Note: This document may not always reflect the actual appropriations determined by Congress. Final budget allocations for USAID's programs are not determined until after passage of an appropriations bill and preparation of the Operating Year Budget (OYB).

MALAWI

FY 1998 Development Fund for Africa . . . . . . . . . . . . . . . . . $37,400,000

Introduction

In spite of severe development problems, there is hope and opportunity for the U.S. aid program to Malawi to provide the kind of assistance that will both strengthen the country's economic and political institutions and further broader U.S. foreign policy objectives associated with the advancement of a growing, politically open and prosperous Africa. Malawi's macroeconomic management is good and the policy framework is a sound one, marked by aggressive and realistic fiscal management, good monetary policy, and market-determined exchange rates. Economic distortions, particularly in agricultural marketing, are being reduced significantly with USAID's help. Structural reform has begun in agriculture, with clear benefits accruing to the poor majority. Enrollment in primary education has increased markedly, again with financial support from USAID. Finally, the most significant recent event was the free and fair presidential and parliamentary elections in May 1994 following thirty years of authoritarian one-man, one-party rule. Furthering democratic development is fundamental to U.S. foreign policy interests in Malawi. Only if pluralism and respect for human rights flourish will the benefits of economic growth reach Malawi's poor. Likewise, strong economic growth is viewed by Malawians as a benefit to be accrued in a democracy. Thus, Malawi's democratic development and its economic growth go hand-in-hand. Together, they contribute to a more stable country and region, and in the long-term, a more mature partner for U.S. trade and investment. Moreover, with political democracy a fragile, but real achievement, the new government realizes that public support will fade quickly without demonstrable economic progress. Consequently, it has begun the process of dismantling and privatizing state-owned enterprises, as well as the policy apparatus and bureaucracy that stifled private enterprise development. Simultaneously, it is attacking rural poverty through self-help and policies that encourage income generation in rural communities. Failure to free the private sector and reduce rural poverty will undermine the country's fledgling democracy.

The Development Challenge

Malawi, a new democracy, is a small land-locked country about the size of Pennsylvania located in southeastern Africa. It is one of the poorest countries in the world.

Malawi's political and economic development has been impeded historically by its narrow economic base, concentrated ownership of assets, limited foreign and domestic investment, authoritarian leadership, high population growth, and low education levels. Social welfare indicators and per capita incomes actually worsened between independence (1964) and the early 1990s. Life expectancy at birth is under 45 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 the prevalence of HIV/AIDS is high and growing. Annual per capita gross domestic product (GDP) is estimated at about $100.

The vast majority of Malawians live and work in rural areas, making both survival and economic growth dependent on agriculture. The country's food and agricultural problems were exacerbated by three serious droughts in four years between 1991 - 1995. The modern commercial economy is small and dominated by a few firms that hold oligopoly power over trade, agribusiness, and the financial sector. High population density, disease, small land holdings, traditional agricultural techniques and pervasive poverty contribute to deforestation, overworked soils and low agricultural output.

Peace in the southern Africa region, Malawi's successful transition to pluralistic political and economic systems, and commitment to poverty alleviation have brought a spirit of hope and opportunity to the country. Macroeconomic management and the policy framework are sound, marked by aggressive and realistic fiscal management, good monetary policy, and a market-determined exchange rate. Acomprehensive assault on poverty began in 1994 with significant government, private sector, and donor support. New education policies have increased enrollment in primary schools by more than 50%. Many of the most serious economic distortions, particularly in agricultural production and marketing, have been eliminated with clear benefits accruing to the poor majority. In 1996, Malawians saw the beginning of a sustainable supply-response to Government of Malawi (GOM) policy and investment measures: inflation fell from 98% in July 1995 to 8% in December 1996, and interest rates on commercial lending dropped from 47 % - 52 % in September 1995 to 24 % - 29 % in October 1996. In 1995/96, maize production increased by 38% and non-traditional food crops, by over 80%. The percent of GDP earned by Malawian smallholders increased by nearly 40%. In short, the GOM's emphasis on poverty alleviation gives hope to the rural poor and has produced some tangible results. Nevertheless, the magnitude and complexity of the country's developmental problems means that Malawi is not a candidate for graduation from development assistance in the short term. The country's economic progress and its commitment to restructure both its economy and its political organizations to include all Malawians, however, makes Malawi an excellent partner for U.S. development assistance.

Other Donors

The United States and the United Kingdom are Malawi's largest and most influential bilateral partners. Other major bilateral contributors include: Germany, Japan, Canada, the Netherlands and Denmark. In recognition of Malawi's potential and its development assistance performance, other bilateral donors (Norway, Australia, and Sweden) have recently announced a readiness to expand or begin development programs in Malawi.

