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Malawi's Economic Development is hindered by its location and poor infrastructure. It does not have the basic transport facilities and most of its revenue comes from the single cash crop like tobacco, which it exports, to other countries.
Its Economic Development is also impeded by the high population growth rate, poor incentives for the foreign investors and its history of dictatorship. The life expectancy here, is very low and the mortality rate is very high. Of late their GDP has slashed to $166 from $180 in 2000. Children mostly suffer from malnutrition.
Malawi is one of the most heavily indebted countries wherein half of the state's earnings are spent to clear of the debts. Malawi got itself enrolled under the Enhanced Heavily Indebted Poor Countries Initiative, which will expectedly reduce the average annual debt service in another five years.
A democratic government, which has taken up certain economic reforms, has replaced the autocratic government and the United States of America is helping them out in their venture to establish the country as a self-sufficient country. The government is attempting to formulate policies to enhance economic liberalization in the country.
The US, UK, have been the traditional donors. South Africa has also been of considerable help to them. They are attempting to settle large industries and privatize most of them so that they can make economic development in leaps and bounds.
The USAID Program has arranged campaigns to increase the level of consciousness among the people by encouraging them to enroll their names in schools. Women literacy program has reaped good results. Apart form these they have also arranged professional training classes.
The FY2004 aims at raising awareness within the natives regarding the governing system, and income generation, democracy, health and education. Though the capacity of USAID is small yet the benefit gained out of it is quite significant. The UK, which is a major donor in this respect, also relies a lot on the USAID's technical assistance. Of late the USAID Program has been concerning itself with the development in the agricultural sector that will not only make the country self - sufficient but also increase opportunities in this field thus enhancing the scope of economic development.
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