Date: Sat, 20 May 2000
Donors Pledge $1.1 Bln to Malawi: World Bank

DONORS PLEDGE $1.1 BLN TO MALAWI:  WORLD BANK.
Malawi's mainly Western donors yesterday pledged $1.1 billion in
development aid to the impoverished southern African country for the next
three years, provided it cuts government waste and deepens economic
reforms, Reuters reports.

"Malawi's external financing needs for the period 2000-2002 are estimated
at about $1.1 billion," World Bank country director Barbra Kafka is quoted
as saying at the end of a meeting between donor representatives and Malawi
leaders in Lilongwe.  "Based on the discussions during the Consultative
Group meeting, and provided that Malawi strengthens the implementation of
its reform program, donor pledges indicate that these requirements will be
fully met."

The story notes that as the meeting began on Monday, hundreds of protesters
demanding that donors soften aid conditions clashed with police, who fired
tear-gas and rubber bullets to disperse them. No serious injuries were
reported.

The World Bank said the financing would take the form of grants and
concessionary loans.

Twenty-five donor countries and multilateral institutions were represented
at the meeting. They urged Malawi to halt the mismanagement of resources
that has often thrown previous state budgets into disarray and heavily
undermined sustained economic growth.  AFP also reports.

Malawi | IMF/ WB Struggles | PGA