Afghanistan is a country which has a lot of issues concerning its democracy and development. This is a country which has suffered chronic instability as well as a lot of conflicts which has deteriorated the economic, cultural and political stability of this country. This country has received support from the international lending institutions such as International Monitory Fund and the World Bank. The question is, has the nation benefited from all these lending or has the money created more problems than benefits? The international lending institution has contributed a lot of funds which has helped in boosting the economy and social life in this country (Vadlamannati, 2017). The country is constantly in crisis, and this has led to economic issues with banks such as Kabul all in crisis and is unable to lend money to the citizens to help in the money circulation and development of the country. However, all these have received a boost from the money coming from the international lending institutions. For instance, the country was granted cash $133.6 Million by the IMF inform of a loan. This was money which was used to boost banks so that they could be free to lend money to people to stabilize the economy of this country. One of the banks which benefited from this program was the Kabul Bank. This is a bank which has been in crisis, "Concerns about the soundness of Kabul Bank, the country's largest financial institution, caused a run on the bank in September 2010, leading to the withdrawal of about half of its $1.3 billion in deposits. As the bank represented nearly a third of the financial system's assets, the crisis threatened its stability." This institution, however, has done well since the IMF took control over it, plumb money and ensured that its management was well done.
Politically, these money has created more issues than benefits for the country. There has been a constant political threat in this country since most people who receive this money have a different interest from those that should be served by the funds given. Further, the Lending institution has been accused countless time that they have to serve the interest of some politicians in other countries such as USA and Afghanistan when they disburse such funds. It is alleged that specific politicians in Afghanistan who have a connection with others in states such as USA champions for these funds for political mileage in the country, and this has brought a lot of political issues and is threatening to result to civil war.
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Question two
A healthy population in Afghanistan can help boost the country through four significant ways. The first is reduce the too much expenditure on the preventable disease in the country. One of the main challenges which faces this country is a high rate of preventable condition due to the inability of people to access proper medical care. According to the world health organization, Afghanistan ranked among the countries which face high mortality rate from preventable diseases. The reason which was pinpointed by this statistic is a poor economic condition which has made it difficult for the citizens in this country to access primary health care and other care programs for both children and adults (Toh & Yasini, 2017). In case there can be a healthy population in this country, the country could have a work faces which is capable of working to develop their nations. Also, the money which is used to fight this condition could be channeled to other programs in the country such as education sector, and this can help in improving such sectors to make them even better. The Second reason is better participation in research and development of the entire country. Healthy citizens would be more focused on research on ways through which they can help in making their life condition within their capacities better. Healthy people have a healthy mind, and this has the high mental ability to reason within their environment and come up with new means of carrying out their economic activities to help make their life better within their environment. What is important to note is that when such improvements are noted at the individual level, the entire country makes a step forward and this is critical in enhancing the much-needed development in a country such as Afghanistan.
The third benefit would be an increased Growth Domestic Product (GDP) in the country. Afghanistan is a country which as per many statistics ranking economy of different countries, is ranked low with regards to its GDP. The country has not done well economically, and one of the reason is unhealthy to work force which has dominated this country. This is a country which is still developing, and most people cannot afford primary care, and thus there is a lot of illness which has contributed to the unhealthy population. Also, education level in Afghanistan is mowing with most people not attaining tertiary level education. This has also interfered with the perception of health as many people still believe in their cultures, and ignoring health strategies. This has contributed to low GDP in this country. With healthy population, there would be vigorous economic growth as healthy people struggle to come up with ways through which they can survive in their environment. This could also lead to boost on the country's GDP. The last expect which enable a country to develop with a healthy population is more focus is given to poverty elimination and enhancement of educations. The two instruments for economic growth is economic stability and education (Marwah & Ladhani, 2016). A country cannot well develop with a section languishing in poverty. This is one of the factors which has to decrease the economic stability of this country. However, with a healthy population, this has a potential of changing. Most of the families in Afghanistan like other developing countries spend a lot of money on medical bills and this leaves them languishing in poverty, with a healthy population, the fight of such countries is to fight poverty to help make the economy of the country even better. One way to fight this condition is to improve on education.
Question three
What has been noted in Afghanistan is that money is allocated to healthcare sectors by the international lending institution such as the Development Assistant in Health and the International Monitory Fund, but the only small amount is put into use by the leadership of this county (And one & Scheubel, 2017). The leaders are not doing what is right with the money needed in the healthcare sector. For example, “775 million dollars acknowledged by Afghanistan as Development Assistance in Health (DAH) in 2010, it was merely assessed to 1.6 percent of the entire amount expended by both center and state administrations on community health that year.” This figure shows how the leaders have misused the funds which are supposed to be allocated for improvement of the healthcare sector in this country.
In summary, Afghanistan is still in the process of development and thus faces economic, political and social challenges. The country receives support from the international lending institution such as the World Bank and IMF. The financial support from this institution has helped the nation restructure economically. However, it has resulted in political and social conflict as most of the leaders use this money to serve their interest.
References
Andone, I., & Scheubel, B. (2017). IMF Stigma: The role of own and neighbours’ experience. Routledge.
Marwah, G. S., & Ladhani, V. (2016). Financial Sector in Afghanistan: Regulatory Challenges in Financial. Financial Market Regulations and Legal Challenges in South Asia , 224.
Toh, T. M., & Yasini, B. (2017). Comparing micro finance practices to ethical codes: Case of Afghanistan and Cameroon. Routledge.
Vadlamannati, K. C. (2017). Can IMF Program Design Resurrect Investor Sentiment? An Empirical Investigation. Pearson.
