The paper argues that there have been two main policy trends, which are similar to the priorities adopted in many other countries. On one hand, the liberalisation of the system, involving greater competition and private sector involvement. On the other, efforts to stimulate greater regional initiative in health planning to meet increasingly complex population needs. The paper argues that these objectives contradict each other. The first has, counter-intuitively for supporters of liberalising policies, been forced through in a highly centralised way which has weakened the policy tools available to local planners, and undermined the voices of local actors. Moreover, it is decentralised actors at local level who have been most influential in obstructing liberalising policies. This points to important tensions between the objectives of liberalisation and decentralisation, as well as internal tensions in the idea of decentralisation itself.