Assignment 2: Lending Institutions, Health Care, and Human Capital

Lending Institutions, Health Care and Human Capital
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Angola is an African country that is still in the developing era. It's economical, social and political development is faced with a number of challenges. There is an ongoing economic and political crisis whose future has not yet been redefined. The recent crisis that has adversely affected the economy of Angola is the plummeting of the oil price with no hope of a soon resurgence. Navigations of the government on the same have not been put into much consideration by the business press (Marissa, 2016).
Angola experiences one of the world’s poorest health conditions with increased cases of malaria, HIV/AIDS, and high infant mortality rates. The health care institutions are faced with certain challenges as poor health facilities, lack of adequate qualified medical staff and low supply of medicine (Mona & Ottar, et.al, 2016 ). These poor conditions have probed international lending institutions to come to their aid. Angola benefits from funds from such lending bodies as IMF and World Bank among others.
The World Bank and IMF are the world’s powerful financing institutions. They remain to be Africa’s main lending sources. Angola being an African country is a sole beneficiary of the services of these two bodies. The system of these bodies works to benefit the rich countries and the private sectors, however. For instance, the system of the World Bank, "one dollar, one vote" called the neo-liberal system only favors the countries with the greatest shareholders who are the decision makers. Angola being a developing country has had to turn to these bodies for financial aid. These institutions, for instance, the World Bank, has subjected it to severe borrowing conditions that leave the country poorer than it was. Having no choice and in dire need of loans, Angola still accepts.
Angola, and just like any other African country, has been lured into adopting "Structural Adjustment Programs" by these lending institutions. The result of this is that the government of Angola has to cut its spending on basic services. Angola has been forced to cut some of its trade barriers. It has, in turn, allowed a free market in Angola making it a source of cheap raw materials to the developed countries. Due to these policies, Angola's average income has had a great drawback and poverty has taken the lead. The country's debt has increased; conditions worsened leaving it dependent on new loans.
The financial institutions have left Angola in the worst health conditions. It is more susceptible to diseases related to poverty and HIV/AIDS. The institutions have undermined the health of Angola. Their policies have forced Angola to cut on the expenditures on basic services and health care. The institutions have taken the payment of debts a priority to the deteriorating health condition of Angola. Taking advantage of the debt, IMF and World Bank have taken control of Angola's economy. Instead of the financial institutions playing the role of liberty to Angola, they have been a menace that if there is a way, should be eradicated with an immediate effect....