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With a population of about 10.3 million and limited  d(#/land resources, the population density is high relative to the amount of arable land available. Malawi  d(#has maintained a strong relationship with the World Bank (IBRD) and International Monetary Fund (IMF)  d(#=since the early 1980s, and is regarded as a star macroeconomic performer. U.S. assistance to Malawi  d(#>supports U.S. foreign policy interests in a democratic and economically prosperous southern Africa.  d(#Malawi has been a strong supporter of U.S. positions in international fora, including participation in  d(#international peacekeeping missions. U.S. assistance is also strongly linked to consolidating Malawi's  d(#>fledgling democracy, following the free and fair presidential and parliamentary elections in May 1994  d(#which ended thirty years of authoritarian rule. Promoting private sectorled freemarket development,  d(#Nand programs to advance the U.S.'s global health, population, and environmental agenda are also  d(#zfundamental to USAID'S program. Finally, U.S. humanitarian interests are linked to improving Malawi's food production capabilities to counter droughts sand reduce dependency on international relief.  }K- The Development Challenge.  }Kh-  d(#/Malawi's development is impeded by its narrow economic base, concentrated ownership of assets,  d(#limited foreign and domestic investment, meager mineral resources, and poor employment opportunities.  d(#>Its growth potential is hindered by high population growth (2.9% per year) and low education levels.  d(#Less than half of Malawi's population is literate. Social welfare indicators and per capita incomes have  d(#Mworsened since independence. Life expectancy at birth is under 45 years. The infant mortality rate  d(#(134 per 1,000) and malnutrition are among the highest in Africa. Only half the population has access  d(#to safe drinking water and the prevalence of tuberculosis and HIV/AIDS is increasing. Annual per capital gross domestic product (GDP) is estimated at about $100.  d(#The vast majority of Malawians live and work in rural areas, making both survival and economic growth  d(#dependent on agriculture. The country's food and agricultural problems have been exacerbated by  d(#three serious droughts in the past four years. The modern commercial economy is small and is  d(#\dominated by a few firms that hold monopoly or nearmonopoly power over trade, agribusiness, and  d(#the financial sector. High population density, small land holdings, traditional agricultural techniques and pervasive poverty contribute to deforestation, overworked soils and low agricultural output.  d(#In spite of Malawi's development problems, peace in the southern Africa region and Malawi's own  d(#transition to be pluralistic and open political and economic system have brought a spirit of hope and  d(#opportunity. Macroeconomic management and the policy framework are fundamentally sound, marked  d(#=by aggressive and realistic fiscal management, good monetary policy, and marketdetermined exchange  d(#rates. Many of the most serious economic distortions particularly in agricultural marketing and financial  d(#sector concentration, are being reduced with clear benefits accruing to the poor majority. A  d(#jcomprehensive assault on poverty began in 1995 with significant government, private sector, and donor  d(#support. New education policies have increased enrollment in primary schools by more than 50%. The  d(#\Government of Malawi's (GOM) emphasis on poverty alleviation gives hope to the rural poor and has  d(#yignited a new sense of purpose throughout may previously disadvantaged groups. Given the magnitude  d(#and complexity of the country's developmental problems, however, Malawi is not a candidate for rapid  d(#graduation from development assistance. To build on the country's economic progress and its  d(#]commitment to restructure its economy to benefit all Malawians, U.S. assistance to Malawi will be required for the foreseeable future.  }Kh)- "h)0*0*0*z+"  }K-Other Donors.  d(#The United States vies with the United Kingdom as Malawi's largest and most influential bilateral  d(#partner. Other major contributors include: the World Bank, the International Monetary Fund, the United  d(#!Nations (UN) agencies, the African Development Bank (ADB), Germany, Japan, Canada, and the  d(#European Union. In recognition of Malawi's potential to invest development assistance wisely, the  d(#Netherlands and Denmark recently announced significant expansions in their development programs in  }Kx-Malawi.  }K-FY 1997 Program.  