Lending Institutions, Health Care, and Human Capital in Brazil Essay Example
Brazil is considered to be one of the countries with the largest economy in central and South America. There are several factors which have contributed to make this country to be a developing nation which include; low per capita, increased infant mortality rate, low living standards, and low or reduced gross domestic product among other factors (Luna & Vicente, 2012). Due to these factors, Brazil just like any other developing countries has faced series of economic instabilities which has been the key drawbacks to the country’s economy compared to other nations within the same regions. Over the past two decades, Brazil has been working hard to eradicate poverty which has affected lives of over 50 million people in the country.
Roles of lending institutions towards development in Brazil
World Bank (WB) and International Monetary Fi
...nance (IMF) have taken the front line in assisting Brazil to deal with the financial crisis which has been affecting the economy of the nation. The funding from the IMF and WB has greatly agitated a lot of social developments in this nation whereby, most of the projects initiated by these projects have been able to improve the living standards of the citizens in this nation (Luna & Vicente, 2012). The policies governing the funding procedures have been able to target and capture the exact crisis which the individuals in Brazil are facing. For instance World Bank in 2013 developed a program in Brazil which aimed at reducing the dependency level which had become a burden to the Brazilian government. Such program contributed greatly towards the social-economic growth of this nation since, over half of those lived under the poverty level were able
to dependent on themselves (Trubek et al, 2012). Otherwise the program initiated the spirit of self reliance.
Politically, the international lending institutions have been criticized for the accompanying policies which have been interfering with the governance and leadership of the Brazil. In most cases, the loans or grants have tough conditions which are likely not to favour the nation’s constitution guidelines and hence the government ends up rejecting or being subjected into sanctions which interfere with the nation’s political developments. Such conditions are mostly supported by the leaders from the powerful nations which have golden shares in these institutions (Trubek et al, 2012). Taking an instance, Bush administration supported some of the lending practices which only fevered the economies of developed nations instead of critically looking at the status of specific or particular economies. Such practices have hindered the country to grow well political. Generally the international lending organizations have good policies and programs which have helped the country to deal with some economic instability, however, the goals and objectives of those organizations tend to differ from goals of developing countries like Brazil (Luna & Vicente, 2012).
How the healthy population has strengthen economic status of Brazil
Brazil has greatly invested in health care which seems to be strength towards the economic developments and growth. World Health Organization (WHO), an agency of United Nation (UN) has clearly indicated that, Brazil is one of the countries in South America which has large healthy population and it is able to trigger the growth of its economic initiative with little constraints.
The recommended healthy conditions of Brazilian people has been seen as one of the reasons as to why it is growing
at higher rate and faster than other economies of the same status. The health population has increased the production level of the country whereby; there is a lot of labor in the market which is able to work in the production firm with minimal disturbances. In coffee farms in Brazil the casual labor is readily available throughout the year (Monteiro et al, 2014). This definitely means, the firms are directly or indirectly linked with primary production will never undergo labor shortage. In addition the health of the population means high and increased income to the individuals and the government of Brazil. The government will be able to collect more revenue to the working citizens through tax. Therefore the Brazilian government will be able to expand or increase its budget because of it large revenue collection from the working high and healthy population (Victora et al, 2010).
The higher level of population has enhanced the level of education in Brazil. Generally the cognitive development of a child is highly affected by poor health status and therefore with better health care in Brazil, the young ones are able to attend classes or school regularly. The health conditions have helped children to perform better guaranteeing them to join international institutions and hence better job opportunities at global levels. Such international opportunities will enable to increase the Gross Domestic Product (GDP) which triggers the economic development and growth of a country (Monteiro et al, 2014). Additionally, the increased GDP is total assurance of continued education support to the future generation and hence there is guarantee in socio-economic growth and development which is consistent.
Healthy population helps the nation to save a
lot. Good healthy is good in both individual and national level this is because; the country will not spend a lot of funds while manufacturing or importing medicine and drugs from china and other pharmacy manufacturing countries. Such funds which could have used to import drugs are used in national economic projects like infrastructural improvement, increasing the government expenditures which in turn reduce level of unemployment, increased investments among other benefits (Trubek et al, 2012). At individual or personal level, there is wealthy creation since one is able to save the funds which could have used in getting drugs or medical services for diseases which may be very expensive to treat like cancer, organ transplant, blood pressure, diabetes among others. This means the working individuals are able to save their retirement benefits to help them at late age (Victora et al, 2010).
How leadership has used foreign aid to improve the health care in Brazil
Just like any other developing nation, Brazil has been benefiting from foreign aid and assistance. Some of the organizations which have been providing to Brazil are German Agro Action (GAA), International plan and grants from government of United States (Obama, 2010). Health care sector is the second most considered to benefit from the aids program which Brazil from international organizations. Researchers have shown that, the market of the health care in brazil is expensive compared to other sectors in the country, therefore, the government has been using such foreign aid to improve the status and the cost of the health care services (Monteiro et al, 2014). Additionally, the governance in the health sector has been able to renovate the health facilities which
have been impaired.
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