Malawi - WEF - World Economic Forum
2.1: Country/Economy Profiles
Malawi Key indicators, 2010
GDP (PPP) per capita (int’l $), 1985–2010
Population (millions).................................................15.7 GDP (US$ billions).......................................................5.1 GDP per capita (US$) ................................................322 GDP (PPP) as share (%) of world total..................0.02
Malawi
2,500
Sub-Saharan Africa
2,000 1,500 1,000 500 0
1986
1988
1990
1992
1994
1996
1998
2000
2002
2004
2006
2008
2010
Global Competitiveness Index Rank (out of 142)
Stage of development
Score (1–7)
GCI 2011–2012 ...................................................... 117......3.6
Factor driven
Basic requirements (60.0%).............................................120........ 3.7 Institutions.............................................................................56........ 4.1 Infrastructure......................................................................131........ 2.3 Macroeconomic environment .........................................108........ 4.3 Health and primary education.........................................128........ 4.1
246
Transition 1–2
1
GCI 2010–2011 (out of 139)................................................125........ 3.4 GCI 2009–2010 (out of 133)................................................119........ 3.4
Transition 2–3
2
3
Efficiency driven
Innovation driven
Institutions 7
Innovation
5
Business sophistication
Efficiency enhancers (35.0%)..........................................116........ 3.4 Higher education and training.........................................123........ 3.0 Goods market efficiency.....................................................91........ 4.0 Labor market efficiency......................................................51........ 4.6 Financial market development ..........................................77........ 4.0 Technological readiness...................................................124........ 2.7 Market size .........................................................................125........ 2.4
Infrastructure
6
Macroeconomic environment
4 3 2
Market size
Health and primary education
1
Higher education and training
Technological readiness
Innovation and sophistication factors (5.0%) ................85........ 3.4 Business sophistication .....................................................97........ 3.5 Innovation..............................................................................65........ 3.2
Financial market development
Goods market efficiency Labor market efficiency
Malawi
Factor-driven economies
The most problematic factors for doing business Foreign currency regulations ............................................26.2 Access to financing.............................................................18.3 Tax rates ................................................................................11.7 Inadequate supply of infrastructure.................................10.7 Tax regulations .......................................................................8.0 Corruption................................................................................5.0 Inefficient government bureaucracy..................................4.0 Inadequately educated workforce .....................................3.7 Policy instability .....................................................................3.5 Poor work ethic in national labor force.............................2.8 Crime and theft.......................................................................2.2 Restrictive labor regulations................................................1.8 Inflation....................................................................................1.5 Poor public health..................................................................0.5 Government instability/coups..............................................0.0 0
5
10 15 Percent of responses
20
25
Note: From a list of 15 factors, respondents were asked to select the five most problematic for doing business in their country and to rank them between 1 (most problematic) and 5. The bars in the figure show the responses weighted according to their rankings.
The Global Competitiveness Report 2011-2012 © 2011 World Economic Forum
30
The Global Competitiveness Index in detail INDICATOR
VALUE RANK/142
INDICATOR
1st pillar: Institutions
VALUE RANK/142
6th pillar: Goods market efficiency
1.01 1.02 1.03 1.04 1.05 1.06 1.07 1.08 1.09 1.10 1.11 1.12 1.13 1.14 1.15 1.16 1.17 1.18 1.19 1.20 1.21
Property rights....................................................... 4.0 ............81 Intellectual property protection ............................. 3.8 ............53 Diversion of public funds ...................................... 3.4 ............62 Public trust of politicians ....................................... 3.1 ............59 Irregular payments and bribes .............................. 3.7 ............84 Judicial independence........................................... 4.3 ............52 Favoritism in decisions of government officials .... 3.1 ............63 Wastefulness of government spending ................ 3.4 ............54 Burden of government regulation ......................... 3.4 ............63 Efficiency of legal framework in settling disputes 4.1 ............50 Efficiency of legal framework in challenging regs. 4.0 ............45 Transparency of government policymaking........... 4.2 ............71 Business costs of terrorism .................................. 5.7 ............65 Business costs of crime and violence .................. 4.5 ............86 Organized crime .................................................... 5.4 ............64 Reliability of police services.................................. 4.2 ............70 Ethical behavior of firms ....................................... 4.1 ............59 Strength of auditing and reporting standards ....... 4.9 ............55 Efficacy of corporate boards ................................. 4.7 ............54 Protection of minority shareholders’ interests...... 4.5 ............55 Strength of investor protection, 0–10 (best)* ....... 5.3 ............60