d(#USAID's strategy for helping Malawi achieve broadbased sustainable economic growth concentrates  d(#on raising agricultural incomes, improving environmental management, reducing population growth,  d(#improving primary education, and building democratic institutions. Increasing rural incomes through  d(#institutional reforms and capacity building that increase competition, liberalize markets, and improve  d(#\management of the country's constrained natural resources is essential to improving the standard of  d(#!living of the majority of the population. Improving access to family planning services, child health  d(#programs, primary education, especially for girls, and awareness of HIV/AIDS transmission reduce the  d(#zpressure on Malawi's limited resources. Improving the quality of primary education leads to a greater  d(#human capacity and potential. Building the public, private and voluntary institutions for Malawi's democratic future will ensure that resources are best used to benefit and protect all Malawians.  d(# The USAID program in Malawi focuses on the agriculture and natural resources sectors to stimulate economic growth, health and population, primary education, and democracy and governance efforts.  }K- Agency Goal:` ` Encouraging Broadbased Economic Growth (#`  }K- d(# Increasing competition and access to agricultural markets while improving the management of Malawi's  d(#?natural resources are the first steps to increasing per capita incomes and ensuring national food  d(#security. In the agriculture and natural resources areas, USAID programs develop marketbased service  d(#.institutions, increased economic opportunities for smallholder, develop public capacity for policy reform,  d(#and introduce lowcost agroforestry practices to improve soil fertility and increase crop yields. During  d(#>the past year USAID has expanded its successful activities to further liberalize agricultural input and  d(#commodity markets. GOM seed and fertilizer subsidies have been eliminated for the 1995/96 season.  d(#[These reforms provide private traders with the environment required to expand their activities and begin  d(#building a dynamic rural economy based on markets rather than state controls. Traders are responding by aggressively entering the market.  d(#USAID also expanded ongoing efforts to enhance market competitiveness and reform GOM parastatal  d(#institutions whose operations directly impact smallholder farmers. The GOM reviewed agricultural  d(#sector parastatals and government sponsored organizations to begin the task of privatizing them. The  d(#role of the marketing parastatal in consumer and producer pricing was reduced and a wide price band  d(#was established as an alternative to fixed pricing to stabilize maize prices. Previous administrative  d(#restrictions on smallholder cropping have also been eliminated, leaving smallholder farmers free to  d(#cultivate any crop they desire and sell it to whomever they wish. The result has been greater food  d(#security and higher incomes for those smallholder that have been able to take advantage of the  d(#liberalized markets. The rapidly increasing number of smallholder farm families (from 7,000 to over  d(#90,000 in the past four years) producing for the export market as well as the substantial increases in  d(#Mnonmaize food crops represent the most visible expansions in smallholder crop production resulting  d(#from USAIDsponsored activities. In fact, combined with USAID support the multiplications and  d(#distribution of improved cassava and sweet potato planting material to smallholder farmers, USAID  d(#.assistance has led to dramatically expanded hectarage and significant increases in yield for these lowinput, droughtresistant food security crops. "h)0*0*0*z+"Ԍ d(#ԙA significant reduction in transportation costs is essential to improving financial returns to Malawi's  d(#small farmers. The restructuring of Malawi Railways and the development of a transport policy to  d(#kencourage domestic and regional competition is crucial to achieving this. During the past year Malawi  d(#Railways took bold steps that included liquidating the old company and its redundant assets; cutting  d(#?its loss-making passenger service; and structuring a new railroad through a major retrenchment.  d(#Preparations are now well underway for privatization. Meanwhile rail haulage is saving substantial  d(#amounts in transport costs for inputs and export products as competition between rail and road routes increases.  d(#The GOM is committed to economic liberalization. Faced with an inherited and seriously distorted  d(#macro-economic framework, the new government moved quickly during its first year in office to  d(#drastically cut expenditures, increase revenues, stabilize the country's currency and eliminate subsidies.  