Health administration and regulation and capital formation with

Health
care is a core component of human capital investment, which in turn rising its
spending also raises quality of life, prolonged life expectancy, reducing
morbidity and mortality rates (Byaro and Musonda, 2016). On other
hand, health outcomes symbolize how healthy a country is and assesses the
quality of health care of the country. Thus, infant mortality, under-5
mortality and life expectancy are known to be the most important indicators for
early childhood development and health status of the people of a country (Byaro
and Musonda, 2016). Similarly, Health expenditure consists of all
expenditures or outlays for medical care, prevention, promotion,
rehabilitation, community health activities, health administration and
regulation and capital formation with the predominant objective of improving
health of the people

(Deluna and Faith, 2014), Public expenditure
for health care is important for improving health outcomes especially for the
poor as the poor are more likely to obtain health care from publicly provided
facilities.

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Countries
with high level of public health spending have secured better health outcomes
compared to countries with low level of public health spending. This means
that, the size of the public fund in health sector matters for better health
outcomes (Byaro and Musonda, 2016). There is evidence that
investing in health brings substantial benefits for the economy. According to
the WHO (2001) increasing life expectancy at birth by 10 per cent
will increase the economic growth rate by 0.35 per cent a year. Health and
economic matters are intimately linked in a number of ways. First, health is an
important contributor to people’s ability to be productive and to accumulate
the knowledge and skills they need to be productive. Second, health status is
also a major determinant of one’s enrollment in and success in school, which
itself is an important contributor to future earnings.

Third,
the costs of health care are also extremely important to individuals,
especially to poor people, because large out of pocket expenditures can have a
major impact on their financial status and can push them to poverty. Fourth,
the costs of health care are also very important to countries, because health
is a major item of national expenditure of all countries. Finally, the approach
that different countries take to the financing and carrying out of health
services raises important issues of equity (Deluna and Faith, 2014).

 

WHO “defines
health as a state of complete physical, mental and social well-being and not merely
the absence of disease or infirmity”, it moves beyond a focus on individual
behavior towards a wide range of social and environmental interventions.
Another major initiative for improved global health is the United Nations
Millennium Declaration, which was agreed to in 2000 by 189 countries Nigeria
and India are inclusive, exemplifying an unprecedented commitment on the part
of both rich and poor countries to attain improvements in human development by
the year 2015. This commitment is summarized in the Millennium Development
Goals (MDGs) that set targets in areas of poverty reduction, health
improvements, education attainment, gender equality, environmental
sustainability, and fostering global partnerships (UNDP 2003). These
movements are formed for the betterment of health outcomes.