Landlocked in southeast Africa, Malawi borders the Great Rift Valley. One-fifth of the country is submerged under Africa's third-largest expanse of water, Lake Nyasa. In the 1980s Malawi hosted large numbers of Mozambican refugees, at some cost to its fragile economy; food shortages are a recurrent and serious threat. A former British colony, Malawi established democracy in 1994 after three decades of one-party rule under Hastings Banda.

Ethnicity has not been exploited for political ends as has been the case in neighboring states. Most Malawians share a common Bantu origin. Of the various groups, the Chewa are dominant in the central region, Nyanja in the south, Tumbuka in the north, the mostly Muslim Yao in the southeast, and the Ngoni, a Zulu offshoot, in the lowlands. Other groups include the Chieoka and Tonga. Northerners felt ignored by Banda and his MCP, but the UDF government has largely succeeded in reducing the resulting tensions.

The election of President Muluzi, a member of Malawi's 20% Muslim minority, arguably signals the failure of Banda's plan to enforce Protestant domination in Malawi. Many of Malawi's Muslim Asians work in the retailing sector.

Strengths

Tobacco, earning 76% of foreign exchange. Tea and sugar production. Unexploited bauxite, asbestos, and coal reserves. Much tourism potential.

Weaknesses

Agriculture vulnerable to drought and price fluctuations. Only 14% of GDP derived from industry. Small domestic market, few skilled workers. Strain of housing Mozambican refugees.

For 30 years from independence in 1964 Malawi was ruled by the autocratic Hastings Banda. His single-party regime outlawed dissent; torture and imprisonment without trial were common. In 1992 international aid was suspended because of the regime's human rights record. A referendum forced Banda to introduce multiparty politics in 1994, when the mainly southern-based UDF scored a dramatic victory, and its leader Bakili Muluzi won the presidency. Muluzi shrewdly recruited several prominent MCP politicians to his team. He vowed to restore personal and religious freedom, liberalize and revive the shattered economy, and improve Malawi's regional standing. Muluzi was narrowly reelected in June 1999, but opposition leader Gwanda Chakuamba contested the results, and violence against Muslims and UDF supporters erupted in the north. A new opposition National Democratic Alliance emerged in 2001. Its leader Brown Mpinganjira was arrested for treason later that year.

Malawi aims to protect its restored status as a recipient of Western aid. In 1998 the UK pledged to support President Muluzi's fiscal policies and antipoverty drive. Malawi also wants to preserve ties with South Africa, unbroken since 1967, a unique record in black Africa. One in ten Mozambicans fled to Malawi as refugees in the 1980s.

The government is confident of the loyalty of the 5300-strong army. In the last days of Banda rule, the military lost confidence in the ruling party, forcing the pace of democratization. In 1993, it disarmed the Young Pioneers, a militarized section of the MCP.

One 215 MW hydropower plant on Shire River accounts for nearly 85% of generating capacity, but only 3% of total energy use. Most rely on fuelwood for their energy needs. Malawi now encourages privatization, crop diversification, improved irrigation, and regional economic integration via the SADC to exploit its naturally limited resources. A deep-seam coal mine currently operates at Rumphi.

Drought, with its devastating effects on agriculture, eclipses all other problems. Ecological husbandry now attracts tourism.

The Kamuzu Highway has been upgraded, and the Nacala Rail Corridor, a vital link to the sea, has attracted private investment.

Life expectancy is only around 40 years because of the high incidence of HIV/AIDS.

Primary-level education is widespread, with 73% of boys and 60% of girls attending school regularly.

Urban crime is on the increase. The proliferation of weapons, particularly guns, is contributing to a rise in armed robbery.

The ousted MCP elite grew wealthy, allegedly through embezzlement. However, 80% of Malawians remain mired in poverty, and survive on less than $1 a day.

The national parks and Lake Nyasa's fishing and water sports are the main tourist attractions. The opening of international airports at Blantyre and Lilongwe has increased accessibility.

After strong Scottish missionary activity, Malawi came under British rule as Nyasaland in 1891.

• 1964 Independence under Hastings Banda.
• 1966 One-party state.
• 1992 Antigovernment riots. Illegal prodemocracy groups unite.
• 1993 Referendum for multipartyism.
• 1994 Muluzi's UDF wins elections.
• 2002 Severe food shortages exacerbate worst-ever cholera epidemic.