Malawi - Economy and Education
Malawi's economy is dominated by agriculture. 90% of families are
subsistence farmers, most growing maize as their main crop. Although
there is fertile land, the high population density, the small size
of farms, inadequate access to credit and high dependence on rainfall
constrain production. The country's GDP per capita is about $600
(ie £1 per day per person).
Malawi Crops
90% of the country's export income is derived from agriculture.
The main exports are tobacco (60%) tea, sugar, cotton and coffee.
Diversification into other cash crops has been limited. Industrial
growth is held back by inadequate raw materials, poor transport
infrastructure, lack of engineering and marketing capabilities and
problems of access to capital.
International loans and aid contribute about 30-40% of the national
budget. The previous government borrowed heavily, creating both a
high international debt burden and also high local interest rates
that prevent private investment in the economy. The economic and
anti-corruption reforms of the present government have qualified
Malawi for the debt relief program agreed at the 2005 G8 summit.
Economic development is dependent on improved education and
training for the population. Free universal primary education (8 years)
was introduced in 1994 but facilities are poor and there is a lack of
teachers. Many children do not complete primary schooling.
Pupils have to pass the Primary School Leaving Certificate to be
selected for a government secondary school (4 years). They also have
to pay fees for this stage of their education. There are a limited
number of places available in various vocational colleges and the
two universities.
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