In a vote of confidence in the Malawi government, Sweden has broken a four-year aid freeze and provided about 5,5 million US dollar in budget support.
– Malawi has made considerable progress on macroeconomic stabilisation and maintaining control of public expenditure, noted the Swedish International Development Cooperation (SIDA). It also welcomed the governments “strong anticorruption stance”, IRIN reports.
In 2001 the International Monetary Fund (IMF) and major Western governments, including Sweden, barred budget support for Malawi as a result of government overspending – up to 80 percent of Malawis development budget is provided by donors.
Også Danmark indstillede – ved VK-regeringens ankomst – brat bistanden til det sydlige Afrikas fattigste land med udgangen af 2001, hvad der bl.a. bragte fattige kvinder i et hønseriprojekt i en slem klemme (se u-landsnyt.dks arkiv – skriv ordene “Høns i Malawi” i søgefunktionen for oven)
SIDA, along with the British Department for International Development (DFID), Norway and the European Commission (EC), provide financial support to Malawi under the Common Approach to Budget Support (CABS).
Sweden decided to resume aid after a CABS review in March found that Malawi had made progress in controlling public expenditure. The review also noted the possible resumption of a Poverty Reduction and Growth Facility (PRGF) – the IMFs concessional loan scheme to poor countries.
DFID of UK expects to contribute 38 million dollar towards the 2005-06 budget, “subject to continued good macroeconomic and fiscal management, and support for progress towards the UNs Millennium Development Goals”.
The EC is expected to release about 17 million dollar if the PRGF is approved, and another 27,4 million dollar for the 2005-06 budget.
Norway, which withheld support early last year because of deviations from the approved budget, also resumed aid later in 2004.
The Norwegian government released 3,5 million dolllar in February this year and will disburse another 6 million dollar for 2005-06.
Kilde: FN-bureauet IRINnews
