MALAWI

	FY 1998 Actual	FY 1999 Estimate	FY 2000 Request
Development Assistance	$26,800,000	$22,661,000	---
Development Fund for Africa	---	---	$23,600,000
Child Survival and Disease	$10,300,000	$9,467,000	$7,250,000
Economic Support Funds	$200,000	---	---

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. Fundamental economic liberalization and structural reform have accompanied this political transformation. Attention now centers primarily on the consolidation of these gains, strengthening the 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 concentrates on those aspects of policy and institutional capacity-building that will contribute to the efficient delivery of goods and services to the Malawian population. Broad-based economic growth and development will contribute to a more stable country and region and, in the long-term, development of a more mature partner for U.S. economic interests.

The Development Challenge.

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, authoritarian leadership, high population growth, and low human capacity levels. Life expectancy at birth is approximately 40 years. Malnutrition rates and the infant mortality rate of 134 per 1,000 are among the highest in Africa. Only half the population has access to safe drinking water. The prevalence of HIV/AIDS (13% of the adult population) is high in both absolute and relative terms, and is growing. Annual per capita gross national product in 1997 was estimated to be $220. External debt in 1997 was $2.7 billion. Debt servicing absorbs about a quarter of the Government of Malawi's (GOM's) budget revenue, of which more than 80% is owed to multilateral financial institutions.

The overarching goal of USAID's program is to help Malawi 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) that address Malawi's fundamental economic and social problems and which emphasize local empowerment and decentralization. The USAID program has five strategic objectives: (1) increased agricultural incomes on a per capita basis; (2) increased sustainable use, conservation and management of natural resources; (3) increased adoption of measures that reduce fertility rates and the risk of HIV/AIDS transmission; (4) increased access to and quality and efficiency of basic education, especially for girls; and (5) a strengthened and broadened institutional base for democratic participation. 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 relationship with the United States.

Other Donors.

The United Kingdom and the United States are Malawi's largest and most influential bilateral partners. Other major bilateral donors include Germany, Japan, Canada, the Netherlands, Denmark, and Sweden. Multilateral donors include the United Nations agencies, the European Union, the World Bank, the International Monetary Fund and the African Development Bank. Donor coordination is strong in Malawi. The 1998 Consultative Group meeting in Malawi brought together Malawians, donors and non-governmental organizations (NGOs) to discuss Malawi's economic progress and outline a strategy for future growth.

FY 2000 Program.

USAID's agricultural programs are developing market-based service institutions, increasing economic opportunities for smallholders, developing public sector capacity to implement policy reform, and introducing low-cost agroforestry practices that will improve soil fertility and increase crop yields. USAID support in FY 2000, including funds from the Africa Food Security Initiative, will further transform the agricultural sector by encouraging smallholder enterprise development, promoting crop diversification and sustainable agroforestry technologies, and extending food security monitoring and the famine early warning system. USAID will expand farmer access to genetic materials for drought resistant root crops, such as cassava and sweet potatoes, and also will support policy-oriented research and analysis on food security concerns.

USAID environmental efforts focus on developing a comprehensive policy and legislative framework to govern natural resources management; strengthening human capacity in the public and private institutions responsible for managing natural resources and the environment; introducing management systems that improve community-level performance; and ensuring the sustainability of financing for private initiatives. FY 2000 funding will support the expansion of community-based action programs, environmental monitoring, an environmental education program, and wildlife conservation.

USAID is helping to lower the population growth rate by encouraging the adoption of modern contraceptive methods and promoting technologies to reduce infant and child mortality, morbidity and malnutrition. USAID also is encouraging behavioral change to reduce the spread of HIV/AIDS. FY 2000 funding focuses on activities aimed at changes in sexual behavior, expanded service delivery, and detection and treatment of sexually transmitted diseases (STDs).

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. USAID focuses on enhancing the quality of primary education and expanding opportunities for girls' education. A community level social mobilization campaign 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 2000 funds will address the quality of education, which has declined as a result of the policy decision to promote universal enrollment, through activities that will increase school revenues and the efficiency of the primary education system, and by expanding social mobilization efforts.

USAID’s democracy objective is to increase Malawian participation in transparent and accountable political and economic institutions. Parliament has held open debates, made amendments to legislation introduced by the executive branch, passed comprehensive anti-corruption legislation, and passed a new constitution. Civic groups have increased capabilities and are beginning to lobby Parliament and ministries. The judiciary has ruled on several important and controversial cases, often deciding against the executive branch. The rule of law is now widely and regularly respected. The country will hold its second general election in May 1999. FY 2000 funding will support the post-election consolidation and institutionalization of democratic practices.

