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Malawi
>> Regional Overview >> Malawi Overview
Previous Years' Activities
2002, 2001, 2000, 1999, 1998, 1997
Last updated: 21
THE DEVELOPMENT CHALLENGE: The United States' national interests in Malawi are the promotion of development through market-based economic growth and support for democratic governance. In 1994, Malawi underwent a peaceful political transition from decades of one-party autocracy to a multi-party democracy. Accompanying this political transformation were fundamental economic liberalization and political reforms. Further economic reforms and democratic institutional development are necessary to ensure the continued consolidation of a free market democracy in Malawi, a U.S. ally and supporter of U.S. interests in regional development and political issues.
Malawi's political and economic development is impeded because it is a landlocked, single cash crop agricultural economy with concentrated ownership of assets, limited foreign and domestic investment, and a high population growth and density.
A legacy of authoritarian abuses has left a heritage of cultural tolerance to political terror within civil society, effectively curbing the expression of democratic freedoms. Life expectancy in Malawi is under 40 years. Infant mortality is 104 per 1,000 and malnutrition afflicts 50% of the population. Only half of the population has access to safe drinking water and 16% of the adult population is infected with HIV/AIDS. The World Bank estimated that Malawi is one of the poorest countries in the world with a per capita gross domestic product in 2000 of $180.
Life expectancy is under 40 years and falling because of HIV/AIDS. 50% of the population is malnourished. Infant mortality is 104 per 1,000; HIV/AIDS affects 16% of the adult population; and GDP per capita is less than $180. Malawi's economic growth potential is constrained by limited human capacity. The country's basic education system is weak; schools are overcrowded; teachers are not adequately trained; and teaching materials are inadequate.
External debt in December 2001 was $2.5 billion, owed primarily to multilateral institutions, with debt servicing absorbing more than a quarter of the Government of Malawi's (GOM's) revenue. Malawi is not indebted to the United States directly. In December 2000, Malawi was approved for debt relief under the Enhanced Heavily Indebted Poor Country initiative; this is expected to reduce Malawi's average annual debt service by about $50 million over the next five years.
THE USAID PROGRAM:
FY 2002 Estimate: $32.742 million FY 2003 Request: $37.167 million FY 2002 funds will be used to promote economic growth, democracy and governance, health, family planning, health and nutrition, and basic education. The FY 2003 USAID program aims to increase economic productivity by addressing critical needs in health and education. At the same time, USAID seeks to create income and employment opportunities for the average Malawian so that USAID's short-term investments in the social sectors of democracy, health, and education can be sustained over the long term. Food security and economic growth will be fostered through agricultural reform and modern farming practices that can translate into increased agricultural productivity, efficiency, and global market access, which in turn create off-farm employment opportunities. USAID programs promote citizens' understanding of their rights and responsibilities to increase participation in democratic decision-making.
A community-level social mobilization campaign supported by USAID has resulted in a marked increase in female enrollment at the primary level and a dramatic increase in the number of girls entering secondary school. FY 2003 funds will address the quality of education, which declined as a result of the policy decision to promote universal enrollment. Activities will improve teachers' professional skills; develop the schools' abilities to respond to the needs of the student population; and ensure the successful implementation and monitoring of critical reform policies.
All FY 2002 and FY 2003 funds will support ongoing programs as described in the following Program Data Sheets.
ONGOING PROGRAMS FOR WHICH NO FY 2002 OR FY 2003 FUNDING IS REQUESTED: The USAID program in Malawi includes the following objectives for which USAID is not requesting new funds, but is continuing to expend funds already appropriated.
Number: Title: Last Notified: Planned Completion: 612-001 Increased Agricultural Incomes FY02 CBJ, p. 313 FY 2003 612-002 Natural Resource Management FY02 CBJ, p. 317 FY 2003 612-003 Improved Health including Child Health FY02 CBJ, p. 321 FY 2002 612-004 Quality Basic Education FY02 CBJ, p. 326 FY 2002 612-005 Democratic Participation FY02 CBJ, p. 330 FY 2002 OTHER PROGRAM ELEMENTS: In addition to the resources requested in the Program Data Sheets, USAID has an ongoing P.L. 480 Title II Food for Development program. This activity is integrated into the Mission's economic growth and health, population and nutrition programs. In addition, the Mission continues to work closely with the centrally managed Famine Early Warning System (FEWS) to assist Malawi in its food monitoring situation, and the Leland Initiative, which has opened up the Internet to commercial interests and lowered cost to Malawian consumers. The Mission also works closely with the Africa Bureau in the development of Malawi's private sector and trade capacity. Specifically, African Trade and Investment Project (ATRIP) funding has permitted the development of Malawian business interests in support of the African Growth and Opportunity Act (AGOA) and direct foreign investment, while the Equity and Growth through Economic Research (EAGER) Project has enabled the mission to identify constraints or barriers to private sector expansion.
OTHER DONORS: Overall development assistance to Malawi totals about $400 million per year, excluding debt relief. The United Kingdom is by far the largest bilateral donor and works in many sectors, including budget support. The scale of the USAID program ranks in the second tier of bilateral donors, which includes Canada, Norway, Japan, Germany and Denmark. Germany focuses on health, education, and democracy and governance; Norway is addressing HIV/AIDS, health, agriculture, and natural resources; Japan works in agriculture and infrastructure while Denmark concentrates on democracy and governance, education, agriculture, and natural resource management. The Canadian program focuses on health, HIV/AIDS and education. In conjunction with the United Kingdom and Denmark, USAID is assisting the Malawian National Assembly to improve the interaction between civil society and government. Multilateral donors include the United Nations agencies, the European Union, the World Bank, the International Monetary Fund and the African Development Bank.
Program Data Sheets
- 612-006 Sustainable Increases in Rural Incomes
- 612-007 Increased Civic Involvement in the Rule of Law
- 612-008 Behaviors Adopted that Reduce Fertility and Risk of HIV/AIDS and Improve Child Health
- 612-009 Improved Quality and Efficiency of Basic Education
Country Background Information Resources
CIA Factbook
National Geographic Country Maps
State Dept. Country Information
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Last Updated on: May 29, 2002 |
