Lending Institutions, Health Care, and Human Capital

Running head: LENDING INSTITUTIONS, HEALTH CARE, AND HUMAN CAPITAL
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Lending Institutions, Health Care, and Human Capital
Student’s Name
Institutional Affiliation

LENDING INSTITUTIONS, HEALTH CARE, AND HUMAN CAPITAL 2
Impact of International Lending Institutions to Kenya
The international funding has played a key role in improving various sectors of Kenya’s
economy, political, and social development. In terms of economic development, the foreign aid
enables the government to develop infrastructure which spurs up business transactions. People
are able to travel easily to obtain and supply goods and services through improved roads and
communication networks hence developing the economy. The World Bank also approved $180
million on April 26, 2018, which will enable Kenya to improve the electricity generation through
the KenGen Company. This will help to lower the current high costs of electricity and promote
competitive business operations. The youths and women will be empowered to run businesses on
24-hour based systems as there will be enough lighting which will reduce cases of crimes.
Social development has also been made possible through international funding.
Affordable business transactions enable the Kenyans to interact more hence developing their
social sector. For instance, as suppliers deliver goods to customers, they interact and get to know
and understand each other well. This also promotes diversification of cultures through improved
infrastructure which has enabled people to relocate to other parts of the country hence separating
from their usual culture and people. This makes them assimilate themselves into the new cultures
and also spread theirs to the new residences hence diversifying the Kenyan culture and social
norms.
How a Healthy Population Strengthens the Economy of Kenya
Sustaining a healthy population is a great way of strengthening the economy of Kenya.
Investing in health is a critical and anticipated priority for many governments since health and
economic performance are mutually interlinked.

LENDING INSTITUTIONS, HEALTH CARE, AND HUMAN CAPITAL 3
Increased Productivity
When people are healthy, they are likely to work more effectively and produce more
quality goods and services than when they are not. It is also possible that the healthy working
people will be able to provide enough food and other basics for the whole family without having
to rely on the government provision hence enabling it to save more money per investment. For
instance, if a population comprises of unhealthy people, they will not have the strength to work
in the manufacturing industries to provide food and other basics for the family and the nation at
large (Linnerooth-Bayer & Mechler, 2015). This will prompt the government to import most of
the products hence weakening the ability to save for other investments. This means that the
unhealthy people will also have to rely on the government for food provision. A healthy
population means higher life expectancy which also encourages training of the adults so that the
workers acquire high skills for production.
Reduced Mortality Rates
Good health leads to reduced mortality rates which means that the labor supply to work
in the development of the economy is positively affected. When there are fewer people dying
because of various diseases, the economy is deemed for development as there are enough
workers to work in the industries and the manufacturing sectors hence developing the economy.
Again, the government is led to spending less money in funding the health systems in order to
curb such mortality rates (Bray, & Lillis & Eds, 2016). This means that the need to pay money
for the health insurance coverage is reduced hence the government can spend such funds for
other profitable investments.
Improving Technology