|
|
|
|
|
|
|
|
|
|
  |
 |
  |
MALAWI
>> Regional Overview >> Malawi Overview
Development Challenge FY2001 Program /
Activity & Budget InformationSummary Tables
Program Summary
Previous Years' Activities
2000, 1999, 1998, 199752
Introduction
U.S. interests in Malawi are aimed first and foremost at supporting the dramatic political transition that brought Malawi from decades of one-party autocracy to democratic multi-party elections within the space of two years. In 1999, Malawi successfully completed its second national election following the transition to multi-party democracy in 1994. Fundamental economic liberalization and structural reform have accompanied this political transformation. Efforts now center on the consolidation of these gains, strengthening the Malawian policy and institutional framework across sectors in a way that will meet Malawi's development needs and establish an enduring open and democratic society. Malawi's democratic development and its economic growth are closely linked. In addition to efforts to strengthen Malawi's democratic structures and improve governance, USAID assistance activities concentrate on key aspects of policy and institutional change to enhance the efficient delivery of goods and services to the Malawian population. Promoting broad-based economic growth and development will contribute to a more stable country and region and, in the long-term, a more mature partner for U.S. economic interests. The USAID program is fully consistent with the Department of State's International Affairs Strategic Plan and the U.S. Embassy's Mission Performance Plan for Malawi.
The Development Challenge
Overall, Malawi remains one of USAID's important development partners and provides leadership on regional development and political issues. Malawi's political and economic development has been impeded by its landlocked and narrow economic base, concentrated ownership of assets, limited foreign and domestic investment, the legacy of authoritarian leadership, high population growth, and low human capacity levels. Life expectancy at birth is approximately 43 years. The infant mortality rate (134 per 1,000) and malnutrition are among the highest in Africa. Only half the population has access to safe drinking water and there is an extremely high prevalence of HIV/AIDS (14% of the adult population). The World Bank estimated that Malawi's per capita gross national product in 1997 was $220.
External debt in 1998 was $2.3 billion, with debt servicing absorbing about a quarter of the Government of Malawi's (GOM's) budget revenue. The forgiveness or rescheduling of this debt, however, is difficult as more than 80% is owed to multilateral financial institutions (primarily the World Bank and IMF). Malawi has not completed the application process to qualify for the World Bank's Heavily Indebted Poor Country initiative and is not indebted to the United States.
The overarching goal of the USAID program in Malawi is to help the country achieve broad-based, sustainable economic growth. The immediate development challenge is to focus on activities that strengthen the policies and institutions (public, private and nongovernmental) addressing Malawi's fundamental economic and social problems and which emphasize local empowerment and decentralization. The USAID program currently has five strategic objectives: (1) increase agricultural incomes on a per capita basis; (2) increase the sustainable use, conservation and management of natural resources; (3) increase the adoption of measures that reduce fertility and risk of HIV/AIDS transmission including improved child health practices; (4) increase access to and the quality and efficiency of basic education, especially for girls; and (5) strengthen and broaden the institutional base for democratic participation. USAID has made an explicit effort to focus its new strategy on the synergies between agriculture, off-farm employment, and natural resource management. This decision is reflected in the decision to reduce the number of strategic objectives in FY 2001 to four, including: (1) sustainable increases in rural incomes; (2) increased civic involvement in the rule of law; (3) behaviors adopted that reduce fertility and risk of HIV/AIDS and improve child health; and (4) improved quality and efficiency of basic education.
The breadth of the program is a reflection of Malawi's developmental needs as one of the world's poorest countries, USAID's expertise in the targeted areas and Malawi's proven record as a strong development partner with an excellent bilateral relationship with the United States.
Other Donors
Overall development assistance to Malawi totals about $400 million per year, excluding debt relief. Donor coordination is strong in Malawi. The United Kingdom and the United States are Malawi's largest bilateral partners. Other major bilateral donors include Germany, Japan, Canada, the Netherlands, and Denmark. Multilateral donors include the United Nations agencies, the European Union, the World Bank, the International Monetary Fund and the African Development Bank. The 1998 Consultative Group meeting in Malawi brought together Malawians, the donors and NGOs to discuss Malawi's economic progress and outline a strategy for future growth.
Country Background Information Resources CIA Factbook
Library of CongressNational Geographic Country Maps
State Dept. Country Information
 |
|||
Last Updated on: November 09, 2000 |
