Economics of Tobacco
· Although tobacco
is grown in over 100 countries, tobacco leaf and manufactured tobacco exports
account for more than 8% of export earnings in just two countries, Malawi and
Zimbabwe. Tobacco accounts for 64% of all export earnings in Malawi and 23% in
Zimbabwe. However, tobacco represents a much smaller proportion of export
earnings in all other countries.
· All countries that are
devoting more than one percent of their total import expenses to purchasing
tobacco are either developing countries or countries of Central and Eastern
Europe. In these countries, expenditures on tobacco imports are relatively
large, and are a significant cost to economic development.
· Although developed countries,
particularly the United States earn the most money from tobacco exports, these
earnings are less than one per cent of all their export earnings.
· High economic dependency on
tobacco exports may make it more challenging to implement comprehensive tobacco
control policies in countries such as Malawi and Zimbabwe. However, in such
countries, tobacco control strategies would benefit from including measures to
encourage appropriate economic adjustment as the global demand for tobacco