Finance plays a major role in the development of various sectors within the country. Finance is nothing but money accumulated for the sake of development. Finance and development go hand in hand. They are like weighing balance. If we don’t get in sources of money, then the development side of the balance won’t rise up. There are many financial institutions which give and raise money for urban, rural development of the country and the world. Some of the financial institutions on International basis are International Monetary Fund, World Bank and others.
Various government financial institutions in the country are also responsible for raising money and implementing the same money on urban as well as rural development within the country. It also leads to proper governance in the country. Government also issues various government bonds and other financial instruments which help in raising money. This money is in turn spend on building national, state highways, bridges, ports, hospitals, introduce various welfare schemes for the poor and old people. They also invest in research activities related to medicine, buying various modern arms for the security of the country. Last but not the least, built cheap houses to rehabilitate poor people.
Government also invest money in transport sectors like bus, trains, metros so as to provide cheap, reliable, fast mode of transport for the people. Other major area where the money is invested is the agricultural sector. The government spends money on agricultural sector research activities so that production of food grains increases, which in turn leads to development of the agricultural sector and the country as a whole. If more food grains are produced then the government can sell the excess food grains in the international market and this in turn will bring currency for the country.
International organizations like (IMF) International Monetary Fund, World Bank, (UN) United Nations plays an important role in the development of the world on an overall basis. Underdeveloped countries in Africa like Somalia and others depend on money given by IMF, World Bank to buy food grains for the people of their country. This in turn increases the standard of living for all the people living in underdeveloped countries. They also get money to invest in various research works which plays a vital role in the development of the country. Apart from the government and world development organizations there are some countries which provides help when any natural calamity like Earthquake, Volcano and Tsunami takes place. In such time of crisis, rich countries mainly developed countries like USA, Russia, France and UK pump in loads of money and other relief materials in the affected countries, which again leads to development.