Economic strengths, weaknesses
Malawi is endowed with a variety of soils, climates and other natural resources. We find here a people who are descendants of those who had a high reputation during colonial days as soldiers and workers. Their ancestors were said to be intelligent and industrious. Despite all these apparent assets, Malawi, during the past 50 years, has descended from being one of the poorest 10 to the poorest of the 10. What is the reason?
It is not because of one reason. A few of these reasons must be highlighted. A sense of responsibility in high places is lacking. Wherever development has taken place, people work extra hard. Hard work involves reporting for duties on time, concentrating at the tasks and not departing for home until the day’s task is done. But what do we find in Malawi?
Time and time again, we have been told some civil servants report for duties at Capital Hill one hour or so after the office starting time. Civil servants are the major part of what we call the Executive. Who is to blow the whistle when there is dereliction of duty in the Executive? The people, through their elected leaders called members of Parliament (MPs). But we still receive reports via the media that some MPs do not attend parliamentary sessions. Recently, the number given was 81 out of about 190. Would such men and women dare castigate civil servants who neglect their duties? A kettle does not call a pot black.
If members of the elite show no dedication to duty who is to give a good example to people lower down the social ladder. Until Malawians work harder; unless we show a good deal of commitment to our duties the development of our country will keep on staying away. By the way, is Parliament unable to discipline truant MPs.
Reserve Bank of Malawi (RBM) Governor Charles Chuka has been very courageous in calling upon the people of Malawi to demand from their governments fiscal discipline if the next 50 years will be better than the past 50 years.
Debt crises, according to a recent issue of The Economist are once more casting their shadow over the world economy. Even if we shouted through loud speakers would our governments listen? Not until lobbyists and rent-seekers restrain themselves.
Government accumulated debts which threaten the economy when some segments of society extract for themselves privileges from government. If one branch of the civil service goes on strike for higher pay and succeeds, another will also do so. Upon finding that the increases cannot be met from tax earnings, government then resorts to borrowing either from central bank or the private sector, sometimes from both.
Excess domestic borrowing crowds out private business because interest rates rise. High interest rates are already deterring private investment in Malawi. Borrowing from the central bank means in practice printing excess bank notes and off-loading them on the market. This brings about demand pull inflation, too much money chasing too few goods. In a state of galloping inflation, wages and prices chase each other as well. If money authorities shy away from austerity measures, galloping inflation deteriorates into hyper-inflation.
At this stage while people were previously carrying money in their pockets on the way to the market and bringing food in their baskets, now they go to the market with money in their baskets and bring food in their pocket. The quantity of money outweighs the quantity of goods.
In a multi-party situation, political leaders shy away from fiscal discipline for fear of losing vote during the next elections. Fiscal discipline involves refraining from spending money on projects of low priority. So, what is the way out? Every State stakeholder must remember that there is no gain without pain and then behave correctly.
Apart from fiscal discipline, our governments must take strict measures against those who are destroying natural resources. From time to time, we have heard that the Chikangawa Forest Reserve is being devastated by wild fire. We have been hearing of these fires and wanton cutting of trees over many years. The government seems to apprehend and punish miscreants.
People tend to be careless with something that has not cost them sweat and blood. n
