Abstract: This paper investigates the connotation, and some of
the realistic implications, of the economic reform of health sector in
under developed countries. The paper investigates the issues that
economic reforms have to address, and the policy targets they are
considered to accomplish. The work argues that the development of
economic reform is not connected only with understanding the
priorities and refining them, furthermore with reformation and
restructuring the organizations through which health policies are
employed. Considering various organizational values, that are likely
to be regular to all economic reform programs, a regulatory approach
to institutional reform is unsuitable. The paper further investigates the
selection of economic reform that may as well influence via technical
suggestions and analysis, but the verdict to continue, and the
consequent success of execution, eventually depends on the
progressive political sustainability. The paper concludes by giving
examples of institutional reforms from various underdeveloped
countries and includes recommendation of the responsibility and
control of donor organizations.