World Bank2012-03-192012-03-192010-01-31https://hdl.handle.net/10986/2954Malawi needs to focus on exports to maintain and broaden its current inspiring levels of economic growth. The focus of future policy should therefore be on reforms that improve competitiveness in global and regional markets. This does not require a fundamental shift in direction, but instead a rebalancing of policy and expenditures to support an outward-oriented development framework. Until the recent global financial crisis, domestic and regional trends were promising for Malawi: rapid economic growth, strong donor support, increases in foreign direct investment, real potential to upgrade regional infrastructure, and the gradual dismantling of barriers within the region through the Common Market for Eastern and Southern Africa (COMESA) and Southern Africa Development Community (SADC) free trade areas. Despite recent global developments, this report makes the case that, for a small landlocked economy like Malawi, integration into a dynamic and more open Southern Africa region will remain a key to building prosperity and improving livelihoods.CC BY 3.0 IGOACCESS TO INTERNATIONAL MARKETSAGGREGATE DEMANDAGRICULTURAL COMMODITY EXCHANGEAGRICULTURAL CREDITAGRICULTURAL OUTPUTAGRICULTURAL SECTORAGRICULTUREAUCTIONAUCTION PRICEAVERAGE DAILY TRAFFICBINDING CONSTRAINTBINDING CONSTRAINTSBONDBORROWINGBOTTLENECKSCAPITAL ACCOUNTCAPITAL ACCUMULATIONCIVIL WARCOMMERCIAL FARMERCOMMODITIESCOMMODITYCOMMODITY PRICECOMMODITY PRICESCOMMON MARKETCOMPETITIVE ADVANTAGECOMPETITIVENESSCONNECTIVITYCONSUMERSCOST OF FINANCECOST OF TRANSPORTCREDIT HISTORYCREDIT INSTITUTIONSCURRENCYCURRENT ACCOUNTCURRENT ACCOUNT BALANCEDEBTDEVALUATIONDEVALUATIONSDEVELOPMENT AGENCYDEVELOPMENT ASSISTANCEDEVELOPMENT BANKDEVELOPMENT STRATEGYDIVERSIFICATIONDOLLAR VALUEDOMESTIC MARKETDOMESTIC MARKETSDOMESTIC PRICEDOMESTIC PRICESDOMESTIC TRANSPORTDONOR SUPPORTDRIVERSECONOMIC CRISISECONOMIC GROWTHECONOMIC RESOURCESECONOMIC VOLATILITYELASTICITIESENDOWMENTSEXCHANGE MARKETSEXCHANGE RATEEXCHANGE RATE REGIMEEXCHANGE RATESEXPENDITUREEXPORT BASEEXPORT CROPSEXPORT GROWTHEXPORT MARKETSEXPORT SECTOREXPORTSEXTERNAL SHOCKSFAMILIESFARMERFARMERSFINANCIAL COSTSFINANCIAL CRISISFINANCIAL INSTITUTIONSFINANCIAL REFORMFINANCIAL RESOURCESFINANCIAL SECTORFINANCIAL SECTOR ASSESSMENTFINANCIAL SECTOR DEVELOPMENTSFINANCIAL SERVICESFISCAL DEFICITSFISCAL DISCIPLINEFISCAL POLICYFIXED CAPITALFLEETSFOOD PRICEFOOD PRICESFOOD SHORTAGESFOREIGN CURRENCYFOREIGN DIRECT INVESTMENTFOREIGN EXCHANGEFREE TRADEFREIGHTFUELFUTURE GROWTHGDPGDP PER CAPITAGENDERGLOBAL MARKETSGOOD TRANSPORTGOVERNMENT EXPENDITURESGOVERNMENT INTERVENTIONGROSS DOMESTIC PRODUCTGROSS FIXED CAPITAL FORMATIONGROWTH OPPORTUNITIESGROWTH RATEGROWTH RATESHARMONIZATIONHIGHWAYHOUSEHOLDSHUMAN CAPITALINCOMESINDUSTRIALIZATIONINFORMATION ABOUT CREDITINFORMATION SYSTEMSINFRASTRUCTURE INVESTMENTSINPUT PRICEINSURANCEINTEREST RATEINTEREST RATESINTERNATIONAL COMPETITIONINTERNATIONAL MARKETSINTERNATIONAL TRADEINTERNATIONAL TRANSPORTINVESTMENT CLIMATELABOUR FORCELAND USELARGE-SCALE INVESTMENTLIFE EXPECTANCYLONG-TERM INVESTMENTMACROECONOMIC MANAGEMENTMACROECONOMIC POLICYMANUFACTURING INDUSTRYMARKET ACCESSMARKET RISKMEANS OF TRANSPORTMONOPOLYMONOPOLY RENTSMULTIPLIER EFFECTMULTIPLIER EFFECTSOPEN ECONOMYOPERATIONAL EFFICIENCYOUTREACHOVERVALUATIONPEAK DEMANDPER CAPITA INCOMEPOWER OUTAGESPOWER PARITYPREFERENTIAL ACCESSPRICE CONTROLSPRICE ELASTICITYPRICE ELASTICITY OF DEMANDPRICE ELASTICITY OF SUPPLYPRICE INCENTIVESPRICE INSTABILITYPRICE STABILITYPRIVATE INVESTMENTPRIVATE SAVINGSPRODUCTIVITYPRODUCTIVITY GROWTHPUBLIC FINANCEPUBLIC INVESTMENTPUBLIC INVESTMENTSPUBLIC POLICYPURCHASING POWERRAILRAILWAYSRAPID ECONOMIC GROWTHREDUCTION IN TRAVELREFUGEESREGIONAL INTEGRATIONREGIONAL TRADEREGIONAL TRANSITREGULATORY ENVIRONMENTREGULATORY FRAMEWORKREGULATORY REGIMESREMITTANCEREMITTANCESREMOTE AREASRESERVE BANKRISK MANAGEMENTROADROAD CHARGESROAD CONDITIONSROAD INFRASTRUCTUREROAD NETWORKROAD QUALITYROADSROUTESSKILLED WORKERSSKILLS SHORTAGESSMALLHOLDERSMALLHOLDER AGRICULTURESMALLHOLDER INCOMESMALLHOLDERSSOCIAL DEVELOPMENTSUPPLY CHAINSTAXTELECOMMUNICATIONSTOTAL REVENUETRADE BALANCETRADE DEFICITTRADE FACILITATIONTRADE LIBERALIZATIONTRAFFICTRAFFIC VOLUMETRANSITTRANSPORTTRANSPORT COSTSTRANSPORT INFRASTRUCTURETRANSPORT STRATEGYTRANSPORTATIONTRANSPORTATION COSTSTRANSPORTSTRAVEL TIMETRAVEL TIMESTRUEUNIONVALUE ADDEDVALUE OF OUTPUTVEHICLESWAGESWORLD DEVELOPMENT INDICATORSWORLD TRADEWORLD TRADE ORGANIZATIONWTOWorld Bank10.1596/2954