Malawi has maintained a strong relationship with the World Bank (IBRD) and International Monetary Fund (IMF) since the early 1980s. Performance under the IMF's ESAF arrangement has been satisfactory. The European Commission is a large, resident donor, and UN agencies maintain a presence and active programs in Malawi. The world Bank is the largest donor with programs supporting structural adjustment and major sectors. The African Development Bank finances several important operations.

FY 1998 Program.

USAID's strategy for helping Malawi achieve broad-based, sustainable economic growth concentrates on raising agricultural incomes. Through institutional and policy reforms plus targeted projects to promote competition, liberalize markets, and improve management of the country's constrained natural resources, USAID is helping to improve the standard of living of the majority of the population. Improving access to family planning services, child health programs, primary education, and STD services to reduce HIV/AIDS transmission lead to greater human capacity and potential and contribute to the sustainability of economic growth. Building decentralized public, private and voluntary institutions for Malawi's democratic future will ensure that more Malawians have a greater say in how their resources are allocated and enable them to more fully participate in the benefits of growth.

Agency Goal: Encouraging Broad-based Economic Growth

Increasing competition and access to agricultural markets, while improving the management of Malawi's natural resources, are the first steps to increasing per capita incomes on a sustainable basis. In the agriculture and natural resources areas, USAID programs develop market-based service institutions, increase economic opportunities for smallholders, develop public capacity for policy reform, and introduce low-cost agroforestry practices to improve soil fertility and increase crop yields. During the past year USAID has expanded successful activities to further liberalize agricultural input and commodity markets. GOM seed and fertilizer subsidies were eliminated for the 1995/96 season, and ineffective parastatal entities are being dismantled, triggering a resounding private sector response in these areas. Reform has provided private traders with the impetus to expand their activities and contribute to a dynamic, sustainable rural economy based on markets free of state controls.

In 1996, USAID expanded on-going efforts to enhance market competitiveness and reform GOM parastatal institutions whose operations directly impact smallholder farmers. The GOM began privatizing agricultural parastatals, and the exclusive role of the agricultural marketing parastatal in consumer and producer pricing was eliminated. GOM intervention is now limited to the maize market, where a wide price band has been established. Previous administrative restrictions have been eliminated and smallholders are now free to cultivate more lucrative cash crops and a wider range of food crops. The result has been greater food security and higher incomes for those smallholders that have been able to take advantage of the liberalized markets, as well as laborers receiving higher daily rates of pay. The rapidly increasing number of smallholder farm families (from 7,000 to over 90,000 in the past four years), producing a variety of products for the export market and non-maize food crops for the domestic market, are visible results of USAID-sponsored activities. With USAID support, the multiplication and distribution of improved cassava and sweet potato planting material to smallholder farmers has led to dramatically expanded planting and significant yield increases for these low-input, drought-resistant food crops. The increase in demand for these crops has led to a commercial market in planting material, replacing the old GOM giveaway programs.

A significant reduction in transportation costs is essential to improving financial returns to Malawi's small farmers. The restructuring of Malawi Railways and the development of a transport policy to encourage domestic and regional competition are crucial to achieving this. With USAID assistance Malawi Railways formally privatized and restructured itself in 1995 and is now operating without government subsidy. Preparations are underway for a private concession to operate the rail line. Meanwhile rail haulage is saving substantial amounts in transport costs for inputs and export products in this landlocked country as competition between rail and road routes increases.

The GOM is committed to economic liberalization of the agricultural and related sectors. Faced with an inherited and seriously distorted macro-economic framework, the government in 1994 moved quickly to stabilize conditions. Tight monetary and fiscal policies eliminated the GOM's ability to provide incentives to farmers through any method other than market forces, i.e., price policy. The elimination of fertilizer, seed and credit subsidies at the same time that the Malawi kwacha depreciated almost four-fold, resulted in a dramatic increase in the nominal domestic price of inputs. In addition, three years of drought during the 1991-95 period decimated maize production. But good rainfall in 1996 allowed the liberalized, subsidy-free rural economy to show its stuff. A near record maize harvest coupled with big increases in cassava, sweet potatoes and export crops demonstrates a decidedly positive supply response to a market-based economic environment by the Malawian farmer.

FY 1998 funds will further transform the agricultural sector by expanding smallholder enterprise development, continuing development of crop diversification and sustainable agroforestry technologies, and extending food security monitoring and the famine early warning system.

