Running head: MALAWI 1

Malawi
Institution:
Date:
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Funding by the World Bank

In the current global economy, people may argue that there exist only few nations
that are developing. The above viewpoint is based on the fact that monetary growth is not
understood through observing the financial stability of a given nation. For instance, most of the
developed nations such as America offers fiscal aids to undeveloped states hence helping their
economies to grow and advance in an effective manner. The researchers shows that there are
about 137 developing countries in entire world and they have an average Gross National Income
of $11,905. However, this paper will provide comprehensive understanding of one of the
developing nation called Malawi.
Explore Whether or not Funding From International Lending Institutions Like the World

Bank and the IMF are Helping or Hindering the Social, Economic, or Political

Development of the Country That You Have Selected. Support Your Response with

Examples

Malawi represent is a Sub-Saharan Africa nation representing developing nations and it is

bordered by Mozambique, Tanzania and Zambia. The administration in this nation puts lots of

emphasize on lakes and national parks. In particular, this country is landlocked though it contains

few resources hence it relies on the neighboring nations for imports such as fuel. Because

Malawi is more interested on natural resources, in September 2011, Surestream Petroleum was

awarded an exploration license to be managing the two blocks in Lake Malawi’s Rift Valley.

However, the collaboration between International Monetary Fund (IMF) and World Bank has

supported the above program to ensure that this country is not encountering huge liabilities

through application of debt reduction package. For instance, both IMF and World Bank are using

Heavily Indebted Poor Countries (HIPC) plan to help Malawi on boosting its economy. In a

single instance, the above strategy has offered relief fund, boosted social consumption, and

minimized debt service as well as leading to effectiveness in management of public debt.

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However, corruption was initially affecting the Malawi and it therefore lead to

suspension of foreign aid because of mismanagement of provided cash. Fortunately, the

leadership in Malawi had put lots of efforts on ensuring that the provided money is put into the

right use. For example, President Joyce Banda has made numerous changes in trial of ensuring

that the available resources are applied effectively. Banda focused on restoring financial situation

in Malawi to making the donors to have confidence with her country. Eventually, she revived the

national economy through employing IMF to modify exchange rates hence enabling the country

to obtain donor aid. Indeed, this was amid the greatest achievements which Banda has made

since the needy individuals are receiving financial aids equitably. Though Malawi is still

depending on the IMF’s support, the initiated recovery program will help its economy to grow

and develop into an extent of helping other underprivileged countries.

Discuss, With Examples, At Least Four (4) Substantive Ways in Which a Healthy

Population Strengthens the Economy of the Country That You Have Selected

There are numerous substantive ways into which Malawi is strengthened by its healthy

population. First, this nation has ensured that its population is healthy hence ascertaining that its

foreign aids are not used on purchasing drugs. Indeed, the government in this nation tends to allocate

its capital on profit earning projects hence managing to grow economically. Moreover, the

administration in this country uses the foreign funds on ensuring that the community is healthy through

observing diet and sanity. On the other hand, the healthy community offers maximum labor where

necessary. Since most of the residents in Malawi are strong, the companies and manufacturing

organizations are getting enough workers hence attaining the maximum production in an effective and

efficient way. As a result, the administration receives lots of revenues from the operation institution and

also managing to export some of its locally made goods hence growing economically.
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Lower life expectancy discourages adult training and damages productivity.

Use of funds to purchase drugs

Insurances