d(#Tight monetary and fiscal policies haw eliminated the GOM's ability to provide incentives to farmers  d(# through any method other than market forces; i.e., price policy. That said, the elimination of fertilizer,  d(#seed and credit subsidies at the same time that the Malawi kwacha depreciated almost four-fold  d(#resulted in a dramatic increase in the domestic price of inputs. In addition, three years of drought during  d(#the 1991-95 period reduced maize production. These factors have placed even greater upward pressure  d(#on the consumer price of maize man would normally be expected from price liberalization alone. In this  d(#\climate of dynamic change, liberalization has unleashed the powerful incentive of higher prospective prices and incomes for farmers and traders.  d(#j#ixP7krP#The results of the USAID program over the past year have been impressive indeed. Smallholder incomes  d(#>improved significantly. Led by tobacco producers, smallholders also saw high returns from a record  d(#kharvest of cassava, sweet potatoes, and sorghum. Area planted to non-maize and drought resistant  d(# crops increased significantly, reducing Malawi's vulnerability to drought and that trend is continuing.  d(#Liberalization of the input market led to an increase in both fertilizer use and quantities marketed  d(#through small, private traders. This will positively impact on 1996 yields of both smallholder maize and  d(#tobacco. FY 1997 funds will continue on-going programs to further transform the sector by expanding  d(#@smallholder agricultural enterprise development to support the continued development of crop  d(#diversification and sustainable agro-forestry technologies, and the expansion of food security monitoring and early warning systems.  d(#zMalawi's economic growth potential is currently limited by high levels of illiteracy. The country's basic  d(# education system is weak and overtaxed. While there has been a significant policy turn-around that  d(#now encourages school enrollment, this has exacerbated the problems facing a primary school system  d(#kin which schools remain overcrowded, many teachers are poorly trained, and teaching materials are  d(# inadequate. Access to primary education is a serious problem, especially for girls. High dropout and  d(#krepetition rates further reduce the efficiency of the system. With USAID's assistance since 1992 and  d(#\the introduction of free primary education in 1994, access has improved. Key results achieved in the  d(#\past year include an increase in enrollment rates (and an increasing share of girls in total enrollment)  d(#zin primary schools; a dramatic increase in the GOM's budget and budget share for primary education;  d(#reduction in girls' repetition and dropout rates in primary schools and a notable increase in girls'  d(#>admissions to secondary schools in USAID's pilot district. In addition, the GOM has prepared a policy  d(# and investment framework for the education sector, with inputs from non-governmental groups and  d(#?donors, that provides good direction for solving the system's many problems. For example, it has recruited over 20,000 new teachers and has solid plans for training them.  d(#NUnder the Girls' Attainment in Basic Literacy and Education (GABLE) Program, USAID is providing  d(#support to improve planning for the education sector. A classroom construction program is underway  d(#zwith support from GABLE and other donors. Quality of education will continue to be a major concern.  d(#!USAID, through the GABLE program, the GOM and other donors should continue to work closely  d(#{together to ameliorate factors inhibiting quality. In addition, although the GOM's budget commitment  d(#?to primary education is strong, it is constrained by the overall macroeconomic situation. Donors,"(0*0*0**"  d(#including USAID, should continue working with the GOM to make the difficult macro and sectoral reforms to achieve budgetary self-sufficiency after this transitional period.  d(#]Together, high infant and child mortality rates contribute to reducing the rate of economic growth.  d(#kNearly one-half of all children are chronically malnourished. In an average year a child contends with  d(#1six bouts of diarrhea, three or more episodes of malaria, and repeated respiratory infections.  d(#MVaccination coverage increased steadily from the mid-1980s to a high of about 81% of all children in 1992. Since then it has fallen to around 75%.  