Malawi

Hominid remains and stone implements have been identified in Malawi dating back more than 1 million years, and early humans inhabited the vicinity of Lake Malawi 50,000 to 60,000 years ago. Human remains at a site dated about 8000 BC show physical characteristics similar to peoples living today in the Horn of Africa. At another site, dated 1500 BC, the remains possess features resembling Negro and Bushman people.

Although the Portuguese reached the area in the 16th century, the first significant Western contact was the arrival of David Livingstone along the shore of Lake Malawi in 1859. Subsequently, Scottish Presbyterian churches established missions in Malawi. One of their objectives was to end the slave trade to the Persian Gulf that continued to the end of the 19th century. In 1878, a number of traders, mostly from Glasgow, formed the African Lakes Company to supply goods and services to the missionaries. Other missionaries, traders, hunters, and planters soon followed.

In 1883, a consul of the British Government was accredited to the "Kings and Chiefs of Central Africa," and in 1891, the British established the Nyasaland Protectorate (Nyasa is the Chichewa word for "lake"). Although the British remained in control during the first half of the 1900s, this period was marked by a number of unsuccessful Malawian attempts to obtain independence. A growing European and U.S.-educated African elite became increasingly vocal and politically active--first through associations, and after 1944, through the Nyasaland African Congress (NAC).

During the 1950s, pressure for independence increased when Nyasaland was joined with Northern and Southern Rhodesia in 1953 to form the Federation of Rhodesia and Nyasaland. In July 1958, Dr. Hastings Kamuzu Banda returned to the country after a long absence in the United States (where he had obtained his medical degree at Meharry Medical College in Nashville, Tennessee in 1937), the United Kingdom (where he practiced medicine), and Ghana. He assumed leadership of the NAC, which later became the Malawi Congress Party (MCP). In 1959, Banda was sent to Gwelo Prison for his political activities but was released in 1960 to participate in a constitutional conference in London.

On April 15, 1961, the MCP won an overwhelming victory in elections for a new Legislative Council. It also gained an important role in the new Executive Council and ruled Nyasaland in all but name a year later. In a second constitutional conference in London in November 1962, the British Government agreed to give Nyasaland self-governing status the following year.

Dr. Banda became Prime Minister on February 1, 1963, although the British still controlled Malawi's financial, security, and judicial systems. A new constitution took effect in May 1963, providing for virtually complete internal self-government. The Federation of Rhodesia and Nyasaland was dissolved on December 31, 1963, and Malawi became a fully independent member of the Commonwealth (formerly the British Commonwealth) on July 6, 1964. Two years later, Malawi adopted a new constitution and became a one-party state with Dr. Banda as its first president.

In 1970 Dr. Banda was declared President for life of the MCP, and in 1971 Banda consolidated his power and was named President for life of Malawi itself. The paramilitary wing of the Malawi Congress Party, the Young Pioneers, helped keep Malawi under authoritarian control until the 1990s. Increasing domestic unrest and pressure from Malawian churches and from the international community led to a referendum in which the Malawian people were asked to vote for either a multi-party democracy or the continuation of a one-party state. On June 14, 1993, the people of Malawi voted overwhelmingly in favor of multi-party democracy. Free and fair national elections were held on May 17, 1994.

Bakili Muluzi, leader of the United Democratic Front (UDF), was elected President in those elections. The UDF won 82 of the 177 seats in the National Assembly and formed a coalition government with the Alliance for Democracy (AFORD). That coalition disbanded in June 1996, but some of its members remained in the government. The President is referred to as Dr. Muluzi, having received an honorary degree at Lincoln University in Missouri in 1995. Malawi's newly written constitution (1995) eliminated special powers previously reserved for the Malawi Congress Party. Accelerated economic liberalization and structural reform accompanied the political transition.

On June 15, 1999, Malawi held its second democratic elections. Dr. Bakili Muluzi was re-elected to serve a second 5-year term as President, despite an MCP-AFORD Alliance that ran a joint slate against the UDF. As of October 2001, the UDF holds 96 seats in the National Assembly, while the AFORD holds 30, and the MCP holds 61. Six seats are held by independents who represent the National Democratic Alliance (NDA) opposition group. The NDA is not recognized as an official political party at this time. The National Assembly has 193 members, of whom 17 are women, including one of the Deputy Speakers.

Malawi is a landlocked, densely populated country. Its economy is heavily dependent on agriculture. Malawi has few exploitable mineral resources. Its two most important export crops are tobacco and tea. Traditionally Malawi has been self-sufficient in its staple food, maize, and during the 1980s exported substantial quantities to its drought-stricken neighbors. Agriculture represents 36% of the GDP, accounts for over 80% of the labor force, and represents about 80% of all exports. Nearly 90% of the population engages in subsistence farming. Smallholder farmers produce a variety of crops, including maize (corn), beans, rice, cassava, tobacco, and groundnuts (peanuts). Financial wealth is generally concentrated in the hands of a small elite. Malawi's manufacturing industries are situated around the city of Blantyre.

Malawi's economic reliance on the export of agricultural commodities renders it particularly vulnerable to external shocks such as declining terms of trade and drought. High transport costs, which can comprise over 30% of its total import bill, constitute a serious impediment to economic development and trade. Malawi must import all its fuel products. Paucity of skilled labor; difficulty in obtaining expatriate employment permits; bureaucratic red tape; corruption; and inadequate and deteriorating road, electricity, water, and telecommunications infrastructure further hinder economic development in Malawi. However, recent government initiatives targeting improvements in the road infrastructure, together with private sector participation in railroad and telecommunications, have begun to render the investment environment more attractive.

Malawi has undertaken economic structural adjustment programs supported by the World Bank (IBRD), the International Monetary Fund (IMF), and other donors since 1981. Broad reform objectives include stimulation of private sector activity and participation through the elimination of price controls and industrial licensing, liberalization of trade and foreign exchange, rationalization of taxes, privatization of state-owned enterprises, and civil service reform. Malawi qualified for Highly Indebted Poor Country (HIPC) debt relief and is in the process of refining its Poverty Reduction Strategy.

Real GDP grew by 3.6% in 1999 and 2.1% in 2000. The government's monetary policy has been expansionary, and the average annual inflation has hovered around 30% in 2000 and 2001, keeping discount and commercial bank rates high (the discount rate was 47% in December 2000). In the second half of 2001, the Kwacha strengthened sharply against the U.S. dollar, moving from 80 to 60.

Malawi has bilateral trade agreements with its two major trading partners, South Africa and Zimbabwe, both of which allow duty-free entry of Malawian products into their countries. The government faces challenges such as the improvement of Malawi's educational and health facilities--particularly important because of the rising rates of HIV/AIDS--and environmental problems like deforestation, erosion, and overworked soils.