Africa Food Security Initiative. In FY 1998, USAID/Malawi's activities to strengthen agriculture and food security will be enhanced by this new initiative. Funds will be used to expand farmer's access to research results for root crops (cassava and sweet potatoes are drought-resistant food security crops in Malawi), improve farmer's incomes through the development of business-oriented producer associations, and support policy-oriented research and analysis on household level food security concerns.

Malawi's economic growth potential is constrained by low capacity levels characterized by high levels of illiteracy. The country's basic education system is weak and overtaxed. While the introduction of free primary education in 1994 dramatically increased school enrollment, it exacerbated problems in a primary school system where schools remain overcrowded, teachers are poorly trained, and teaching materials are inadequate or unavailable. High dropout and repetition rates, especially for girls, while recently somewhat improved, reduce the efficiency of the system.

With USAID's assistance beginning in September 1991, together with the introduction of free primary education in 1994, access to schooling has improved. Key results achieved include an increase in enrollment rates (and an increasing share of girls in total enrollment) in primary schools; a dramatic increase in the GOM's education recurrent budget, and in the budget for primary education; and a dramatic reduction in girls' repetition and dropout rates in primary schools. Repetition rates for girls dropped from 20% in 1992/93 to 17.5% in 1993/94.

Under the Girls' Attainment in Basic Literacy and Education (GABLE) Program, USAID is supporting decentralization measures to improve the long-term financial resource base for primary education while improving the quality, availability and efficiency of public education through materials development and improving the relevance of the curriculum for girls.

In 1995, a community level social mobilization campaign in one pilot district had dramatic results including: a marked increase in girl's enrollments; a substantial reduction in the female dropout rate (for the first time the drop-out rate for girls was lower than that for boys); and a dramatic increase in the number of girls matriculated into secondary school. The campaign is being expanded nationwide, and FY 1998 funds will support national coverage.

As noted previously, furthering democratic development is also fundamental to U.S. foreign policy interests in Malawi. Only if pluralism and respect for human rights flourish will the benefits of economic growth reach Malawi's poor. Likewise, strong economic growth is viewed by Malawians as a benefit to be accrued in a democracy. Thus, Malawi's democratic development and its economic growth go hand-in-hand. USAID assistance is therefore financing women's economic empowerment and economic policy and governance activities.

* SO 1 Increased agricultural incomes on a per capita basis.

* SO 4 Increased access to and quality and efficiency of basic education, especially for girls.

* SO 5 Institutional base for democratic participation strengthened and broadened.

Agency Goal: Stabilizing World Population Growth and Protecting Human Health

Of the total funding requested for Population and Health, $4,500,000 is planned for population activities and $6,900,000 is planned for health activities.

Malawi's population growth rate is among the highest in the world and is one of the country's key development constraints. High population growth exacerbates poverty, illiteracy, and disease. One of USAID's ultimate goals in Malawi is to help lower the population growth rate by encouraging the adoption of modern contraceptive methods, promoting technologies to reduce infant and child mortality, morbidity and malnutrition; and encouraging behavioral change to reduce the spread of HIV/AIDS, a major cause of death.

Malawi's total fertility rate dropped from an estimated 7.2 children per woman in 1984 to 6.7 in 1992 but the rate is still too high. Since 1992, regulations restricting the provision of contraceptive methods to married women with children have been completely removed. But only in 1994 did the GOM adopt a national population policy to expand voluntary family planning services. During the past year it enacted guidelines to improve access to services and streamlined its contraceptive management system. The adoption of modern methods of family planning has increased from 7% to an estimated 14% since these changes were introduced.

The USAID-supported "Chishango" brand condom social marketing campaign, launched in September 1994, has greatly exceeded expectations. In a recent survey, 50% of respondents stated that they used condoms for family planning purposes and 80% were aware that condoms protect againstunwanted pregnancy as well as sexually transmitted diseases. This is remarkable in a country where until recently even the use of word condom was proscribed. However, the adoption of fertility reducing health programs by the government, the country's major service provider, has been slow because of the lack of qualified personnel, poor budgeting, and management problems. USAID, along with other donors, has pledged to assist in solving some of these problems in 1998.

An alarmingly high 12% of the adult population is infected with HIV, and over 40,000 deaths due to AIDS have been officially reported since the mid 1980s. The figure is believed to grossly underreport the actual number of deaths due to the disease, however. Although knowledge about how HIV is transmitted is high, changes in behavior that would indicate a slowing in transmission of this disease has been slow. Continued investments in activities aimed at behavioral change and expanded service delivery are crucial. USAID's substantial on-going investments will continue to address HIV and AIDS issues, provide STD detection and treatment services, and promote the use of condoms in the sexually active population.

