'The Health Sector in Eritrea' is part of the World Bank Country Study series. These reports are published with the approval of the subject government to communicate the results of the Bank's work on the economic and related conditions of member countries to governments and to the development community. In March 2001, the Ministry of Health of the Government of Eritrea launched a process to prepare a long-term health sector policy and strategic plan (HSPSP), with a focus on assuring equitable, quality, and sustainable health care. The Ministry outlined an open, participatory, three-step process for developing the HSPSP, with active participation from all partners in the health sector. Step One is the preparation of a health sector review carried out by the World Bank (this study), based on existing documentation provided by the Government and other sources. Step Two consists of conducting an in-depth health sector analysis among five sub-sector working groups - PHC, hospital reform, pharmaceuticals, human resource development, and health financing. Step Three, is the preparation of a rationale for investments in the future development of the health sector. This study serves as the preliminary basis for further rounds of discussion and analyses among stakeholders to arrive at a strategic vision for the Eritrea health sector. It incorporates comments received from the Ministry of Health's central agencies, Zoba (regional) health teams, external partners working in Eritrea, and the World Bank Eritrea Country Team.