18 May 2022

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Lending Institution, Health Care, and Human Capital

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Poverty in the low-income countries magnifies the need for health care and at the same time decreasing the capacity to be finance by any lending institution. Most of the low income countries mainly in the sub-Saharan Africa and some of Asian countries face the global disease burden of about 56 percent. The main problem that these countries face is the means of coping up with these disease burdens as from the research that has been carried shows that most of these countries can only handle very lite by their self and end up to account for about two percent of global health spending. World Bank is one of the institution that mainly provide and subsidize most of the low income countries in these marginalized regions (sub Saharan Africa and the South Asian countries).these countries spend less compared to high income countries and mainly depend on the private expenditures as they are directly out of their pockets. These countries also face severe constraints such as institutional, political, fiscal and economic as they hinder the country from use of organized financing means such as health insurance that is community based social health insurance, voluntary health insurance and tax revenue. There is a pattern of low health spending in these low income countries which is that fact that these countries rely too much on the out of pocket financing. They have low limited mobilization ability of domestic resources.

In Sub-Saharan Africa the government expenditure on health matters is very low. The main source of revenue to subsidize health in these countries is donor funding especially from World Bank. A country such as Kenya in the Sub-Saharan Africa has low per capita income which poses a great threat and challenge to the growth and development prospects in the country. The countries faces more challenges which hinder health financing which include limited mobilization potential of domestic revenue, the face a severe shortage of health provider manpower, face the challenge of high disease burden in the world. Africa accounts for 25% of the world’s disease burden and has about 60% of HIV/AIDS infected individuals. It accounts for less than 1% of the health spending globally and composes of only two percent of the health care professionals (WHO, 2004)

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Kenya is one of the low-income countries that is subsidized by the World Bank on issues pertaining health. The main reason for the subsidy is because it is unable to completely handle the health burden it is exposed to. The country is faced with severe environmental changes that expose the country to occasionally shortage of food in most of its parts. The lack of enough food in these regions leads to deprived in health of the inhabitants. So the country uses some of the funds in supplying food to these regions that are faced with the issue of food shortage. When people have something to ingest it will gradually improve their health status.

Due to the increased burden of disease such as Tuberculosis (TB), Ebola, anthrax, cholera, malaria, typhoid Kenya has used the funds in importing drugs to cater for the diseases. Apart from the indirectly using the funds to impact on health of the country uses funds to directly impact on health by providing drugs to all affected by these diseases. The drugs can be preventive to prevent the occurrence of these diseases, this procedure is mainly based on protecting the public from contracting the some of the deadly diseases (Kenyan ministry of Foreign Affairs, 2016). They can also be curative for those people that are already affected or infected by these diseases. The country also uses the funds in creating awareness for the causes, how to avoid contracting, what to do in case of contracting, how to know you have contracted, to how to acquire medical attention and the reason and the importance of seeking medical/healthcare of some of these diseases. Since these countries may not have equipped setting for drug development they have to depend on the fund to import drugs to allow them improve healthcare.

To make health care available to everyone in a country the health centers must be made available to every citizen even in the most remote areas. Therefore low-income countries such as Kenya use the funds subsidized from lending institutions such as World Bank to build infrastructures. These infrastructures include hospitals, laboratories, research centers, roads to access these hospitals as well as updating equipment for proper health care provision. These funding are also used to setup health camps to some of the in accessible areas (World Bank, 2017).

Free health care services are as well provided to some of the areas that people are not well up and have severe health issues. Free health care services are as well offered for all women who are hospitalized for reason of giving birth. Apart from making health services free the government has also reduced the prices of drugs so as all can easily access and afford prescriptions for their ailment. 

The country uses the funding in establishing new healthcare training centers and improving the already existing ones to meet the required standards. It also uses the funding to increase the employment of new health care providers to increase the efficiency and quality of health care in the country. It also uses the funding in importing professional doctors who have specialized in certain such as surgeons to include such practices in the country. It also uses the fund to send their doctors to higher learning in other countries to improve the quality of health in the country (World Bank, 2016).

