Lending Institutions, Health Care, & Human Capital
Lending Institutions, Health Care, & Human Capital
Many developing countries are emerging through their governments’ efforts in sustaining their citizens’ wellbeing. Also, many of them are seeking the assistance of the international organizations so as to support their political, social, and economic development. Such action was one of the Philippines’, as an emerging country, way to provide those supports. The country used the assistance from the World Bank and International Monetary Fund to improve their nation’s stability. This writing entails what the World Bank and IMF did to assist the country in their economy, politics, and their society’s health so as to improve the country’s health care system. Thus, the improved health care system of the country will make the country’s human capital more productive for the benefit of the economy.
Financial Institutions and the Philippines’ Economic, Political, and Social Development
More challenges are coming along country’s way to develop its social, economic and political development. College graduates are constantly increasing, thus more jobs are needed that also need to be given to those seekers who are not college degree holders. Such challenge may affect the Philippines’ three areas of development. Additionally, the country needed more assistance due to the recent typhoon’ that struck the country, putting its social, economic, and political stability in more challenging status. However, the World Bank provided a long-term and broader assistance package to the Philippines for the country’s reconstruction and recovery efforts (worldbank.org).
This assistance has helped the country’s social development in terms of the assistance that has been provided to the people to recover from the devastation. Economically, the assistance that was given also helped the country, as many big and small companies were able to go back to their business as usual. It also helped the country politically as the World Bank is committed to supporting the country’s efforts in rebuilding people’s welfare even if it takes a longer time (Ubac, Montecillo, & Quismondo). On the other hand, the International Monetary Fund (IMF) gave similar assistance to the country a few years ago. The IMF provided a loan to the Philippines worth one billion US dollars so as the country could cope with the financial stability (Erlanger, 1997). In return, the country has helped the IMF by extending a loan with the same amount to support the global efforts in stabilizing the global economy thus, its way of giving back its previous support to the Philippines (interaksyon.com).
Healthy Population Strengthens the Philippine Economy
One of the economic measurements value is the human capital or the employee’s skills. It builds the basic production inputs of the labor measure. Human capital concept recognizes that not every labor is equal, which the employees’ quality can possibly improve by putting an investment in them. As such, the Philippines’ economy may strengthen by ensuring its population stays healthy, which includes the working population. George Alleyne and Daniel Cohen (2002) suggest that a research is now showing that a healthy population is a key for the growth of the economy.
This research entails the human body size and the food supply is related to a long-term labor force productivity to which the economy will benefit. Additionally, human nutrition is an essential determinant of mortality trends as well as the basis of a human’s productivity. Moreover, health is can be considered a productive asset (Alleyne & Cohen, 2002). That is, a healthy employee are mentally and physically more energetic and robust that makes them more productive, therefore, will earn higher wages. In the Philippines, employees who belong to middle-class families would more likely to be more productive as they can afford to sustain their nutrition through by providing healthier foods for themselves unless otherwise.
Having such health effect on the human worker, a healthier employee was said to be earning more. This would also reduce poverty if healthy population through improved health care system were promoted. A nation that has less poverty rate can be a measurement of economic wellbeing.
Another way that a healthy population relates to the economy’s strength is when a developing country such as the Philippines may use their income to protect them against unhealthy working, poor sanitation, and living environments (Alleyne & Cohen, 2002).
How Philippines Used Foreign Aid for Healthcare System Improvement
The Philippines has received much foreign aid for the past decade. The country is facing different challenges when it comes to aligning its healthcare system, one of which is the country’s maternal system. The Philippine government acted on this particular challenge as included in the general health system improvement by launching a project Safe Motherhood and Women’s health. The World Bank participated in funding part of this project (Huntington, Banzon, & Recidoro). The project shifted from treating high-risk pregnancies to putting all women in preparation for possible obstetric complications. Safe motherhood was promoted after this project, followed by general health system improvement of the country.
The Republic of the Philippines is one of the development countries that face unique challenges just like some other nations. With the help of the foreign aids and international financial institutions, the Philippine government was and still able to cope with different challenges such as the economic, social, and political development. It was also showed that the citizen’s health including its working population has a great effect on the country’s economic stability. As such, the Philippine government was able to use its sources such the assistance from the World Bank and the International Monetary fund for the country’s benefits and improvements.
Alleyne, G. A., Cohen, D., & World Health Organization (2002). Health, economic growth, and poverty reduction: The report of working group 1 of the Commission on Macroeconomics and Health. Geneva, Switzerland: World Health Organization.
Erlanger, S. (1997, July 21). To Ease Crisis, I.M.F. Makes Philippines Emergency Loan - New York Times. Retrieved from http://www.nytimes.com/1997/07/21/business/to-ease-crisis-imf-makes-philippines-emergency-loan.html
Huntington, D., Banzon, E., & Recidoro, Z. D. (2012). A Systems Approach to Improving Maternal Health in the Philippines. Bulletin of The World Health Organization, 90(104), 104-110. doi:10.2471/BLT.11.092825
Interaksyon (2012, June 20). In Reversal of roles, Philippines lends IMF $1 billion to boost crisis fund. Retrieved March 2, 2014, from http://www.interaksyon.com/business/35337/in-reversal-of-roles-philippines-lends-imf-1-billion-to-boost-crisis-fund
Ubac, M. L., Montecillo, P. G., & Quismundo, T. (2013, November 24). World offers more aid to Philippines | Inquirer Global Nation. Retrieved from http://globalnation.inquirer.net/92135/world-offers-more-aid-to-philippines
World Bank Philippines (2013, September). Philippine Development Report, Creating More and Better Jobs. Retrieved from http://www.worldbank.org/content/dam/Worldbank/document/EAP/Philippines/PDRFullReport.pdf