Lending Institutions, Health Care, and Human Capital

Lending Institutions, Health Care, and Human Capital
Somalia is a nation found in Africa, and over the past years, this nation has come to be associated with piracy and al-Shabaab. Somalia experiences political unsteadiness due to the civil strife contributed to by the extremist groups. Individuals have managed to run from this nation and seek refuge in neighboring Kenya in the hope of finding peace and economic stability. Most of the nation is characterized by poverty because there are few economic activities that the citizens can participate in so as to contribute to the country’s GDP. The chief exports of this nation range from charcoal to bananas and livestock hence indicating that it has very little foreign earnings (“The European Union – EEAS (European External Action Service) | nomenu,” n.d.). Further, this country is reliant on donations since the economic activities cannot run the entire economy efficiently. The political situation is not stable since the government is under constant attack from extreme groups that want to take over the leadership of the nation. Gender equity in the land has not been achieved in most sectors since women have not been empowered. Very few women are educated or in leadership positions making it a gender prejudiced nation. The nation is dominated by the Islamic religion even though there are individuals that have been radicalized so as to fight Jihad. The leadership of this nation is mainly under rival clans hence implying that there is no stable governance with several areas under self-governance.

Explore whether or not funding from international lending institutions like the World Bank and the IMF are helping or hindering the social, economic, or political development of Somalia.
The impact of international lending institutions will mainly depend on the policies advocated since there are those that promote development and others that hinder growth and development since they are directed at promoting the dominance of developed nations. The IMF has intentions of promoting the well-being of Somalia. The IMF carried the past survey on health status in the war-torn nation after a period of over two decades implying that it has the plans for improving the health of the citizens. Further, the IMF has intentions of encouraging peace in the nation hence opening pathways to address the problems facing the nation (“IMF Survey: IMF to Help Somalia Rebuild Its Economy,” 2013). The IMF has the plans for ensuring that Somalia can provide shelter, food, and medicine for its citizens, therefore, implying that it has good intentions of ensuring that this nation is economically stable. The IMF is working in association with traditional donors such as Qatar, the US, and other lending institutions to make sure that Somali attains economic stability. The IMF also plans to offer Somalia a debt relief, therefore, reducing its debt burden. Therefore, international lending institutions have the intentions of promoting social, economic and political development in the nation. The above is true because the IMF intends plans of promoting peace in the nation hence opening the avenues of political stability that will result from the persistence in peace and security. Social development is promoted by ensuring access to medicine, food, and shelter for all Somali nationals. Debt relief on the nation will contribute to economic development of the nation since it will not have to use its foreign earnings to pay foreign debts rather the nation will be in a position of developing its infrastructure.
Discuss, with examples, at least four (4) substantive ways in which a healthy population strengthens the economy of Somalia.
One of the best ways to improve the economy of Somalia is by addressing maternal health. The World Health Organization estimates that there are eight hundred and fifty cases of maternal deaths out of one hundred thousand live births. Further data indicates that one in twelve Somali women will die due to pregnancy complications (“UNFPA Somalia | Renewing the fight against maternal and new-born mortality in Somalia,” n.d.). Addressing maternal health will reduce the costs associated with complications during birth hence the resources can be diverted to other government expenditures. Economic growth will be evident since there will be a decline in the costs of maternal health.
Family planning is a health issue that has to be addressed to ensure that the economy of Somalia grows. Family planning has both economic and social benefits since it is an efficient health approach and ensures improved infant and maternal well-being. Households are composed of between seven and eight individuals hence the need to reduce the number of people in a family as a means of reducing dependence and other challenges associated with many individuals in a nuclear family. Family planning will ensure that the nation reduces its dependence on donor nations and international institutions that lend money since households will be in positions to acquire shelter, food, and medicine (Banerjee & Duflo, 2011). Therefore, a reduced burden on the economy will promote economic growth.
Somalia should put an effort in availing polio and measles vaccines to its citizens. UNICEF has it that almost two hundred cases of polio were reported in the year 2013. The government should increase the access of vaccines that curb the spread diseases that can be prevented by the use of immunizations (“Improving the Health of Populations: Lessons of Experience – Disease Control Priorities in Developing Countries – NCBI Bookshelf,” n.d.). When the use of vaccines prevents communicable diseases, then the nation saves money that would be used in treating new cases of infectious diseases that would have been prevented by the use of immunizations.
The last health issue that needs to be addressed by Somalia is malnutrition. The state should make sure that all citizens despite social status have ready access to diets that balanced. The above strategy will help the nation cut on expenses associated with handling extreme cases of malnutrition. Further, this will save the nation finances that can be diverted to other projects promoting the economic and social well-being of the citizens.
Ascertain the degree to which the leadership of Somalia has used foreign aid to improve its health care system.
Leadership in the nation has not diverted much of the donated resources to healthcare since about three percent of their budget goes into the health sector. Doctors and nurses are not well paid hence making them prefer to work in private health institutions that offer better salaries and incentives. Somalia leaders have further failed to ensure that hospitals started by international organizations are funded properly. Patients have to contribute when attending public health institutions showing that the government has not diverted foreign aid towards health. Therefore, the not much has of the foreign aid has been pumped into the country’s health sector.
Conclusion
Somalia as a nation has experienced civil strife for over two decades with no hopes of peace or improved security shortly since the nation is characterized by self-governance in most of the nation. The nation further faces health challenges especially when it comes to maternal health and vaccinations. Foreign aid and loans from international lending bodies will boost this nation’s economy if the leaders formulate policies to favor socio-economic development. Political stability in this nation will promote economic and social development since peace is the primary factor that has been affecting Somalia for over two decades. Somalia should also reduce its dependence on imports but rather strive to increase its chief exports. In finality, good leadership and political stability are what Somalia needs to promote social and economic development.

References
Banerjee, A. V., & Duflo, E. (2011). Poor economics: A radical rethinking of the way to fight global poverty. New York: PublicAffairs.
European Union – EEAS (European External Action Service) | nomenu. (n.d.). Retrieved from http://www.eeas.europa.eu/delegations/somalia/eu_somalia/development_cooperation/economic_growth/index_en.htm
IMF Survey : IMF to Help Somalia Rebuild Its Economy. (2013, June 24). Retrieved from https://www.imf.org/en/News/Articles/2015/09/28/04/53/socar062413a
Improving the Health of Populations: Lessons of Experience – Disease Control Priorities in Developing Countries – NCBI Bookshelf. (n.d.). Retrieved from https://www.ncbi.nlm.nih.gov/books/NBK11736/
UNFPA Somalia | Renewing the fight against maternal and new-born mortality in Somalia. (n.d.). Retrieved from http://somalia.unfpa.org/news/renewing-fight-against-maternal-and-new-born-mortality-somalia