2.01 2.02 2.03 2.04 2.05 2.06 2.07 2.08 2.09
Quality of overall infrastructure ............................. 3.5 ...........111 Quality of roads..................................................... 3.7 ............80 Quality of railroad infrastructure............................ 2.4 ............77 Quality of port infrastructure................................. 3.6 .......... 102 Quality of air transport infrastructure .................... 3.3 .......... 123 Available airline seat kms/week, millions* .............7.1 .......... 136 Quality of electricity supply....................................1.9 .......... 130 Fixed telephone lines/100 pop.* ............................1.1 .......... 128 Mobile telephone subscriptions/100 pop.* ......... 20.4 .......... 140
3.01 3.02 3.03 3.04 3.05 3.06
Government budget balance, % GDP*.................-1.1 ............32 Gross national savings, % GDP* ........................ 28.8 ............30 Inflation, annual % change*.................................. 6.9 .......... 112 Interest rate spread, %* ......................................21.0 .......... 133 General government debt, % GDP* ................... 42.9 ............83 Country credit rating, 0–100 (best)* ................... 23.8 .......... 129
4.01 4.02 4.03 4.04 4.05 4.06 4.07 4.08 4.09 4.10
Business impact of malaria ................................... 2.2 .......... 139 Malaria cases/100,000 pop.* ....................... 33,363.4 .......... 128 Business impact of tuberculosis ........................... 2.8 .......... 139 Tuberculosis incidence/100,000 pop.* .............. 304.0 .......... 125 Business impact of HIV/AIDS ............................... 2.3 .......... 141 HIV prevalence, % adult pop.* ............................ 11.0 .......... 134 Infant mortality, deaths/1,000 live births*........... 68.8 .......... 126 Life expectancy, years*....................................... 53.8 .......... 127 Quality of primary education................................. 3.0 .......... 115 Primary education enrollment, net %* ............... 90.8 ............88
5.01 5.02 5.03 5.04 5.05 5.06 5.07 5.08
Secondary education enrollment, gross %*....... 29.5 .......... 131 Tertiary education enrollment, gross %* .............. 0.5 .......... 140 Quality of the educational system ........................ 4.1 ............47 Quality of math and science education ................ 3.9 ............73 Quality of management schools ........................... 4.0 ............81 Internet access in schools..................................... 2.7 .......... 123 Availability of research and training services ........ 3.6 ............94 Extent of staff training .......................................... 3.9 ............71
2nd pillar: Infrastructure
3rd pillar: Macroeconomic environment
4th pillar: Health and primary education
5th pillar: Higher education and training
6.01 6.02 6.03 6.04 6.05 6.06 6.07 6.08 6.09 6.10 6.11 6.12 6.13 6.14 6.15 6.16
Intensity of local competition................................ 4.4 .......... 101 Extent of market dominance................................. 3.2 .......... 109 Effectiveness of anti-monopoly policy................... 4.1 ............65 Extent and effect of taxation................................. 3.2 ............97 Total tax rate, % profits*..................................... 25.1 ............22 No. procedures to start a business*...................... 10 .......... 107 No. days to start a business* ................................ 39 .......... 114 Agricultural policy costs ........................................ 3.9 ............68 Prevalence of trade barriers .................................. 4.1 .......... 102 Trade tariffs, % duty*............................................ 9.5 .......... 101 Prevalence of foreign ownership........................... 4.8 ............65 Business impact of rules on FDI........................... 4.5 ............84 Burden of customs procedures ............................ 3.8 ............90 Imports as a percentage of GDP* .......................37.6 ............94 Degree of customer orientation............................ 4.9 ............49 Buyer sophistication.............................................. 2.8 .......... 120
7.01 7.02 7.03 7.04 7.05 7.06 7.07 7.08 7.09
Cooperation in labor-employer relations................ 4.3 ............72 Flexibility of wage determination .......................... 5.6 ............27 Rigidity of employment index, 0–100 (worst)* ....21.0 ............52 Hiring and firing practices ..................................... 4.4 ............35 Redundancy costs, weeks of salary* .................... 84 .......... 108 Pay and productivity .............................................. 3.8 ............77 Reliance on professional management ................. 4.6 ............47 Brain drain ............................................................. 3.3 ............71 Women in labor force, ratio to men*.................. 0.96 ..............8
8.01 8.02 8.03 8.04 8.05 8.06 8.07 8.08
Availability of financial services............................. 4.0 ............99 Affordability of financial services .......................... 3.8 ............92 Financing through local equity market .................. 3.7 ............58 Ease of access to loans ........................................ 2.2 ...........117 Venture capital availability ......................................1.8 .......... 131 Soundness of banks.............................................. 5.5 ............52 Regulation of securities exchanges....................... 3.9 ............90 Legal rights index, 0–10 (best)* .............................7.0 ............39
9.01 9.02 9.03 9.04 9.05 9.06
Availability of latest technologies .......................... 4.3 ...........111 Firm-level technology absorption .......................... 4.2 .......... 104 FDI and technology transfer.................................. 4.3 ............95 Internet users/100 pop.*....................................... 2.3 .......... 135 Broadband Internet subscriptions/100 pop.* ........ 0.0 .......... 129 Internet bandwidth, kb/s/capita*........................... 0.0 .......... 139