d(#In 1995, the GOM demonstrated its priority for public health services by allocating increasing  d(#/proportions of a restricted budget to the health sector and ensuring that greater percentages of that  d(#funding went to finance rural health services. However, progress in management and institutional  d(#reforms in the health sector were stalled for most of the year. The result was a dire shortage of drugs  d(#and medical supplies. One notable exception to this, however, was anti-malarial drugs. Supplies of first  d(#line treatment provided by USAID were available throughout the year and preliminary data indicate that  d(#kmorbidity and mortality due to malaria have declined. USAID also sponsored two initiatives to promote  d(#greater use of impregnated bed nets and curtains in pilot areas, and initial acceptance is promising. FY  d(#=1997 funds will finance the further expansion of rural health partnerships to build capacity for improved rural services.  }K- Strategic Objective 1:` Increased Agricultural Incomes on a Per Capita Basis(#  }K0- ,`Strategic Objective 4:` Increased Access to and Quality and Efficiency of Basic Education, Especially for Girl(#  }K- Agency Goal: Stabilizing World Population Growth and Protecting Human Health  d(#Malawi's population growth rate, one of its key development constraints, is presently among the  d(#lhighest in the world. High population growth is both a cause and effect of poverty, illiteracy, poor  d(#health, and low levels of female education. One of USAID's objectives in Malawi helps to lower the  d(#population growth rate through encouraging the adoption of modern contraceptive methods, while another targets the specific problems associated with girls' educational attainment.  d(#{Although the total fertility rate dropped from an estimated 7.2 children per woman in 1984 to 6.7 in  d(#1992, the rate remains high. Since 1992, regulations restricting the provision of contraceptive methods  d(#.to married women with children have been removed. But only in 1994 did the GOM adopt an aggressive  d(#national population policy that recognized that Malawi's population growth rate was too high. The GOM  d(#is striving to transform progressive policies into action programs and has intensified its efforts,  d(#{following the International Conference on Population and Development. Also, the GOM resolved to  d(#expand voluntary family planning services. During this past year it enacted guidelines aimed at improving access to services and streamlined its contraceptive management system.  d(#In 1995 USAID assistance helped update the curriculum for training family planning providers. Also,  d(#USAID assistance enabled the National Family Welfare Council to conduct an orientation briefing for  d(#lnew parliamentarians on Malawi's reproductive health program. The USAID-supported Chishango  d(#condom social marketing campaign that was launched in September 1994 has greatly exceeded  d(#expectations. After only one year on the market, over 4 million condoms were sold. In a recent survey.  d(#Moreover, 50% of respondents stated that they used condoms for family planning purposes and 80%  d(#!were aware that condoms protect against unwanted pregnancy as well as sexually transmitted  d(#diseases. These ratios chart remarkable progress in a country where until recently even the word  d(#condom was seldom used. The implementation of activities through the GOM has been delayed due to  d(#lthe lack of qualified personnel, inadequate financing and problems requiring substantial ministerial  d(#restructuring. USAID has pledged to assist in this area in 1997 and will also focus on training to"(0*0*0**"  d(#jincrease the number of family planning providers and update the knowledge and skills of those currently providing services.  d(#Although an alarmingly high 12% of the adult population is infected with HIV, data from several studies  d(#conducted in 1994 suggest the rate of HIV transmission may be slowing in both urban and rural areas.  d(#jHowever, continued investments in activities aimed at behavioral change and expanded service delivery are crucial. USAID's substantial on-going investments in this activity will continue unabated.  d(# The positive relationship between greater female educational attainment and lower fertility has been  d(# extensively documented. In Malawi, a major USAID activity aims directly at identifying and eliminating  d(#@constraints placed on girls that keep them out of school. A community level social mobilization  d(#campaign was completed in one of Malawi's 24 districts with dramatic results, including: a marked  d(#increase in girl's enrollments; a substantial reduction in female dropouts (for the first time the drop-out  d(#rate for girls was lower than that for boys); and a dramatic increase in the number of girls accepted to secondary school. FY 1997 funds will continue to support the nation-wide expansion of the campaign.  }K - ,`g Strategic Objective 3:` Increased Adoption of Measures that Reduce Fertility and HIV Transmission, While Promoting Child Survival Practices(#  }K- Agency Goal: Protecting the Environment  d(#Soil erosion and deforestation have reached alarming proportions in Malawi. As a result, smallholders  d(#are increasingly facing chronic shortages of wood for fuel and shelter. Another serious concern is the  d(#loss of biodiversity and wildlife resources, which results in a loss of tourism potential. Diminishing  d(#surface and ground water supplies are causing intermittent water and power shortages. Concomitant  d(#siltation and contamination of streams, rivers, dams, and lakes have far reaching effects, including the  d(#increased danger of flooding. Land access and ownership issues abound and negatively affect farmers'  d(#willingness to invest scarce resources in protection activities. USAID efforts, only recently initiated,  d(#focus first on the establishment of a unifying, comprehensive policy and legislative framework  d(#governing natural resources management; strengthened capacity of the public and private institutions  d(#responsible for managing natural resources and the environment; introduction of management systems  d(##that focus on achievement of community-level performance targets (i.e., that link financial  d(#!disbursements with achievement of specific results at the community level); and achievement of  d(#sustainable financing for private initiatives. Efforts in this area are relatively new, but build on USAID's  d(#limited, but highly successful involvement with pilot programs in agroforestry and land management.  d(#MMajor program activities to support this goal were initiated in FY 1996, so it is still too early to assess  d(#jprogress and results. FY 1997 funding will support the expansion of community-based action programs,  d(#Nenvironmental monitoring efforts, an environmental education program, and strengthening wildlife conservation activities.  }K@- ,`g Strategic Objective 2:` Increased Sustainable Use, Conservation and Management of Renewable Natural Resources(#  }K!- Agency Goal: Building Democracy  }K`"-  d(#MAfter 30 years of repressive one party rule, Malawi joined the family of democratic nations with free  d(#and fair national elections in May 1994. The United States, through USAID, has a significant  d(#{opportunity to contribute to Malawi's efforts to consolidate its democratic system. One of USAID's  d(#major objectives in Malawi is to increase dramatically Malawian participation in transparent and accountable political and economic institutions.  d(#Over the past two years, USAID efforts have helped to strengthen the parliament by establishing a  d(#women's caucus and oversight committees; strengthen the judiciary through training; and, expand the  d(#!electoral commission by establishing a permanent secretariat and improving the administration of"h)0*0*0*z+"  d(#\elections. However, Malawi's democratic institutions are young and fragile and the executive branch  d(#zremains dominant after 30 years of dictatorship. Continued assistance is required, and there is ample  d(#evidence that this assistance is making a difference. Moreover, the parliament is holding open debates,  d(#making amendments to legislation introduced by the executive and has recently passed comprehensive  d(#^anti-corruption legislation. The electoral commission has successfully conducted free and fair  d(#/parliamentary by-elections in several districts with no outside support. Civic groups are beginning to  d(#lobby parliament and GOM ministries. Finally, the judiciary overturned several important decisions made  d(#by the executive branch. The political parties and the GOM have increased their efforts to communicate  d(#the rationale for, and consequences of, economic policies and are now discussing important policy issues publicly with civil society.  d(#MMalawi's institutions of civil society and democratic governance have made plans and taken steps to  d(#!increase their capabilities. But, institutional development is a long-term process, especially when  d(#enthusiasm and vulnerabilities are particularly high. Strong support from USAID and other donors is most critical.  }K - ,` B  Strategic Objective 5: ` Institutional Base for Democratic Participation Strengthened and Broadened B (# "0*0*0*"  }K- nMALAWI  }K- .FY 1997 PROGRAM SUMMARY ă  }K-#SxP7{wP##hxP7krP# h ddx !ddxX Zh    &&   `F#O PE37P#J"        _ Encouraging g Broadbased  Economic  Growth0"Wx CXStabilizing LWorld @?Population D`Growth & BbProtecting HHuman HHealth 0"8 8 8 8 8 "Protecting the Environment0"      Building Democracy0"5 5 5 5 5 "Providing FHumanitarian Assistance0"              qTOTALS  X &&  USAID Strategic Objectives              z 0 &v&  1. Increased Agricultural Incomes on a Per Capita Dev. Fund for Africa~ v#*, *,  7,321,426~ v#t~ v#~ v#l~ v#R,M!