Donors back Banda’s policies

Donors do not withhold support. Development partners do not send mixed signals. Donors are behind President Banda in her task of getting this country back on track to growth and prosperity.

By the end of this calendar year, Malawi’s main development partners are likely to have supported the Malawian economy with more than half a billion US dollars since President Banda came to power. We keep our promises on budget support. No one should doubt that we have responded positively to the needs of the country and the reforms undertaken by government.

Malawians today probably have more freedom than at any time in the country’s history. But we are also aware that Malawi is going through very difficult economic times, with the inflation eating into the standard of living of most people. This is, unfortunately, part of the necessary economic adjustment, the price to be paid to make up for past mistakes.

For it should be made abundantly clear, that the responsibility for the difficulties Malawi is facing today, lies with the previous administration that over a lengthy period of time mismanaged the country’s economy, brought shortages of goods and foreign currency, and whose lack of action threatened to bring economic activity to a standstill. Part of this was the ill-advised so-called zero deficit budget, which, ironically, increased the budget deficit enormously. It has been and remains the bitter task of the new president and her team to take the necessary action to put the country on the road to recovery and to sustainable growth once again. In those efforts, the President has the full support of the development partners. And one would be well advised not to blame the doctor for the disease, even if the treatment is harsh.

Government has taken bold steps to address the macroeconomic imbalances brought about by the previous administration, and admittedly, also by international developments. Government devalued the kwacha and adopted a flexible exchange rate regime. This change in policy is giving fruits: Foreign exchange is now available on the market and fuel shortages have also eased. But recovery will take time; to restart an economy which has been derailed is not done overnight.

Our support for government’s policies does not mean that we do not see problems that need to be addressed. That is how it has to be between partners. Whether we represent international organisations or individual member countries of the UN, we engage in issues that concern sound policies and rights of citizens. Malawi is party to a number of international conventions and agreements, as is my own country, Norway. For example, over the past two decades more than 6 000 new EU legislative acts have been incorporated into Norwegian law and regulations. Norway is bound by them. EU member states may raise questions as to how we implement and follow these regulations. Similarly, we may raise issues with the Government of Malawi, on the basis of international agreements and conventions that are valid for all of us, and that are in the interest of Malawi, as well as of Norway.

Let me offer a couple of examples. Malawi is party to the United Nations Convention against Corruption, and the President is committed to a new drive against corruption. Therefore, we said we expected government to take quick action to rectify the situation at the Anti-Corruption Bureau and the National Audit Office. This is of vital importance to Malawi as well as to us as partners and donors. And government did act, and new management will soon be in place.

Almost all countries have subscribed to the Millennium Development Goals. The efforts of donors and international organisations to support Malawi in the health or the education sector are part of our contribution to achieving those goals, and our budget support is a means to this end. Therefore we sit down with government to discuss budget issues, whether resources are channelled towards achieving the goals, and whether the funds are put to good use. If some issues are of concern to us, we raise them.

It is based on this understanding that we engage with and stand by government and the people of Malawi.

—The author is the ambassador of Norway to Malawi and the current co-chair of the Common Approach to Budget Support (Cabs).