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AS ONE OF THE WORLD'S least developed countries and with 65.3 percent of its 12,158,924 people living in poverty, Malawi continues to face an uphill battle in attempting to grow the economy while meeting the needs of its fragile population. Although government corruption is a major problem, officials must also combat the effects of poverty and a chronic food shortage along with stemming an excessive population growth and a debilitating HIV/AIDS epidemic. With an average annual income of $160, some 76.1 percent of Malawians survive on less than $2 a day and 41.7 percent survive on less than $1 a day. Vast inequalities exist, with the poorest 20 percent of the population living on a 4.9 percent share of the country's wealth while the richest 20 percent hold 56.1 percent of income. Malawi ranks 50.3 on the Gini Index of Human Inequality.

Some 90 percent of Malawians are employed in the agricultural sector, which makes up 40 percent of Malawi's Gross Domestic Product (GDP) and 88 percent of export revenues. Malawi is one of the world's largest producers of maize, but a fluctuating market caused one-fourth of Malawian farmers to pursue other, more profitable avenues. Malawi also depends heavily on tobacco crops, which comprise 50 percent of exports.

New farming techniques are sorely needed to increase the food supply and improve agricultural production. In 2000 the International Monetary Fund (IMF) and the World Bank accepted Malawi into its Heavily Indebted Poor Countries (HIPC) program, and Malawi's economic prospects improved. However, these funds may be cut off if the government fails to stamp out corruption.

Malawi is a young nation with a life expectancy of only 36.97 years and a median age of 16.34 years. Nearly half of the population is under the age of 14, and only 2.8 percent are over the age of 65. Malawians have a 59.6 percent chance of dying before the age of 40. Death rates are high in large part because of poverty and the 14.2 percent HIV/AIDS prevalence rate.

In 2003 it was estimated that 900,000 people were living with this disease, which had been responsible for 84,000 deaths and enormous costs in human suffering. Malawians also face very high risks of contracting foodand waterborne diseases. In some areas, malaria and plague create additional risks. Some 43 percent of the people have no sustainable access to an improved water source, and 24 percent lack access to adequate sanitation. Half the population has no access to affordable lifesaving drugs.

Children face a myriad of problems in Malawi, and many of them never reach the age of 6. According to 2005 estimates, 103.32 Malawian infants die out of every 1,000 live births. While the 103.32 infant mortality rate is grim, it is an improvement over the 2003 rate of 112. In that year, the mortality rate for children under the age of 5 was reported at 178 out of 1,000. Because of extreme poverty, one-fourth of Malawian children under age 5 are malnourished. Approximately 45 percent of under-5s experience moderate to severe stunting, and five percent suffer from moderate to severe wasting.

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