UN-OHRLLS :: Malawi

Malawi

Location: Southern Africa

Capital: Lilongwe

Population (2011): 15,879,252

Surface area: 118,484 sq km

Currency: Malawian Kwacha

GDP per capita (2009): US $ 318

Historical background:

Established in 1891, the British protectorate of Nyasaland became the independent nation of Malawi in 1964. After three decades of one-party rule under President Hastings Kamuzu BANDA the country held multiparty elections in 1994, under a provisional constitution that came into full effect the following year. Current President Bingu wa MUTHARIKA, elected in May 2004 after a failed attempt by the previous president to amend the constitution to permit another term, struggled to assert his authority against his predecessor and subsequently started his own party, the Democratic Progressive Party (DPP) in 2005. As president, MUTHARIKA has overseen some economic improvement. Population growth, increasing pressure on agricultural lands, corruption, and the spread of HIV/AIDS pose major problems for Malawi. MUTHARIKA was reelected to a second term in May 2009.

Economy – overview:

Landlocked Malawi ranks among the world's most densely populated and least developed countries. The economy is predominately agricultural with about 80% of the population living in rural areas. Agriculture, which has benefited from fertilizer subsidies since 2006, accounts for more than one-third of GDP and 90% of export revenues. The performance of the tobacco sector is key to short-term growth as tobacco accounts for more than half of exports. The economy depends on substantial inflows of economic assistance from the IMF, the World Bank, and individual donor nations. In 2006, Malawi was approved for relief under the Heavily Indebted Poor Countries (HIPC) program. In December 2007, the US granted Malawi eligibility status to receive financial support within the Millennium Challenge Corporation (MCC) initiative. The government faces many challenges including developing a market economy, improving educational facilities, facing up to environmental problems, dealing with the rapidly growing problem of HIV/AIDS, and satisfying foreign donors that fiscal discipline is being tightened. Since 2005 President MUTHARIKA'S government has exhibited improved financial discipline under the guidance of Finance Minister Goodall GONDWE and signed a three year Poverty Reduction and Growth Facility worth $56 million with the IMF. Improved relations with the IMF lead other international donors to resume aid as well. The government has announced infrastructure projects that could yield improvements, such as a new oil pipeline, for better fuel access, and the potential for a waterway link through Mozambican rivers to the ocean, for better transportation options. Since 2009, however, Malawi has experienced some setbacks, including a general shortage of foreign exchange, which has damaged its ability to pay for imports, and fuel shortages that hinder transportation and productivity. Investment fell 23% in 2009, and continued to decline in 2010. The government has failed to address barriers to investment such as unreliable power, water shortages, poor telecommunications infrastructure, and the high costs of services.

Human Development Index ranking (2010): 153 out of 169

Net Official Development Assistance (ODA) (2009): US $ 778 million

Top Three Donors of gross ODA (2008-2009 average):

United Kingdom, EU Institutions, United States

Total External Debt (2010): US $ 1.234 billion

HIPC Position (2011): Completion Point achieved

United Nations Membership date: 1 December 1964

New York Mission:

Address: Permanent Mission of the Republic of Malawi to the United Nations

866 United Nations Plaza, Suite 486, New York, N.Y. 10017

Telephone: (212) 317-8738, -8718

Telefax: (212) 317-8729