Stephanie Smith - Furman University

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Stephanie Smith
Poverty Studies
Research Paper
5/4/09
The Causes of Poverty in Malawi
Malawi, a country located in southeast Africa and about the size of Pennsylvania, is
currently home to a rapidly growing population of about 13.1 million people1. As one of the top
ten poorest countries in the world, over 55% of the population live below the poverty line of $1 a
day2. In 2005, over 60% of the population was registered as being under the age of 203,
contributing to its booming population. Currently, the life expectancy is only 37 years of age4.
Maternal mortality rates continue to increase, jumping from 620 in 1992 to 985 deaths per
100,000 live births today5. The under five mortality rate still remains high in comparison to
other poorly developed countries, marking 133 deaths for every 1,000 live births in Malawi
compared to 156 deaths out of 1,000 for other least developed nations6. Together, all of these
statistics indicate an extremely vulnerable country being overcome by extreme poverty. What is
causing these astonishing conditions? Why are the people of Malawi unable to make progress in
fighting this extreme poverty? This paper investigates the causes of poverty in Malawi:
specifically, how its government, the condition of its people, its poor natural resources, and its
The World Bank. “Country Brief: Malawi,” (March 2009), http://go.worldbank.org/PH14P64710, (accessed 28
April 2009).
2
USAID Malawi. “Country Profile,” (2009), http://www.usaid.gov/locations/subsaharan_africa/countries/malawi/malawi_profile.pdf, (accessed 28 April 2009), 1.
3
The World Bank. “Malawi: Poverty and Vulnerability Assessment,” (June 2006),
http://www.aec.msu.edu/fs2/mgt/caadp/malawi_pva_draft_052606_final_draft.pdf (accessed 28 April 2009), 16.
4
USAID Malawi. “Health, Population, and Nutrition,” (15 April 2009),
http://www.usaid.gov/mw/programs/hpn.htm, (accessed 28 April 2009).
5
UK Department for International Development. “DFID Malawi Country Assistance Plan,” (5 June 2007),
www.dfid.gov.uk/consultations/malawi-cap.pdf, (accessed 28 April 2009).
6
The World Bank. “Malawi: Poverty and Vulnerability Assessment,” 66.
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failing economy contribute to impoverished conditions, trapping the country in a cycle of
poverty it cannot escape.
In order to understand the context of poverty in Malawi it is necessary to understand the
history behind the country. Malawi’s history dates back to the late 1400’s, when Bantu-speaking
natives established the Maravi Confederacy near Lake Nyasa (known today as Lake Malawi).
This region remained under Maravi control until the arrival of slavery and Arab traders in the
mid-nineteenth century. David Livingstone, a Scottish Presbyterian missionary, arrived at Lake
Nyasa in 1858. After his arrival the Scottish church began establishing missions with the goal of
ending slavery, Livingstone being a key player in this fight. In 1876 the city of Blantyre was
established in the southern region as slavery-fighting headquarters and in 1878 the African Lakes
Company was founded to help supply necessities to the missionaries in Malawi. In 1881 a British
consul was appointed to help smooth disagreements between slave traders and missionaries. In
1893 the region was established as a British protectorate and was named Nyasaland in 1907. For
several decades after its establishment Nyasaland struggled to survive economically.
Consequently, in the early 1950’s it almost joined with Rhodesia (Zimbabwe) and Northern
Rhodesia (Zambia) to form one nation. To preserve each country’s independence however, in
1953 an agreement, named the Federation of Rhodesia and Nyasaland, was made in hopes of
“deriv[ing] the greatest economic benefit from the larger unit while minimizing political tension
between the three parts of the federation, each of which retains its existing local government”7.
Nothing monumental arose from this Federation and by the early 1960’s African politicians
Bamber Gascoigne. “History of Malawi,” History World, (2001, ongoing),
http://www.historyworld.net/wrldhis/PlainTextHistories.asp?historyid=ad48#3377, (accessed 17 April 2009).
7
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began gaining more power within their local governments. In 1963 the Federation finally broke
up after many protests from Rhodesia, Northern Rhodesia, and Nyasaland8.
