LendingInstitutions, Health Care, and Human Capital
LendingInstitutions, Health Care, and Human Capital
Globalfinancial organizations play a significant role in the economicdevelopment of many countries. These institutions have financiallysupported the operations of numerous sections within the economy ofmany developing nations. Nonetheless, there is sufficient evidence tovalidate that borrowing strategies from the global financialorganizations damage the economies of these countries rather thanproviding the required solutions for development. Democraticprinciples have been destabilized by policies established by theWorld Bank and IMF. Additionally, human rights principles have beeneroded in many countries around the World (Ravallion, 2016).
Haitiis regarded as one of the poorest countries globally, it is anunmistakable example indicating how the financial institutions affectdeveloping nations. For the past twenty years, Haiti has compliantlypursued the policies of the IMF and the World Bank. But currently, itis still ranked as the most underprivileged nation in the WesternHemisphere. The unemployment rate is high approximated to be seventypercent. Illiteracy level is high as most Haitians cannot read.Malnutrition is a common phenomenon among children below five yearsof age. Per capita, the wage is simply above one dollar a day.
Themandates developed by IMF for successive governments in Haiti,whether civilian or military, have concentrated on a sole objective:increasing trades. Even though exports have dramatically increasedunder the guidance of the IMF, that "achievement" has comea high cost.
Haitioffers some of the lowest wages per IMF guidelines so as to attractinvestment from foreigners. Ordinary citizens have not benefittedfrom this approach. The financial institutions have emphasized todrastically reduce help to small farmers. This has destroyed thenation`s agricultural sector, making Haitians to rely on importedfoods. The legacy of these institutions in Haiti has contributed tothe lower wages in the country.
Theeconomy and the health of the population
Ahealthy population is a driving force behind the economic growth forany country. It is regarded as one of the factors facilitating theprocess of growth. Individuals with higher wages are healthier due totheir access to products and services that promote health. There isno doubt about the correlation between health and financial income.Likewise, it will be seen as a type of human capital and in thismanner, a contribution to the development process, and also output.The likelihood of prosperity is high in countries with establishededucation and health systems in addition to favorable governmentpolicies (Eras etal.,2016). Some of the substantive ways in which the economy of Haiti isstrengthened through a healthy population
1.Health as a productive asset
Workerswho are healthy are psychologically and physically enthusiastic androbust, hence the probability of being absent at work due toillnesses is reduced drastically. Productivity is increased leadingto increased wages thereby attracting more investment fromforeigners. Bad health may imply that individuals who can work have alessened efficiency, reduced working lives, and an extra number ofdays lost to sickness. There is also a clear linkage between successand health (Meneghel etal.,2016). There is a possibility of healthy children being able to learnand transform into adults who are learned and have well-paid jobs.The education of children is unlikely to be interrupted as a resultof adverse health within the family. Haiti has engaged in a reformprocess aimed at increasing its productivity. For exampleincorporation of macroeconomic frameworks, embracing privateinvestors, revitalizing agricultural, health and tourism sectors.
2.Health and poverty
Anelevated sympathy toward the well-being of the poor is established inthe knowledge that over the world, poor people are disproportionatelyaffected by ill health. Many factors are contributing to the illhealth of the poor people. For the economy to grow, citizens have tobe healthy and energetic. For a sustained economy, the government hasengaged in various social reforms (Meneghel etal.,2016). For example, construction of new health and educationalfacilities, promoting cultural support and establishing socialinsurance.
3.Health and inequality
Indeveloping nations such as Haiti, there is a sense of protectionagainst diseases when one has high income. In wealthy countries, wageimbalance demonstrates the nature of social courses of action,anxiety, and mortality. Still, there is no compelling reason toaccept that the connection between death and income changes withimprovement in the economy. The government also focuses on the needto improve equality among the poor and rich in the society inaddition to ensuring there is gender equality in resourcedistribution (Horton, 2012).
4.The demographic nexus
Aprosperous demographic evolution from a higher fertility rate tolower level depends on a greater extent to the advancement of health.The educational investment of each child will be higher if there arefew children to be supported. The increase in life expectanciesoffers a window through which advantages of investing in educationcan be reaped. Human development and economic growth improve as aresult of the rise in life expectancy. For example, the expectancyrate for men is forty-seven years while that for women is fifty-oneyears. A stronger economy would have the ability to increase lifeexpectancy rates.
Foreignaid and the healthcare system
Thegovernment and international collaborators must give a higherpriority to the healthcare needs of the people. Currently, the healthbudget is small however, we see a move from the humanitarian-basedresponse to a development-based approach (Turcotte-Tremblay etal.,2016).
TheHaitian government has collaborated with various aid partners, forinstance, USAID whereby a lot of investment has been directed towardsachieving the immediate health needs of the citizens (Gélineau,2016). The intended objective is to construct long-term remedies tothe prolonged health challenges that are affecting the country.
Forexample, USAID`s broadened health portfolio plans to both enhanceaccess to quality health services and reinforce the healthcare systemacross the country. Health programs supported by USAID are additionalboosted by significant investments to revamp the healthcare system inthe country. The Haitian government is taking necessary steps towardsa complete stewardship of its health sector in addition toencouraging private-public co-operation so as to lower theoperational costs. The government has used foreign aid to improve thedelivery of health services through increasing access to essentialhealth services such as family planning and nutrition, HIV/AIDS andtuberculosis management (Joseph etal.,2015).
Throughthe support of foreign donors, the government is working towardsstrengthening health systems so as to ensure the longevity ofinvestments directed towards the healthcare sector. The primary focusis to improve efficiency at the Ministry of Health throughestablishing managerial and leadership skills. Such skills will allowthe efficient and transparent management of healthcare assets.
Theremust be mechanisms through which funds are released promptly duringemergencies. There is a need for additional comprehensive planning inthe reconstruction efforts following the 2010 earthquake in Haiti.This will eliminate instances where hospitals are built withouttaking into consideration how they will be staffed, funded and fullystocked. Lending institutions should also restructure their policiesto facilitate growth in developing countries thereby eliminatingunnecessary restrictions that hinder development.
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