), pills (21%), female sterilization (16%), and condoms (10%). JAFPP About 62 percent of JAFPP clients belong to the middle (21%), upper middle (24%), and richest (17%) quintiles. About 38 percent are from the bottom quintiles, indicating that the subsidized services provided by JAFPP are affordable to women in the bottom quintiles. About 20 percent of the JAFPP clients are from rural areas. Nearly 95 percent of the clients live in the central or southern part of Jordan. Thirteen percent of the clients have less than a primary level of education. More than 72 percent of JAFPP clients are ages 30–44. Similar to the government sector, 51 percent of its clients already have more than four children. More than 90 percent of the clients come for IUD insertion. IUDs are the most popular FP method at JAFPP—due to the provision of all of their FP services by female providers—followed by pills (3.5%) and condoms (3%). UNRWA UNRWA serves Palestinian refugees through a large network of clinics. More than 57 percent of its clients belong to the two bottom quintiles. About 43 percent of UNRWA clients belong to the middle (21%), upper middle (11%), and richest (11%) quintiles. These percentages show that highly subsidized donor-funded services and commodities are also being used by the women in the top two quintiles. Almost all of the UNRWA clients are from urban areas. A majority (79%) of the clients live in the central part of Jordan, followed by about 21 percent in the north, and none from the south. More than 70 percent of the clients have a secondary or higher level of education. About 72 percent of the clients are ages 25–39. Nearly 33 percent of the women already have four or more children. A sizable proportion of clients (42%) have two or less children. UNRWA clients mainly use IUDs (49%), pills (33%), and condoms (12%). The proportion of pill users is quite significant compared with other providers of subsidized care. 15 Table 7: Percent of Clients Who Use Government, NGO, and Commercial Sector Services by Sociodemographic Characteristics Characteristic Government JAFPP UNRWA Private Providers Pharmacies Total SOCIOECONOMIC STATUS Poorest 22.5 14.8 22.3 5.2 7.6 14.7 Second 24.8 23.0 34.9 10.6 14.0 20.4 Middle 22.1 20.8 20.5 18.8 24.0 20.9 Fourth 18.9 23.9 10.8 25.9 24.0 21.8 Richest 11.7 17.5 11.4 39.6 30.4 22.2 Total 100% 100% 100% 100% 100% 100% URBAN/RURAL RESIDENCE Urban 74.4 80.3 98.2 91.0 90.4 83.7 Rural 25.6 19.7 1.8 9.0 9.6 16.3 Total 100% 100% 100% 100% 100% 100% PLACE OF RESIDENCE Central 54.2 68.6 78.9 79.5 78.8 68.6 North 34.4 26.1 21.1 13.7 14.4 23.8 South 11.5 5.3 0.0 6.8 6.8 7.6 Total 100% 100% 100% 100% 100% 100% LEVEL OF EDUCATION None 6.9 3.1 1.8 5.0 1.6 4.6 Primary 11.4 10.2 11.4 7.3 6.8 9.7 Preparatory 25.3 21.7 16.9 12.5 16.7 19.9 Secondary 37.0 38.5 53.6 40.7 47.8 40.5 Higher 19.4 26.5 16.3 34.4 27.1 25.3 Total 100% 100% 100% 100% 100% 100% AGE GROUP 15–19 0.7 0.2 3.0 0.0 2.0 0.7 20–24 10.4 6.2 13.8 4.7 6.4 7.8 25–29 20.7 14.6 26.9 16.7 19.6 18.7 30–34 22.7 28.3 25.7 23.7 31.6 25.3 35–39 21.9 24.7 19.2 21.9 16.8 21.8 40–44 14.0 19.0 9.6 22.8 15.2 17.1 45–49 9.7 7.1 1.8 10.3 8.4 8.5 Total 100% 100% 100% 100% 100% 100% PARITY 0 2.0 1.1 6.0 2.4 8.0 2.9 1 13.1 13.0 15.6 11.5 10.4 12.4 2 14.7 14.6 19.8 22.6 22.7 18.0 3 17.2 19.9 25.7 20.5 24.3 20.2 4 16.2 14.3 10.2 12.9 13.5 14.1 5+ 36.8 37.1 22.8 30.1 21.1 32.4 Total 100% 100% 100% 100% 100% 100% METHOD USE Pill 20.8 3.5 32.5 8.0 61.0 19.3 IUD 50.3 91.4 49.4 79.3 2.0 60.9 Injection 3.2 1.8 3.0 2.4 0.0 2.3 Condom 9.6 3.3 12.0 0.0 33.9 8.8 Female sterilization 15.7 0.0 0.0 9.7 0.0 7.9 Other methods 0.4 0.0 3.0 0.5 3.2 0.9 Total 100% 100% 100% 100% 100% 100% 16 Commercial Sector Providers: Hospitals, Clinics, and Private Doctors The majority (84%) of clients who obtain services from private providers in the commercial sector belong to the middle (19%), upper middle (26%), and richest (40%) quintiles. About 16 percent are from the bottom quintiles, thus, 16 percent of the clients who cannot afford to pay for FP services and commodit ies are dependent upon the private sector. About 91 percent of the commercial clients live in urban areas. A majority of them are from the central region (79%), followed by the north (14%) and south (7%). Three-fourths of the commercial sector clients have a secondary or higher level of education. About 78 percent of the clients are ages 30–44. More then 43 