In 1958 Dr. Hastings Kamuzu Banda returned to Nyasaland from extended travel to
Nashville, Tennessee, where he attended and graduated from Meharry Medical College, before
practicing medicine in England and Ghana9. When he returned he became much more politically
active, assuming the role of president of the Nyasaland African Congress (NAC), which later
became the Malawi Congress Party (MCP). In 1963 Nyasaland was granted the self-governing
status shortly before the Federation dissolved, and Banda became the prime minister. On July 6,
1964 Nyasaland became an independent nation and was renamed Malawi, while Banda still
remained prime minister. Many of the reasons behind decisions Banda made during his rule were
unidentifiable. For this reason Banda lost many of his cabinet members early on in his reign. His
cabinet members were from “the younger, educated section of the community, and were
suspicious of localized traditional authority, which had been supported by the colonialists”10.
They were also more able to examine the past and see through Banda’s unfair decisions. Most of
Banda’s support came from those with “no schooling beyond primary level, who were more
likely to look uncritically at the past”11. Banda declared Malawi as a republic and himself as
president in 1966, and then declared himself president for life in 197112. Banda’s time in power
as president for life has been viewed as extremely exploitive. Facing his critics, he even
“admitted to being a dictator, but he saw this as not inconsistent with democratic values”13. He
Bamber Gascoigne. “History of Malawi”.
Bureau of African Affairs. “Background Note: Malawi,” (March 2009),
http://www.state.gov/r/pa/ei/bgn/7231.htm, (Accessed 18 April 2009).
10
Peter Forster. “Law and Society under a Democratic Dictatorship: Dr. Banda and Malawi,” Department of
Sociology and Anthropology, School of Comparative and Applied Social Sciences, The University, England,
Koninklijke Brill NV: Leiden, 2001, p. 276.
11
ibid 276.
12
Bamber Gascoigne. “History of Malawi”.
13
Forster, Peter. “Law and Society,” p. 276.
8
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explained that since Malawi was “distinctive culturally” a different, more well suited form of
“democracy” was necessary to cater to the Malawian people, and that it would not follow
“Western models”14. He argued that although he was a dictator, that he “dictated by consent”,
and that it was the “democratic will of the people to have a dictator”15. Banda justified his rule
and the power he held by rooting it in tradition. He especially valued the “good village” concept.
This concept explained that in a “good village” the “headman and elders were respected by all,
and they too had regard for all; the young respect parents and no one tries to harm another”16. In
the eyes of Banda, Malawi was his “good village” and he was the headman. His villagers “may
not live up to [his] standards but must never rebel against them”. Banda was always quick to
reprimand anyone whose views or opinions opposed his own.
Central to the causes and perpetuation of poverty in Malawi was its government. Malawi
continued to run under Banda’s one-party dictatorship until the early 1990’s when “increasing
domestic unrest and pressure from Malawian churches and from the international community led
to a referendum in which the Malawian people were asked to vote for either a multi-party
democracy or the continuation of a one-party state”17. On June 14, 1993 a vote was held to
determine whether Malawi would continue to run under a one-party state or whether there would
be a transition to a multi-party democracy. The Malawian population voted and a multi-party
democracy became the unanimous victor. On May 17, 1994 the first democratic elections were
held with Bakili Muluzi and Chakufwa Chihana running against former president-for-life
Banda18. Bakili Muluzi, former cabinet member under Banda and president of the United
Democratic Front, decisively won the election ending Banda’s thirty year reign shortly. Muluzi
14
ibid 276.
ibid 277.
16
ibid 277.
17
Bureau of African Affairs “Background Note”.
18
“Dictator Said to be Trailing in Malawi’s First Open Election,” (19 May 1994), New York Times, p. A8.
15
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instituted a new democratic constitution in 1995 bringing great freedom to Malawi19. In an
interview after his election when asked “what [did] he think [he had] achieved in [his] first 100
days in office”, Muluzi commented that “People [are] now able to smile and live without fear.
The human liberty of a person is most important. This has been lacking for over 30 years”20.
Muluzi sought to improve relations between Malawi and other foreign countries, especially Arab
countries, which Banda had neglected. His main campaign though, which he struggled to
accomplish, was to reduce food shortages and the number of people living in poverty, while
eliminating governmental corruption. In 1999, Muluzi was reelected to a second five-year term.
