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ECONOMIC ASPECTS OF AGRICULTURAL ALTERNATIVES TO TOBACCO PRODUCTION AND EXPORT MARKETING IN MALAWI

Analytical studies on Trade, Environment and Development No.7

This study was prepared by Dr. Charles S. Mataya and Mr. Ernest W. Tsonga,consultants for the UNCTAD/UNDP project entitled, “Economicaspects of development of agricultural alternatives to tobacco production andexport marketing in Malawi”. Their terms of reference are included as an annexto this report.

The project was carried out in furtherance of resolution 1993/79, entitled“Multisectoral collaboration on tobacco or health”, of the Economic and SocialCouncil of the United Nations (ECOSOC). Besides expressing concern aboutthe serious health consequences of tobacco use, the resolution also expressedconcern about the possible economic effects of reduced tobacco production in thetobacco-producing countries, which are still unable to develop viable economicalternatives to tobacco production. Paragraph 7 of the resolution called for assistancewith development of agricultural alternatives to tobacco as follows:

“Invites Member States and organizations of the United Nations system todevelop a range of options, including bilateral and effective multilateral collaborationon agricultural diversification or development of other economicalternatives to tobacco agriculture, as appropriate, to assist economies forwhich tobacco is a major export, where demand for their tobacco productshas decreased as a result of successful strategies for tobacco control.”

Subsequently, ECOSOC resolution 1994/47 reiterated the need to addressall the issues raised in resolution 1993/79, with national plans of action to bedeveloped, upon request, taking into account the economic and social aspects oftobacco production and consumption and the serious health consequences of tobaccouse.

The project was requested by the Government of Malawi and was implementedby the UNCTAD secretariat with financial and administrative support ofUNDP/Malawi.

Chapter I of the report was prepared for the First Expert Workshop underthe project, which was held on 11 March 1999 to review the consultants’ assessmentsof previous research and make plans for carrying out their study. After theconsultants completed the study, the Second Expert Workshop, held on 21 and 22July 1999, considered its findings on diversifying beyond tobacco, identificationof limiting factors and proposals for future policy, strategies and institutionaloptions. The Second Expert Workshop adopted the recommendations in chapterIII on diversification out of tobacco production and export marketing in Malawi.