Malawi - LDC and HIPC Initiative

Malawi - LDC and HIPC Initiative

1. LDC Criteria and Malawi characteristics

   • HDI 165/177
   • GDP $170/head/yr
   • Effected by Drought
     • Food shortages
       • 40% of pop on Emergency food support
   • High pop growth 2.6%/yr
     • High birth rate 5.7/woman
   • Dependent economy on export of Agg products
   • HIV/AIDS big problem
     • 1 mil HIV+
     • 90,000 deaths/yr
     • 1 mil Orphans
   • Life expectancy below 40yrs old

2. Characteristics

   • Sub-Saharan Africa
   • 115people/km2
   • 13mil people (2007)
   • High import costs
     • All fuel needs to be imported

3. Why so poor?

   • Under developed institutes
   • Poor physical infrastructure
   • Corruption
   • Low human capital investment (Lack of provision)
   • Difficult climatic conditions
   • Few natural resources
   • Resticted access for international markets
   • Foreign debt of $2.9bil
   • Poor Gov management (<2004)
     • >2004 Gov = spending and borrowing = low inflation

4. Eligable for debt relief (MDRI)

   • Ratio of debt to the value of exports = 300+%
   • 2000 eligable HIPC but didnt meet conditions set by IMF
     • Increased Gov spending of food due to famine
   • Payed $440mil by 2006