percent of the clients have four or more children. The main contraceptive method among commercial sector clients is the IUD. About 79 percent of the clients use IUDs, followed by female sterilization (10%) and pills (8%). Female sterilization services are only provided by the government and commercial sector hospitals. Pharmacies About 78 percent of the pharmacy clients belong to the middle (24%), upper middle (24%), and richest (30%) quintiles. Nearly 22 percent of the clients from the two bottom quintiles also obtain supplies from pharmacies. A wide variety of brands are available at pharmacies, which, unlike physicians, do not charge counseling fees. All of the pharmacies have fixed prices for FP products. About 90 percent of the clients are from urban areas and 10 percent are from rural areas. Seventy-nine percent of the pharmacy clients live in the central region, followed by the north (14%) and south (7%). About 75 percent of clients have a secondary or higher level of education. A majority of clients (83%) fall in the age group of 25–44. Most of the clients obtain pills (61%) and condoms (34%) from the pharmacies. 17 6. Public Sector Targeting To achieve contraceptive security, countries must promote and protect equity. Effective targeting contributes to contraceptive security by encouraging better segmentation of the market. In essence, limited public resources are channeled to those who cannot afford to pay for private sector services and new market opportunities are created for the private sector among wealthier clients. In this context, the following section assesses the current targeting behavior in the public sector. Use of Public Sector Across SES Quintiles The public sector in Jordan is targeting its FP services and commodities better than many countries in the Asia and Near East region. Still, women in the top two quintiles account for 31 percent of public sector use (see Figure 15). These women can easily afford to buy FP methods and services from the commercial sector. In addition, about 22 percent of the public sector clients who belong to the middle SLI quintile have the ability to buy from NGOs and the commercial sector. A comparative ana lysis of the public sector users in Bangladesh, Egypt, the Philippines, Cambodia, and India indicates that Jordan is doing much better in terms of targeting its limited public sector resources. In Cambodia, women in the bottom two quintiles account for less than 30 percent of public sector clients. In India and Philippines, 36 percent and 40 percent of the public sector clients belong to the bottom quintiles. The situation is much better in Egypt, Bangladesh, and Jordan as women from the bottom quintiles account for 42 percent, 46 percent, and 47 percent of public sector clients, respectively (see Figure 16). Still, clients who are not poor consume a large amount of scarce public sector resources in all these countries. Donors and government resources are not sufficient to serve the increasing number of women of reproductive age. Effective targeting ensures that the limited donor and public sector resources are used to provide services and methods to those who cannot afford to pay commercial sector prices. Targeting is particularly important in Jordan, as the government sector is heavily dependent upon donor support for commodities. Figure 16: Use of Public Sector by Poor Women 0 10 20 30 40 50 Jor dan 20 02 Jor dan 19 97 Ba ngl ade sh Eg ypt Ph ilipp ine s Ind ia Ca mb odi a Countries P er ce n t Figure 15: Distribution of Public Sector Use by Quintile Poorest 23% Second 24%Middle 22% Fourth 19% Richest 12% 18 Public Sector Targeting Behavior from 1997 to 2002 Not only is Jordan doing better than many other countries, it has significantly improved public sector targeting since 1997. About 52 percent of the poorest women obtained contraceptives from the public sector in 2002 as compared with only 38 percent in 1997. The proportion of the poorest women using NGO services basically remained the same during that period, however, it declined by 50 percent for the commercial sector. An assessment of the women from the lowest quintile indicates that the poorest group accounted for 28 percent of the pill users who obtained FP methods from the public sector in 1997 compared with 62 percent in 2002 (see Figure 13). These statistics indicate that a larger proportion of poor women are being benefited by the highly subsidized public sector services and methods. 