Essay on Haiti: Lending Institutions, Health Care, and Human Capital

1545 Words Feb 23rd, 2015 7 Pages
Haiti: Lending Institutions, Health Care, and Human Capital
SOC 300
5 March 2015

Haiti: Lending Institutions, Health Care, and Human Capital Due to capital limitations, most governments, particularly in the developing nations borrow funds from their bilateral friends and organizations such as World Bank and International Monetary Fund (IMF) in earnest to enable them pursue development projects, and sometimes to correct balance-of-payment deficits. Nevertheless, such governments must adhere to some outlined conditions that are spelt out in the article of agreement in order for them to secure the loans; otherwise, the loans are withheld (White, 2012). Equally, a healthy population significantly contributes to economic development of
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Were it not this relief, Haiti would still be struggling to repay unending loans (Frankema & Masé, 2014). Even after severally being granted loan reliefs, Haiti continues to take new loans and increase her foreign debts. For instance in 2010, after the country was hit by a fierce earthquake, the government borrowed a loan from IMF worth $102 million in order to assist in her recovery (Hiatt, 2013). As a result, Haiti remains to be a victim of financial neo-colonialism since the borrowed funds are misused by unscrupulous leaders, whereas tax payers continue to dig deeper in order to meet the debts. Consequently, Haiti is ranked among the most undeveloped and poor nations across the world. According to Hiatt (2013), the country is ranked as the poorest nation in the Western world with over 80% of her populace living below poverty line. Therefore, funding by World Bank, IMF, IADB, and by her bilateral creditors does not contribute in the country’s political, social and economic development.
How a Healthy Population Contributes To Economic Development To a great extent a healthy population is tantamount to a better economic development, not only for Haiti, but also for any nations. First, Acemoglu and Robinson, (2012) suggest that a healthy population improves productivity of a country in a