~ v#MV" V" ) 7,321,426z    &v&  2. Increased Sustainable Use, Conservation, & Management of Renewable Natural Resources Dev. Fund for AfricaD#*,D#tD#X01Í ÍX11Í Í    <14,591,467X11Í ÍX1*Í ÍD#lD#R,M!D#MV" V" V" V" |14,591,467   ~  &&  3. Increased Adoption of Measures that Reduce Fertility and HIV Dev. Fund for Africad#*,d#t t t L|12,855,491d#d#ld#R,M!d#MV" V" V" |12,855,491   D &&  4. Increased Access to, and Quality and Efficiency of Basic Education, Especially for Girls Dev. Fund for Africa*#*, *, *, *,  3,600,000*#t*#*#l*#R, R, R, R,*#V" V" V" V" }) 3,600,000   d &&  5. Institutional base for Democratic Participation Strengthened and Broadened Dev. Fund for AfricaJ#*, *, *,  2,000,000J#tJ#J#l l l ?2,611,488J#R, R, R, R,J#V" V" V" ) 4,611,488    * &&   `F Totals Dev. Fund for Africa#*,  12,921,426#t L|12,885,491# <14,591,467#l ?2,611,488#R,#V" x42,979,872  J  }K@-#hxP7krP# `|(#USAID Mission Director: Cynthia F. Rozell " 0*0*0* @" COACTIVITY DATA SHEET  }K- PROGRAM: MALAWI  }KX- TITLE AND NUMBER : Increased Agricultural Incomes on a Per Capita Basis, 612S001  }K - STATUS: Continuing  }K- PROPOSED OBLIGATION AND FUNDING SOURCE: FY 1997: $7,321,426 DFA  }K- INITIAL OBLIGATION : FY 1996; ESTIMATED COMPLETION DATE : FY 2000  }Kx-  }K@- d(#  Purpose: To increase smallholder access to agricultural inputs, output markets, and cash crop production alternatives using policy dialogue and project assistance.  }K- d(# Background: Agriculture is the backbone of the Malawian economy. It employs 85% of the  d(#economically active population, accounts for 38% of the GDP, involves 91% of the labor force and  d(#produces over 90% of Malawi's foreign exchange earnings. The elimination of policies and practices  d(#?that discriminate against smallholders, while improving market access by restructuring parastatal  d(#monopolies, are the first steps to increasing incomes and ensuring national and household food security. Increased agricultural incomes will improve access to education and health services.  }KH -   }K- d(#USAID Role and Achievements to Date: USAID has focused its efforts on increasing smallholder cash  d(#incomes. Its joint effort with the GOM has significantly reduced the economic control of the parastatal  d(#marketing organization and is proving instrumental in gaining legal access for smallholders to world  d(#markets for their cash crops. The USAID program has already helped increase smallholder production  d(#.and incomes. Smallholder farmers are growing more cash crops of their choice, marketing those crops  d(#freely, and retaining a higher proportion of the selling price. The number of women farmers selling  d(#zexport crops directly to the international market has increased by almost 30%. The program has also  d(#kincreased employment and income for rural labor as well as those producing goods and services for farmers with higher disposable incomes.  }K- d(# Description: Achieving broadbased economic growth in Malawi depends on increasing rural agricultural  d(#kincomes. Rural income growth is restricted first and foremost by the prices farmers receive for their  d(#crops. In the past the GOM controlled input and output prices, and maintained policies that inhibited  d(#Mthe development of competitive markets and kept a lid on farm gate prices. High transportation costs  d(#]for imported inputs, such as fertilizers, also constrained agricultural productivity and rural income  d(#growth. USAID's primary focus is on increasing per capita rural incomes as the foundation for broad d(#.based economic growth. This will be achieved through activities aimed at: (1) decontrolling agricultural  d(#input and output markets, thereby creating a conducive environment for; (2) expanding farmerowned  d(#rural agribusiness and cooperative marketing activities: and (3) reducing the transportation costs of imported agricultural inputs and exports.  }Kx- d(# Host Country and Other Donors: Other major donors include the World Bank and European Community  d(#(EC). The World Bank provides agricultural research, extension services, rural credit assistance and rail  d(#[transportation commodity assistance. The EC provides assistance in improving household food security  d(#Mthrough expanded use of fertilizers, agroforestry and other land husbandry techniques. While other  d(#donors are also involved in the sector, their contributions are more limited and geographically focused.  d(#Host country contributions include in kind and budgetary support to activities contributing to the achievements of this objective.  }K$- d(# Beneficiaries: The 1.8 million smallholder farm families with limited access to resources, including 390,000 femaleheaded families, and all farmers who rely on imported inputs and exporters.  }K'- d(#0 Principal Contractors, Grantees, or Agencies: USAID implements activities through University of  d(#Arizona/Clark University, Harvard Institute for international Development, Washington State University, Lincoln University (Jefferson City, Missouri), Agricultural Cooperative Development International, Bunda "(0*0*0**@"  d(#College of Agriculture (Malawi), International Institute for Tropical Agriculture, and several government ministries.  }KX-Major Results Indicators:hhCqppBaseline  )Target  }K-Real per capita incomes for smallholder tobacco producerspp$153 (1992)  )$255 (1997) Share of smallholder cultivated area planted to nonmaize  }Kx-crops` `  hhCqpp19% (1990)  )36% (1997)  }K@-Ratio of smallholder root crop area to smallholder maize areapp6.8%(1990)  )15% (1997)"@ 0*0*0*@"  COACTIVITY DATA SHEET  }K- PROGRAM : MALAWI  }KX- d(#< TITLE AND NUMBER : Increased Sustainable Use, Conservation and Management of Renewable Natural Resources, 612-S002  }K- STATUS: Continuing  }K- PROPOSED OBLIGATION AND FUNDING SOURCE: FY 1997: $14,591,467 DFA  }Kx- INITIAL OBLIGATION: FY 1996; ESTIMATED COMPLETION DATE: FY 2001  }K- d(#Purpose: To increase sustainable use, conservation and management of renewable natural resources  d(#[by establishing a policy framework and an environment that will empower Malawi to reverse the current destruction of the natural resource base.  }K( - d(#Background: Income increases and food security can only be assured K Malawi protects its inherited  d(#kresource base. Rampant depletion of the country's forests, soil and water resources is undermining  d(#its agricultural base - upon which 95% of Malawians depend for food, employment and energy. Failure  d(# to undertake policy and institutional reforms along with community-based protection activities entails  d(# enormous risks for chronic malnutrition, worsening national incomes, civil strife and long-term donor  d(#dependence. Improved natural resource management is also linked to achievement of other U.S.  d(#mGovernment objectives in Malawi (i.e., agriculture and population}. Improved land management  d(#contributes to increased agricultural productivity and hence increased rural incomes. The latter  d(#enhances economic security leading to reduced family size. Increasing rural incomes of 85% of the  d(#poorest Malawians is the major challenge to consolidating the country's fragile democracy. Finally, economic growth in Malawi will not be self-sustaining without preservation of the resource base.  }K- d(#USAID Role and Achievements to Date: This strategic objective, initiated in FY 1995, significantly  d(#expands on USAID's limited but highly successful involvement with pilot programs in agroforestry and  d(#environmental monitoring. The primary vehicle for achieving this objective is the new Natural  d(#MResources Management and Environmental Support Program (NATURE). NATURE activities began in  d(#FY 1996 with the Government of Malawi's (GOM) satisfactory completion of initial program conditions. It is too early to assess progress and results.  }K- d(#Description: Under this strategic objective, the GOM will establish a unifying, national policy and  d(#legislative framework governing natural resource management; strengthen the human, institutional and  d(#legal resources responsible for managing natural resources; introduce a management system that  d(#^focusses on achievement of field-level accomplishments (i.e., links financial disbursements to  d(#Lachievements of specific performance targets); and establish mechanisms for the sustainable financing  d(#mof private environmental initiatives. Supporting these objectives are activities in such areas as  d(#environmental policies, environmental education, community-based natural resources management and overall provision of technical support.  }K - d(#Host Country and Other Donors: Other donors, primarily the World Bank, European Community and  d(#=the British Overseas Development Administration, are actively developing assistance programs directed  d(#Lat natural resource management and addressing constraints and opportunities that complement USAID's  d(#program. USAID's efforts focus on enabling the policy and institutional environment to enhance  d(#kfeasibility, success and sustainability of all GOM and donor financed program and project activities in this sector.  }K%- d(#Beneficiaries: The 85% of Malawi's population live and work in rural areas. Improved natural resource  d(#management contributes to increase agricultural productivity and hence increased sustainable rural incomes and food security.  }K'-"' 0*0*0*)@"Ԍ }K- d(#Principal Contractors, Grantees, or Agencies: Activities under this strategic objective will be  d(#implemented primarily through the University of Arizona/Clark University, Academy for Educational Development, and six government m B i B nistries.  }KX-  }K -Major Results Indicators:  }K-` `  hhCqBaselineX1*Í ÍX0*Í Í@Target=Xe }K-č To be determined.