Economics and Business Forum

Conquest of poverty in Malawi

Malawi has been classified by some observers as the poorest country in the world of course this has been vigorously denounced by proud and patriotric Malawians. However, the existence of extreme poverty in Malawi is there to see.

For countries as for individuals, sometimes it never rains but pours. We writhed and whined when flash floods during the just ended rain season destroyed lives and properties. Before we could amass funds to provide relief, another disaster comes along. We learn that to bring home the stranded Malawians from South Africa a budget worth K50 million must be put in place. Worse still the destitute will be coming home without their property, hence some of them might on arrival look to government for financial support.

In such a case, perhaps we could learn something from Singapore. The late great  prime minister Lee Kuan Yew  put in place institutions and appointed men who were totally committed to solving economic problems to run the institutions. To him, development and planning was not one of their portfolios, but their alpha and omega.

I think, the Ministry of Economic Planning and Development should be detached from the Ministry of Finance. When we hear the voice of the Minister of Finance, Economic Planning and Development, he is usually speaking on matters to do with finance and not development and planning. Yet, the financial problems that the country is reeling from can be reduced only if economic development and planning bears fruits.

Very important press releases have appeared in The Nation recently. On Monday April 13 2015, on the Business News pages, there was an article title ,’World Bank outlines strategy to end poverty.’ In the Tuesday April 14 2015 edition, there appeared headings like, ‘World Bank brands Malawi economy unstable and putting trade at the heart of poverty reduction policies in Africa.’

Pages like these should not be read and thrown away. They should be read, analysed and debated, that is why they are there. But which ministry staff will feel most concerned about this? I have often advocated for a re-establishment of a ministry of Economic Affairs which President Hastings Kamuzu Banda created in 1966 or there about. He appointed an able and young minister called Aleke Banda. President Banda had to get rid of the ministry after Aleke complained that other senior ministers resented his leadership.

If the Ministry of Economic Affairs is revived, it should preferably be headed by the Vice-President.

Next to establishing institutions with an exclusive responsibility for economic affairs, we must be clear about the economic terms we use and what they require of us to do. What do we mean by economic independence? Surely, we do not mean being like the People’s Republic of China, who have discovered that prosperity comes through interdependence with other countries, accessing their markets opening their own markets. In particular case what do we mean when we say Malawi should be economically independent?

The zero aid budget like the zero deficit budget has implications which most people do not seem to appreciate. These phenomena entail national sacrifices doing away with some of the luxuries people have been used to.

Our leaders have not been as candid as Winston Churchill when he assumed the premiership of Britain in 1940. World War II had started with Nazi Germany having beaten Britain and France at Dunkirk. In his inaugural speech, Churchill said:“I have nothing to give you but blood, sweat and tears in order to save Britain and its empire from being smashed by Adolf Hitler.” The British accepted the sacrifices and eventually saved their country.

Various members of the public service have not accepted the idea of sacrifice. Hence, they stage or threaten to stage strikes for increments to make up for increases in inflation. To appease them the government borrows money from the financial market. This results in the rise of interest rates and inflation. These bogeys will continue their stubbornness so long as public servants insist that the purchasing power of their salaries must not be eroded by inflation.

Budgetary aid was shielding us from austerity measures. Now we either accept the austerity measures or perish. Our leaders do not like to speak candidly like this because they fear losing popularity with the people especially the rent-seeking groups but there are times when a doctor must tell a patient either I operate on you or else you die. Malawians, countrymen, let us lend our ears to our leaders. The only way Malawi can make a turn around, is for us to accept short-term sacrifices for longer term benefits in the unforeseeable future.

The leaders of South Korea, Taiwan and Singapore were able to galvanise the energies of their people by pointing to the dangers they were facing from external aggression. There is no imminent danger of this sort of Malawi, but the danger within is great enough. We are not being wise by pretending that all is well.

The success of a nation or individual is never accidental, when sacrifice has to be made. The one who said, “fumbi ndiwe mwini” was a sage. The owner of a task must be prepared to sweat and get covered by dust. Other people may help, but they expect you to shoulder greater sacrifices.

 

 

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One Comment

  1. Economic independence without being interdependent with other Countries like Peoples Republic of China???
    Malawi cannot be on its own. For meaningful development, trade is a major component. Trade may be internally with Malawi but the bulk of it will be external trade which will be other countries.

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