19 7. Market Segments This paper helps determine the sources of supply that are most appropriate for women based on their economic status and reproductive health needs. The following points6 were considered in determining the most appropriate source. · The cost of services and methods is consistent with a woman’s ability to pay. As discussed in the section on provider markets, (1) the public sector is completely subsidized, (2) NGOs are financed partially by donors and partially by fees charged to clients, and (3) the commercial sector is completely financed by clients’ fees. In a well-segmented market, poor women frequent the public sector, women with moderate wealth frequent NGOs, and wealthy women frequent the commercial sector. · The method is appropriate to a woman’s needs . Temporary methods are most appropriate when a recently married woman would either like to delay her first birth or increase the length of birth intervals. Permanent methods may be appropriate when a woman prefers to have no more children. In Jordan, temporary methods are supplied by all types of public, commercial, and NGO providers, while sterilization is available only in public and private hospitals. It is important to note that the private hospitals are mainly concentrated in urban areas. Within this context, the paper divides the Jordanian FP market into five segments to establish a better match between current users and the appropriate source of contraceptives, taking into account their location, needs, preferences, and ability to pay (see Figures 17 and 18). These groups are categorized on the basis of the following distinguishing characteristics: SLI, rural/urban residence, level of education, and use of spacing/limiting methods. Table 8 presents the market segments, their size, characteristics, and method use. The estimates are based on the total number of current users (270,000). Table 8 also indicates an appropriate source of supplies or services for each segment. Segment 1: Rural poor and limiters , which constitute 8.6 percent of the current FP market. There are 23,478 women in this group. The majority of the women in this group belongs to the poorest and second quintiles and resides in rural areas. This group also includes sterilization users (limiters) from the middle, fourth, and richest quintiles. More than 82 percent of the rural poor women have a secondary education or lower. About 29 percent of them use modern contraceptive methods, including condoms (7%), IUDs (46%), pills (23%), injectables (4.7%), and female sterilization (19.8%). The proposed source of supplies and services for this group is the government sector. Segment 2: Urban poor, which constitutes 21 percent of the FP market. There are 57,338 women in this group. These women belong to the poorest and the second quintiles and reside in urban areas. This group includes only half of the women from the second quintile. This group also includes sterilization users from the middle quintile. More than 81 percent of the urban poor women have a secondary education or lower. About 34.4 percent of these women use modern 6 Almasarweh, I. and W. Winfrey. 1999. “Segmentation of Family Planning Services by Sector in Jordan.” Washington, DC: National Population Commission and POLICY Project. 20 contraceptive methods, including condoms (8.6%), IUDs (53.5%), pills (19.5%), injectables (3%), and female sterilization (14.8%). The proposed source of supplies and services for this group is the government sector. Segment 3: Middle rural-urban quintiles, which constitute 27 percent of the FP market. There are 73,535 women in this group. These women belong to the middle quintile and are from both urban and rural areas. Fifty percent of the second quintile women from urban areas are also part of this group. This group includes all methods, excluding sterilization. More than 26 percent of these women have more than a secondary level of education. About 38 percent of them use modern contraceptive methods, including condoms (10.6%), IUDs (65%), pills (21.3%), and injectables (3.1%). The proposed source of supplies and services for this group is the NGO sector. Apart from this, NGOs can also serve as a substitute for commercial FP services for women in the upper middle quintile, and they can serve as a substitute for government services for the second quintile