lending institutions
Lending Institutions, Health Care, and Human Capital
Strayer University
SOC 300 – Soc. Of Developing Countries
Dr. Paula Moore
December 9, 2013
In today’s society a lot of developing countries rely on assistance from the international lending institutions to help with funding. Africa receives about 22 percent of assistance from the World Bank. The World Bank is the main source of lending to this underdeveloped country. By Africa having to largely depend on the World Bank and the IMF this has caused a hindering on their economic development. When the African government borrows from these institutions then the country is forced into abiding by very strict conditions, which usually benefit the richer countries in helping them to become richer.
“The World Bank and IMF attach strict conditions to their loans, which give them great control over borrower governments. On average, low-income countries are subject to as many as 67 conditions per World Bank loan. African countries, in need of new loans, have had no choice but to accept these conditions.” (Ngwane, 2008)
In Africa, the average income has continued to decline. The decline in income is a result of the World Bank’s polices that have been forced on the country for accepting payment of loans from the World Bank. Africa has been forced to begin SAP programs and other programs that slow down government spending of basic services.
“They have required African governments to reduce trade barriers and open their markets, maintaining their economies as sources of cheap raw materials and cheap labor for multinational corporations. As a result of World Bank and IMF policies, average incomes in Africa have declined, and the continent’s poverty has increased. Africa’s debt crisis has worsened over the past two decades, as the failure of World Bank and IMF intervention has left African countries more dependent than ever on new loans.” (Ngwane, 2008)
Not only does Africa
Strayer University
SOC 300 – Soc. Of Developing Countries
Dr. Paula Moore
December 9, 2013
In today’s society a lot of developing countries rely on assistance from the international lending institutions to help with funding. Africa receives about 22 percent of assistance from the World Bank. The World Bank is the main source of lending to this underdeveloped country. By Africa having to largely depend on the World Bank and the IMF this has caused a hindering on their economic development. When the African government borrows from these institutions then the country is forced into abiding by very strict conditions, which usually benefit the richer countries in helping them to become richer.
“The World Bank and IMF attach strict conditions to their loans, which give them great control over borrower governments. On average, low-income countries are subject to as many as 67 conditions per World Bank loan. African countries, in need of new loans, have had no choice but to accept these conditions.” (Ngwane, 2008)
In Africa, the average income has continued to decline. The decline in income is a result of the World Bank’s polices that have been forced on the country for accepting payment of loans from the World Bank. Africa has been forced to begin SAP programs and other programs that slow down government spending of basic services.
“They have required African governments to reduce trade barriers and open their markets, maintaining their economies as sources of cheap raw materials and cheap labor for multinational corporations. As a result of World Bank and IMF policies, average incomes in Africa have declined, and the continent’s poverty has increased. Africa’s debt crisis has worsened over the past two decades, as the failure of World Bank and IMF intervention has left African countries more dependent than ever on new loans.” (Ngwane, 2008)
Not only does Africa
References: AFDB. (2011). Africa in 50 Years Time! The Road Toward Inclusive Growth. Tunis: African Development Bank Group. Frank. J. (2004). Health and the economy: A vital relationship Ngwane. (2008). The World Bank and IMF in Africa OAU & ECA. (2006). Population and Development in Africa, OAU & ECA Shinn. D. H. (2012). Massive Health care Needs In Africa. International Policy Digest