MALAWI

FY 2000 PROGRAM SUMMARY
(in thousands of dollars)

USAID Mission Director, Kiertisak Toh

USAID Strategic and Special Objectives	Economic Growth & Agriculture	Population & Health	Environment	Democracy	Human Capacity Development	Humanitarian Assistance	TOTALS
S.O. 1. Increased ag. incomes on a per capita basis - DFA	10,000	---	---	---	---	---	10,000
S.0. 2. Increased sust. use, conservation, management of renewable natural resources - DFA	---	---	8,900	---	---	---	8,900
S.O. 3. Incr. adoption of measures that reduce fertility & HIV transmission while prom. child health practices - DFA - CS	--- ---	2,800 4,500	--- ---	--- ---	--- ---	--- ---	2,800 4,500
S.O. 4. Incr. access to, and quality, efficiency of, basic educ, esp. for girls - CS	---	---	---	---	2,750	---	2,750
S.O. 5. Strengthened, broadened inst. base for dem. participation - DFA	---	---	---	1,900	---	---	1,900
Totals - DFA - CS	10,000 ---	2,800 4,500	8,900 ---	1,900 ---	--- 2,750	--- ---	23,600 7,250

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ACTIVITY DATA SHEET

PROGRAM: MALAWI
TITLE AND NUMBER: Increased Agricultural Incomes on a Per Capita Basis, 612-SO01
STATUS: Continuing
PROPOSED OBLIGATION AND FUNDING SOURCE: FY 2000: $10,000,000 DFA
INITIAL OBLIGATION: FY 1991 ESTIMATED COMPLETION DATE: 2001

Summary: The objective of this activity is to increase agricultural income on a per capita basis from $153 in 1991 to $278 in the year 2000. Per capita income in 1997 was estimated to be $266, or 73.9% higher than in 1991. USAID has focused its efforts on increasing smallholder cash incomes. Working together, USAID and the GOM have significantly reduced the economic control of the parastatal marketing board and have expanded smallholders' access to competitive market prices for cash crops. Smallholder farmers are expanding both cash and food crop production, marketing their crops freely, and retaining a higher proportion of the proceeds from sales. The number of women farmers selling export crops directly to the international market has increased by almost 30%, and household level food security has been enhanced by crop diversification. The program also has increased employment for non-farm rural labor and providers of goods and services for farmers with higher disposable incomes. The beneficiaries of these interventions are the 2.4 million smallholder farm families with limited access to resources, including 475,000 female-headed families, farmers who rely on imported inputs and export markets, and emerging private-sector agribusinesses.

Key Results: Three key intermediate results have been identified as crucial to the achievement of this objective: rural businesses developed; market efficiency improved; and productivity/diversification increased. Over the medium term, development in Malawi must occur in the rural areas through increased agricultural productivity, job creation, and increased incomes. Support to both farm and off-farm businesses is essential. Increased market efficiency providing better market information and input/output market services to rural farmers will lead, in turn, to increased productivity. Finally, diversification of farming systems is essential to overcome the current dependence of smallholders on one or two commodities for both their cash and food requirements.

Performance and Prospects: Broad-based economic growth in Malawi requires increased rural agricultural incomes. Progress toward this end has been steady and, in some cases, has surpassed expectations. For example, the number of profitable farmer-owned agribusinesses supported under the USAID program is expected to increase from just over 1,000 in the base year of 1993 to approximately 5,500 in the year 2000. These firms anticipate the aggregate volume of goods marketed under their management to increase from 1,694 tons to 2,300 tons over the next two-year period. Yields of food crops other than maize have shown impressive increases, and further gains are expected with the support provided by USAID's new Africa Food Security Initiative. The initiative has expanded farmers' access to newly-developed, drought-resistant root crops, increased farm household income through support to producers' associations, and promoted food security through the monitoring and research of household vulnerability and the impact of safety net interventions. While the GOM has made significant progress on policy reforms that expand market opportunities and food crop production, more efforts are required to rationalize the government's role in the market place and the agricultural sector overall, as well as to ensure that government stays the course on market reform.