in both urban and rural areas. Table 8: Proposed Market Segments Segment Market Size Socioeconomic Characteristics Current Method Use Proposed Source of Supplies Rural poor and limiters 8.6% (23,478 women) § Poorest and second quintiles § Sterilization users from upper three quintiles § 82% secondary education or less § 29% use modern methods § Condom (7%) § IUD (46%) § Pill (23%) § Injectable (4.7%) § Female sterilization (19.8%) Government Urban poor 21.1% (57,338 women) § Poorest quintile and half of the second quintile § Sterilization users from poorest, second, and middle quintiles § 81% secondary or less § 34.4% use modern methods § Condom (8.6%) § IUD (53.5%) § Pill (19.5%) § Injectable (3%) § Female sterilization (14.8%) Government Middle 27% (73,535 women) § 50% of the second quintile in urban areas; middle quintile in rural areas § 88% urban and 12% rural § 74% secondary or less § 38% use modern methods § Condom (10.6%) § IUD (65%) § Pill (21.3%) § Injectable (3.1%) NGOs Wealthy rural 4.4% (11,860 women) § Richest quintile § 67% secondary education or less § 44% use modern methods § Condom (10.7%) § IUD (72.3%) § Pill (15.9%) § Injectable (1.1%) Private providers and pharmacies Wealthy urban 38.9% (106,010 women) § Upper-middle and richest quintiles § 63% secondary education or less § 48% use modern methods § Condom (8%) § IUD (66%) § Pill (17.5%) § Injectable (1%) § Female sterilization (7.8%) Private hospitals, private providers, and pharmacies 21 Segment 4: Wealthy rural, which constitutes only 20 percent of the FP market. There are 11,860 women in this group. All of these women belong to the upper middle and the richest quintiles and reside in rural areas. This group includes all contraceptive methods, except sterilization. About one-third of the women have a higher than secondary level of education. About 44 percent of them use modern contraceptive methods, including condoms (10.7%), IUDs (72.3%), pills (15.9%), and injectables (1.1%). The proposed source of supplies and services for this group is the commercial sector, including private providers and pharmacies (see Figure 18). Segment 5: Wealthy urban, which constitutes 3.9% of the FP market. There are 106,010 women in this group. All of these women belong to the upper middle and the richest quintiles and reside in urban areas. About 37 percent of the women have more than a secondary level of education. About 48 percent of them use modern contraceptive methods, including condoms (8%), IUDs (66%), pills (17.5%), injectables (1%), and female sterilization (7.8%). The proposed source of supplies and services for this group is the commercial sector, including private hospitals, private providers, and pharmacies. Figure 18: Use of Modern Methods Across the Proposed Market Segments 0 10 20 30 40 50 60 Rural Poor Urban Poor Middle Wealthy Rural Wealthy Urban Segments P er ce n t Figure 17: Market Size Rural Poor 9% Urban Poor 21% Middle 27% Wealthy Rural 4% Wealthy Urban 39% 22 8. Potential Family Planning Market Contraceptive security exists in a country when all the women and men who need and want contraceptives can obtain them. It is implicit in the definition that contraceptive security includes meeting current and unmet needs. Securing sufficient contraceptives to satisfy current demand does not fully realize the vision of contraceptive security. Essentially, contraceptive security exists when all needs are met. For those whose needs have been turned into use for services, and are currently satisfied clients, access must be maintained. For those not using services now but who want to or intend to use them soon, they must become satisfied clients. For those who have a need for services (e.g., they say they do not want to become pregnant now but are not doing anything to prevent pregnancy), their need must somehow be satisfied. In this context, our estimation of potential demand takes into account the current users, intenders and traditional method users, their socioeconomic status, and their location (i.e., urban or rural). Tables 9, 10, and 11 are estimates of the potential market for FP in Jordan for urban, rural, and all women, respectively. The estimates are based on the total number of ever-married women of reproductive age. We assume that the government has an important role in providing services for the poor who cannot afford to pay for unsubsidized commodities and