The availability of resources in a country is one of the major requirements for the implementation and improvement of relevant health policies. Ideally, financial resources are important in balancing healthcare services in a given population. However, most countries do not have this privilege and they, therefore, depend on the international funding to improve their economies which later reflect in the healthcare service delivery. The inability to manage diseases properly by such countries may lead to increased health burden which would later affect factors of production which negatively influences economic development. In that cases, therefore, this paper seeks to explore the relationship between international funding and the healthcare outcomes of the as well as the social economic and political development of the developing countries. The paper seeks to explore the above facets in the case of India as a rapidly developing country.
Role of International Lending Institution
International funding is one of the developmental mechanisms that the international community is using in economic transformation, economic growth that are critical in socioeconomic change and reduction of the inequalities in service delivery (UNCTAD, 2016). In India, the economic development has been centrally impacted by the financial institutions that act as the central part of development strategies. For instance, with the support from the World Bank lending, and loans from the government of the United States of America, development finance institutions were developed support industrial development in India (UNCTAD, 2016). On the other hand, the International Monetary Funds (IMF) has been of great importance in the Indian economy by expanding international trade through international regulations provided by the IMF. The institution has helped India in balancing of payments deficits in an international currency that is essential in the promotion of trade.
International funding is also essential in changing the socioeconomic status of the country due to its commitment to development agenda especially in poverty reduction and eradication of inequality in the community. In India, this has been done by the improvement of the economy which leads to improved living standards. Additionally, the partnership between the Indian government and the IMF has been critical in developing modern learning institution in centers such as Delhi to improve social development in India (IMF, 2017).
Healthy Population and Economic Development
A healthy population boosts economic growth and mainly a gross domestic product. In the recent past, there has been great evidence to indicate that inequality in earnings between different social classes is mainly due to worse health outcomes. The ever-increasing gap between the poor and the rich has a damaging result on health and social economic consequences. The government of India is trying to bridge economic inequalities, its health sector must make sure that health disparity among different social and economic status (Narain, 2016). According to Narain (2016), health and labor forces are directly related. In that respect, a healthy population is able to increase labor force in the production sector leading to an improved economy. In another aspect, the burden of diseases has been a major threat to favorable lifestyles which ideally means decreased resources to foster development (Narain, 2016).
Another aspect health promotes economic growth is related to the fact that low level of diseases improves worker output levels which contributes to increasing economic growth (Menon, 2017). However, in the case of Indian population health improvement has been related to increased fertility leading to rapid population growth that does not keep pace with the per capita income thus influencing economy negatively (Menon, 2017). Finally, a decrease in mortality has been a major contribution to capital accumulation due to the ability of citizens to save more for retirement.
Leadership and Foreign Aid
As mention earlier, financial resources is one of the key factors in fostering the quality of healthcare system in the country. In that aspect, therefore, the manner in which the government utilizes foreign aid is significant in determining the quality of the healthcare services provided. The Indian government has been spending highly in the healthcare sector or in public health that the foreign aid comes as a supplement to the government expenditures. For instance, the amount of money Indian government received in 2010 from the Development Assistance in Health amounted to 1.6 percent of the amount the government spends in public health expenditures (Nagarajan, 2013). The government has been using the funding in improving the healthcare system to foster service delivery in India. In that case, therefore, the government has initiated Universal Health Coverage in the rural population to increase accessibility of quality healthcare services to the marginalized population (Nagpal, 2015).
Conclusion
Socioeconomic status for the developing countries relies on the availability of resources to foster development. Both the World Bank and the International Monetary Fund are among the major institutions in the central point in fostering development through loans and other financial assistance. This funding has been used to improve the healthcare system by the developing countries improving the overall well-being of the society. Another aspect raised in the discussion is that health status is an integral part of determining the economic outcomes or status of a country. Ideally, health has been associated with the presence and availability of human capital.
References
IMF. (2017). IMF annual report 2017: promoting inclusive growth.
International Monetary Fund.
Menon, N. (2017). Health Policy and Economic Growth in India: Lessons from international growth center projects. Waltham: Brandeis University.
Nagarajan, R. (2013, February 25). Foreign aid 1.6% of India's total health spend Study. Retrieved from times of India: https://timesofindia.indiatimes.com/india/Foreign-aid-1-6-of-Indias-total-health-spend-Study/articleshow/18668317.cms
Nagpal, S. (2015, December 17). How is India improving its healthcare system? Retrieved from https://www.weforum.org/agenda/2015/12/how-is-india-improving-its-healthcare-system/
Narain, J. P. (2016). Public Health Challenges in India: Seizing the Opportunities. Indian journal of community medicine.
UNCTAD. (2016). The role of development banks in promoting growth and sustainable development in the south. Geneva: United National.
