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Political science project - Essay Example

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Political and Social effects of IMF and World Bank on India Name: Institution: Introduction IMF is an international financial institution that was formed in the year 1945 with the aim of stabilizing exchange systems and reconstructing world international payment systems…
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Political science project
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Download file to see previous pages Social and Political effects of IMF Both IIMF and World have played an imperative role in shaping the political, social and economic environments of India, especially with the knowledge that India has been one of the developing countries with unstable environments. In this regard, with the IMF and the World Bank, both the social and political environments of India have been profoundly impacted. Scholars assert that India has received more benefits than losses from the International Financial Institutions. This is because; it is notable that India’s economy has improved since the two institutions came into action. Still, others state that the World Bank created more harm than good by reducing the Indian Economic growth rate (Mishra, 2012). However, one of the notable impacts of World Bank on the Indian economic and social environment is poverty alleviation. Statistics show that so far India has borrowed a total of US$ 65.8 billion from the World Bank. This played a key role to India since it assisted in funding its projects (Kumar, 2012). Needless to say, the funds provided were used in projects such as development of the infrastructure, rural development and social improvements among the citizens. The living standards of Indians have been improved since the poverty level has been reduced. ...
Arguably, IMF also plays an extremely significant role in the Indian political and economic environments through a number of ways. This is mainly by providing economic assistance in terms of funding the government projects in the country. In addition, the IMF also provides consultancy services to the country in policy making. Kumar (2012) asserts that these policy making services have had a substantial impact on India’s political and social economy. This is because; with better policies in the country, cases of corruption are reduced and there is political integrity. In addition, borrowed funds will be utilized efficiently and thus there will be overall growth among the citizens (Eiras, 2003). Another social impact that has been observed is the improvement of the health of the citizens. A report by Kumar (2012) about the effects of IMF on India showed that, due to lack of food and other necessities the country suffered from health problems. In addition, a report given in the year 2007 showed that most children of the poor families in India were born while suffering from malnutrition (Mishra, 2012). This is because, the pregnant mothers had not been well fed during their maternity periods. With funding from the IMF and the World Bank, the country can provide food assistance to the poor families and thus, promoting the health of many of the citizens (Mishra, 2012). Cases of food starvation in the country have also been reduced, thus impacting the society positively since cases of theft or tribal clashes have reduced. This is a serious social effect in India since it promotes peace and stability in the country. In reference to Lagarde (2012), the World Bank and the IMF have positive effects ...Download file to see next pagesRead More
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