services. Potential Market for the Public Sector It is indicated in the section on public sector targeting that 31 percent of the public sector clients belong to the top two quintiles. These clients can easily afford to pay commercial sector prices. Meanwhile, a small proportion of the poorest women obtain contraceptives from the commercial sector. For example, 8 percent of the pharmacy clients and 5 percent of the private provider clients belong to the poorest quintile. Effective market segmentation and targeting strategies dictate that the public sector should focus its highly subsidized resources on those most in need—those who cannot afford to pay commercial sector prices. Also, the government should possibly consider spending more money on promoting the use of modern contraceptive methods. Women in the bottom quintile are targets for subsidized or free services and contraceptives in the government sector. This segment of the population would be most at risk if contraceptives were no longer available in the public sector. Within this context, this study recommends that the poorest have access to free FP methods in the public sector. Based on the proposed market segments, it is recommended that, in urban areas, the government serve all of the poorest women, half of the women from the second quintile, and the sterilization users in the middle quintile. This recommendation includes 7,893 condom users, 85,500 IUD users, 27,145 pill users, 3,474 injectable users, 8,590 female sterilization users, and 1,164 women who use other modern methods and are in the bottom quintiles in urban areas. This study recommends that the government sector serve the poorest and the second quintiles in rural areas, because the private and NGO sectors are not well developed in those areas. However, JAFPP does provide some outreach services through its mobile clinics. As a result, the government must provide free commodities and services for 2,831 condom users, 44,358 IUD users, 13,308 pill users, 3,704 injectable users, and 4,929 female sterilization users in rural areas. 23 Only the government and private hospitals provide sterilization services. This study recommends that government facilities provide sterilization services to 5,568 and 3,828 women who belong to the middle and higher quintiles in urban and rural areas, respectively. Potential Market for the NGO Sector The NGO sector has an important role to play in helping the country achieve contraceptive security goals. Currently, it serves about 29 percent of FP users. This study recommends that the NGO sector focus on the lower middle and middle SES quintiles. This includes 13,574 condom users, 97,095 IUD users, 28,612 pill users, and 3,368 injectable users in urban areas. Likewise, the NGO sector may have a provision for 2,459 condom users, 15,325 IUD users, 5,213 pill users, and 789 injectable users in rural areas. Apart from this, NGOs can also serve as a substitute for commercial FP services for women in the upper middle quintile, and they can serve as a substitute for government services for the second quintile in both urban and rural areas. UNRWA serves Palestinian refugees, and most of its clients belong to lower quintiles—yet 22 percent belong to the top two quintiles. In the case of contraceptive shortages, UNRWA should consider directing these clients to the commercial sector and targeting its subsidized FP services and commodities to those who cannot afford the commercial sector prices. However, by regulation, all of the refugees are eligible for free health services. Potential Market for the Commercial Sector The commercial sector market share declined from 45 percent in 1990 to 37 percent in 2002. An increasing number of women are using public sector services and contraceptives. The trend has been positive, as a larger number of poor women are shifting to the government sector. However, rich women are not being directed to the private sector; consequently, a large number of these women—who can afford to pay commercial sector prices—also benefit from the free public sector services. About 18 percent of the wealthy women have health insurance with the government sector, however, which makes them eligible for free government health services. They cannot be denied these services or diverted to other sectors. In this context, this study recommends that women who belong to the upper middle and richest SLI quintiles should be encouraged to use commercial sector services, unless they have government insurance. This group of women in urban areas may include 12,656 condom users, 123,972 IUD users, 36,852 pill users, 2,646 injectable users, 12,527 female sterilization users, and 1,511 users of other modern methods. Similarly, 1,273 condom users, 18,096 IUD users, 4,016 pill users, and 125 injectable users in rural areas may form the private sector clientele. 