2.1: Country/Economy Profiles
Malawi
7th pillar: Labor market efficiency
8th pillar: Financial market development
9th pillar: Technological readiness
10th pillar: Market size 10.01 Domestic market size index, 1–7 (best)*.............. 2.2 .......... 125 10.02 Foreign market size index, 1–7 (best)* ................. 2.7 .......... 129
11th pillar: Business sophistication 11.01 11.02 11.03 11.04 11.05 11.06 11.07 11.08 11.09
Local supplier quantity .......................................... 4.3 .......... 102 Local supplier quality............................................. 4.1 ............95 State of cluster development................................ 3.5 ............66 Nature of competitive advantage .......................... 2.6 .......... 122 Value chain breadth ............................................... 3.1 .......... 104 Control of international distribution....................... 4.0 ............72 Production process sophistication ........................ 2.8 .......... 123 Extent of marketing............................................... 2.9 .......... 126 Willingness to delegate authority ......................... 3.9 ............46
12.01 12.02 12.03 12.04 12.05 12.06 12.07
Capacity for innovation.......................................... 2.9 ............81 Quality of scientific research institutions .............. 3.7 ............66 Company spending on R&D.................................. 3.1 ............65 University-industry collaboration in R&D............... 3.6 ............64 Gov’t procurement of advanced tech products..... 3.6 ............73 Availability of scientists and engineers ................. 4.0 ............73 Utility patents granted/million pop.* ..................... 0.0 ............90
12th pillar: Innovation
Notes: Values are on a 1-to-7 scale unless otherwise annotated with an asterisk (*). For further details and explanation, please refer to the section “How to Read the Country/Economy Profiles” on page 89.
The Global Competitiveness Report 2011-2012 © 2011 World Economic Forum
247
Malawi Key indicators, 2010
GDP (PPP) per capita (int’l $), 1985–2010
Population (millions).................................................15.7 GDP (US$ billions).......................................................5.1 GDP per capita (US$) ................................................322 GDP (PPP) as share (%) of world total..................0.02
Malawi
2,500
Sub-Saharan Africa
2,000 1,500 1,000 500 0
1986
1988
1990
1992
1994
1996
1998
2000
2002
2004
2006
2008
2010
Global Competitiveness Index Rank (out of 142)
Stage of development
Score (1–7)
GCI 2011–2012 ...................................................... 117......3.6
Factor driven
Basic requirements (60.0%).............................................120........ 3.7 Institutions.............................................................................56........ 4.1 Infrastructure......................................................................131........ 2.3 Macroeconomic environment .........................................108........ 4.3 Health and primary education.........................................128........ 4.1
246
Transition 1–2
1
GCI 2010–2011 (out of 139)................................................125........ 3.4 GCI 2009–2010 (out of 133)................................................119........ 3.4
Transition 2–3
2
3
Efficiency driven
Innovation driven
Institutions 7
Innovation
5
Business sophistication
Efficiency enhancers (35.0%)..........................................116........ 3.4 Higher education and training.........................................123........ 3.0 Goods market efficiency.....................................................91........ 4.0 Labor market efficiency......................................................51........ 4.6 Financial market development ..........................................77........ 4.0 Technological readiness...................................................124........ 2.7 Market size .........................................................................125........ 2.4
Infrastructure
6
Macroeconomic environment
4 3 2
Market size
Health and primary education
1
Higher education and training
Technological readiness
Innovation and sophistication factors (5.0%) ................85........ 3.4 Business sophistication .....................................................97........ 3.5 Innovation..............................................................................65........ 3.2
Financial market development
Goods market efficiency Labor market efficiency
Malawi
Factor-driven economies
The most problematic factors for doing business Foreign currency regulations ............................................26.2 Access to financing.............................................................18.3 Tax rates ................................................................................11.7 Inadequate supply of infrastructure.................................10.7 Tax regulations .......................................................................8.0 Corruption................................................................................5.0 Inefficient government bureaucracy..................................4.0 Inadequately educated workforce .....................................3.7 Policy instability .....................................................................3.5 Poor work ethic in national labor force.............................2.8 Crime and theft.......................................................................2.2 Restrictive labor regulations................................................1.8 Inflation....................................................................................1.5 Poor public health..................................................................0.5 Government instability/coups..............................................0.0 0
5
10 15 Percent of responses
20
25
Note: From a list of 15 factors, respondents were asked to select the five most problematic for doing business in their country and to rank them between 1 (most problematic) and 5. The bars in the figure show the responses weighted according to their rankings.
