Health has improved dramatically in Asia over the last 40 years. Infant mortality dropped over 60 per cent and life expectancy increased by 40 per cent. Despite these gains, health outcomes remain relatively low in many Asian countries, and vary tremendously by region, income level and demographic group. Little progress has been made, for example, in decreasing maternal mortality. Asia is experiencing an epidemiological transition from a high burden of communicable diseases to a high burden of non-communicable diseases. The pace of this transition varies across countries, and some countries will experience increasing incidence of non-communicable diseases before the level of communicable diseases has decreased. Ill-health imposes a heavy economic cost: HIV/AIDS may reduce economic growth in some countries. As incomes and expectations rise, the demand for health care also rises and one of the greatest challenges facing Asia is how to provide and finance this care.