24 Table 9: Potential FP Market for the Public and Private Sectors: Number of Users in Urban Areas Quintile Percents 17.1 21.9 20.6 20.2 20.1 99.9 Percent Poorest Second Middle Fourth Richest Total % of intenders converted 1.0 1.0 1.0 1.0 1.0 1.0 % of traditional method converted 1.0 1.0 1.0 1.0 1.0 1.0 Condom Existing users 3,096 3,709 5,293 3,657 4,695 20,420 From intenders 874 1,496 951 1,567 526 5,235 From traditional method users 702 1,237 887 1,479 731 4,198 Total condom use 4,672 6,442 7,132 6,703 5,953 29,853 IUD Existing users 14,680 31,974 26,347 33,503 36,389 142,938 From intenders 19,121 22,293 17,794 14,884 10,527 83,766 From traditional method users 15,352 18,427 16,607 14,053 14,616 67,171 Total IUD use 49,153 72,694 60,748 62,440 61,532 293,874 Pill Existing users 7,390 7,546 9,384 8,258 10,330 43,173 From intenders 5,682 6,284 5,026 5,353 3,290 25,522 From traditional method users 4,562 5,194 4,691 5,054 4,568 20,466 Total pill use 17,633 19,024 19,100 18,665 18,187 89,162 Injectable Existing users 1,298 895 1,323 590 352 4,667 From intenders 656 598 543 392 395 2,618 From traditional method users 526 495 507 370 548 2,099 TotaliInjectable 2,480 1,988 2,374 1,351 1,295 9,384 Female sterilization Existing users 2,097 2,686 3,729 3,775 4,461 16,919 From intenders 1,202 898 951 914 1,053 5,235 From traditional method users 965 742 887 863 1,462 4,198 Total female sterilization 4,264 4,326 5,568 5,552 6,975 26,353 Other modern method Existing users 300 000 000 000 000 000 From intenders 328 150 000 131 526 1,309 From traditional method users 263 124 000 123 731 1,050 Total other method use 891 273 000 254 1,257 2,358 Total potential modern method use 79,093 104,748 94,921 94,965 95,199 450,984 Total traditional method use 000 000 000 000 000 000 Total all use 79,093 104,748 94,921 94,965 95,199 450,984 Note: Numbers in bold are proposed to use the government sector Numbers in bold that are shaded are proposed to use the government and NGO sectors Numbers that are shaded only are proposed to use NGOs The remaining numbers are proposed to use the commercial sector 25 Table 10: Potential FP Market for the Public and Private Sectors: Number of Users in Rural Areas Quintile Percents 33.1 25.3 20.3 14.2 7.1 100.0 Percent Poorest Second Middle Fourth Richest Total % of intenders converted 1.0 1.0 1.0 1.0 1.0 1.0 % of traditional method converted 1.0 1.0 1.0 1.0 1.0 1.0 Condom Existing users 632 1,004 626 626 647 3,526 From intenders 277 406 852 000 000 1,632 From traditional method users 162 350 980 000 000 1,108 Total condom use 1,071 1,760 2,459 626 647 6,266 IUD Existing users 5,690 5,613 5,458 5,737 2,837 25,416 From intenders 11,017 8,365 4,589 2,883 1,525 28,404 From traditional method users 6,463 7,211 5,278 2,374 2,740 19,274 Total IUD use 23,169 21,189 15,325 10,994 7,102 73,094 Pill Existing users 3,599 2,044 2,535 1,502 386 10,137 From intenders 3,211 1,381 1,246 961 135 7,019 From traditional method users 1,884 1,190 1,433 791 242 4,763 Total pill use 8,693 4,615 5,213 3,254 762 21,919 Injectable Existing users 778 372 507 125 000 1,763 From intenders 609 853 131 000 000 1,632 From traditional method users 357 735 151 000 000 1,108 Total injectable 1,744 1,960 789 125 000 4,503 Female sterilization Existing users 1,313 1,152 1,282 876 261 4,848 From intenders 886 568 131 412 135 2,122 From traditional method users 520 490 151 339 242 1,440 Total female sterilization 2,718 2,211 1,564 1,627 637 8,410 Other modern method Existing users 000 000 000 000 000 000 From intenders 000 284 000 000 000 326 From traditional method users 000 245 000 000 000 222 Total other method use 000 529 000 000 000 548 Total potential modern method use 37,396 32,263 25,350 16,627 9,148 114,741 Total traditional method use 000 000 000 000 000 000 Total all use 37,396 32,263 25,350 16,627 9,148 114,741 Note: Numbers in bold are proposed to use the government sector Numbers that are shaded only are proposed to use