International financial institutions (IFIs) are the financial institutions that are formed and chartered by more than one country. Their shareholders are the member states that contribute some amount of money regularly, and their operations are governed by international laws (Ruckert, 2016) . Most IFIs were formed after the World War II, with the aim of offering financial support for the reconstruction of the infrastructures that were destroyed after the war. It is this noble motive of strategic infrastructural development that most IFIs were formed. Some IFIs like the World Bank and International Monetary Fund (IMF), a subsidiary agency of the United Nations (UN), have been offering financial lending services for developing nations that are member states. But, these borrowed funds offered are strictly geared towards infrastructural development projects in these developing nations (Reinhart, 2016) . Also, there are conditions that have to be met by governments, to be considered viable for the lending services. These conditions are known as structural adjustment policies (SAP). IFIs prominence is accredited to their international lending services as the case in Rwanda, where the country has tremendously benefited from their support.
Rwanda is one of the smallest nations in the world, located in the eastern part of Africa. As one of the developing African countries, Rwanda has been receiving a substantial financial support through government borrowing from the IFIs. After a civil war that lead to the horrific 1994 genocide, thousands of people died, businesses were closed, and eventually the Rwandan economy collapsed (Reydams, 2016) . With the financial support from IMF, the World Bank, and other international communities, the new Rwandan government was able to rebuild the country to its current position. Basically, the finances borrowed from the IFIs were used in the refurbishment of the infrastructure in the country. Road networks were renovated and tarmacked; schools and hospitals were built, and are scattered throughout the country. Additionally, old hospitals were renovated and stocked.
Delegate your assignment to our experts and they will do the rest.
The government of Rwanda under the leadership of his Excellency Paul Kagame, have engineered local policies that have effectively addressed the challenges facing the country as a developing nation. One of the main challenges the country faces is in the health care sector. With a rapidly growing population, limited health centers that are not only short of qualified well trained medical staff, but also barely have standard medical equipment to handle the influx of patients. This happens in the wake of a steady increase of drug resistant malaria and HIV/AIDS cases and also growing food insecurity and malnutrition not only in Rwanda, but also in Africa as a whole. The leadership, with the help of IMF’s financial support and policy assessments, devised a working solution.
Using the IMF borrowed finances and other government revenues, the government of Rwanda has effectively set up over 500 health care centers, decentralized across the country. Also, they have managed to acquire basic hospital equipment, that is regularly used to ensure quality health care dispensation within the regions they are located (Binagwaho, 2014) . Additionally, in an attempt to solve the challenge of qualified medical practitioners on a long-term basis, the government implemented a policy that not only increased the number of medical students in the local medical college but also permitted private investors to start up standard medical schools. As a result, this will increase the number of doctors and nurses injected into the hospitals yearly and increase medical research centers (within the medical colleges) around the country (Binagwaho, 2014) . In summary, these locally instigated policies have potentials of not only improving the health care of the common citizen of Rwanda but also attract foreign investors into the medical industry. With the policies as sound as this, an assessment by the IMF will greatly influence foreign donors towards investing in the medical industry of Rwanda. This will not only increase foreign medical experts and technologies but also elevate the country’s medical practices to international standards. As the health care systems in the country upgrades, the health care of a common Rwandan citizen consequently improves, leading to a healthy population.
According to Adair (2013), “human capital is a collection of the knowledge, talents, skills, abilities, experience, intelligence, training, judgment, and wisdom possessed by an individual”. Through human capital, the productivity of a person in an economy can be quantified and ranked. Basically, a healthy population compliments value to the collective human capital and therefore, contributes greatly to the strength of a country’s economy. Furthermore, most individuals in within this population have the power and the willingness to engage in work, therefore, inject a stable workforce into the economy, strengthening it in the process. Similarly, after a long day of work this healthy individual is rewarded in the form of wages and use them to purchase products in the market, acting as a market for the local products acting as a building block of a stable economy.
As the individuals in a healthy Rwandese population use their human capital to gain income, then spend it to acquire a best-desired product, their lifestyle improves with their change in taste over time. Consequentially, acting as an indicator of the economic growth of the country on the basis of the citizens’ lifestyle (Zhan, 2016). The general output of a production company is determined by the workforce that is injected in the production process, a healthy population would ensure continuous workforce. As a result, there is increased production in production of firms. An increase in local production reflects on the gross domestic product (GDP) of the country, which is the main substantive way of determining the strength of an economy. The healthy Rwandese population has provided sufficient and energetic workforce in country.
In conclusion, IMF has proven to be, not only a direct infrastructural financier but also, as an indirect overseer that streamlines the policies and leadership in developing nations towards establishing a more productive economy.
References
Adair, L. S.-Z. (2013). Associations of linear growth and relative weight gain during early life with adult health and human capital in countries of low and middle income: findings from five birth cohort studies. The Lancet , 525-534.
Binagwaho, A. F. (2014). Rwanda 20 years on investing in life. The Lancet, 384(9940) , 371-375.
Reinhart, C. M. (2016). The International Monetary Fund: The Journal of Economic Perspectives, 30(1) , 3-27.
Reydams, L. (2016). NGO Justice: African Rights as Pseudo-Prosecutor of the Rwandan Genocide. Human Rights Quarterly, 38(3) , 547-588.
Ruckert, A. (2016). The international financial institutions, structural adjustment and poverty reduction. Handbook on Gender in World Politics , 422.
Zhan, L. Z. (2016). Comprehensive Evaluation on County Economy Strength of South-west Ethnic Areas in Hubei Province. Resource Development & Market, 3 , 001.