Muluzi’s second term was much more controversial than his first, as it included the famine of
2002. During the famine, which was rooted in the underproduction of maize in 2001 due to
flooding, maize prices increased 340% almost overnight21. Estimates about the total number of
deaths due to the famine tallied around 1,000-3,000 deaths22. There were also suspicions about
corrupt governmental actions in selling all of the maize reserves and pocketing the money for
personal gain, but there was no conclusive evidence to make any accusations23. Muluzi finished
out his second term unable to make a last-ditch effort to extend his term by amending “the
constitution to allow further terms”24. In 2002, Bingu Wa Mutharika defeated John Tembo and
Gwanda Chakuamba and took office as second UDF president25. He immediately embarked on a
mission to eliminate any remaining government corruption and to make government spending for
Encyclopedia Britannica Online. “Malawi,” (2009), http://www.britannica.com/EBchecked/topic/359614/Malawi
(accessed April 28, 2009).
20
Africa Report. “Interview of President Muluzi by African Report,” (1994), EBSCOhost, (accessed 28 April 2009).
21
Oliver Ruben. “The Malawi 2002 Famine-Destitution, Democracy and Donors,” Nordic Journal of African
Studies, 17(1), (2008): 49-50.
22
ibid
23
Encyclopedia Britannica Online. “Malawi”.
24
ibid
25
Bureau of African Affairs “Background Note”.
19
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efficient so that the government would run much more smoothly26. In 2005, Mutharika left the
UDF party because of differing interests and founded the Democratic Progressive Party (DPP).
The election of Mutharika and his first term marked a turning point in the country’s leadership,
in that Mutharika so far has not been as corrupt a leader as was Banda and Muluzi. Malawi’s
history of corrupt political leadership has helped to feed the growth of poverty in the country,
and only time will tell whether Mutharika will be able to break free of this corruption or
succumb to it himself. The next election to be held in Malawi is on May 19, 2009.
Crucial to understanding the causes of poverty in Malawi, is also understanding the
condition of Malawi’s people, in particular the effects that lack of food and nutrition, the
HIV/AIDS epidemic, and poor educational systems have had on their lives. The food supply in
Malawi has always been problematic, as subsistence farming provides the country with its staple
food maize. The maize that each family grows, on their own small plot of land, is the food that
must feed them the entire year. It rarely does. Most years Malawi endures a “food shortage
during the so-called hungry months, December and March, the single growing season”27 where
families are lucky if they eat one small meal a day. According to a report made in 2005 by the
United Kingdom’s Department for International Development only 22.3% of the population is
able to meet its basic food requirements28. As a result, malnutrition runs rampant through
Malawi, having its greatest effects on the children. In 2007 a study found in comparison to
normal children height-to-weight growth charts that 48% of children in Malawi under five years
of age are “stunted (too short for their age)”, 22% are “severely stunted”, 5% are “wasted (too
Encyclopedia Britannica Online. “Malawi”.
Barry Bearak. “Why People Starve,” (New York Times, 13 July 2003), http://www.nytimes.com, (accessed 28
April 2009)
28
UK DFID. “DFID Malawi”.
26
27
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thin)”, and 22% are underweight29. Not only are the people of Malawi not receiving enough food
on a daily basis but they also do not receive a wide variety of nutrients. Since the staple food,
nsima, is made from maize the main nutrient the population receives is starch. Another common
dish that accompanies nsima is relish, made up of a cooked wild type of cabbage. The cabbage
must be cooked well in order to kill the bacteria living in the water in which the cabbage was
washed. Unfortunately, though, the longer the cabbage is cooked the less nutrients that remain in
it. Also, it is very rare for a family’s meal to consist of any type of protein, like chicken or beans,
or any type of fruit. This leaves the people lacking in iron, vitamin A, and zinc30. Insufficient
amounts of these important nutrients in children can lead to mental and cognitive disabilities.
Children that do not develop properly “become adults with lower intellectual and physical
abilities”31. In Malawi, without proper amounts of food and the essential nutrients “people may
actually find it impossible to build the necessary human, physical and social capital (or assets)
that would enable them to raise their welfare level on a sustainable basis” perpetuating the cycle
of poverty32.