NGOs The remaining numbers are proposed to use the commercial sector 26 Table 11: Potential FP Market for the Public and Private Sectors: All Users Quintile Percents 20.3 22.6 20.6 19.0 17.5 100.0 Percent Poorest Second Middle Fourth Richest Total % of intenders converted 1.0 1.0 1.0 1.0 1.0 1.0 % of traditional method converted 1.0 1.0 1.0 1.0 1.0 1.0 Condom Existing users 3,858 4,625 6,173 4,305 5,244 24,120 From intenders 1,156 1,888 1,846 1,536 571 6,546 From traditional method users 836 1,580 1,812 1,428 801 5,062 Total condom use 5,849 8,093 9,831 7,269 6,617 35,728 IUD Existing users 20,328 37,663 31,921 39,163 39,269 168,843 From intenders 30,050 30,583 22,320 17,666 11,994 112,093 From traditional method users 21,725 25,602 21,903 16,417 16,825 86,685 Total IUD use 72,103 93,848 76,144 73,245 68,087 367,620 Pill Existing users 10,980 9,581 12,046 9,721 10,745 53,357 From intenders 8,916 7,740 6,209 6,298 3,570 32,728 From traditional method users 6,446 6,480 6,093 5,853 5,007 25,309 Total pill use 26,342 23,801 24,348 21,872 19,322 111,394 Injectable Existing users 2,077 1,322 1,807 833 384 6,578 From intenders 1,321 1,510 671 461 428 4,091 From traditional method users 955 1,264 659 428 601 3,164 Total injectable 4,353 4,096 3,137 1,722 1,413 13,833 Female sterilization Existing users 3,413 3,799 4,969 4,722 4,733 21,928 From intenders 2,146 1,510 1,175 1,383 1,285 7,364 From traditional method users 1,552 1,264 1,153 1,285 1,803 5,695 Total female sterilization 7,111 6,574 7,296 7,389 7,820 34,986 Other modern method Existing users 297 000 000 000 000 000 From intenders 330 378 000 154 571 1,636 From traditional method users 239 316 000 143 801 1,265 Total other method use 866 694 000 296 1,372 2,902 Total potential modern method use 116,624 137,106 120,757 111,794 104,631 566,463 Total traditional method use 000 000 000 000 000 000 Total all use 116,624 137,106 120,757 111,794 104,631 566,463 27 9. Policy Options Together, Tables 9, 10, and 11 represent a significant challenge for the government, commercial, and NGO sectors of Jordan’s FP program. Table 12 summarizes the growth implied by the preceding tables for each of the sectors. Table 12: Current and Potential Markets for the Government, NGO, and Commercial Sectors Government NGOs Commercial Total Current Potential Current Potential Current Potential Current Potential Condoms 8,925 10,724 4,462 23,165 10,442 13,929 23,829 47,818 Pills 19,662 40,453 8,639 33,825 24,918 40,868 53,219 115,146 Injectables 1,842 7,178 1,677 4,157 2,250 2,771 5,769 14,106 IUDs 47,276 129,858 63,654 112,420 57,744 142,068 168,674 384,346 Female sterilization 14,873 22,915 0 0 7,052 12,527 21,925 35,442 Total of FP methods 92,578 211,128 78,432 173,567 102,406 212,163 273,416 596,858 The achievement of contraceptive security poses a significant challenge for all sectors. To expand access and address the varied needs of current and potential clients, each sector must promote and provide contraceptives. Essentially, the efforts of all sectors must be combined in order to increase the number of clients who would like to obtain and use contraceptives. Jordan provides a favorable environment for the expansion and growth of the private sector. The country needs an effective and feasible plan to mobilize all potential sources for meeting FP requirements for all men and women. The following section presents policy options that can help country move toward contraceptive security. Targeting Jordan is fully dependent upon donor assistance for FP commodities. USAID funds the procurement and shipment of all contraceptives to meet the supply needs of the government and NGO sectors. A phaseout of USAID funding for contraceptives may occur in the next two to five years. The ability of the Jordanian government to meet the coming challenges is constrained by competing priorities and lack of resources. Government resources are not sufficient to meet the needs of all Jordanian men and women. A comparative analysis of public sector targeting indicates that the poor constitute a relatively large proportion of government sector clients. However, there is a positive trend: an increasing number of the poor are shifting to the public sector. Still, about 31 percent of public sector clients belong to the top two quintiles and are able to pay for commercial sector services. Currently, no efforts are being made to encourage wealthy