Possible Adjustments to Plans: In early 1998, USAID carried out an assessment of on-going program activities and concluded that the program was sound, making good progress and, with a few adjustments, should be continued through the year 2001. The adjustments that have been made center on strengthening policy research and rural savings and credit programs.

Other Donor Programs: Major donors include the World Bank and the European Community (EC). While other donors also are involved in the sector, their contributions are more limited and geographically focused. The World Bank provides agricultural research, extension services, rural credit and rail transportation assistance. The EC aims to improve household food security through expanding the use of fertilizers, improving management of the strategic grain reserve, and agroforestry. During the past year, the United Kingdom invested heavily in what was termed a "Starter Pack Program," which provided small amounts of free fertilizer and maize and legume seeds to nearly three million recipients.

Principal Contractors, Grantees, or Agencies: USAID activities are implemented by Agricultural Cooperatives Development International, Development Alternatives, Inc., World Council of Credit Unions, Lincoln University, and local NGOs.

Selected Performance Measures:

	Baseline	Target (2000)
Increased per capita incomes	$153 (1991)	$278
Volume of goods marketed through agribusiness firms (tons) - inputs - outputs	1,694 (1998) 30 (1998)	2,300 2,000
Share of smallholder area (total) planted to non-maize and non-tobacco	18.2% (1992)	41%
Yield per hectare of selected crops - cassava (tons) - sweet potato (tons)	2.6 (1985) 3.6 (1985)	6.0 11.0
Volume of goods transported by rail - exports (thousands of tons) - imports (thousands of tons)	11.3 (1990) 25.1 (1990)	68 232
Per capita food availability (kilocalories)	2,062 (1985)	2,200
Number of profitable agribusinesses and cooperatives supported - total - all female	1,095 (1993) 450 (1997)	5,500 550

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ACTIVITY DATA SHEET

PROGRAM: MALAWI
TITLE AND NUMBER: Increased Sustainable Use, Conservation and Management of Renewable Natural Resources, 612-SO02
STATUS: Continuing
PROPOSED OBLIGATION AND FUNDING SOURCE: FY 2000: $8,900,000 DFA
INITIAL OBLIGATION: FY 1995 ESTIMATED COMPLETION DATE: 2003

Summary: The objectives of this activity are to increase the adoption of: (1) improved conservation practices, from 822 families over 385 hectares in 1996 to 25,000 families over 6,000 hectares in 2000; (2) improved soil fertility practices, from 6,543 families over 3,311 hectares in 1996 to 67,500 families over 33,400 hectares in 2000; and (3) improved tree planting practices, from 528 families and 50,000 new trees in 1996 to 50,000 families and 9 million new trees in 2000.

Under this strategic objective, nine agencies of the GOM are: (1) developing and implementing an ambitious policy and institutional reform agenda that will create a unified national policy and legal framework for natural resource management; (2) strengthening their capacity to coordinate and monitor natural resource users; (3) establishing mechanisms for the sustainable financing of environmental initiatives through a privately managed endowment fund; and (4) strengthening community capacity to manage natural resources at the local level on a sustainable basis. The primary beneficiaries are expected to be the 90% of Malawi's population who live and work in rural areas; particularly women, who are responsible for 70% of farm labor. Improved natural resource management will contribute to increased agricultural productivity and sustained rural incomes and food security.

Key Results: The intermediate results required to achieve this objective are: (1) increased management, control and/or ownership of natural resources by local populations, and increased private sector involvement; (2) establishment of an environmental endowment fund; (3) strengthened environmental monitoring capacity; and (4) widespread adoption of improved land management practices, i.e., agroforestry.

Performance and Prospects: During the past year excellent progress has been made on the establishment of the endowment fund to provide sustainable financing of environmental initiatives. An endowment working group reviewed the requirements for such a fund and will present its recommendations in early 1999. The GOM also has completed a review of the functions of all involved agencies. Progress has been more modest in the areas of sectoral policy and legislative reform, since individual agencies have not had adequate budgets to support internal and public reviews. GOM-mandated budget reform has replaced USAID's performance-based budgeting plan.

It is important to note that new policy initiatives are being implemented, attesting to the government's commitment to environmental policy reform. Successful pilot partnerships between fishing communities and the GOM are being replicated on a wider scale. Private sector-managed tourist facilities have been formed in four of Malawi’s nine protected areas, and revenue-sharing programs now exist between two protected areas and their corresponding communities.