Just as insufficient food conditions in Malawi have drastically affected the abilities of the
people, the HIV/AIDS epidemic, which is spreading at alarming rates, has had catastrophic
effects on the familial structure, and in particular the middle generation expected to provide for
the family. Malawi’s first reported case of AIDS occurred in 198533. Despite early attempts to
prevent the spread of HIV/AIDS, progress while under President Banda’s rule proved to be very
difficult. Banda considered discussing AIDS and HIV “taboo”, making it impossible to educate
The World Bank. “Malawi: Poverty and Vulnerability Assessment,” 70.
Natalie Dickinson, Gordon Macpherson, Andrew S. Hursthouse, & John Atkinson. “Micronutrient Deficiencies in
Maternity and Child Health: A Review of Environmental and Social Context and Implications for Malawi,” Enviorn
Geochem Health, 31 (2009): 256.
31
ibid 253.
32
The World Bank. “Malawi: Poverty and Vulnerability Assessment,” 132.
33
Graham Pembrey. “HIV & AIDS in Malawi,” (February 2009), http://www.avert.org/aids-malawi.htm (accessed
28 April 2009).
29
30
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the public about the disease thereby helping to curb its spread. Between the years 1985 and 1993,
during Banda’s rule, the percentage of women tested for HIV during prenatal doctor visits
jumped from 2% to an alarming 30%34. After Muluzi took office and instituted many new
policies attempting to reverse the damage Banda caused, the rate at which the disease is
spreading seems to be stabilizing. Despite the apparent stabilization between 1998 and 2005 the
number of newly infected people jumped from 52,643 to 96,552 respectively, making the making
the war against this epidemic still very urgent35. In 2005 there was a 14% occurrence rate of HIV
in adults between the ages of 15-4936. Today there are close to 1 million people living with AIDS
and it is the leading cause of death in adults. One in every eight people dies every hour from the
disease37. The epidemic is having catastrophic effects on the familial structure, causing a cultural
restructuring of the family unit. Within the developmental stages of life, individuals are the most
dependent during their early childhood years and towards the end of their lives as old age
approaches. This poses an enormous problem, as the main group targeted by HIV/AIDS is the
middle generation, adults between the ages of 15-49. This generation is relied on most to
produce for the economy and provide for their families (especially the young and old)38. As this
age group is wiped out by HIV/AIDS, there has been a shift from a typical nuclear family
structure, one consisting of solely a mother, father, and children, to one that extends to include
distant relatives and sometimes, unrelated friends, trying to care for orphans. In Malawi in 2007
there were about 560,000 children registered as being an orphan, losing one or both parents, due
34
ibid
UNDAF Malawi. “United Nations Development Assistance Framework 2008-2011,” (2008),
http://www.unmalawi.org/reports/undaf/undaf_malawi_2008-2011.pdf (accessed 28 April 2009).
36
UNAIDS and World Health Organization. “2007 AIDS Epidemic Update: Sub-Saharan Africa,”
http://data.unaids.org/pub/Report/2008/jc1526_epibriefs_ssafrica_en.pdf (accessed 28 April 2009).
37
Graham Pembrey. “HIV & AIDS in Malawi”.
38
Mike Mathambo Mtika, “Family Transfers in a Subsistence Economy and under a High Incidence of HIV/AIDS:
The Case of Rural Malawi,” Journal of Contemporary African Studies 21,1 (2003): 69-92.
35
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to the AIDS epidemic39. As parents are dying of AIDS leaving children orphaned, they are
forced to find other places to live. They are often taken in by aunts and uncles or other distant
relatives and incorporated into their families. However, when taken in by these families
frequently they are treated harshly, due to the taboo of being an AIDS orphan (despite being
family) and because they are an extra mouth to feed. The hierarchical structure that establishes
who holds the most power and status, and therefore who runs the household, is also changing in
Malawi. As the middle generation continues to die off, responsibility is falling back onto the
elderly generation who are not fully capable to perform the necessary day-to-day tasks required
to run a household. The elderly’s frail and deteriorating health makes farming, cleaning, cooking,
and caring for children an almost impossible task40. Children also are forced to bear huge
responsibilities. They often are the primary caregivers for parents when they are sick, and upon
death, if there are no relatives available to take in the children, a child-headed household arises.
