WASHINGTON, October 18, 2006— On 10 November 1971 Malawi’s first president, Dr. Hastings Kamuzu Banda, opened the Zomba-Lilongwe Road. The Zomba-Lilongwe Road was the World Bank’s first lending operation in Malawi, approved by the Bank’s Board on October 4, 1966. The first credit of US$490 000 covered three activities: (a) engineering studies and design for the 168-mile Zomba–Lilongwe Rd; (b) review of the engineering and cost estimates prepared by the Ministry of Works for the 90-mile Lilongwe–Mchinji Rd; (c) engineering and economic route-selection studies for the Blantyre/Limbe–Lilongwe Rd. The roads have been there for some time now and are essential to Malawi’s economy. But few of the many Malawians who use them every day know they were financed by the World Bank. In total, the World Bank has provided about US$2.5 billion in financing to Malawi since the country became a member of the Bank in 1966. Although infrastructure, such as roads, count among some of the main achievements of the Bank’s relationship with Malawi, other areas have been impacted. In a recent interview, World Bank Country Manager Tim Gilbo told The Nation that the Bank has diversified its aid. “The Bank has financed many other things, such as primary and secondary education and health care.” He added that the Bank provided aid to the government when it needed it most, “during the food crisis of last year when we extended an additional US$30 million of financing to cover emergency expenses such as extra fertilizer.” Malawi has reached its completion point under the Highly Indebted Poor Countries initiative (HIPC), and a big portion of its external debt was cancelled. Gilbo sees the freed-up money as a boon for pro-poor activities in the country. “I think that the government and most Malawians understand that public spending on health, education, and helping the most vulnerable Malawians is ...a very sound investment in the future, and one on which continued economic growth will depend.” Mr. Gilbo notes the unanimity across Malawian society about what the Bank should now do to fight poverty—namely, focus its support on agricultural development, infrastructure, public sector management and governance, HIV/AIDS, and education. In addition, the country must build an environment in which a vibrant private sector can grow. There is optimism on the 40 th anniversary of the Bank-Malawi partnership: Says Gilbo, “In my view Malawi is now poised to really reap the benefits of much hard work over the last couple of years by the government… Malawi is at a critical phase that could see it move decisively away from a path of poverty and vulnerability towards a much better future for her people. We at the World Bank will certainly be trying our very best to support that.” |
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