Lending Institutions, Health Care, and Human Capital 2

Lending Institutions, Health Care, and Human Capital
Nations of the globe are divided into two varying main groups. For example, the first group incorporates countries that are economically stable, highly industrialized, has healthy individuals, and politically well. Alternatively, the second group contains countries that lack all the above. Hence, they are always termed as developing nations. Additionally, these countries have a Gross National Income that is either less than or equal to 11905 dollars (Bonnal, 2016). In order to facilitate their individual development projects, these nations have a tendency of depending on global lending bodies like both the International Monetary Fund (IMF) and the World Bank for financing. This financial aid assisted by these lending bodies is utilized in departments like human resource, healthcare, and many social development projects (Eiras, 2016).
Consequently, the Republic of Brazil is one of the nations that still depend on the international lending institutions for the prime purpose of running their economy smoothly (Bonnal, 2016). This research will explore how international lending organizations have impacted the Brazilian economy, social and political development projects. Additionally, through reviewing these aspects, it will help to determine how Brazilian benefit from foreign aids and loans to improving their health care and human capital.
Far from that, Brazil in geographical perspective, it is an enormous nation that is situated in the South America region.

The state is well equipped with many natural resources like large-scale coffee, oranges, and cocoa plantation (Bonnal, 2016). Additionally, they have many manufactured products and animal goods. Brazil prides itself on having the largest forest cover in the globe. Despite its wealthy natural resources, many Brazilians are still affected by hunger and poverty. The largest population of its citizen that is 165 million earns less that $77 per month (Bonnal, 2016). This has forced millions of families to live in the densely populated city slum. Even though Brazil has enough resources to guarantee its citizen quality life standards but cases of dictatorial government and corruption as influenced the country to be rated as a developing. The corruption experienced has created an unequal distribution of wealth (Bonnal, 2016). Therefore, institutions like the World Bank and IMF are present in this state to ensure that they avoid inflation at all cost and also improve their exchange rates.
Contrarily, there are various ways through which the World Bank and IMF have assisted the Brazilians citizens. For instance, in 1997, the World Bank initiated the Land Bank project that was aimed at empowering farmers through offering land to the poor for cultivation purposes (Global Exchange, 2001). The main project agenda was to create more employment opportunity for the Brazilians. Despite this ambitious goal, the Land project was terminated at the initial stages due to Brazilian political interference. The issue of creating jobs for the Brazilian youth has been challenging for the government. This year alone, Brazil requested a loan of 800 million from the World Bank in the quest of launching programs like education, family Health Program, water project, environmental initiatives, urban development and several sustainable rural development intervention plans in Northeast of Brazil (The World Bank, 2010).
Besides, the aspect of health care is very paramount to the Brazilian authority. Therefore, through the assistance of the World Bank and IMF, they have established a health system that benefits the poor. For instance, the projected named as Universal Health system provides an affordable health care in public hospital both for foreigners and local citizens. Many people have criticized the universal health care project terming it as an ineffective project. This is because 60% of government health care spending are tapped into private hospitals while the universal health care system only obtains 3.1% funding (The World Bank, 2010). The concept of investing in health is crucial because it facilitates economic development through ensuring a healthy human capital is in place for consistent production. In the hope of eradicating HIV/AIDS, the World Bank offered the Brazil government a loan of $67 million dollars in 2010. This fund was to be utilized in upscale prevention, treatment, and care for those in risk of getting the HIV/AIDS virus. So far, the number of people living with HIV/AIDS virus in Brazil has reduced from 1.2 million individuals in the year 2000 to 630000 people in the year 2010 (The World Bank, 2010).
Simultaneously, the lending institution has also impacted the Brazilians negatively. The World Bank and IMF have been criticized for being productive and resourceful enough in their pursuit to end global poverty (Eiras, 2016). Furthermore, their lending systems are based on influencing poverty and economic instability. For instance, any borrowed fund from these lending institutions removes the concept of incentives that also enables any government to progress into economic freedom. Additionally, they breed corruption in any country they fund (Global Exchange, 2001). For example, Brazil has been a recipient of the loan for over 40 years, but they are still unable to develop fully (Eiras, 2016). In Brazil, these Lending institutions have proven that they operate at high cost while producing low effective results. The system in place does not work well in short-term crisis management because they tend to be more expensive for any developing country (Eiras, 2016). Additionally, their response during a crisis is very slow.
In conclusion, the global lending organizations have impacted the Brazilian economy both negatively and positively. For instance, loans from these organizations have assisted the government in implementing affordable health care through a project called Universal health care system. Alternatively, despite these lending institutions intervention, the Brazil government is unable to solve its debt challenges. There are still inequalities cases in the health sector. More ever, obeying the terms laid down by IMF makes the government reduce its spending, increase lending rates to their citizens and influence many employees to be subjected to a wage cut.
References
Bonnal Jean.(2016). Federal Republic of Brazil.
Retrieved from. https://www.ciesin.columbia.edu/decentralization/English/CaseStudies/brazil.html
Eiras I. Ana.(2016). IMF and World Bank Intervention: A problem, Not Solution.
Retrieved from. http://www.heritage.org/research/reports/2003/09/imf-and-world-bank-intervention-a-problem-not-a-solution
Global Exchange.(2001). How the International Monetary Fund and the World Bank Undermine Democracy and Erode Human Rights: Five Case Studies.
Retrieved from. http://www.globalexchange.org/resources/wbimf/report
The World Bank.(2010). Projects and Programs.
Retrieved from. http://www.worldbank.org/en/country/brazil/projects