Child-headed households are becoming increasingly more common. With the middle generation
being eliminated so rapidly, it is extremely difficult to make any progress economically with the
hope of escaping poverty.
Malawi also faces a crisis in its educational system. Due to a lack of qualified teachers,
poor building conditions, and poor access, Malawi’s educational system is failing to meet the
needs of Malawi’s children, and thereby helping them improve their own welfare situations.
Prior to 1994, the educational system of Malawi was very neglected by the government. There
were very few public government schools throughout the country, making education, especially
Graham Pembrey. “HIV & AIDS in Malawi”.
Vuyiswa Mathambo, Andy Gibbs, Linda Richter, & Lorraine Sherr. “Qualitative Accounts of Family and
Household Changes in Response to the Effects of HIV and AIDS: A Review with Pointers to Action,” Joint
Learning Initiative on Children and HIV/AIDS, (31 August 2008),
http://www.jlica.org/userfiles/file/Mathambo%20&%20Gibbs%20Qualitative%20accounts%20of%20family%20an
d%20househol.pdf, (accessed 28 April 2009).
39
40
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for village children, impossible unless there was a mission school nearby. Enrollment of children
ages 6-13 was 43% in 1980 and only 55% in199241. In 1994, President Muluzi, upon his election
to office, instituted Free Primary Education (FPE) for all Malawian children. With the creation of
this new policy enrollment levels jumped from 1.3 million children in 1993 to over 3 million
children in 2004, an increase of over 100% enrollment42. The majority of this increase in
students was identified as female. It was no longer justified to only pay for boys to go to school
since school was now free, so prejudices against girls attending school dramatically decreased.
Today there are still over 3 million children enrolled in primary school with about an 80%
enrollment rate43. Although the new policy seemed promising, it has brought many new
problems to the educational system. Now, instead of an insufficient number of children being
enrolled in school, there are too many and not enough resources to provide a quality education
for all students. Since the induction of the FPE policy hundreds of new governmental schools
were built but there are still not enough to accommodate all students currently enrolled. Today
there are “5,307 primary schools in Malawi for 3 million children” which calculates to over 565
students on average per school44. Students on average must walk at least 2 kilometers to get to
and from the closest school everyday45. Once the children arrive at school they are then faced
with an inadequate supply of resources to properly house all of them. Most schools do not have
enough classrooms for all of their students and numerous classes must be held outside under the
shade of trees. Sitting outside however sometimes proves to be better than the conditions inside
the buildings whose structures are deteriorating rapidly. Massive potholes or crumbling walls are
Dr. Ken Lipenga. “Improving Quality of Education,” The Commonwealth Advanced Seminar, (2004),
http://www.victoria.ac.nz/commonwealthseminar/Papers.aspx#c04, (accessed 2 May 2009), 1.
42
Ibid 1
43
UK DFID. “DFID Malawi”.
44
Dr. Ken Lipenga. “Improving Quality of Education,” 3.
45
USAID Malawi. “Education,” (15 April 2009), http://www.usaid.gov/mw/programs/edu.htm, (accessed 28 April
2009).
41
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not uncommon within classrooms, while children arrange themselves to avoid these obstacles.
Classrooms also lack the materials needed to properly facilitate learning. It is not abnormal to
walk into a classroom and find it completely empty, or just housing one small chalkboard, as
“only 20% of pupils have access to desks and chairs”46. In the classrooms that do contain small
desks, multiple students must squish to share working space. There are rarely ever textbooks for
the students, and paper notebooks and pencils are passed around classrooms and shared by
students. Within the primary school system only 26% of the students complete primary school47
with half dropping out before their fifth year48. After graduating from primary school a select
few, 40%, choose to continue their education in secondary school. Secondary school is not free
so the majority of the students come from the wealthier backgrounds in Malawi49. Perhaps the
biggest problem within the educational systems though, is the lack of qualified teachers. In
primary schools the student teacher ratio is 84 to 150. It is very difficult to attract new qualified
teachers to rural villages where running water and electricity are not available. With such poor
educational systems, Malawi’s people are left ill-equipped to provide for themselves and escape
the cycle of poverty.
