Somalia

Funding from international lending institutions in Somalia development

Somalia is an African country which gained its independence from European nation in 1800s. For several years, the country has experienced political instability, recurring violence, poverty and famine.  Despite the challenges, Somalia is a country which is moving forward in that in year 2004; Transitional Government was established for the purpose of helping development and state-building (Cissé, Menon & Cordonier, 2014). The International Monetary Fund   (IMF) and World Bank are playing a vital role in Somalia social, political and economic development.  The IMF is offering funding to ensure that Somalia will have a stable economy   through building central bank and other fiscal institutions.   IMF has found a way of entering in Somali development and it is struggling to have a comprehensive understanding of the current economy and the state of its institutions in order to implement economic reforms.   IMF has already formed relationship with the Federal Government and now it is able to offer technical assistance as well as political advice on how to build the nation (Cissé, Menon & Cordonier, 2014).  Through the internal relationship, IMF is working with Somali authorities to find international assistance from economic agencies such central bank   in order to build the nation.  The IMF has created important goals of helping the financial ministry in raising revenue and public finances, establishing international payment systems, addressing problems in counterfeit currency and forming relationship with bilateral and multilateral donor in order to ensure economic development.  Currently, IMF is providing loans and technical assistances on macroeconomic policies and now the authorities are in a position of implementing effective economic policies (Cissé, Menon & Cordonier, 2014).

 Since Somalia has faced many disputes which demand attention, the World Bank is helping the Somalia development not only through lending but also through   provision of knowledge and technical assistance. For example, World Bank advices that women roles should be empowered and be inclusive in development process since their unique abilities will help in coping mechanism (Guha-Sapir & Ratnayake, 2009).  In addition, the World Bank asserts that the civil war led to the collapse of State and central government and for that reason Somali should reconstruct the State by re-establishing the governmental structures as they will play important functions in modern States and lead to political reform and good governance. The World Bank concentrates much on empowerment and equity for State-building and reconstruction.  According to World Bank, Somalia must balance social justice, poverty reduction and equity in order to gain economy development. The World Bank has entered in the economic field and has provided funding for expansion in Somalia’s Private Sector and this is a strategic way in creating a sustainable economy and eliminates the high level of poverty (Guha-Sapir & Ratnayake, 2009). The World Bank is helping Somalia in improving reform agenda as well appropriate regulations. The agenda reform will   implement new economic opportunities, improve regulatory frameworks, improve investment and job creation for Somali population. World Bank has asserted that it will offer funding for domestic financial sector for private sector development, financial resources and help the government in fiscal arrangements (Guha-Sapir & Ratnayake, 2009).

 

 

 

Substantive ways in which a healthy population strengthens the economy of Somalia

 In economy development, population health has a very important impact at micro level.  There are various ways in which a healthy population can strengthen the Somalia economy. There is a close relationship between health and income in that health will be required in order to achieve wealth   and thus,   a population health will build up the economy and eliminate poverty (Gedi, 2008). Good health will pave paths for income development and human welfare and other important point is that income is a determinant in policy purposes and country development.  With respect to the economic growth, Somalia can benefit from population health in the following ways;

 Expenditure reduction on preventable diseases

Somali can reduce its expenditure   on fighting and vaccinating preventable disease. By having a healthy population, Somali can spend the federal fund on productive venture for economic growth and capital resources. For example, a large amount of money which could be invested in health care system for the treatment of Malaria, typhoid and other diseases will be used in infrastructure, transportation and communication sectors (Gedi, 2008). A health population will also increase the labor production as people will be physically and mentally fit. Health improvements will also change the sociopath structure through investment on human capital thereby increasing personal savings and improving health labor force.

  

Research and development

The economy of Somali will be strengthened through conducting economic research with a high level of intelligence, healthy mind and body. There is a need for skilled labor   for economy growth and a high level of aptitude will have a positive impact on productivity. Skilled personnel with also focus on demography and help the nation with skills and advice based on child mortality and fertility (Gedi, 2008). Families will be able to choose between healthy and unhealthy choices in determining the family size. A healthy population will have both mental and physical ability and this will help them to develop the economy through passion and interest.

 Productivity increase and GDP growth

  Health population will boost the productivity of Somalia since there will be absenteeism and inefficiency reduction and workers will set common goals in developing the economy and maintain the competitive edge. Employee’s competence will help the country to utilize the available resources such as land, time and water and these resources will boost the total production within the country (Obeng-Odoom, 2012).  Health population consists of both skilled and unskilled workforce   who increases both the quality and quality in production. Through skilled workforce, there will be variety of high value of goods and services.

 

 Saving and investment

Poor health can affect the country’s income as a result of medical expense which will reduce both household and nation income savings. By having a health population, Somalia will achieve the economic success through   a high capital accumulation which will lead to an extraordinarily savings per income (Obeng-Odoom, 2012).  Health population will make wise decision on consumption and saving and they will establish a life cycle behavior in their life span. The behavior channel in saving and investment increases the longevity which brings the need for generation incentive and impacts the domestic investment positively. Somalia will benefit from economic success through foreign direct investment by eliminating rampant diseases and increasing healthy productive workforce (Obeng-Odoom, 2012).

Foreign aid in health care system

            Somalia for many years has struggled for universal access to health care and the leadership   has implemented development plans for health care. Various Somalia administrations have adopted diverse approaches and policies from international paradigms with the purpose of getting resolutions on healthcare. Both parliamentary government and military government shared their national plan on health care in   but they   never succeeded in their core operations (Somalia, 2016).  In addition, the ministry of health was unable to provide the needed resources for health care system and there have never been health man power competence in heath care. Such reasons made the leadership to search for foreign aid to improve health care. For example, in 1980s, Finish International Development Agency (FINIDA) brought external assistance and   established the campaign on smallpox eradication, treatment for tuberculosis and introduced primary healthcare (Somalia, 2016). It also introduced the PHC institutions for medical specialty.   The effort improved the health care in terms of quality and access. A large amount of money has been contributed by international donors and they have improved the health care system as well as health care policies. For many years, Somali has solved health care issues on global aspects particularly on issues such like vaccination campaigns. For instance, Somali Aid Co-ordination Body (SACB) was formed by UN agencies, donors and NGOs and the committee have implemented national health policies and development programs (Somalia, 2016).

Reference

Cissé, H., Menon, N. R. M., & Cordonier, S. M.-C. (2014). Fostering development through opportunity,

inclusion, and equity. Washington: World Bank.

 Retrieved from: https://openknowledge.worldbank.org/bitstream/handle/10986/16240/82558.pdf?sequence=1

 

Guha-Sapir, D., & Ratnayake, R. (2009). Consequences of Ongoing Civil Conflict in Somalia: Evidence for

Public Health Responses. Plos Medicine, 6(8), 1-5. doi:10.1371/journal.pmed.1000108.

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Somalia: 2016 Country Review. (2016). Somalia Country Review, 1-392.

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Gedi, Q. Mohamed  (2008). Health Care Services in Transitional Somalia: Challenges and

Recommendations.

 Retrieved from: https://www.ciaonet.org/attachments/17710/uploads

 

 

 

Obeng-Odoom, F. (2012). Health, wealth and poverty in developing countries: Beyond the State, market,

and civil society. Health Sociology Review, 21(2), 156-164.

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