The funding from the World Bank to these low income countries has impacted positively to their political, social and economic development. Socially it is improving the countries overall health of citizens. Making them aware of how to relate with people with various infections and how to help them rather than disowning them or leaving them alone. Economic wise, the country has developed since the development of various health clinic centers, research centers, and since people are healthy they can carry on with their business properly. The country has been able to handle the health burden by utilizing the funds from World Bank therefore investors and business men from other countries are confident of their safety while conducting business in Kenya. This definitely improves the economy of the country. Politically the country has as well developed as people have known their rights and they can ensure utilization of the funds from lending institution. They can question and be heard, it shows that people are accountable and can ensure there is proper utilization of these funds (World Bank, 2013). 

Improving the health of citizens in a country has direct impact on economy of any country. Healthy citizens lead into an economic growth of a country since they are in better condition to conduct various effective activities in the workforce. Major diseases such as Malaria, HIV/AIDS and tuberculosis reduces workforce in many ways such as by death, by absence when the patient is undergoing treatment and while recovering as well as the people who are there to offer support. From the report by the World bank it shows that over 50% of the economic growth differences between the developed and the developing countries is mainly attributed by the poor health as well as low life expectancy. If citizens, who are the workers, are strong therefore the workforce will be effective. 

Healthy citizens are able to make ample life decisions on various matters, for instance, on matters pertaining family planning. Healthy citizens are better equipped to observe family planning therefore leading to fewer and planned births. Therefore it means the children will acquire better health care and support from their parents. The Government is also able to easily and properly provide vaccinations and preventive strategies to these children that are taken care of by their parents than the children who do not receive the required attention from their parents due to poor family planning. Not only will they benefit on health matters only but also on education matters making them better and therefore becoming people who can positively contribute to the development of the country (Wire, 2015).

A country that has good health systems is mainly going to be a fair and just country. Development of health sectors leads to improved employment as for a proper health provision to be attained many personnel are required and will contribute largely in the economy from the revenue acquired from their wages and benefits. Other revenues are acquired from various taxes such as sales. The sales of drugs that are not subsidized are as well taxed and contribute in the developing the economy of a country.

For development of any country economically, socially or politically, the health of the citizens is a key. The health of the citizens in the low-income countries that are adversely affected by disease burden, need to be funded to offer them a chance to develop themselves. A country like Kenya has utilized these funds in various ways to improve the health status of the country which has resulted to positive development economic wise. 

References

Wire, A. (2015). Healthy population equals healthy economy. Retrieved 16 May 2017 from: https://wire.ama-assn.org/ama-news/healthy-population-equals-healthy-economy

World Bank (2013). Kenya Health Sector Support Project - Additional Financing. Retrieved 16 May 2017 from: http://projects.worldbank.org/P144197?lang=en

World Bank (2016). Kenya Receives $191.1 Million to Support Primary Health Care Services. Retrieved 16 May 2017 from: http://www.worldbank.org/en/news/press-release/2016/06/15/kenya-receives 1911-million-to-support-primary-health-care-services

World Bank (2017). Kenya/AFRICA- P074091- Health Sector Support - Procurement Plan. Retrieved 16 May 2017 from: http://documents.worldbank.org/curated/en/873001493911773003/Kenya AFRICA-P074091-Health-Sector-Support-Procurement-Plan

Ministry of Foreign Affairs (2016). Kenyan Healthcare Sector Opportunities for the Dutch Life Sciences & Health Sector retrieved 16 May 2017 from: https://www.rvo.nl/sites/default/files/2016/10/2016_Kenyan_Healthcare_Sector_Report_Compl et.pdf

WHO (World Health Organisation) and UNAIDS. (2004). EIDS epidemic updates.

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StudyBounty. (2023, September 16). Lending Institution, Health Care, and Human Capital.
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