Malawi's infant and child morbidity and mortality rates are among the highest in the world. Nearly one-half of all children are chronically malnourished. In an average year a child contends with six bouts of diarrhea, three or more episodes of malaria, and repeated respiratory infections. Supplies of first line anti-malarial treatment are available and preliminary data indicate that malaria morbidity and mortality have declined. USAID sponsors initiatives to promote greater use of insecticide-impregnated bed nets and curtains in pilot areas, and initial acceptance rates are is promising.

In 1995-96, the GOM demonstrated its priority for public health services by allocating an increased proportion of a restricted budget to the health sector and ensuring that greater percentages of that funding went to finance rural health services. Assistance to plan, manage, and monitor those resources better is urgently needed. USAID will assist in this area, along with other donors, starting in 1998.

* SO 3 Increased adoption of measures that reduce fertility and HIV/AIDS transmission, including improved child health practices.

Agency Goal: Protecting the Environment

Soil erosion and deforestation have reached alarming proportions in Malawi, largely as a result of population pressure. A serious concern is the loss of biodiversity and wildlife resources which lowers the country's tourism potential. Diminishing surface and ground water supplies are causing intermittent water and power shortages. Siltation and contamination of streams, rivers, dams, and lakes have far reaching effects, including the increased danger of flooding. Land access and ownership issues abound and negatively affect farmers' willingness to invest scarce resources in protection activities. USAID efforts focus first on developing a unifying, comprehensive policy and legislative framework governing natural resources management; strengthening human capacity in public and private institutions responsible for managing natural resources and the environment; introducing management systems that focus on community-level performance; and ensuring sustainability of financing for private initiatives. Efforts in this area are relatively new but build on USAID's highly successful involvement with pilot programs in agroforestry and land management. Strong GOM-donor coordination is now being forged and gives confidence that substantial improvements in the policy and legislative framework will be achieved in the next year.

FY 1998 funding will support the expansion of community-based action programs, environmental monitoring efforts, an environmental education program, and wildlife conservation activities.

* SO 2 Increased sustainable use, conservation and management of renewable natural resources.

Agency Goal: Building Democracy

After 30 years of repressive one party rule, Malawi joined the family of democratic nations with free and fair national elections in May 1994. The United States Government, through USAID, has a significant opportunity to contribute to Malawi's efforts to consolidate its democracy, recognizing the important, mutually-reinforcing relationship between democracy and economic development. One of USAID's major objectives in Malawi is to increase Malawian participation in transparent and accountable political and economic institutions.

USAID efforts have helped to strengthen parliament by establishing a structure for the establishment and functioning of oversight committees and a caucus structure, strengthened the judiciary through training and computerization; and, strengthened the electoral commission by establishing a permanent secretariat and improving the administration of elections. However, Malawi's new democratic institutions are young and fragile. The executive branch remains dominant. Continued assistance is required to the other branches of government and to other decentralized institutions to ensure adequate checks and balances. There is ample evidence that USAID assistance is making a difference. Parliament has held open debates, made amendments to legislation introduced by the executive, passed comprehensive anti-corruption legislation and passed a new, internationally acceptable constitution enshrining the human rights of all Malawians. The electoral commission has successfully conducted free and fair parliamentary by-elections in several districts with no outside support. Civic groups are beginning to lobby parliament and GOM ministries. The judiciary has ruled on several important and controversial cases often ruling against the executive. The rule of law has not only been accepted but it is widely and regularly respected.

Malawi's institutions of civil society and democratic governance have made plans and taken steps to increase their capabilities. But institutional development is a long-term process, and strong support from USAID in 1998 and following years is critical.

* SO 5 Institutional base for democratic participation strengthened and broadened.


MALAWI

FY 1998 PROGRAM SUMMARY

Encouraging

Broad-based

Economic

Growth

Stabilizing

World

Population

Growth and

Protecting

Human

Health

Protecting

the

Environment

Building

Democracy

Providing

Human-itarian

Assist.