=  }K-Area of indigenous woodland under communityTBD 11996)TBD 11997) based management  }K@-Cultivated land under improved conservationqTBD 11996)TBD (1997) practices " 0*0*0* @" COACTIVITY DATA SHEET  }K- PROGRAM : MALAWI  }K- d(#Z TITLE AND NUMBER : Increased Adoption of Measures that Reduce Fertility and AIDS/HIV Transmission, While Promoting Child Health Practices, 612-S003  }K - STATUS: Continuing  }K- PROPOSED OBLIGATION AND FUNDING SOURCE : FY 1997: $12,855,491 DFA  }K- INITIAL OBLIGATION : FY 1996; ESTIMATED COMPLETION DATE : FY 2000  }K@- d(#Purpose: To reduce fertility by supporting the Government of Malawi and private sector family planning, HIV/AIDS and child survival programs.  }K- d(#zBackground: Malawi's fertility, HIV infection and infant and child mortality rates are among the highest  d(#in the world. High fertility and mortality are closely interlinked. Both are a cause and effect of poverty,  d(#illiteracy, and the poor health, educational attainment and socio-economic status of women. Because  d(# studies have shown that contraceptive use is low where infant and child mortality is high, improved  d(#child survival contributes significantly to reducing fertility. About one in seven adults is HIV positive  d(#/in Malawi. HIV/AIDS afflicts those in their most productive years, which adversely affects economic growth and per capita incomes.  }K- d(#/USAID: Role and Achievements to Date: Malawi's total fertility rate declined from 7.2 to 6.7 between  d(#]1984 and 1992. Infant mortality rates dropped from 138 to 134 deaths per 1,000 live births, while  d(# under five mortality is now reported at 234, as compared with 246 five years earlier. USAID efforts  d(#have also contributed to the increased decentralization of health services and management; a revised  d(#Mfamily planning policy; the training of over 600 community health workers; provision of potable water  d(#for some 40,000 persons; and improved quality of health care. USAID-sponsored research has led to  d(#a revised malaria control program resulting in the introduction of fansidar as the first line treatment for  d(#\malaria. While the fight against the spread of the AIDS virus is beyond USAID's manageable interest,  d(#Othere has been progress in the number of condoms marketed, improved treatment of sexually  d(#transmitted diseases (STDs), and noted changes in behavior as a result of HIV/AIDS education programs.  }K8- d(#lDescription: USAID focuses on increasing access to family planning and services. USAID and its  d(#=partners also develop and disseminate HIV/AIDS and STDs prevention materials among high-risk groups  d(#?and the general population. This includes: increasing access to condoms and condom education  d(#[messages; providing greater access to family planning information and the private and public clinic-base  d(#jservices; increasing couple-years-of protection through modern methods; and expanding the community  d(#of family planning service providers. USAID also works to expand the capacity of district health  d(#providers to deliver primary health interventions; improve the effectiveness of treatment of malaria;  d(#.increase safe water supplied to rural communities; and increase the use of oral rehydration therapy for diarrhea.  }K - d(#=Host Country and Other Donors: Other donors include the European Community, World Bank, Overseas  d(#_Development Agency (ODA) United Kingdom, United Nations Children's Fund, World Health  d(#0Organization, United Nations Population Fund (UNFPA), United Nations Development Program and  d(#German aid. UNFPA supports a number of training and communication initiatives. The ODA is working  d(#with non-government organizations to expand the number of subsidized family planning clinics in urban  d(#Nand semi-urban areas. Injectables and Norplant are provided by ODA. The World Bank supports  d(#training health workers and improving clinic facilities. The Germans provide funds for the social marketing of contraceptives.  }K'-Beneficiaries: Women of child-bearing age, infants and children under five.  }K(- d(#|Principal Contractors, Grantees, or Agencies: USAID implements activities through John Snow  d(#International, Inc., Save the Children Federation U.S., Project HOPE, International Eye Foundation,"h) 0*0*0*z+@"  d(#Population Services International, World Vision International, Adventist Development and Relief Agency,  d(#Malamulo Hospital, National Association of Business Women, Adventist Health Services, Malawi Association of Spices and Herbs, and the Ministry of Health and Population.  }K -Major Results Indicators:  }K-X` hp x (#%'0*,.8135@8:all statistics indicate rising numbers and proportions of girls in school at both the primary and tertiary  d(#\levels. The utilization of Malawi's teacher training college h