There also has been excellent progress toward the completion of a prototype national environmental information system and the strengthening of geographical information system (GIS) methodology, with approximately 70 persons trained in four departments and three colleges of the university. Nevertheless, institutional capacity to manage a national system remains problematic. Good progress also is reported in the expansion of demonstrations of improved land management practices. By the end of 1998, 6,464 farm families had adopted improved soil conservation practices.

Government commitment to sectoral policy reform remains strong. Implementation of revised policies will require specific financial support in the short term, but will greatly increase opportunities to reduce overall government expenditures in the long term, particularly when the endowment is operational. USAID will continue to work with the GOM in this area. In general, there is some concern that the initial targets may be too ambitious. Prospects for achieving this objective are good, however, provided the GOM can cover key costs of implementation.

Possible Adjustments to Plans: An assessment of this strategy was completed in June 1998. Based upon this assessment and review with partners, activities are being redesigned to clarify focus, define specific outcomes and improve implementation. Environmental monitoring activities will be re-designed to further strengthen key GOM resource departments.

Other Donor Programs: The World Bank, European Community, United Nations, United Kingdom and Denmark are implementing assistance programs that complement the USAID program. USAID's focus on policy reform will enhance the feasibility, success and sustainability of all GOM and donor-financed programs in this sector. USAID chairs monthly meetings of the Natural Resource Management Donor Coordination Group to promote donor coordination among a wide variety of stakeholder organizations, including Malawian government agencies, donor organizations, communities and private sector entities. USAID's environmental monitoring activity has developed an extensive database, identifying 62 donor and other organizations working in areas defined as priorities by the national environmental action plan. These organizations are involved with 39 private sector organizations, 51 NGOs and 32 government departments or agencies. Further development of this database will improve donor coordination and impact.

Principal Contractors, Grantees or Agencies: USAID activities are being implemented through cooperative agreements with the University of Arizona/Clark University and Washington State University. A small grant program is administered through a local NGO. A contract with a U.S. firm to expand the community management component of the program is scheduled to be awarded in the first quarter of 1999.

Selected Performance Measures:

	Baseline (1996)	FY 2000	Target (2003)
Sectoral policies revised and upgraded	0%	100%	*
Prototype is developed and applied	10%	100%	*
Hectares under soil-improving technologies	3,311	33,400	*

* FY 2003 performance targets are being finalized (see "Possible Adjustments to Plans", above).

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ACTIVITY DATA SHEET

PROGRAM: MALAWI
TITLE AND NUMBER: Increased Adoption of Measures that Reduce Fertility and HIV Transmission, Including Improved Child Health Practices, 612-SO03
STATUS: Continuing
PROPOSED OBLIGATION AND FUNDING SOURCE: FY 2000: $2,800,000 DFA; $4,500,000 CS
INITIAL OBLIGATION: FY 1991 ESTIMATED COMPLETION DATE: 2001

Summary: Already one of sub-Saharan Africa’s most densely populated countries, Malawi has an annual population growth rate of 3%. Infant and under-five mortality rates continue to be among the highest in the world at 134 per 1,000 and 240 per 1,000, respectively. At the same time, Malawi is at the epicenter of the African AIDS epidemic. The estimated HIV prevalence rate for adults is 13%, and life expectancy rates have fallen to under 40 years for both men and women. Activities directly support the Government of Malawi's (GOM's) 1995 National Population Policy, which calls for a reduction in population growth, to 2.4% by 2002; a reduction in infant mortality, to 100 per 1,000 by 2002; an increase in contraceptive prevalence rates, to 28% by 2002; and an increase in life expectancy, to 50 years for men and 53 years for women by 2002. Family planning messages and services, HIV/AIDS prevention messages, and activities targeting youth and sexually active adults are being financed by USAID's Support to AIDS and Family Health (STAFH) project. Preventive and curative health services, especially for mothers and children, and improvements in the systems that support the delivery of health services, are financed under the Community Health Partnerships (CHAPS) project. The ultimate beneficiaries are the infants and children of target communities whose health status is improved, and Malawian women who are able to plan the number and timing of their children. Additional beneficiaries are community-based workers, including health care workers, who are trained and better able to serve their fellow villagers and clients, as well as district- and central-level health managers whose skills and capacities have been strengthened.

