08 June 2005

Malawi - postscript

A report in The Guardian on the disastrous economics of the tobacco industry in Malawi:
"The price collapse is a disaster, too, for Malawi's government. The industry brings in more than 60% of the country's foreign exchange and contributes 34% of its total revenue, providing vital seasonal cash for up to 70% of the population.
The low prices have forced the country's weak currency even lower, and make a mockery of its attempts to climb out of poverty.
In a preliminary report issued last week, the Malawi tobacco commission said that 44.2m kg of tobacco had been sold for a total of $160m (£87m) by May 19, compared with $203m for 44.5m kg during the same period in 2004."

In these circumstances, it may well be right for the Scottish Executive to pursue the actions which follow from Mr McConnell's visit. But I fear that the economic difficulties facing Malawi are so immense that the well-meaning interventions from Scotland will be palliative at best.

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