Malawi currently ranks 162 out of 179 on the UN’s Human Development Index, which
measures the health, longevity, education, and standard of living of a country. The inabilities of
the Malawian population to work to provide economically for themselves has been seriously
compromised by their lack of nutrition and food, the HIV/AIDS epidemic which eliminates the
middle generation, and the deprived governmental school systems making it almost impossible
to make any strides toward breaking away from impoverished conditions.
UK DFID. “DFID Malawi”.
UNDAF Malawi. “United Nations Development Assistance Framework 2008-2011”.
48
UK DFID. “DFID Malawi”.
49
USAID Malawi. “Education”.
50
UK DFID. “DFID Malawi”.
46
47
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Poverty in Malawi is also rooted deeply in the condition of the country’s land, in particular
its climate, the condition of its water supply, and its natural resources. Geographically, Malawi
is a landlocked country located within the Great Rift Valley. Lake Malawi, located on the eastern
side of the country, makes up 20% of the country’s total area51. Malawi is scattered with plateaus
(2500-4500ft above sea level) in the central region, highlands (8000ft) in the north and west, and
mountains (peak around 10,000 ft) in the south. With a subtropical climate, there are two main
seasons in Malawi the wet season, November through April, and the dry season, May through
October52. The country is extremely vulnerable to any great changes in climate, especially
drought, as the “majority of the population relies on rain-fed farming for their income”53.
Rainfall levels vary greatly from year to year. Rain stations set up around the country in divided
areas by the World Bank measure these levels and account for droughts in each area. A drought
is defined as having a “cumulative rainfall which is below 75 percent of the long-term
average”54. According to the measurements made by the 22 different weather stations, between
1996 and 2005, 5 out of the 10 years (1996, 1997, 2000, 2004, 2005) there was a drought in at
least 1 out of the 22 areas. In 2000, 2004, and 2005, there was a drought in 8 out of the 22
areas55. These inconsistencies in rainfall greatly affect the growth of crops throughout the year,
especially maize. The inconsistencies in crop growth then greatly affects the amounts of food
Malawian families have for the year. Malawi has also struggled with “land degradation” as the
population continues to grow rapidly and subsistence farming increases. With an increase in
farming on the decreasing land available for farming, only 20.68% of land is arable56, and soil
Bureau of African Affairs “Background Note”.
Encyclopedia Britannica Online. “Malawi”.
53
The World Bank. “Malawi: Poverty and Vulnerability Assessment,” 114.
54
The World Bank. “Malawi: Poverty and Vulnerability Assessment,” 115.
55
Ibid 115.
56
CIA World Factbook. “Malawi,” (23 April 2009), https://www.cia.gov/library/publications/the-worldfactbook/geos/mi.html, (accessed 28 April 2009).
51
52
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erosion is becoming an increasing concern. In rural Malawi, a “majority of agricultural
communities…reported a worse or much worse degree of soil erosion on cropland compared to 5
years ago, while only 6 percent reported improvements”57.
In connection with inconsistent rainfall and soil erosion, lack of irrigation systems and the
lack of ability to let land lay fallow contribute to the devaluation of Malawi’s land and perpetuate
poverty. Instituting an irrigation system within Malawi would greatly increase the country’s
ability to withstand drought and other climate changes, as well as improve soil conditions and
help prevent erosion. According to a report made by the World Bank “unreliable rainfall is the
leading cause of harvest failure and hunger, and investing in irrigation would reduce the risks of
food insecurity”58. With the institution of irrigation systems farmers would be able to control the
flow of water to their crops, allowing them to prevent erosion of their soil. Irrigation would also
help to promote increased crop production, as farmers would be able to ensure that drought
conditions would not occur facilitating healthier plant growth. Irrigation might even have “the
potential to quadruple yields and provide at least two harvests per hectare to the small farmer in a
given year”59. Another technique that would increase crop production is letting land lay fallow.