The Global Competitiveness Report 2011-2012 © 2011 World Economic Forum
30
The Global Competitiveness Index in detail INDICATOR
VALUE RANK/142
INDICATOR
1st pillar: Institutions
VALUE RANK/142
6th pillar: Goods market efficiency
1.01 1.02 1.03 1.04 1.05 1.06 1.07 1.08 1.09 1.10 1.11 1.12 1.13 1.14 1.15 1.16 1.17 1.18 1.19 1.20 1.21
Property rights....................................................... 4.0 ............81 Intellectual property protection ............................. 3.8 ............53 Diversion of public funds ...................................... 3.4 ............62 Public trust of politicians ....................................... 3.1 ............59 Irregular payments and bribes .............................. 3.7 ............84 Judicial independence........................................... 4.3 ............52 Favoritism in decisions of government officials .... 3.1 ............63 Wastefulness of government spending ................ 3.4 ............54 Burden of government regulation ......................... 3.4 ............63 Efficiency of legal framework in settling disputes 4.1 ............50 Efficiency of legal framework in challenging regs. 4.0 ............45 Transparency of government policymaking........... 4.2 ............71 Business costs of terrorism .................................. 5.7 ............65 Business costs of crime and violence .................. 4.5 ............86 Organized crime .................................................... 5.4 ............64 Reliability of police services.................................. 4.2 ............70 Ethical behavior of firms ....................................... 4.1 ............59 Strength of auditing and reporting standards ....... 4.9 ............55 Efficacy of corporate boards ................................. 4.7 ............54 Protection of minority shareholders’ interests...... 4.5 ............55 Strength of investor protection, 0–10 (best)* ....... 5.3 ............60
2.01 2.02 2.03 2.04 2.05 2.06 2.07 2.08 2.09
Quality of overall infrastructure ............................. 3.5 ...........111 Quality of roads..................................................... 3.7 ............80 Quality of railroad infrastructure............................ 2.4 ............77 Quality of port infrastructure................................. 3.6 .......... 102 Quality of air transport infrastructure .................... 3.3 .......... 123 Available airline seat kms/week, millions* .............7.1 .......... 136 Quality of electricity supply....................................1.9 .......... 130 Fixed telephone lines/100 pop.* ............................1.1 .......... 128 Mobile telephone subscriptions/100 pop.* ......... 20.4 .......... 140
3.01 3.02 3.03 3.04 3.05 3.06
Government budget balance, % GDP*.................-1.1 ............32 Gross national savings, % GDP* ........................ 28.8 ............30 Inflation, annual % change*.................................. 6.9 .......... 112 Interest rate spread, %* ......................................21.0 .......... 133 General government debt, % GDP* ................... 42.9 ............83 Country credit rating, 0–100 (best)* ................... 23.8 .......... 129
4.01 4.02 4.03 4.04 4.05 4.06 4.07 4.08 4.09 4.10
Business impact of malaria ................................... 2.2 .......... 139 Malaria cases/100,000 pop.* ....................... 33,363.4 .......... 128 Business impact of tuberculosis ........................... 2.8 .......... 139 Tuberculosis incidence/100,000 pop.* .............. 304.0 .......... 125 Business impact of HIV/AIDS ............................... 2.3 .......... 141 HIV prevalence, % adult pop.* ............................ 11.0 .......... 134 Infant mortality, deaths/1,000 live births*........... 68.8 .......... 126 Life expectancy, years*....................................... 53.8 .......... 127 Quality of primary education................................. 3.0 .......... 115 Primary education enrollment, net %* ............... 90.8 ............88
5.01 5.02 5.03 5.04 5.05 5.06 5.07 5.08
Secondary education enrollment, gross %*....... 29.5 .......... 131 Tertiary education enrollment, gross %* .............. 0.5 .......... 140 Quality of the educational system ........................ 4.1 ............47 Quality of math and science education ................ 3.9 ............73 Quality of management schools ........................... 4.0 ............81 Internet access in schools..................................... 2.7 .......... 123 Availability of research and training services ........ 3.6 ............94 Extent of staff training .......................................... 3.9 ............71
2nd pillar: Infrastructure
3rd pillar: Macroeconomic environment
4th pillar: Health and primary education
5th pillar: Higher education and training
6.01 6.02 6.03 6.04 6.05 6.06 6.07 6.08 6.09 6.10 6.11 6.12 6.13 6.14 6.15 6.16
