5. FINANCING OF SCIENCE AND TECHNOLOGY



5.1 Introduction
5.2 Minimum Allocation to Science and Technology as a Percentage of GDP
5.3 Fund for the Advancement of Science and Technology
5.4 Foreign Funding for research, Science and Technology
5.5 Endowment and Trust Funds
5.6 Private Sector Funding
5.7 University Funding

Introduction
Science and Technology is seen by many countries to be an essential political function warranting careful and clear-sighted choices. An examination of the ways in which S&T is funded shows that, in a very large number of countries, the highest proportion is financed indirectly, by institutions belonging to the public sector and for that reason comes under the national budget. The national budget is, therefore, one of the essential instruments of Government S&T policy. Unfortunately, the conventional budgeting procedures in Malawi, as is the case elsewhere, do not easily permit the explicit and appropriate identification of funds allocated to S&T in the national budget. The procedures make it difficult to analyze the amount, distribution and purpose of such funding and this accordingly precludes any evaluation of their relationship to national development goals.

Generally the majority of African countries spend far less on R&D/S&T than other developing countries in Asia and Latin America. UNESCO has advised that a country should spend at least 1% of the GDP on R&D, and has, in specific case of debt relief fund outlined guidelines on how governments can use debt relief funds for S&T.

The ability of Government or the National Commission for Science and Technology to coordinate national S&T activities will be determined, mainly, by its ability to fund S&T activities. Consequently, sectoral institutions which are to benefit from financial resources under this national science and technology policy will prepare budgets for submission to the Commission which will, in turn, approve the provision of funding on the basis of agreed programmes of work. The institutions shall have the capability to generate and retain additional funds from their operations.

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Minimum Allocation to Science and Technology as a Percentage of GDP
In view of the important role S&T plays in the development of economies, Malawi will under this national science and technology policy, allocate from public resources not less than 1.0 per cent of GDP to R&D and adequate funding to S&T activities by the year 2005. The advantage will be taken for debt relief fund so as to earmark a significant proportion of these funds for S&T.

Fund for the Advancement of Science and Technology


In order to raise and allocate sufficient funds for scientific and technological activities, the Government of Malawi will establish a Fund for the Advancement of Science and Technology under an Act of Parliament. The sources of income for the fund will include:
  1. Such sums as may be appropriated by Parliament aiming at being not less than 1 % of GDP for the previous fiscal year of Government;
  2. Levies and an appropriate cess on the sale of S&T products and services;
  3. Any sums or properties as may, in any manner become payable to or vested in the Fund by virtue of the operation of any law or as a result of its administration; and
  4. Any sums of money donated to the Fund by any person, body or institution.

Foreign Funding for Research, Science and Technology

Foreign funds form an essential source of financing of R&D and S&T activities in Malawi. The higher than normal international collaboration in R&D also means a high level of foreign funds for R&D. While this will continue to be encouraged, Government should provide adequate funding for the execution of critical programmes. In order to ensure that this policy objective is attained, a matching grant mechanism will be established and allocated from the Fund for the Advancement of Science and Technology.

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Endowment and Trust Funds

In order to expand the sources of funds for S&T activities, Government will establish endowment and trust funds. The Trustees Incorporation Act (Cap 5:03) already provides the legal framework for the establishment of endowment and trust funds which sector specific S&T institutions may use for this purpose.

Private Sector Funding

Private sector funding for science and technology, especially funding for technology research and development, will be encouraged. Linkages between the private sector and R & D institutions through contract research programmes, for example, will complement public funding for R & D programmes and, thereby, improve Malawi’s R & D capacity.

University Funding

Universities are institutions where most of R&D work covering a wide range of socio-economic disciplines is undertaken. Presently, there is no separate funding for R&D work in the Universities in Malawi. The universities allocate some of the subvention for R&D work besides teaching and operating the universities. This means that there can never be adequate funds for R&D since the bulk of what is given has to support the entire administration of the institution. In order to promote R&D work in the universities, the Government will, through the National Commission for Science and Technology, provide separate funds under a dual support system for R&D work to universities and other science and technology institutions.