Key Results: The significant increase in contraceptive prevalence rate, from 7% in 1992 to 14% in 1996 to an estimated 17% in 1998, is due to the increase in the number of health care providers trained at all levels to offer family planning services; the number of hospitals and health centers properly equipped (250) and refurbished (30); and improvements in the ordering, distribution and supply systems for contraceptives. The number of community-based distribution agents surpassed the USAID and GOM targets last year (750 planned/2,500 actual). A strengthened political commitment to AIDS prevention became manifest with the formation of a cabinet-level task force for AIDS in early 1998, but HIV prevention continues to be an enormous challenge in Malawi. Social marketing of condoms is rising annually, with over 5 million sold by the third quarter of 1998. Improvements in child health practices include more timely and appropriate treatment of children with symptoms of malaria and diarrhea, following the introduction of community-based revolving funds that make malaria medication and oral rehydration salts more readily affordable for rural populations.

Performance and Prospects: Performance over the past year has been slow but steady. The STAFH project became more focused, and new cooperating agencies were engaged to support GOM reproductive health and HIV/AIDS activities. More emphasis is being placed on research into behavioral change and on strategies and interventions to reduce the transmission of HIV. Long-term advisors with expertise in voluntary counseling, testing and behavioral change are being recruited to work with the GOM and NGOs to develop activities that will lead to the adoption of less risky behaviors. The CHAPS project began full implementation in March 1998. Cooperative agreements were signed and NGO-district partnership activities initiated in six districts, and a new social marketing program for oral rehydration therapy began. Baseline and quality assurance assessments carried out in all of the CHAPS districts have provided data for prioritizing, monitoring and evaluating the expected results. Improvements in transport, communications, training and supervision have been achieved in several districts. CHAPS districts are serving as test sites and models for the introduction of innovative approaches to decentralized planning and financing. Senior managers at the national Ministry of Health have given the activity their full support and participation.

Possible Adjustments to Plans: Opportunities exist to support the development and implementation of new GOM policies related to HIV/AIDS, reproductive health, health care planning and financing, hospital autonomy and decentralization. New policies will lead to more efficient and effective use of limited financial and human resources, for example, increasing the role and participation of communities in meeting their health care needs. Other USAID projects will assist the GOM to develop policies through participatory methods that engage NGO, private sector and community groups. The process of developing the next USAID strategic plan also will begin this year with a reexamination of health issues and the areas in which USAID has a comparative advantage. This review could result in significant changes in the activity under the 2001 Strategic Plan.

Other Donor Programs: Over the past year, health and population donor agencies have significantly improved coordination and cooperation efforts, especially with regard to reproductive health, HIV/AIDS and development of the GOM's new National Five-Year Health Plan. The World Bank has just provided a $5 million Learning Innovative Loan to support community-based distribution of family planning services. The World Bank loan builds on USAID's efforts and expands the program to other geographic regions. As the Bank's $50 million Population Health Nutrition project comes to a conclusion, design of a follow-on project will begin. The U.N. Fund for Population Activities supports a comprehensive set of reproductive health services that complement STAFH activities aimed at improving pre-service training at medical and nursing schools. The United Kingdom is developing a $35 million sexual health project that will include procurement of medicines and provide support for a program combatting sexually transmitted diseases. The United Kingdom, European Community, and World Bank all are providing support to the MOH for the development of the next five-year national health plan, in which the MOH will move gradually from project funding to a sector-wide approach. USAID chairs the donor coordination group, and plays a key role in coordinating the response of the donors to new MOH initiatives and in identifying opportunities for collaboration.

Principal Contractors, Grantees or Agencies: USAID activities are implemented by a number of Malawi, U.S. and international organizations. Malawi implementers include the Ministry of Health and local NGOs. U.S. implementers include Population Services International; Save the Children U.S.; Project HOPE; International Eye Foundation; Africare; University Research Cooperation; U.S. Centers for Disease Control and Prevention; National Family Planning Council; Association of Voluntary Surgical Contraception; Johns Hopkins University; and Family Health International. Save the Children U.K. also is an implementing partner.

