AbstractA major component of total hzalth care in many developing countries is that provided by organizations outside the state sector. Analysis of the relationships between the state and non‐state sectors and explicit government policies towards the non‐state sector have, however, often been neglected. Within many developing countries, there is heterogeneity rather than homogeneity within the non‐state sector, making the task of developing consistent and workable policies difficult. In order for such policies to be developed, a clear understanding of the characteristics and roles of the various non‐governmental and private health care providers is needed. This, in turn, requires the development of analytical tools and evaluative criteria. This article outlines and discusses issues requiring consideration in the formulation of policies, and sets a preliminary agenda for research