TOTALS

1. Increased agricultural

incomes on a per capita

basis

Dev. Fund for Africa

10,000,000

---

---

---

---

10,000,000

2. Increased sustainable use, conservation & mgt.

of renewable natural resources

Dev. Fund for Africa

---

---

8,400,000

---

---

8,400,000

3. Increased adoption of measures that reduce fertility and risk of HIV transmission, including improved child health practices

Dev. Fund for Africa

---

11,400,000

---

---

---

11,400,000

4. Increased access to and quality and efficiency of basic education, especially for girls

Dev. Fund for Africa

4,200,000

---

---

---

---

4,200,000

5. Institutional base for democratic participation strengthened and broadened

Dev. Fund for Africa

900,000

---

---

2,500,000

---

3,400,000

TOTALS:

Dev. Fund for Africa

15,100,000

11,400,000

8,400,000

2,500,000

---

37,400,000

USAID Mission Director: Cynthia F. Rozell


ACTIVITY DATA SHEET

PROGRAM: MALAWI

TITLE AND NUMBER: Increased Agricultural Incomes on a Per Capita Basis, 612-SOO1

STATUS: Continuing

PROPOSED OBLIGATION AND FUNDING SOURCE: FY 1998: $10,000,000 DFA

INITIAL OBLIGATION: FY 1991; ESTIMATED COMPLETION DATE: FY 2000

Purpose: To increase smallholder access to agricultural inputs, output markets, and cash crop production alternatives using policy dialogue and project assistance .

Background: Agriculture is the backbone of the Malawian economy. It employs 85% of the economically active population, accounts for 38% of the GDP, involves 91% of the labor force and produces over 90% of Malawi's foreign exchange earnings. The elimination of policies and practices that discriminate against smallholders, while improving market access by restructuring parastatal 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.

USAID Role and Achievements to Date: USAID has focused its efforts on increasing smallholder cash incomes. Its joint effort with the GOM has significantly reduced the economic control of the parastatal marketing board and has been instrumental in expanding access for smallholders to world market prices for their cash crops. The USAID program has already helped increase smallholder production and incomes. Smallholder farmers are expanding cash crop production, marketing those crops freely, and retaining a higher proportion of the final selling price. The number of women farmers selling export crops directly to the international market has increased by almost 30%. The program has also increased employment and income opportunities for rural labor as well as those producing goods and services for farmers with higher disposable incomes.

Description: Achieving broad-based economic growth in Malawi depends on increasing rural agricultural incomes. Rural income growth is restricted first and foremost by the prices farmers receive for their crops. In the past the GOM controlled input and output prices, and maintained policies that inhibited the development of competitive markets and kept a lid on farm gate prices. High transportation costs for imported inputs, such as fertilizers, also constrained agricultural productivity and rural income growth. USAID's primary focus is on increasing per capita rural incomes as the foundation for broad-based economic growth. This will be achieved through activities aimed at: (1) decontrolling agricultural input and output markets, thereby creating a conducive environment for; (2) expanding farmer-owned rural agribusiness and cooperative marketing activities; and (3) reducing the transportation costs of imported agricultural inputs and exports. Funding under the new Africa Food Security Initiative will complement these activities and help to link them directly to national and household-level food security. The initiative will expand farmer's access to new technology for drought-resistant root crops, increase farm household income by supporting and expanding producer associations, and promote direct food security activities such as Malawian-led monitoring and research on household vulnerability and safety net interventions.

Other Donors: Other major donors include the World Bank and European Community (EC). The World Bank provides agricultural research, extension services, rural credit assistance and rail transportation commodity assistance. The EC provides assistance in improving household food security through expanded use of fertilizers, agroforestry and other land husbandry techniques. While other donors are also involved in the sector, their contributions are more limited and geographically focused. Host country contributions include in kind and budgetary support to activities contributing to the achievement of this objective.

Beneficiaries: The 2.2 million smallholder farm families with limited access to resources, including 475,000 female-headed families, and all farmers who rely on imported inputs and export markets.

Principal Contractors, Grantees, or Agencies: USAID implements activities through a U.S. firm, four U.S. universities, U.S. and local non-government organizations (NGOs), a local college, and six government ministries.

Major Results Indicators:

Baseline Target

1. Real per capita incomes for smallholder tobacco producers. 1992=$153 1997=$255

2. Share of smallholder cultivated area planted to non-maize crops. 1990=19% 1997=36%

3. Ratio of smallholder root crop area to smallholder maize area. 1990=6.8% 1997=15%


ACTIVITY DATA SHEET

PROGRAM: MALAWI

TITLE AND NUMBER: Increased sustainable use, conservation and management of renewable natural resources, 612-S002

STATUS: Continuing

PROPOSED OBLIGATION AND FUNDING SOURCE: FY 1998: $8,400,000 DFA

INITIAL OBLIGATION: FY 1995 ESTIMATED COMPLETION DATE: FY 2000

Purpose: To increase sustainable use, conservation and management of renewable natural resources by establishing a policy framework and an environment that will empower Malawi to reverse the current destruction of the natural resource base.

