The Effects of Lending Institutions, Health Care and Human Capital on Democratic Republic of the Congo
Introduction
Developing countries such as the Democratic Republic of the Congo (DRC) lack some basics necessities that would help them overcome the lower living standards that plague their country. Lending institutions such as the World Bank and IMF offer assistance by providing funding in the form of loans for projects or policy that are structured to fight poverty or global economic crisis. Projects and policies can be directly or indirectly supported. Heath care and human capital are key areas for which this assistance and reform are needed. Proper health care is essential to ensuring that the population stays healthy. According to Hanushek, “The focus on human capital as a driver of economic growth for developing countries has led to undue attention on school attainment.” (Hanushek, 2013).
Helping or Hindering Financial institutions such as the World Bank and the IMF are designed to help developing countries overcome poverty. According to worldbank.org website the World Bank is one of the largest sources of funding that helps developing countries provide schools, health care centers, necessities such as clean water, electricity, and environment preservation (Irving, 2013). The IMF is also a financial institution that helps developing countries but its primary focus is to protect international trade. When institutions such as these provide loans needed to battle poverty the out come should be positive. But what happens when the country is over wrought with corruption? Does the poverty stricken community actually benefit or does it get redirected to corrupt government officials. According to (Sanyanga, 2013) The poor rarely benefit, as in the Grand Inga Dam project. The Grand Inga Dam is proposed for the Congo River in the Democratic Republic of Congo. It would be the world largest hydropower serious of dams. This is an $80 billion project that is designed to develop a power grid across Africa that will spur the continent's industrial economic development
Developing countries such as the Democratic Republic of the Congo (DRC) lack some basics necessities that would help them overcome the lower living standards that plague their country. Lending institutions such as the World Bank and IMF offer assistance by providing funding in the form of loans for projects or policy that are structured to fight poverty or global economic crisis. Projects and policies can be directly or indirectly supported. Heath care and human capital are key areas for which this assistance and reform are needed. Proper health care is essential to ensuring that the population stays healthy. According to Hanushek, “The focus on human capital as a driver of economic growth for developing countries has led to undue attention on school attainment.” (Hanushek, 2013).
Helping or Hindering Financial institutions such as the World Bank and the IMF are designed to help developing countries overcome poverty. According to worldbank.org website the World Bank is one of the largest sources of funding that helps developing countries provide schools, health care centers, necessities such as clean water, electricity, and environment preservation (Irving, 2013). The IMF is also a financial institution that helps developing countries but its primary focus is to protect international trade. When institutions such as these provide loans needed to battle poverty the out come should be positive. But what happens when the country is over wrought with corruption? Does the poverty stricken community actually benefit or does it get redirected to corrupt government officials. According to (Sanyanga, 2013) The poor rarely benefit, as in the Grand Inga Dam project. The Grand Inga Dam is proposed for the Congo River in the Democratic Republic of Congo. It would be the world largest hydropower serious of dams. This is an $80 billion project that is designed to develop a power grid across Africa that will spur the continent's industrial economic development