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Malawi Poverty Reduction Strategy Paper (PRSP)
April 2002

Poverty Reduction Strategy Papers (PRSPs) are prepared by member countries in broad consultation with stakeholders and development partners, including the staffs of the World Bank and the IMF. Updated every three years with annual progress reports, they describe the country's macroeconomic, structural, and social policies in support of growth and poverty reduction, as well as associated external financing needs and major sources of financing. This country document is being made available on the IMF website by agreement with the member country as a service to users of the IMF website.

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Contents

Acronyms
List of Tables
List of Figures
Executive Summary
Chapter 1: Introduction
1.1 Distinguishing Features
1.2 The MPRSP Process
1.3 The Malawi Poverty Reduction Strategy
1.4 The Content of the MPRSP
Chapter 2: Poverty Analysis and Profile
2.1 Poverty Situation
2.2 Causes of Poverty
2.3 Spatial Distribution of Poverty
2.5 Sectoral Analysis of Poverty
  2.5.1 Demographic Characteristics
  2.5.2 Educational Characteristics
  2.5.3 Economic Characteristics
2.6 Summary of Poverty Issues
Chapter 3: Structural Adjustment and Poverty
3.1 Overview of Structural Adjustment Policies
3.2 Effects of Structural Adjustment on Poverty
3.3 Economic Performance during Adjustment
  3.3.1 Inflation and Money Supply
  3.3.2 Nominal Exchange Rate
  3.3.3 Interest Rates
3.4 Effects of Agricultural Reform
3.5 Fiscal Policy and Expenditure Allocations
3.6 New Approach to Poverty Reduction
Chapter 4: The Malawi Poverty Reduction Strategy
4.1 Sustainable Pro-Poor Growth
  4.1.1 Sources of Pro-Poor Growth
  4.1.2 Creating an Enabling Environment for Growth
4.2 Human Capital Development
  4.2.1 Education
  4.2.2 Technical, Entrepreneurial Vocational Education and Training
  4.2.3 Health and Population
  4.2.4 Promotion of Good Nutrition
4.3 Improving the Quality of Life of the Most Vulnerable
  4.3.1 Safety Nets
  4.3.2 Improving Disaster Management
4.4 Good Governance
  4.4.1 Political Will and Mindset
  4.4.2 Security and Access to Justice
  4.4.3 Ensuring Responsive and Effective Public Institutions
4.5 Cross Cutting Issues
  4.5.1 HIV/AIDS
  4.5.2 Gender and Empowerment
  4.5.3 Environment
  4.5.4 Science and Technology
Chapter 5: Macroeconomic and Expenditure Framework
5.1 Introduction
5.2 Macro-economic Framework
  5.2.1 Economic Growth and Poverty Reduction
  5.2.2 Macroeconomic Stability and Poverty
  5.2.3 Resource Envelope and Macroeconomic Projections
5.3 Costings Framework
  5.3.1 Statutory and Statehood Expenditure
  5.3.2 MPRS Costings
5.4 Large scale Infrastructure Development
Chapter 6: MPRS Implementation, Monitoring and Evaluation
6.1 The MPRS in Context
6.2 MPRS and the Budget
6.3 Monitoring and Evaluation
  6.3.1 Monitoring Inputs and Outputs
  6.3.2 Monitoring Poverty Outcomes and Impacts
6.4 Coordination of Implementation, Monitoring and Evaluation
6.5 Capacity Needs for Implementation, Monitoring and Evaluation
6.6 Review process
Annex
Annex 1 - Action Plan
Pillar 1 - Sustainable Pro-Poor Growth
Pillar 2 - Human Capital Development
Pillar 3 - Improving the Quality of Life of the Most Vulnerable
Pillar 4 - Governance
Cross-Cutting Issues
Macroeconomic Stability
Monitoring and Evaluation of MPRS
Annex 2 - Summary of Costings by Objective
Annex 3 - Large Scale Infrastructure Development
Annex 4 - Selected Monitoring Indicators and Targets
Annex 5 - Glossary
Annex 6a - Summary of the MPRS Process
  Management Framework for the MPRS
  MPRS Preparation Organisational Structure
Annex 6b - Issues Highlighted in District Consultations
Annex 6c - Participants in the MPRS Process
  Membership of the Technical Committee
  Membership of the Drafting Team
  Membership of Thematic Working Groups
  Institutions involved in consultations
Annex 7 - Bibliography
Letter to IMF
Letter to WB

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