Lending Institutions, Health Care, and Human Capital

Role of Funds in Development of India2

Ways in Which Healthy Population Strengthens Indian Economy3

Use of Funds by Leadership for Healthcare4

References6

Lending Institutions, Health Care, and Human Capital

Role of Funds in Development of India

India is one of the most important countries in this world from economical as well as social aspects. The strategically importance of this country has increased as it is considered to be one of the most emerging developing country including the opportunities of trade, labor and business. International lending organisations such as IMF and World Bank support India by providing loans in crises situation when India is facing the problems in balance of payments. This has stabilised economy of India by stabilizing the currency, rebuilding the international reserves and restoring the conditions of economy through import payments (Przeworski & Vreeland, 2000). Besides this, IMF also provides technical assistance and policy advices to India in order to maintain the economic growth. Funds are also granted by World Bank in order to promote the long term economic development in India. The major purpose of lending by World Bank to India in specific projects is to reduce poverty (Collier, 2000). The ways in which IMF and World Bank lending has helped India in development are through Debt burden reductions, poverty elimination programs and monitoring.

External debt burdens are reduced under the Heavily Indebted Poor Countries (HIPC) Initiative and Multilateral Debt Relief Initiative (MDRI). Also for addressing the current and future debt problems, a policy framework as the Debt Sustainability Framework (DSF) is developed by these two institutions. India also receives funds from the two lending institutions according to the approach under the Poverty Reduction Strategy Paper (PRSP) in which the donor support, linking national policies and developing key outcomes are focused (Przeworski & Vreeland, 2000). Extended Credit Facility (ECF) policy is also the part of this area. The Millennium Development Goals (MDGs) are set under this policy to monitor the economic growth progress of India. In order to achieve financial and economic stability, Financial Sector Assessment Program (FSAP) is carried out and the strengths and weaknesses of the financial systems of the country are identified (Collier, 2000).

Ways in Which Healthy Population Strengthens Indian Economy

Indian economy is highly dependent on the activities carried out by its population and for this purpose, it is crucial that public health is checked and maintained continuously. The importance of public health for ...