Selected Performance Measures:

	Baseline (1992)	FY 2000	Target (2001)
Contraceptive prevalence rate (% married women using modern methods)	7.4%	18%	20%
Percentage of condom use reported-male with last non-regular partner	7.0%	35%	40%
Percentage of condom use reported-female with last non-regular partner	1.4%	20%	25%
Oral rehydration therapy use rate of under-5s with diarrhea (fluids, food, ORS)	63%	75%	80%

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ACTIVITY DATA SHEET

PROGRAM: MALAWI
TITLE AND NUMBER: Increased Access to, and Quality and Efficiency of Basic Education, Especially for Girls, 612-SO04
STATUS: Continuing
PROPOSED OBLIGATION AND FUNDING SOURCE: FY 2000: $2,750,000 CS
INITIAL OBLIGATION: FY 1991 ESTIMATED COMPLETION DATE: 2001

Summary: In spite of its fiscal problems, and with USAID’s assistance, the Government of Malawi (GOM) continues to demonstrate a strong commitment to primary education. Primary level education expenditures as a percent of the national budget rose from 10.6 percent in 1994 to 17.8 percent in 1998. However, it is estimated that over 90 per cent of primary education expenditures goes to teachers’ salaries, leaving less than 10 per cent for all other needs. The Ministry of Education is developing a policy investment framework in collaboration with donors and other key stakeholders to bring about a more efficient allocation of resources in the sector. The policy framework also will establish long-term goals and priorities for Malawi’s educational system. USAID is providing technical expertise to the GOM to introduce more efficient and better quality teaching methodologies. USAID's focus on girls' education has been highly successful. Recent statistics indicate rising numbers and proportions of girls in school at both the primary and secondary levels. Utilization of Malawi’s teacher training college has improved. Nationwide registration of all primary pupils is now carried out regularly, providing basic planning and management data for school administration. The Girls' Attainment in Basic Literacy and Education-Social Mobilization Campaign (GABLE-SMC) has begun a second phase, focused on improving the quality of education in three districts. The goal of GABLE-SMC and its component activities is to mobilize communities and parents to improve educational quality and increase their participation in school management. The direct beneficiaries of these interventions are the estimated three million children in Malawi’s primary school system.

Key Results: This objective rests on the achievement of four intermediate results: (1) increasing the budget allocations for the education sector and primary education; (2) increasing the availability of resources (classrooms, teachers and learning materials); (3) improving classroom teaching; and (4) undertaking a nationwide Social Mobilization Campaign.

Performance and Prospects: Performance over the past year has been good. The impact of GABLE-SMC is significant, and is taking root in all villages in Malawi, as people modify customs and beliefs that have hindered girls' education. GABLE-SMC is designed as a nationwide campaign to change attitudes and behaviors. Girls’ enrollment in primary school rose from 39% of total students in 1992 to 48% in 1998. Primary education spending through public and private funds increased rapidly between 1994 and 1998. However, per pupil expenditures are still very low and the quality of education remains weak, in part because of budgetary constraints and the massive influx of students into the system since 1994, when the GOM introduced free universal primary education.

Possible Adjustments to Plans: USAID, the Ministry of Education and other donors are collaboratively developing a policy investment framework for the sector to address fiscal and equality of education concerns. Conditions precedent to the release of the final tranche of USAID funds will be revised to reflect the new education policy and investment framework.

Other Donor Programs: There is a high degree of donor coordination in the education sector in Malawi. The World Bank, the United Kingdom, Denmark and USAID are the major donors providing support for the development of the policy framework. Donors are urging Malawi to continue reform of its education system to reflect changes in society; the purpose of universal education; the role of education in a modern Malawi; and the affordability of education for all. The World Bank provides sector credit support for primary and secondary education. Germany provides support to the Malawi Integrated In-service Teacher Education Program (MIITEP), focusing on science and mathematics instruction at the primary school level. The United Kingdom also supports MIITEP's activities in the primary sector, while Denmark supports secondary education (distance education centers in three districts). The European Community supports community-initiated efforts to build classrooms.

Principal Contractors Grantees, or Agencies: USAID implements activities through the U.S. firm Creative Associates International, Inc., and through local NGOs, local firms, and three government ministries.