Background: Income increases and food security can only be assured if Malawi protects its inherited resource base. Rampant depletion of the country's forests, soil and water resources is undermining its agricultural base - upon which 95% of Malawians depend for food, employment and energy. Failure to undertake policy and institutional reforms along with community-based protection activities entails enormous risks for chronic malnutrition, worsening national incomes, civil strife and long-term donor dependence. Improved natural resource management is also linked to achievement of other U.S. Government objectives in Malawi (i.e., agriculture and population). Improved land management contributes to increased agricultural productivity and hence increased rural incomes. The latter enhances economic security and contributes to reduced family size. Increasing rural incomes of 85% of the 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.

USAID Role and Achievements to Date: This strategic objective, initiated in FY 1995, significantly expands on USAID's limited but highly successful involvement with pilot programs in agroforestry and environmental monitoring. The primary vehicle for achieving this SO is the new Natural Resources Management and Environmental Support Program (NATURE). Accomplishments to date of this new initiative include development and approval of both a rational environmental policy and a national environmental management bill - both of which are critical to establishing a comprehensive framework for governing natural resource use in Malawi. Additionally a program to review and revise sectoral legislation to insure its consistency with the new national environmental bill has been initiated.

Description: Under this SO, the GOM will establish a unifying, national policy and legislative framework governing natural resource management; strengthen the human, institutional and legal resources responsible for managing natural resources; introduce a management system that focusses on achievement of field-level accomplishments (i.e., links financial disbursements to achievements of specific performance targets); and establish mechanisms for the sustainable financing of private environmental initiatives. Supporting these objectives are activities in such areas as environmental policies, environmental education, community-based natural resources management and overall provision of technical support.

Other Donors: Other donors, primarily the World Bank, European Community (EC) and the British Overseas Development Administration (ODA), are actively developing assistance programs directed at natural resource management and addressing constraints and opportunities that complement USAID's program. USAID's efforts focus on enabling the policy and institutional environment to enhance feasibility, success and sustainability of all GOM and donor financed program and project activities in this sector.

Beneficiaries: The 85% of Malawi's population who live and work in rural areas. Improved natural resource management contributes to increase agricultural productivity and hence increased sustainable rural incomes and food security.

Principal Contractors, Grantees, or Agencies: USAID implements activities through a U.S. firm,. three U.S. universities, local private volunteer organizations (PVOs) and NGOs, and seven government ministries

Major Results Indicators:                                               Baseline     Target

Comprehensive national policy and legislative framework Established        1996 0%     1998 100%

Sectoral Policies revised and upgraded                                     1996 0%     1998 75 %

Hectares under improved agroforestry/soil conservation practices          1996 TBD*     1998 TBD

Percentage of protected land under improved management practices          1996 TBD*     1998 TBD

* Baseline studies currently under way TBD = To Be Determined

ACTIVITY DATA SHEET

PROGRAM: MALAWI

TITLE AND NUMBER: Increased adoption of measures that reduce fertility and HIV transmission, while promoting child health practices, 612-S003

STATUS: Continuing

PROPOSED OBLIGATION AND FUNDING SOURCE: FY 1998: $11,400,000 DFA

INITIAL OBLIGATION: FY 1991 ESTIMATED COMPLETION DATE: FY 2000

Purpose: To reduce fertility by supporting GOM and private sector family planning, HIV/AIDS and child survival programs.

Background: Malawi's fertility, HIV infection and infant and child mortality rates are among the highest in the world. High fertility and mortality are closely interlinked. Both are a cause and effect of poverty, illiteracy, and the poor health, educational attainment and socio-economic status of women. Because studies have shown that contraceptive use is low where infant and child mortality is high, improved child survival contributes significantly to reducing fertility. About one in seven adults is HIV positive in Malawi. HIV/AIDS afflicts those in their most productive years, which adversely affects economic growth and per capita incomes.

USAID Role and Achievements to Date: Malawi's total fertility rate declined from 7.2 to 6.7 between 1984 and 1992. Infant mortality rates dropped from 138 to 134 deaths per 1,000 live births, while under five mortality is now reported at 234, as compared with 246 five years earlier. USAID efforts have also contributed to the increased decentralization of health services and management; a revised family planning policy; the training of over 600 community health workers; provision of potable water for some 40,000 persons; and improved quality of health care. USAID-sponsored research has led to a revised malaria control program resulting in the introduction of fansidar as the first line treatment for malaria. While the fight against the spread of the AIDS virus is beyond USAID's manageable interest, there has been progress in the number of condoms marketed, improved treatment of sexually transmitted diseases (STDs), and noted changes in behavior as a result of HIV/AIDS education programs.