Intensity of local competition................................ 4.4 .......... 101 Extent of market dominance................................. 3.2 .......... 109 Effectiveness of anti-monopoly policy................... 4.1 ............65 Extent and effect of taxation................................. 3.2 ............97 Total tax rate, % profits*..................................... 25.1 ............22 No. procedures to start a business*...................... 10 .......... 107 No. days to start a business* ................................ 39 .......... 114 Agricultural policy costs ........................................ 3.9 ............68 Prevalence of trade barriers .................................. 4.1 .......... 102 Trade tariffs, % duty*............................................ 9.5 .......... 101 Prevalence of foreign ownership........................... 4.8 ............65 Business impact of rules on FDI........................... 4.5 ............84 Burden of customs procedures ............................ 3.8 ............90 Imports as a percentage of GDP* .......................37.6 ............94 Degree of customer orientation............................ 4.9 ............49 Buyer sophistication.............................................. 2.8 .......... 120
7.01 7.02 7.03 7.04 7.05 7.06 7.07 7.08 7.09
Cooperation in labor-employer relations................ 4.3 ............72 Flexibility of wage determination .......................... 5.6 ............27 Rigidity of employment index, 0–100 (worst)* ....21.0 ............52 Hiring and firing practices ..................................... 4.4 ............35 Redundancy costs, weeks of salary* .................... 84 .......... 108 Pay and productivity .............................................. 3.8 ............77 Reliance on professional management ................. 4.6 ............47 Brain drain ............................................................. 3.3 ............71 Women in labor force, ratio to men*.................. 0.96 ..............8
8.01 8.02 8.03 8.04 8.05 8.06 8.07 8.08
Availability of financial services............................. 4.0 ............99 Affordability of financial services .......................... 3.8 ............92 Financing through local equity market .................. 3.7 ............58 Ease of access to loans ........................................ 2.2 ...........117 Venture capital availability ......................................1.8 .......... 131 Soundness of banks.............................................. 5.5 ............52 Regulation of securities exchanges....................... 3.9 ............90 Legal rights index, 0–10 (best)* .............................7.0 ............39
9.01 9.02 9.03 9.04 9.05 9.06
Availability of latest technologies .......................... 4.3 ...........111 Firm-level technology absorption .......................... 4.2 .......... 104 FDI and technology transfer.................................. 4.3 ............95 Internet users/100 pop.*....................................... 2.3 .......... 135 Broadband Internet subscriptions/100 pop.* ........ 0.0 .......... 129 Internet bandwidth, kb/s/capita*........................... 0.0 .......... 139
2.1: Country/Economy Profiles
Malawi
7th pillar: Labor market efficiency
8th pillar: Financial market development
9th pillar: Technological readiness
10th pillar: Market size 10.01 Domestic market size index, 1–7 (best)*.............. 2.2 .......... 125 10.02 Foreign market size index, 1–7 (best)* ................. 2.7 .......... 129
11th pillar: Business sophistication 11.01 11.02 11.03 11.04 11.05 11.06 11.07 11.08 11.09
Local supplier quantity .......................................... 4.3 .......... 102 Local supplier quality............................................. 4.1 ............95 State of cluster development................................ 3.5 ............66 Nature of competitive advantage .......................... 2.6 .......... 122 Value chain breadth ............................................... 3.1 .......... 104 Control of international distribution....................... 4.0 ............72 Production process sophistication ........................ 2.8 .......... 123 Extent of marketing............................................... 2.9 .......... 126 Willingness to delegate authority ......................... 3.9 ............46
12.01 12.02 12.03 12.04 12.05 12.06 12.07
Capacity for innovation.......................................... 2.9 ............81 Quality of scientific research institutions .............. 3.7 ............66 Company spending on R&D.................................. 3.1 ............65 University-industry collaboration in R&D............... 3.6 ............64 Gov’t procurement of advanced tech products..... 3.6 ............73 Availability of scientists and engineers ................. 4.0 ............73 Utility patents granted/million pop.* ..................... 0.0 ............90
12th pillar: Innovation
Notes: Values are on a 1-to-7 scale unless otherwise annotated with an asterisk (*). For further details and explanation, please refer to the section “How to Read the Country/Economy Profiles” on page 89.
The Global Competitiveness Report 2011-2012 © 2011 World Economic Forum
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