In the contemporary world, it can be perceived that they very few nations that are still struggling to develop economically but it is not the case. In fact, it may not be known to many that a county is a status of developing until it is announced that they are seeking some help from other institutions. The United States’ government spends a lot of money to bail out the developing nations, sometimes at the expense of attending to the needs of the America’s economy. Presently, there are about 137 developing nations that cannot stand on their own unless they are aided. According to World Bank (2014), a country is in a developing state if it has a Gross National Income (GNI) of not more than $11,905 (Daoud, Nosrati, Reinsberg, Kentikelenis, Stubbs, & King, 2017) . This current is going to explore whether or not funding from international lending institutions in significant to the development of a nation economically, socially or politically.
The discussion focuses on Mozambique, which is an example of a developing nation. It is a found within the Sub-Saharan African region. It is in the eastern coast of South Africa and bordered by the Indian Ocean at the East. The nations surrounding it include Malawi, South Africa, Tanzania, Zimbabwe, and Swaziland. Wijesir, Vigano and Meoli (2015) note that Mozambique is loaded with some few natural resources that benefits even the neighboring countries who rely on it for imported goods and necessities such as fuel. Moore and Schmitz (2016) report that an exploration license was granted to Surestream Petroleum for two sections of the Rift Valley. Leigh and Blakely (2016) elaborate that the program, Heavily Indebted Poor Countries (HIPC), was implemented by a collaboration of IMF and World Bank. This collaboration was to ensure that the program enables no poor nation to face heavy debt that they cannot handle. It is fundamentally a debt reduction initiative. The HIPC has been permitted to be executed in 36 nations with 30 of them being African countries. The program in itself offer a debt relief amounting to $75 billion. Consequently, the program has offered relief, enhanced social spending, brought down debt service, and boosted the public debt management.
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Corruption has affected developing nations significantly when it comes to funding and the facilitation of aid programs. The reports as provided by Moore and Schmitz (2016) reveal that Mozambique’s major risk is witnessed form a deferment of aid based on the issues of corruption and embezzlement of funds. When Filipe Nyusi took over as the new president, he implemented some significant moves in the nation. He altered the economic stagnation that had been experienced; he utilized the International Monetary Fund (IMF) to implement reforms in the exchange rates. Consequently, this gave way for more donor aid. The corruption issue had been realized since 2010 with many allegations being against the government ( Daoud et al., 2017) . The nation’s budgetary aid had been postponed based on the accusation.
President Nyusi was strategic and kept much effort to change the financial situation around his nation. His first agenda was the restoration of the confidence in the fiscal system of the country. The IMF ratified the president’s actions but the donors were still reluctant and with a good reason. Mozambique will always be vulnerable to exogenous devastations such as weather circumstances that often make the country undergo instances of food shortage and be compromised in its growth as a result (George, Corbishley, Khayesi, Haas, & Tihanyi, 2016) . The funding to Mozambique and other developing nations will always be exposed to corruption in the government. However, the commitment of President Nyusi and the IMF to consider swift actions to guarantee the equal and appropriate distribution of founding will allow the nation to attract more aid in the future when it is necessary ( Leigh & Blakely, 2016) . The nation will continue to be substantially reliant on the IMF and their funding but with the recovery program currently implemented, it will help Mozambique with challenges of growth and in assisting the vulnerable.
Any nation that is seeking to be success must take care of many things. First, it must have a health population and economy. Sickly and deathly individuals may find it difficult to prospect. Families must be healthy to sustain a good working environment, which is only guaranteed by having good nutrition. A health population will ensure more workers, reduced health cases among families and their siblings, reduced cases of deaths because of hunger and illnesses (George et al., 2016) . Initiatives to ensure a good health care system will only amount to a healthier economy. A healthy economy allow workers to avail themselves for work as well as cutting down of health care expenses,
Foreign aid is facing many hindrances because of the issues of corruption that is rampant in many developing nations. Moore and Schmitz (2016) state that the government has come up with a goal to make sure that the public can access basis health. The rate of HIV/AIDS in the country is very high at 10.6 percent, child mortality being 118 per 1000 live births, and a maternal mortality level of 675 of 100,000 births (George et al., 2016) . The financial aid that comes from the United States is fortunately being utilized as it was intended. As a result, the health and wellbeing of many have been enhanced as they can access better quality health care.
US aid is also utilized to implement preventive actions and particularly alleviating deaths that result from Malaria. Awareness that is more public is being done through these funds from the US, as some is spent in family planning and reproductive health. Over 50 percent of the country’s population currently live below the poverty line. Hunger is causing stunted growth in most children under the age of 5 at a shocking rate of 48 percent. USAID funding for fiscal year 2013 was $41.6 million for HIV/AIDS alone, $32.3 for Malaria and other measures ( Daoud et al., 2017) . The total amount that was spent including funds for food and family planning totaled $95 million.
USAID began a program known as Flagship. M oore and Schmitz (2016) emphasize that the Flagship program incorporates training every worker in the organization, from the executives to the juniors. The major concentration is to influence performance and development of healthcare system. The program dictated the rudiments as causing the participants to explore and discuss new methods of improving the system. A program of this type is very crucial to the people of Mozambique. In conclusion, through the management of funds by the developing countries, the financial aid can be very helpful to them socially, politically and economically.
References
Daoud, A., Nosrati, E., Reinsberg, B., Kentikelenis, A. E., Stubbs, T. H., & King, L. P. (2017). Impact of International Monetary Fund programs on child health. Proceedings of the National Academy of Sciences , 114 (25), 6492-6497.
George, G., Corbishley, C., Khayesi, J. N., Haas, M. R., & Tihanyi, L. (2016). Bringing Africa in: Promising directions for management research. Academy of Management Journal , 59 (2), 377-393.
Leigh, N. G., & Blakely, E. J. (2016). Planning local economic development: Theory and practice . Sage Publications.
Moore, D. B., & Schmitz, G. J. (Eds.). (2016). Debating development discourse: Institutional and popular perspectives . Springer.
Wijesiri, M., Viganò, L., & Meoli, M. (2015). Efficiency of microfinance institutions in Sri Lanka: a two-stage double bootstrap DEA approach. Economic Modelling , 47 , 74-83.
