Lending Institutions, Health Care, and Human Capital

Lending Institutions, Health Care, and Human Capital
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Lending Institutions, Health Care, and Human Capital
How the IMF Hinders Social, Economic and Political Development of Haiti
The International Monetary Fund is instrumental in the economic development of most developing nations. Since its inception in 1944, the IMF has funded the operations of numerous sectors of the economy in most developing nations. However, there is sufficient evidence to prove that the lending policies of this international financial body hurts the economies of developing nations more than it helps them (Boughton, 2001).
Haiti, which is considered as one of the poorest countries in the world, is a clear example of how the IMF hurts developing nations. Although the IMF is highly involved in funding the government’s operations in Haiti, the poverty levels in the country have continued to grow. As a way of ensuring that Haiti pays its loans, the IMF under the structural adjustment policy (SAP) demands that the country reduces its budgetary allocation to key institutions such as the education and health sectors. This has led to a serious decline in the education and health sectors (Jauch, 2012).
Another way that the IMF hurts Haiti’s economy is demanding that the country shift from farming and instead concentrates on the production of export crops. This shift has brought about malnourishment in the country’s poor population. As the IMF increased its lending to Haiti, the country was also forced to subsidize the imported rice while barring the country from providing subsidies to its own farmers. Apart from coming up with policies that have hindered the economic and social development of Haiti, the IMF has also come up with policies that have hindered the political development of the country. In 2000, the IMF was said to have funded the ouster of President Jean-Bertrand Aristide since he had failed to accept the terms that had been set up by the IMF to control poor nations (Jauch, 2012).
Substantive Ways in which a Healthy Population Strengthens the Economy of Haiti
There are many substantive ways through which a healthy population can strengthen the economy of a country. In a country like Haiti, researchers have established a strong link between health and economic prosperity. In addition to this, research has established that together with genotype and environmental influences, diet plays a crucial role in the etiology of numerous chronic diseases. Nutrition offers a clear starting point for an appraisal of the evidence. In the past, Haitians believed that the ...