Description: USAID focuses on increasing access to family planning and services. USAID and its partners also develop and disseminate HIV/AIDS and STDs prevention materials among high-risk groups and the general population. This includes: increasing access to condoms and condom education messages; providing greater access to family planning information and the private and public clinic-base services; increasing couple-years-of protection through modern methods; and expanding the community of family planning service providers. USAID also works to expand the capacity of district health providers to deliver primary health interventions; improve the effectiveness of treatment of malaria; increase safe water supplied to rural communities; and increase the use of oral rehydration therapy for diarrhea.

Other Donors: Other donors include the EC, World Bank, ODA, UNICEF, WHO, UNFPA, UNDP and the German KFW. UNFPA supports a number of training and communication initiatives. The ODA is working with NGOs to expand the number of subsidized family planning clinics in urban and semi-urban areas. Injectables and Norplant are provided by ODA. The World Bank supports training health workers and improving clinic facilities. The Germans provide funds for the social marketing of contraceptives.

Beneficiaries: Women of child-bearing age, infants and children under five.

Principal Contractors, Grantees, or Agencies: USAID implements activities through a U.S. firm and several local and U.S. NGOs/PVOs, and the Ministry of Health and Population at all levels.


Major Results Indicators:                           Baseline              Target

1.Contraceptive Prevalence Rate (% using modern contraceptive methods) 1992 7.4% 1998 12.6% 2. Percentage of condom use reported - male with non regular partners 1992 7.2 1997 20% 3. Percentage of condom use reported - female with non regular partners 1992 1.4% 1998 20% 4. Oral Rehydration Therapy (ORT) use rate (% of under 5s with diarrhea - correctly treated with fluids and/or food 1992 63% 1998 80%


ACTIVITY DATA SHEET

PROGRAM: MALAWI

TITLE AND NUMBER: Increased access to, and quality and efficiency of basic education, especially for girls, 612-S004

STATUS: Continuing

PROPOSED OBLIGATION AND FUNDING SOURCE: FY 1998: $4,200,000 DFA

INITIAL OBLIGATION: FY 1991 ESTIMATED COMPLETION DATE: FY 1998

Purpose: To increase children's attainment, especially that of girls, in basic education by increasing access to and quality and efficiency of primary education.

Background: Malawi's primary education system is weak and overtaxed. While there has been some improvement in the past three years, schools are overcrowded, teachers are poorly trained, and teaching materials are inadequate. Access to primary education has been a problem, especially for girls. High dropout and repetition rates further reduce the efficiency of the system. With USAID's assistance and the introduction of free primary education, the situation has improved and most children now have access to school, but not necessarily to a quality education.

USAID Role and Achievements to Date: With USAID's assistance, and in spite of its fiscal problems, the Government of Malawi (GOM) has demonstrated its strong commitment to primary education by allocating more resources to this subsector than any other. The GOM introduced free primary education and promoted gender programs to advance girls' education. The total education budget devoted to learning materials has increased from about one percent in 1993/1994 to 8.6% in 1994/1995. USAID-funded activities also work directly with communities to encourage enrollment and persistence in school, especially for girls. USAID provides technical expertise to the GOM to introduce more efficient and better quality teaching methodologies. The mission's focus on girls has paid off as all statistics indicate rising numbers and proportions of girls in school at both the primary and secondary levels. The utilization of Malawi's teacher training college has been improved. Nationwide registration of all primary pupils is now done regularly, providing basic planning and management data for school administration. A pilot social mobilization campaign was completed, and the campaign was launched nationwide in October 1995.

Description: USAID's Girls' Attainment in Literacy and Education Program (GABLE) focuses on three areas: increasing the long-term financial resource base for primary education; improving the quality, availability, and efficiency of primary education; and improving the relevance of primary education for girls. GABLE technical assistance, training, research, limited commodities, and support of policy reform help to: improve education sector planning and support for policy reform help to: improve education sector planning and budgeting; construct schools; recruit and train teachers; privatize distribution of learning materials; develop gender-sensitive curriculum and train teachers in its use, and establish a girls' scholarship fund. Among GABLE's innovative programs are its social mobilization campaign to develop community action programs for increasing girls' enrollment and retention and a grant to Save the Children Federation (U.S.) to test new approaches for community governance of schools.

Other Donors: The World Bank provides support to primary and secondary education. While the ODA has, until recently, concentrated on secondary and tertiary education, it has recently launched a community schools project at the primary level. UNICEF has been involved in several small projects supporting adult literacy, pre-school and out-of-school youth. UNDP and UNESCO support curriculum development and the Ministry of Education's efforts to decentralize planning and management. The EC provides assistance for school construction, and equipment. Germany supported teaching of science in primary schools and is about to launch a basic education project. The African Development Bank supports building and equipping primary and secondary schools, and is developing a new education sector credit.