clients to use commercial sector services. The government and donors must improve the private sector’s image in order to create demand for commercial sector services among wealthier clients. Generating incentives for using the private sector and disincentives for using the public sector would be prudent. Such strategies could include 28 requiring the non-poor who use government health facilities to pay user fees, and mandating the inclusion of FP/RH products and services in health insurance policies. The government must protect the poor from paying for services and commodities. A considerable number of the poor still obtain contraceptives from the commercial sector. Governments hold the ultimate responsibility of ensuring accessibility and affordability of FP services to the poor and needy. All three sectors play an equally important role in the FP market. This market segmentation analysis is not proposing any changes in the public, NGO, or commercial sector market sizes. However, the government must consider a two-pronged approach that targets public subsidies to the poor and shifts wealthier clients to the commercial sector. User Fees Government and NGO sectors provide free or highly subsidized FP commodities and services to all clients. Some NGOs have instituted a nominal user fee; consequently, cost recovery is insignificant. The NGO sector is highly dependent upon external donor assistance. NGOs are under pressure to achieve financial sustainability, as USAID is planning to phase out its support. JAFPP is in the process of broadening its service base and adding a number of reproductive health services (including services for prevention and treatment of sexually transmitted infections, assistance at delivery, and infertility treatments). Public–Private Roles and Collaboration Although the private sector is quite active in the delivery of FP services, it is not generally considered a true partner in policymaking and service delivery. The government needs to communicate with private sector FP providers and recognize the growing role that they play in achieving contraceptive security. Because of a scarcity of government resources, it is critical that resources not be spent on activities that the private sector performs. At the same time, government must support and manage the private sector to enable it to become a cost-effective alternative that offers affordable FP services. Both the public and private sectors lack basic market and policy information. The availability of market information can facilitate analysis-based discussions of the respective roles of the public, commercial, and NGO sectors. Information on the market can promote dialogue with the public sector and, consequently, help it identify segments of the FP market that are in great need of subsidized services. 29 10. Conclusion This study reveals that there is an untapped potential for commercial products and services among users of subsidized products. A collaborative multisectoral effort is needed to maintain access to FP methods for current users, convert intenders into satisfied clients, and shift those who use traditional contraceptive methods to the more effective modern methods. Better targeting, greater coordination, and improved demand are needed for a more efficient and effective FP market. A better match must be established between current/potential users and the appropriate sources of contraceptives, taking into account the users’ location, needs, preferences, and ability to pay. Greater involvement of the commercial sector can free up donor and government resources to serve those who are the most vulnerable and who cannot afford to pay. 30 Abbreviations CPP Comprehensive postpartum FP Family planning IUD Intrauterine device JAFPP Jordanian Association for Family Planning and Protection JCLS Jordanian Contraceptive Logistics System JD Jordanian Dinar (currency) JPFHS Jordan Population and Family Health Survey JUH Jordan University Hospital LAM Lactational amenorrhea MCH Maternal and child health MOH Ministry of Health MWRA Married women of reproductive age NGO Nongovernmental organization RH Reproductive health RMS Royal Medical Services SES Socioeconomic status SLI Standard of living index STI Sexually transmitted infection UNWRA United Nations Relief Works Agency USAID U.S. Agency for International Development
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