Lending Institutions Human Capital and Health Care

Lending Institutions, Health Care and Human Capital
Explore whether or not funding from international lending institutions like the World Bank and the IMF are helping or hindering the social, economic, or political development of the country that you have selected. Support your response with examples.
For a long time now, developing nations have been reliant on the aid provided by foreign entities and global lending institutions to foster the growth and development of their economies and improve the standard of living of their citizens. International lending institutions, for instance World Bank and International Monetary Fund (IMF) play significant roles in the economic, social, and political development of developing nations through the provision of monetary help and support. Furthermore, these institutions provide essential support to developing nations, such as India, for their general development. India is one of the fast developing nations in the world and these lending institutions have played a fundamental role in this regard. For instance, the World Bank has established the Partnering Strategy for India, which essentially is a program that is designed to set up the foundations for the attainment of faster, sustainable as well as more inclusive growth (The World Bank, 2018). This particular established project will aid in supporting the growth of India as a nation through the provision of pivotal financing, consultative services as well as information. In addition, the IMF acknowledges the necessity for India to accomplish economic growth. A fitting instance of this can be perceived in the sense that the lending institution suggested augmented financial sector supervision, reforms in the taxation system, improved monitoring of financial institutions such as banks, and increasing the short-term interest rates so as to aid the growth of India’s economy (IMF, 2018). It is also important to note that so as to generate economic reform and change, these international lending institutions are also aiding developing counties through the re-establishment of market economies in developed nations such as the United States. Taking this into consideration, it can be claimed that international lending institutions have a pivotal role to play in the economic, social and political growth and development of developing nations.
Discuss, with examples, at least four (4) substantive ways in which a healthy population strengthens the economy of the country that you have selected.
Investment in healthcare is not only a necessary, but also a pivotal priority for most nations. Health performance and economic performance are correlated. Nations that have healthy populations easily become wealthy. The impacts of health on development are apparent. Nations with frail health and education conditions find it tougher to accomplish sustained growth. Without a doubt, economic evidence substantiates that a 10 percent enhancement in life expectancy at birth is linked with a rise in economic growth of some 0.3-0.4 percentage points a year (Frenk, 2004). The following are substantive ways in which a healthy population strengthens the economy of India:
1. Diminished expenditure on preventable diseases
When the nation has healthy citizen, it is comprehensible that a significant amount of federal funding that was initially placed aside for fighting illnesses and vaccination of individuals and children against preventable illnesses in India such as polio can be eradicated. In this regard, such funding can be invested in different productive initiatives that will provide national growth with respect to both capital and resources. For instance, in India, the funding that is saved from lack of investment in national vaccination, the country can make significant investments in other important aspects such as transportation systems, infrastructure and also water and sanitation.
2. Increased productivity that facilitates GDP growth
Having a healthy workforce implies that they will be more productive. Therefore, the nation as a whole will attain increased productivity through diminished nonattendance, decreased inefficiency and also efficacious utilization of time, resources and labor force. The inference of this is that this will result in increased gross domestic product (GDP), which implies increased economic growth for the nation.
3. Increased emphasis on education development and poverty elimination
Another practical way in which a healthy workforce aids in the development of an economy is that it enables the nation to develop financially and economically through the objective of educating the population and eliminating poverty. If the citizens are healthy and have proper welfare, they are progressively more approachable and open to educational and developmental change that the Indian government endeavors to put into place. Therefore, by having well-being, it becomes simpler for the government administration to carry out national initiatives such as literateness campaigns, financial growth programs and family planning campaigns.
4. Increased involvement in research and development
Another advantage of having a healthy workforce is that it can concentrate in participating in research and development that can boost the growth and development of a nation in its entirety. If the people are to make significant contributions and have benefits from a productive economy, it is imperative to partake in the transformation of the health system in a manner that perceives health and other sectors as being interlinked and pivotal for the well-being of the society. In this regard, a healthy workforce will be able to have the physical and mental capability to advance their understanding and knowledge in different sectors through research and development. Therefore, the health of these individuals is beneficial in advancing different industries and pushing them to greater success, which helps in facilitating economic growth and development (Gostin et al., 2009).
Ascertain the degree to which the leadership of your chosen country has used foreign aid to improve its health care system. Support your response with concrete examples.
Foreign aid can be a significantly sensitive subject, especially in developing nations, owing to the reason that there is no particular formula or tracking the funds provided and ascertain whether it is going where it is purposed to. According to Nagarajan (2013), international aid for health might come in billions of dollars, but is it a portion of what most recipient national governments spend on healthcare for their citizens. For example, in the 2010 fiscal year, India received $775 million for development assistance in health. However, this was solely 1.6 percent of what both the centre government and state government placed together spent on public health. There are no less than two major healthcare programs in India. To begin with, there is the National Rural Health Mission (NRHM), which is the country’s central government’s endeavor to develop delivery of services in public facilities in addition to public-health and preventive interventions, shepherded by the Ministry of Health and Family Welfare. Secondly, there is another healthcare program referred to as the Rashtriya Swasthya Bima Yojana (RSBY), which is a health insurance program shepherded by the Ministry of Labour and Employment (Center for Global Development, 2012). However, regardless of these efforts, there are perceptible shortcomings in terms of how foreign aid its utilized. One of the fundamental ways is through corruption, which decreases the chances of funds disseminated by donors in fact making it to the local level to enhance health care. For instance in India, there is the case where the World Bank released details regarding the corruption and mismanagement of funds impacting all levels of the projects undertaken in the nation through a loan of more than half a billion. In addition, the contribution to the delivery of healthcare services is usually low (Stevens, 2008).




References
Center for Global Development. (2012). Healthcare in India: A Call for Innovative Reform - An Interview with Victoria Fan (NBR). Retrieved 24 August, 2018 from: https://www.cgdev.org/article/healthcare-india-call-innovative-reform-interview-victoria-fan-nbr
Frenk, J. (2004). Health and the economy: A vital relationship. OECD Observer. Retrieved 24 August, 2018 from: http://oecdobserver.org/news/archivestory.php/aid/1241/Health_and_the_economy:_A_vital_relationship_.html
Gostin, L. O., Levit, L. A., & Nass, S. J. (Eds.). (2009). Beyond the HIPAA privacy rule: enhancing privacy, improving health through research. National Academies Press.
IMF. (2018). At a glance – India and the IMF. Retrieved 24 August, 2018 from: https://www.imf.org/external/country/ind/rr/glance.htm
Nagarajan, R. (2013). Foreign aid 1.6% of India's total health spend: Study. Times of India. Retrieved 24 August, 2018 from: https://timesofindia.indiatimes.com/india/Foreign-aid-1-6-of-Indias-total-health-spend-Study/articleshow/18668317.cms
Stevens, P. (2008). Foreign aid for health: Moving beyond government. The Campaign for Fighting Diseases. Retrieved 24 August, 2018 from: http://www.medlib.ch/documents/Foreign%20Aid%20for%20Health%20web.pdf
World Bank. (2018). The World Bank in India. Retrieved 24 August, 2018 from: https://www.worldbank.org/en/country/india