In many developing countries financial constraints restrict school enrollment to low levels. Empirical evidence from Malawi is used in a simulation model to show that families are willing to pay for education and that scholarships can offset the equity effects of user charges. Appended are 18 references. (MLF)

Against the backdrop of declining performance, political transition, and the increasingly dominant role of donor agencies in educational decision making, this paper questions the feasibility and sustainability of educational expansion in Malawi. Three critical features of the Malawian political economy (land scarcity, declining wage economy, and…