Introduction
The subject of foreign aid has been subjected to intensive debates. The impacts of the funding from financial institutions have been the major subject of scrutiny in the past years. Foreign aid has been considered to have positive influences on the growth of developing countries for a long time. Until recently, the funding has been associated with negative and positive effects. The paper explores the possible influences of the funding from the main financial instruction in the world. The country of study will be Kenya. The influence of the funding on the political, social and economic aspects of the county will be evaluated. The paper also aims to cover ways in which a healthy population strengthens Kenya’s economy. The levels at which foreign aid has been used to improve the health system of Kenya shall also be ascertained.
Finance from the IMF and World Bank has impacted positively on citizens’ lives in Kenya. Economically, the lives of individual citizens have been improved through the funding. The economic growth of the country as a whole has been seen to be trending to the positive direction with the provision of the funds (Krivelyova et al., 2013). The recent funding by the two financial institutions to Kenya yielded a positive impact on the lives of the people. The project, “Kazi kwa Vijana” that the banks supported through their youth empowerment program targeted the youths of the developing country. The projects served to improve the lives of the common citizens with many people getting employment without strict qualifications. The youths used the opportunity to elevate their living standards in terms of health-care. The project, however, stirred heated debates in parliament that lead to a political division among the leaders in charge of running the project. Due to the alluded mismanagement of the funds, the project did not last longer that it was planned to last. Therefore, the impact on the lives of the citizens was not long lasting.
Funding from the World Bank has improved the social system of Kenya. The projects funded by the financial institutions have seen increased availability of water for irrigation and domestic use for many beneficiaries in the dry areas of the country (Oirere, 2011). It has strengthened the capacity of water security and has enhanced the institutional framework of managing water resources. The use of such funding has led to an increase in food supply in areas that were faced with food shortage. A surplus is also obtained to be sold locally in the markets to earn the beneficiaries some cash. Therefore, through the project, “Water Security and Climate Resilience Project for Kenya,” most of the individuals have improved their social and economic lives.
The political impacts of the funding are not promising. In many instances, such funding lead to political divisions. Leaders scramble for the opportunity to manage the finances. Their financial greed causes the scramble for the control of the finances. Due to lack of instruments to check on the usage of the finances, the political leaders have mismanaged the funds leaving the intended beneficiaries in miserable conditions (Ngunjiri, 2010). An illustration is the case of the Kazi Kwa Vijana project. Only a small percentage of the funds were used legitimately. Mismanagement of the funds leaves the effectiveness of the funds in doubt. From the view of the critics, the funding is seen to hinder growth of the country based on the political differences that it draws between the local leaders.
Though the funding from the World Bank has been on the increase, enduring poverty among the citizens has persisted over time. The phenomenon has resulted to the stinginess of the lending institutions. The lending institutions claim that the funding has stifled development programs in developing countries such as Kenya. They claim further that funding has undermined the link of accountability between the receiving country and her citizens. The effectiveness of the funding in improving the status of the country can only be ensured if the funds are used well.
A healthy population is a recipe for economic success of the country. Kenya as a developing nation has served to confirm the need to emphasize on the creation of a proper health care system to enhance economic growth. A healthy population ensures that availability of a healthy human capital in the work environment (Gleeson, 2012). The population of Kenya largely depends on a few working class with a majority of people being the children and youths. The population that is at work, therefore, needs to be healthy to ensure continuity in productivity in the work place. If the population or the manpower is ill, the production targets will not be met. The government will not collect enough taxes to finance its budget due to low productivity. Hence, the economy of the country will be affected negatively due to lack of efficient workforce. A healthy population is, therefore, necessary to ensure proper growth of the economy.
A healthy population also serves to ensure the creation of enough savings at household level and national level as stated by Gleeson. If Kenya has a healthy population, the amount of money spent by the individuals in their households in health care will reduce. The government too will reduce expenditure on the provision of health care to the citizens. The money that will be saved both in the household and at national level will help finance the investment projects that will create more jobs and more income to the country hence strengthening the country’s economy.
Kenya having a healthy economy means a lot. Kenya largely depends on tourism as a source of foreign exchange. The tourism industry can be boosted much if the county has no threats of widespread disease and pandemics. Tourists desire destinations that are not marred by health risks. Therefore, if Kenya can improve her health care systems to eradicate diseases that could scare away tourists, the industry can record higher earnings in terms of foreign exchange. Maintaining a healthy population is, therefore, important for a country such as Kenya in strengthening her economy.
The presence of a healthy population in Kenya has a correlation to the crime rates in the country as noted by Gleeson. In areas where the health of the individuals is poor, crime rates are seen to be quite high. Poor health conditions raise the living costs of the individuals. The people who find themselves in financial constraints resort to committing criminal activities that cause insecurity in the affected areas. Insecurity threatens initiatives for development and investments in the country. Foreign investors are scared away from the country as well. If Kenya’s population can be healthy, the economy of the country can be strengthened as security of the investors is ensured.
The leadership of Kenya has tried to use foreign aid to benefit the citizens of Kenya. Most of the aid from the non-governmental organizations has been put into good usage. Majority of the aid has been used successfully in getting millions of children immunized from diseases like polio. Malaria has also been effectively controlled through various donor funds provided by Aphia II Nyanza. Recently, the NGO, Plan (K), through the leadership of the community financed the construction of new health facilities locally. May people can now access free medication in most of the institutions. Nationally, Kenya has utilized the donor funds in establishing foundations for controlling major diseases like cancer. The usage of the funds has been clouded by major scams and allegations of embezzlement of the funds (Seims, 2012). Aspersions on the effective use of the funds have been cast.
Kenya as a developing nation has continued to experience staggering growth trends in the midst of increased funding from financial institutions worldwide. The funds have been seen to have overall positive impacts. Complains from critics over the usage of the funds have been raised. The need to boost the health of the population is eminent as it ensures that Kenya’s economy remains robust with efficient human capital. With effective control and usage of the donor funds, Kenya can improve her health care system immensely.
References
Gleeson, R. B. (2012). The Health of Nations: Towards a New Political Economy. Australian Health Review, 36(4), 471.
Krivelyova, A., Gregson, S., Berruti, A., N'jie, N., Rodriguez-GarcÃa, R., Manteuffel, B., et al. (2013). Funding and expenditure of a sample of community-based organizations in Kenya, Nigeria, and Zimbabwe. AIDS Care, 25(sup1), S20-S29.
Ngunjiri, I. (2010). Corruption and Entrepreneurship in Kenya. Journal of Language, Technology & Entrepreneurship in Africa, 2(1), 20.
Oirere, S. (2011). Installing irrigation schemes in Kenya. World Pumps, 2011(7-8), 16-18.
Seims, L. R., Alegre, J., Murei, L., Bragar, J., Thatte, N., Kibunga, P., et al. (2012). Strengthening management and leadership practices to increase health-service delivery in Kenya: an evidence-based approach. Human Resources for Health, 10(1), 25.
