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Contents

Introduction. 2

Overview of Somalia’s Lending Institutions, Health Care, and Human Capital 2

Donor Funding: Does Help or Hinder Somalia’s Development?. 2

Ways in which a Healthy Population Strengthens Somalia’s Economy. 3

Somali Government’s Use of Foreign Aid in the Health Care System.. 4

Conclusion. 5

References. 6

Lending Institutions, Health Care, and Human Capital

Introduction

            The aim of this paper is to examine aspects of lending institutions, health care, and human capital in a developing country. The country selected for this purpose is Somalia. The paper has four parts. The first one analyzes the country in terms of its lending institutions, health care, and development indices like human capital. Secondly, the paper explores whether donor funding has helped or hindered the country’s development. Thirdly, the essay will examine the role of a healthy population in the country’s economic strength. The last part will discuss the country’s leadership in terms of its ability to use the available foreign aid to improve Somalia’s health care system.

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Overview of Somalia’s Lending Institutions, Health Care, and Human Capital

Somalia is located in the horn of Africa region. It is ranked among the poorest countries on the continent, and this is due to the eruption of many civil wars and the rise of militia groups. Many civilians suffer from hunger, illnesses, and poor living conditions because the government lacks the necessary resources to provide basic social amenities. As a result, Somalia has been seeking foreign aid from developed countries like the United States. Organizations like the International Monetary Fund and the World Bank have been offering aid to the Somali government. Some of the aid provided by these organizations include educational facilities, health care, and the basic supplies people need to survive.

Donor Funding: Does Help or Hinder Somalia’s Development?

Somalia has been receiving foreign aid from various institutions. With the help provided to this country, some improvements are beginning to emerge. For example, it is now possible for people to construct permanent housing units, supermarkets, and even better roads. This means that foreign aid has helped the government of Somalia even though it no longer receives monetary assistance from the World Bank due to debts. The International Monetary Fund provides the organization with advice on good governance and ensures that good policies that are beneficial to citizens are put in place. Poor countries like Somalia find it difficult to access proper health facilities, with the assistance of donors, they are able to upgrade their health sectors (Rotberg, 2010). This means that unlike other states that rely on tax and other collected revenues, they have a chance of developing through aid from donor organizations. Lending institutions benefit a country because they offer other forms of advice in efforts to ensure that all its vital sectors are upgraded.

Ways in which a Healthy Population Strengthens Somalia’s Economy

Health is an important issue for any nation, and individuals who have good health are able to contribute positively to economic development. A nation like Somalia with people who suffer from hunger and other life-threatening condition is not able to undertake development projects effectively. People cannot work when they suffer from diseases, which means that they cannot contribute to the growth and development of their country (Capobianco, 2008). Healthy people are able to think of ways to solve some of the problems affecting them, thereby helping to promote development. In Somalia, very many people suffer from hunger-related diseases which render them incapable of engaging in meaningful activities that can bring in revenue for the government. Thus, the nation is too weak to work, making it difficult for it to advance without relying on foreign aid.

Healthy people are able to generate policies that can promote good governance. Such people are in a position to form rules and regulations that can help to reduce problems like civil wars and other politically initiated issues. This means that people who live in a country without wars have the freedom to work freely, and this contributes largely to economic development. The government is able to monitor the activities of citizens freely when they are healthy, and this contributes to the country’s development. Moreover, healthy people are able to move from one nation to another in search of job opportunities (Dool, 2000). They can not only earn a source of living from other countries but also send money back home to contribute to local economic development. Besides, when people are healthy, the government could put the funds that had been set aside to treat unhealthy people into other areas.

Somali Government’s Use of Foreign Aid in the Health Care System

The government of Somalia has faced numerous challenges in restructuring and strengthening its health sector. One challenge is that there are shortages of professionals to work in the medical sector. Consequently, the government has had to outsource doctors and nurses from other countries, which is expensive. In regard, the assistance offered by donor organizations has provided the government with mechanisms to promote good health in the country. A significant development in Somalia is that these foreign donor organizations have provided infrastructure and resources necessary to set up clinics and upgrade other existing hospitals (Tiilikainen, 2009). Funds from these donor organizations have been well spent. This is large because the funding comes with conditions, which means that the donors have to monitor how the funds are being used. Consequently, it has become impossible for the government to direct funds intended for upgrading health facilities into other sectors.

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In addition, the government has improved health services in towns and major cities. With the assistance of donor organizations, it is able to reach out to people in remote areas who used to rely on traditional healers instead of qualified medical practitioners. Good leadership also ensures that people do not use propaganda to dissuade citizens from using the right medical attention. Moreover, donor organizations help to educate both government officials and citizens on the importance of good health and to ensure that they remain healthy enough to contribute meaningfully to economic development (Jones, Hilborne, & Ross, 2006). Finally, the Somali government has also been relying on indicators from research organizations to get insights into areas that need improvement in terms of health facilities. This information has greatly helped the country’s leadership to upgrade most of Somalia’s health care facilities.

Conclusion

            Going by this discussion, Somalia continues to face serious problems relating to health care, economic development, and human capital. Many Somali citizens are too weak to work because of hunger. To address these problems, international donor organizations, in partnership with the Somali government, have been funding various health care projects. The IMF and the World Bank have particularly offered massive aid that has not only led to health care upgrades but also spurred economic development in the country. Thus, foreign aid has greatly helped Somalia’s development even though its government continues to face numerous challenges in its efforts to strengthen its health sector and improve the citizen’s overall standards of living.

References

Capobianco, E. (2008). A review of health sector aid financing to Somalia.Austin, TX: McGraw Hill Press.

Dool, A. (2000). Somalia: A creative political philosophy for the new country.Trenton, NJ: Cengage Learning.

Jones, S., Hilborne, L., & Ross, A. (2006). Securing health: Lessons from nation-building missions. Washington, DC: Oxford University Press.

Rotberg, R. (2010). When states fail: Causes and consequences.Austin, TX: Texas University Press.

Tiilikainen, M. (2009). Somalia’s health care system and post-conflict hybridity. Afrikan Sarvi. Retrieved on 29 February 2016 from https://afrikansarvi.fi/42-artikkeli/125-somali-health-care-system-and-post-conflict-hybridity.