The practice of setting a piece of land aside for a year, that is left unsown, allows the soil to
replenish its nutrients and helps prevent soil erosion. While this was once a practice in Malawi,
today due to the population increase and amount of arable land decrease, it is becoming
increasingly difficult to leave any land unsown. Each typical Malawian family only owns a small
piece of land, while the core poor own less than 0.5 hectares (1.2 acres)60. Normally each family
will sow their entire plot of land, and the resulting crop does not provide enough food for the
The World Bank. “Malawi: Poverty and Vulnerability Assessment,” 115.
The World Bank. “Malawi: Poverty and Vulnerability Assessment,” 38.
59
Ibid, 38.
60
The World Bank. “Malawi: Poverty and Vulnerability Assessment,” 156.
57
58
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entire family. This fact makes the concept of leaving land fallow impossible, because then even
more severe shortages in food would result. Due to Malawi’s lack of irrigation, and their
inability to leave land fallow the cycle of poverty continues.
Despite some recent small economic growth, Malawi’s economy still remains in poor
condition, contributing to poverty in Malawi. In recent years, the economic growth rate in
Malawi has increased to about 7.5%, up from 3%, and the Gross Domestic Product is measured
at $3.5 billion. Out of the $3.5 billion, about 35% is made up of agriculture, 46% by services,
and 19% by industry61. The average annual income per person is $250, about $0.69 day62. While
it only makes up 35% of the GDP, agriculture is central to Malawi’s economy with 90% of the
population being involved in some type of agricultural work, and 80% working specifically as
subsistence farmers63. Agricultural exports, such as tobacco, tea, coffee, and sugar, also make up
over 80% of total exports64. Within Malawi, maize is the main crop harvested, accounting for
“half the cultivated land”65. The flour produced by ground up maize produces the staple food of
Malawi, nsima. As would be expected, with such close ties between agriculture and the
economy, invariable climate conditions have a profound impact on the success and stability of
Malawi’s economy. There has not been much other development in Malawi besides agricultural,
although this is slowly starting to change. The business industry is slowly developing, but is no
where near any level that might help pull Malawi out of poverty. The government has recently
recognized two fields of interest, agro-processing and tourism, that in the future could prompt
more businesses to invest in Malawi’s economy. In terms of outside investments, “Malawi has
one of the lowest [investment] levels on the continent”, measuring at only 8.1% of the SubThe World Bank. “Country Brief: Malawi”.
ibid
63
UK DFID. “DFID Malawi”.
64
The World Bank. “Country Brief: Malawi”.
65
UK DFID. “DFID Malawi”.
61
62
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Sahara GDP average66. Malawi’s mining sector has the potential to grow to “become Malawi’s
largest foreign exchange earner ahead of tobacco”67. What outside business, though, would want
to establish itself in one of the top ten poorest countries in the world? In a country with poorly
educated, malnourished, and HIV/AIDS infected citizens it would be very difficult to establish a
business that would survive, let alone make any profits. This is the problem that Malawi
continues to face year after year. Malawi’s economy must wait until conditions improve, or
incentives are introduced, before businesses will establish themselves and invest in the country’s
wellbeing. Until then the economy is useless in making any advances towards escaping poverty.
In depth investigations into the causes of poverty in Malawi reveal a seemingly hopeless
situation without drastic change. The four main categories contributing to poverty in Malawi, the
government, the condition of the people, the poor natural resources, and the failing economy, are
so tightly intertwined that it is hard to even declare them as separate categories. The poor
conditions of Malawi’s people contributes to the failing economy, which then gets tangled up in
the hazards created by Malawi’s poor natural resources and the country’s corrupt political
history. It is truly a cycle of poverty that seems to never end. There have been some recent
attempts to institute programs to fight the poverty in Malawi, like the Malawi Growth and
Development Strategy (MGDS) 2006-2011 and the Malawi Poverty Reduction Strategy (MPRS),
but drastic results have yet to be seen. The process of bringing Malawi out of poverty will be a
slow and very tedious one, but very possible, if the right initiatives are instated, and people
worldwide continue to advocate and fight for an improved Malawi.
66
67
UK DFID. “DFID Malawi”.
ibid
Smith 16
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