Malawi, Economy

Why Malawi is poor?

The Economy of Malawi is mainly based on agriculture. 90 % of its population lives in rual areas. Agriculture represents 36% of the GDP , accounts for over 80% of the work force and represents about 80% of all exports. But Malawi's poverty is a result of vriety of factors:

1. Poor infrustructure

2. Corruption

3. Low human capital investment

4. Difficult climatic condition

5. Population density

6. Real income lossesdue to fall of prices of tobacco

Signs of poverty:

Table 1.

________________________________________

Malawi's human Development index

---------------------------------------------------------

HDI Value :164......... (0.437)

Life expectancy at birth(yrs.) : 166.......46.3

Adult literacy rate : 113.....64.1

edn. gross enrolment ratio : 124.........63.1

GDP per cap. in US $ PPP(est.2005) :667

Table 2 :

Selected indicatorsof human poverty of Malawi:

1. Human poverty index (2004): 79......36.7

2. Life after age 40( % 2004) : 165...........44.4

3. Drinking water availability : 85............27

4. Children underweight: 92....................22