Selected Performance Measures:

	Baseline	FY 2000	Target (2001)
Net enrollment rate in primary school - overall	55% (1991)	87%	98%
Net enrollment rate in primary schools - girls	52.4% (1991)	87%	98%
Primary repetition rate - overall	20.2% (1991)	15%	13%
Primary repetition rate - girls	20.4% (1991)	15%	13%
Primary pupil-teacher ratio	72 (1992)	61	60

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ACTIVITY DATA SHEET

PROGRAM: MALAWI
TITLE AND NUMBER: Strengthened and Broadened Institutional Base for Democratic Participation, 612-SO05
STATUS: Continuing
PROPOSED OBLIGATION AND FUNDING SOURCES: FY 2000: $1,900,000 DFA
INITIAL OBLIGATION: FY 1994 ESTIMATED COMPLETION DATE: 2000

Summary: The purpose of this strategic objective is to establish and consolidate democratic and civic institutions in Malawi by supporting efforts to strengthen participatory, equitable and accountable governance. USAID's strategy has incorporated diverse activities aimed at the development of indigenous organizations important to civil society. These organizations promote human rights, civic education, services to smallholder agricultural families, primary education, and basic health services. USAID played a significant role in supporting the remarkable political transition that began in 1992 and ended with successful multiparty democratic elections in 1994. Following the elections, USAID has assisted in building and supporting much needed democratic institutions, from NGOs to Parliament, the judiciary, and the electoral commission. All these institutions are still in the process of defining and consolidating their respective roles. In May 1999, Malawi will hold its first national and local government elections since the political transition of 1994. These elections will be a litmus test of the consolidation of Malawi’s young democracy. The support provided by USAID following this event will be as critical as after the 1994 elections. While there has been considerable progress since that time, many challenges remain and sustained support to the democratic and civic institutions of Malawi is needed.

Despite Malawi's success in establishing democratic institutions at the macro level, the bureaucratic obstacles to their development are formidable. The Government of Malawi (GOM) has a weak absorptive capacity, low efficiency, is highly centralized, and resists change. Public officials are not easily held accountable, are poorly paid, lack incentives to serve the public good, often occupy a dual role in the private sector, and conduct their business under less than transparent conditions. Only through concerted action and coordinated planning with other donors can USAID achieve meaningful results leading to improved governance and reinforced democracy. All Malawians will benefit from a more transparent and responsive political and governance system. Direct beneficiaries include court users, civil society organizations, the judiciary, women, Parliament, disadvantaged citizens, and local NGOs.

Key Results: Five key intermediate results are necessary to achieving this strategic objective: (1) Increased participation of civil society organizations in the economic and political development process; (2) Parliament's capacity to function as an independent and representative body strengthened; (3) Capacity of electoral Commission to conduct free and fair elections strengthened; (4) A strengthened rule of law; and (5) A process established for formulating/implementing GOM economic policies and programs that promote greater transparency and participation.

Performance and Prospects: USAID aims to ensure that all Malawians will benefit from the democratic transition by focusing its assistance on strengthening newly-formed and weak institutions. USAID supports a local human rights NGO that offers free legal assistance and rights education to the public through its trained personnel. The NGO also has pioneered the use of paralegals to assist the chronically overstretched legal personnel in the Ministry of Justice. Support to other NGOs will facilitate their participation in the political system and encourage the participation by all citizens, especially women, in decision-making processes. USAID has provided support for the country’s second national elections to be held in 1999 through such activities as voter education, election administration, and increasing popular participation in decision-making at both the national and local levels. In addition, USAID will support the newly elected members of Parliament as they familiarize themselves with their roles and their responsibilities. USAID’s support for the high court will continue to make the dispensation of justice more uniform and equitable.

Possible Adjustments to Plans: USAID anticipates that substantive changes to the form and structure of the current set of activities will be made later this year as USAID's new Strategic Plan is developed. Adjustments will be based on a fresh assessment over the past five years, as well as analysis of the electoral process that will culminate in the May 1999 elections.

Other Donor Programs: Donor coordination has been effective in promoting political liberalization in Malawi. The United Nations Development Program supports constitutional and legal reform. The European Community has developed projects focused on reform of the legal system and on human rights. The United Kingdom is helping to improve the efficiency of the administration of justice and is providing support for police reform. Germany is providing support for civic education and government decentralization. Donors continue to work together and with the Ministry of Justice and other stakeholders on a strategy for overall legal reform.

Principal Contractors, Grantees, or Agencies: USAID activities are implemented by the International Foundation for Electoral Systems, the National Democratic Institute, World Learning International, local NGOs, and key government institutions, including the Parliament, the judiciary, and the electoral commission.

Selected Performance Measures:

	Baseline (1996)	Target (2000)
Number of occasions parliamentary committees consult with non-governmental and/or private sector associations	1	10
Percentage of 1st and 2nd tier court decisions set down for review by the high court	20%	65%
Number of laws discriminating against women amended or repealed by parliament	0	10

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