Basic Needs and Expenditure on Health Care in a Shanty Town of Lima

This chapter explores the contribution of health care expenditure to basic needs satisfaction. It focuses on Nuevo Lugar, a shanty town of Lima with access to modern health care services and infrastructures. The research follows a three-step approach beginning with the investigation of what is understood as basic needs through people's concepts of the “good life”. It then identifies basic needs satisfiers in the slum – those goods and services people consume motivated by meeting their valued needs. Finally, it explores the case of expenditure on consultation fees, medicines and vitamin supplements. It finds that they might not make a significant contribution to people's physical health due to the lack of information on illnesses and treatments tailored to the local population, together with the high costs of medicines.