Malawi And The International Monetary Fund ( Imf ) For Help

The author discussed the purpose of the World Food Bank as well. He insists that the developing countries are associated with high birth rate; in that case, if the World Food Bank provides food and supplies to these countries, the rescued people might produce more people and double the population. As a result, a larger number of people would need support and these countries would become even impecunious. Hardin overlooked the factor that the population gross is controlled by both birth rate and the death rate. Some underdeveloped countries, such as Zambia and Zimbabwe lack of the major resources; therefore, people in these countries are extremely needy and poor. In

Malawi is an extremely poor country and because of drought people were dying of hunger. Being a poverty stricken country opportunities were difficult to

International aid has saved lives but has dug the poor in a hole so deep it will be impossible for them to come out without a change in the way non-governmental organization (NGO) are helping third world countries. In the current system governments such as the United States have been shipping aid for free to third world countries in order to jump start their economy and leap in to the industrial market. This has been a huge gamble which will never pay off because in the famous quote written in the bible it says: “Give a man a fish and you feed him for a day; teach a man to fish and you feed him for a lifetime.” The meaning of this quote is that you cannot feed a nation and expect them to thrive without first becoming

There are millions of people suffering in the world, just under 1 billion people live on less than 2 Australian dollars a day, over 2 billion do not have access to clean drinking water and roughly 150 million child are unable to attend school. The Australian government spent over $5.4 billion on foreign aid links in 2012. Aid is the transfer of necessities to assist others on a local, national or international scale. International aid, which this report focuses on, is the assistance given to a developing country by a developed country, which boosts economic growth and living standards. There are three types of aid; bilateral aid, multilateral aid and non-government aid. Bilateral aid is aid provided by one government to another. AusAID is

Reports of a devastating famine in Malawi first surfaced as rumors coming from rural areas of the country around October 2001. Malawians in the cities, including government officials in Lilongwe, the capital, were slow to believe, or act on, the persistent accounts. Even when well-known advocacy groups like the Malawi Economic Justice Network (MEJN) and the Catholic Commission for Justice and Peace presented data to back up the reports, they were dismissed as lacking credibility. But incredible as it may have seemed, Malawi - hardly a desert state, but a densely-populated country in a lush region - really was facing catastrophic food shortages in the wake of a combination of flooding and a regional drought, and after over a decade of “structural adjustment” policies designed by the IMF.

Malawi is one of the smallest countries in Africa, located in the southeast. Malawi is one of the world’s least-developed countries, facing many challenges involving education, healthcare, finance, and environment. The main economic sector is agricultural with a majority of the population living in rural areas. Malawi experiences a high rate of HIV/AIDS, which limits the work force. Ethnic tensions and divisions have ignited periods of regional conflict. This ethnic tensions have since been decreasing. To combat these problems and an unstable economy the government relies heavily on foreign aid, but since 2000 the foreign aid to Malawi has decreased.

“Globalization [looks like] improving the economies of poor countries” (Guest), yet it accelerates in inequity and weakens nations’ ability to achieve food security in local communities. More specifically, The International Monetary Fund and World Bank provide financial support for the countries yet require agreements to reduce the public sector, open

Harvard Business School’s Case Study “Aid, Debt Relief, and Trade: An agenda for fighting World Poverty” outlines the steps, and missteps, that the world community has taken since World War II to address the efficacy of international assistance. The study focuses on international financial institutions (IFIs) and their ability to help poor nations break out of poverty and the possible obligations of rich, developed countries to assist the heavily indebted poor countries (HIPCs). Additionally, the study seeks to see if this assistance has been and can be parlayed into growth and investment for the HIPCs.

As a result of the inadequacies of the World Bank and IMF, Uganda today appears to be no better off today then as they were in the year(s) prior to acquiring the assistance in debt relief in 1998. According to Ana Eiras; “Despite such a monstrous display of resources, according to the index of economic freedom, the Bank’s money has done nothing to improve the economic freedom in recipient countries”. Erias goes on to make it clear that many of the country’s who have received assistance have seen no change or economic improvement and are just as poor as they were many years ago.

For centuries wealthy countries have been giving away billions of dollars to help developing countries improve their economic situation. We have found out aid given to these countries in economic need have caused positive and negative affects towards the government. The basic reasons of giving aid are to help developing countries stimulate economic growth or directly give resources to meet people’s basic needs. The question is whether this aid is helping the developing country’s government or hurting it and by how much? Aid given to these countries can include donations, projects and technical assistance. Wealthy countries give aid to developing countries to promote their own governments internationally and fulfill their economical and political agendas. Throughout history many people have not been accountable for the effects of the aid and just made sure that the aid was there. Also countries that have been giving aid to a particular country for a period of time tend to pull out the aid because different interests arising in the donating country. This cripples the aid receiving country’s economy because the aid was holding the economy together is gone and they have to start building all over. This dependence on aid leaves the country in economic ruins when the aid disappears. Now that we have a background on aid we can see why the knowing the effect aid has on governments is so important.

Reducing under nutrition in the developing world will be complicated and will take considerable time to accomplish. In 1980s, it was a common practice for the more affluent nations to supply famished areas with direct food aid. However, highly publicized and praised at the time, direct food aid is not a long-term solution. Although it reduces the number of deaths from famine, it can also reduce incentives for local production by driving down local prices. In addition, the affected countries may have little or no means of transporting the food to those who need it more. Furthermore, the donated foods may receive little cultural acceptance.

The Situation/Challenge: Malawi country is facing critical shortage in healthcare staff due to certain demotivating factors, and in turn is inadequate at providing minimum level of healthcare.

Over the past century, major world powers have begun to look beyond their own borders and developed systems of development assistance for other countries in need. One of the two main methods by which relief was provided is through In-Kind Aid, in which benefits are given in the form of goods or services most beneficial to those in need. However, the effectiveness of this system has often been called into question next to the option of simply giving direct cash transfers to needy recipients. On one hand, in-kind aid can serve to lower the prices of commodities to to their increased supply(In kind aid study), yet the direct contribution of food and other goods of a similar nature can be costly and inefficient as food spoilage is a frequent occurrence and there may be more efficient and effective alternatives. Additionally, a study in India found that In-Kind Aid often favors urban areas and provides goods and services solely to these areas, neglecting rural areas in which the necessity of aid may be the most dire.

2009 Review of The Trouble with Aid: Why Less Could Mean More for Africa, and: The Trouble with Africa: Why Foreign Aid Isn’t Working. Africa Today 56(2): 97-101

International Monetary Fund and The World Bank, though has a good purpose of their existence, they have come under lots of criticisms as to how they use the leverage of being in a position of helping poor countries to either recover from economic collapse or give them debt relief and economic boost from loans they give out to them to impose policies and condition that those poor countries has to implement. These loan conditions and policies structured by these international financial power institutions are geared towards moving resources from the poor countries to the rich western countries. The end result is creating a situation where the poor countries sunk into more economic suicidal condition in which