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COUNTRY REPORT

COUNTRY REPORT. MALAWI by Wezi Shaba. DEVELOPMENTAL PONTENTIAL. Peace and stability Fertile soils which are suitable for growing different type of crops Abundant water resources for irrigation farming Water way project to open up the country ( Shire-Zambezi)

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COUNTRY REPORT

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  1. COUNTRY REPORT MALAWI by Wezi Shaba

  2. DEVELOPMENTAL PONTENTIAL • Peace and stability • Fertile soils which are suitable for growing different type of crops • Abundant water resources for irrigation farming • Water way project to open up the country ( Shire-Zambezi) • Agricultural diversification and intensification

  3. continued • Tourism industry as a complement to agriculture • Rural/ local industrialisation through One Village One Product where value is being added to agricultural products eg honey and juice processing • Discovery of exploitable Uranium mineral deposits

  4. DEVELOPMENTAL CHALLENGES(1960-2007)1. 1960-1993 • Neo colonialism tendencies • Dictatorship/oppressive regime • No respect for rule of law • No freedom of expression, association etc • Over dependence on tobacco for export

  5. ii 1993-2004 • Decade of misrule • High level corruption • High inflation and interest rates • Stagnant economic growth • Low education standards • HIV/AIDS • Nepotism

  6. continued • Rampart privatisation leading to high levels of unemployment • Trade liberalisation resulting in the influx of agricultural products such as eggs, milk etc which affected the local industry • SAPs and PRSPs which led to the removal of subsidies in agricultural inputs. • Food insecurity

  7. iii 2004-2008 • Privatisation continues • HIV/AIDS • High levels of unemployment • Political intolerance • High cost of living

  8. IN SEARCH OF A DEVELOPMENT STRATEGY FOR MALAWI • Policy shift from importing and consuming to manufacturing and exporting economy. • Malawi Vision 2020: long term devt strategy launched in 2000 • Malawi Poverty Reduction Strategy 2002: aimed at Sustainable poverty reduction through empowerment of the poor and managed to reduce poverty levels from 54.1% to 52.4% by 2005.

  9. continued • Malawi Economic Growth Strategy-2004 • Designed to strengthen sustainable pro poor growth through investments that would directly impact on economic growth • Emphasised on need for creation of favourable environment for pvt sector participation because it is the engine for growth in modern liberalised global economy

  10. continued • Malawi Growth Development Strategy-2007 Objective: To reduce poverty through sustained economic growth and infrastructure development. Overaching operational mid-term strategy for Malawi in the next 5 years to attain vision 2020

  11. continued • Is expected to transform the country from an importing and consuming to a manufacturing and exporting economy • To maintain fiscal discipline and balance up development and social spending

  12. MALAWI DEVELOPMENTAL CHALLENGES IN 2008 • Political intolerance • HIV/AIDS • Unemployment • Child labour • Infrastructure development • Non distributive economic growth ie despite economic growth, people are still poor (GDP 7.4%, Inflation 8.1% Interest rate 17.5%)

  13. TRADE UNION REACTION TO THE CHALLENGES • Trade union reactions have not been effective enough as often times, they are regarded as agents of opposition political parties or rebels when ever they provide alternative solutions to the problems. • This often times has seen the ruling governments trying to divide the trade unions so that they are less effective

  14. continued • Nevertheles, where ever necessary Trade unions have been calling for strikes which often times have resulted into better conditions. • Position papers have also been issued by the Trade unions though often times the government disregards them • Trade unions have also been in the fore front on a number of discussions with employers to improve working conditions. • Trade unions are actively involved in workers education, and awareness of their rights which has greatly contributed to the decrease in the number of industrial strikes and an improvement in working conditions in some companies.

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