The international funding organizations such as the IMF (International Monetary Fund) and WB (World Bank) contribute to the development of the Indian politics, community and economy. The lending organizations provide financial assistance and other support in the country. The lending organizations provide necessary assistance to developing nations such as India to establish their growth. For instance, the purpose of WBPS (World Banks’ Partnership Strategy) program in India is to achieve fast, sustainable and comprehensive development. The WBPS plan will help India meet their strategic goals ("Projects & Operations | The World Bank", n.d.). The World Bank project will support India in the development by giving finances, advisory facilities and knowledge. The IMF identifies the need for the Indian government to develop their economy. For instance, the international monetary fund suggests that lending institutions should carry out financial supervision, tax reformations, monitor the banks, and increase the short-term interest rates to enhance the economic development of a country (India 2014 Article IV Consultation, 2014). The international lending organizations assist developing countries in re-establishing their market economies in the United States. The re-established markets contribute to the economic reformations in the country (India 2014 Article IV Consultation, 2014). The international lending institutions contribute to the political, social and economic growth of developing nations.
The contribution of the international lending organizations in developing or developed nations could have a negative impact. For instance, the international lending organizations offer financial support to the developing nations that can create the burden of debt. The economic and social developments in the developing nations can remain at the same level due to an increase in the debt burden. Various scholars argue that the poor nations have loans and high poverty status due to the strict laws set by the lending organizations (Shah, 2013). The poor countries affect the growth of rich countries due to their dependency on receiving funds (Shah, 2013).
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A healthy population increases the efficiency levels and production of the business in a substantive manner. The healthy population contributes to the economic growth of a country. A country’s productivity levels increased as a result of an adequate workforce. For instance, the efficiency and production of the leading petroleum exporting corporation in India can decrease in case the employees get ill (India Projects and Programs, 2014). India will reduce its imports due to a decrease in their gross domestic product. The exports of developed nations such as the United States will decrease and this will have a negative impact on their economy (India Projects and Programs, 2014).
The second advantage of a healthy population in a developing nation is that it contributes to the reduction of healthcare costs. The developing country can use the funds for other activities such as constructing schools and hospitals. The extra funds can be used o develop the country’s infrastructure. The development of schools and infrastructure will lead to the growth of the country’s economy (Shah, 2013). The reduction of the healthcare costs in the developing nations will give the citizens an opportunity to pay for the consultations, treatment and admissions in the hospitals (Shah, 2013).
India has implemented methods of reducing their healthcare costs while providing quality healthcare to their patients. The initiative of reducing the health care costs in India has resulted in an increase in the healthy population (Govindarajan and Ramamurti, 2013). For instance, India has formed hospital hubs that accommodate many patients. The hospital hubs contain quality equipment and qualified healthcare professionals who have the ability to carry out extensive medical procedures (Govindarajan and Ramamurti, 2013). The actions implemented by the Indian government have assisted the citizens to access medical facilities at a lower cost which has contributed to a healthy population (Govindarajan and Ramamurti, 2013).
A healthy population in a poor country can enhance the citizens’ cost of living. The country’s gross domestic product will increase as a result of an increase in their exports which will result in the economic development of the country (Shah, 2013). The living standards of the citizens will improve as a result of the improvement in the country’s economy. Finally, the healthy population increases a country’s revenue by paying taxes. The increase in the revenues strengthens the country’s economy (Shah, 2013). For example, the government can make reforms in their taxes which can contribute to an increase in a company’s production, profits and efficiency.
India uses foreign aid to develop their infrastructural facilities and reduce healthcare costs. For instance, India uses funds from international lending organizations to improve and sustain its developing public medical system ("How is India Improving its Healthcare System?", n.d.). The government utilizes the international funds to meet the medical needs of the young children, families, nursing mothers and HIV patients (Health, 2013). The increase in a healthy population in India contributes to the country’s stability.
In conclusion, the international lending organizations contribute to the political, social, and economic growth of a country. The developing countries use foreign funds to develop their facilities which contribute to economic growth. The growth of developed nations is affected by the high debt rates and poverty levels in the developing countries. The developing countries should use the foreign funds in an effective manner to improve their social, economic and political activities.
References
Govindarajan, V., & Ramamurti, R. (2013). India's Secret to Low-Cost Health Care. Retrieved from https://hbr.org/2013/10/indias-secret-to-low-cost-health-care/.
Health. (2013). Retrieved from http://www.usaid.gov/india/health.
How is India Improving its Healthcare System?. Retrieved from https://www.weforum.org/agenda/2015/.../how-is-India-improving-its-healthcare-system...
India 2014 Article IV Consultation. (2014). Retrieved from http://www.imf.org/external/pubs/ft/scr/2014/cr1457.pdf.
India Projects & Programs. (2014). Retrieved December 7, 2014, from http://www.worldbank.org/en/country/india/projects.
Projects & Operations | The World Bank. Retrieved from http://www.projects.worldbank.org/
Shah, A. (2013). Structural Adjustment-a Major Cause of Poverty. Retrieved from http://www.globalissues.org/article/3/structural-adjustment-a-major-cause-of-poverty.