Beneficiaries: All children in Malawi's primary school system, estimated at over three million.

Principal Contractors, Grantees, or Agencies: USAID implements activities through two U.S. firms, local NGOs, local firms, and three government ministries.

Major Results Indicators:                        Baseline       Target

1. Net enrollment rate in Primary School -overall 1991 55% 1998 75% 2. Net enrollment rate in primary schools - girls 1991 52.4% 1998 75% 3. Primary repetition rate - overall 1991 20.2% 1998 15% 4. Primary repetition rate - girls 1991 20.4% 1998 15% 5. Primary pupil teacher ratio 1991 78.1% 1998 61.1%


ACTIVITY DATA SHEET

PROGRAM: MALAWI

TITLE AND NUMBER: Strengthened and broadened institutional base for democratic participation, 612-S005

STATUS: Continuing

PROPOSED OBLIGATION AND FUNDING SOURCE: FY 1998: $3,400,000 DFA

INITIAL OBLIGATION: FY 1994 ; ESTIMATED COMPLETION DATE: FY 2000

Purpose: To establish and consolidate democratic and civic institutions in Malawi by supporting efforts to establish and strengthen participatory and transparent governance.

Background: After 30 years of repressive one-party rule, Malawians freely elected a president on May 17, 1994 and adopted a new constitution guaranteeing basic human rights, including equal rights for women. With these steps, Malawi joined the family of democratic nations, and since then has continued to make impressive strides. The new parliament has established committees and procedures and has debated and challenged the new executive. The high court has demonstrated its independence in decisions concerning the conduct of a new government. Malawians, who are enjoying their new-found freedoms, agree that their democratic experience has only begun.

USAID Role and Achievements to Date: USAID has incorporated throughout its portfolio 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 the successful multiparty democratic elections in 1994. USAID identified a niche early and developed a democracy project, the Democratic and Civic Institution Development project (DECIDE). The mission was thus able to respond quickly to unforeseen and eleventh-hour crises, such as the need for a crash voter education program and election night radio coverage. The mission also worked with a myriad of partners -- a necessary task in the pre-election period.

Description: USAID focuses on strengthening newly-formed and weak institutions to ensure that Malawians will benefit from the democratic transition. Technical assistance, training and limited commodities are helping: the parliament to establish standing orders, committees and a women's caucus to better represent the Malawian people's interests; the judiciary to improve its standards and to more effectively and justly manage and dispose of its caseload; the Electoral Commission to strengthen its independent capacity to organize and supervise elections; civil society (including grants for strengthening NGOs focussing on women's empowerment and on human rights and democracy; and selected government ministries to make the economic reform process more participatory and transparent.

Other Donors: Donors developed a common position at the 1992 Consultative Group meeting to promote Malawi's political liberalization, and USAID has subsequently collaborated with the donor community to promote the 1993 referendum and 1994 elections. UNDP supports constitutional and legal reform. UNDP and IMF, working with the GOM, are leading donors on the issue of public sector capacity building. The EC has developed a project focussed on media development, reform of the legal system, and human rights for which it has provided a human rights advisor. ODA helps the Ministry of Justice improve administration, by providing lawyers to reduce the current backlog of cases and training for court interpreters. It is also providing support to police reform. Donors are working together and with the Ministry of Justice, the judiciary, and the Malawi Law Society to form a strategy for overall legal reform. The Germans are providing support for civic education and government decentralization.

Beneficiaries: All Malawians will benefit from a more transparent and responsive political andgovernance system. Direct beneficiaries include court users, civil society organizations, the judiciary, women, parliament, disadvantaged citizens, and local NGOs.

Principal Contractors, Grantees, or Agencies: USAID implements activities through three U.S. NGOs/PVOs, a U.S. university, local NGOs, parliament, the judiciary, the electoral commission, and four government ministries.

Major Results Indicators:                            Baseline     Target

1. Number of occasions Parliamentary Committees
consider submissions by non-governmental and/or
private sector associations.                        1996 TBD     1998 TBD

2. Percentage of Ist and 2nd tier court decisions 
set down for review by the high court               1996 TBD     1998 TBD

3. Number of laws discriminating against women
   amended or overturned by Parliament.             1996 TBD     1998 TBD

4. Increased number of civil society building activities
initiated by NGOs                                   1996 TBD     1998 TBD

5. Percentage of Elections judged free and fair by
independent observers                              1996 TBD     1998 TBD



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