Tue. Oct 20th, 2020

There are many organizations in the world which are dealing with the financing problem of different countries. These organizations make sure that they will help all countries who are on their panel and finance them at a difficult financial crisis. World Bank and IMF are the two biggest players in this category. Different regions also have their local setups as well which work on the same principle on which these two organizations are working.

They lend money to different developing and under developed countries to fulfill their development expenses without compromising the living status of their people on competitive loan options. These banks provide loan to different countries many developed countries have shared in these organizations and provide funding to these organization so the complete their work. But as we know these countries have their own expenses as well so they will introduce the concept of innovative finance by which they can fulfill the requirement of developed and underdeveloped countries. The money collected by these finance options is mostly to spend on health projects in different countries.

They collect this money by different nontraditional mechanisms by which they will raise additional for development aid through different innovative projects. These projects include micro-contributions from different countries, taxes, public and private sector business partnerships, and market-based financial transactions.

From the beginning of 2010, all the existing innovative financing mechanisms were allocated for the health care sector in developing countries. The money which they get from these resources only spends on health care unit. This will help to eliminate many common deadly diseases which exist in underdeveloped countries.

Mechanisms for Innovative Financing:

For these innovative funding, different countries came up with some mechanisms which help these organization to collect money for the health sector. Many countries add taxes on their air tickets the money collected from these taxes spend on buying of HIV/AIDS medicines.

Product red is a mechanism which will help to raise money for the elimination of HIV/AIDS. By the help of this mechanism many companies who are working globally contribute a share of profit on their goods which have a product red trademark. The money which they make by selling these goods that had red trademark they are bound to share some part of their profit from those goods in this Nobel cause.

The same way there are many other mechanisms as well which are helping these organizations to create a fund for the health sector in underdeveloped countries.

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