The 2006 Human Development Report ranks Malawi among the 10 poorest countries in the world, with about 52% of the population living below the poverty line. Malawi’s economy is fragile, with a narrow base, poor infrastructure and a heavy reliance on agriculture. The volatility of the macroeconomic environment has resulted in Malawi’s debt is rising to dangerous levels. This is further compounded by a high population growth rate, high levels of unemployment, a dismal export base, falling prices of agricultural produce, and high transport costs.
