BY WATIPASO MZUNGU JNR
The day, 6th July every year is a great day for Malawians. On this day in 1964 Malawi attained its independence from Britain. The Macmillan English Dictionary defines independence as freedom from control by another country or organization. Independence could also mean the ability to make decisions and live your life free from the control or influence of other people.
If we go by these definitions, however, one would be tempted to doubt Malawi’s independence, especially considering that Malawi, just like many countries in Africa, cannot run her economic affairs without relying on benevolence of the same people or countries we claim to have been freed from.
Malawi, landlocked as it is, heavily depends on agriculture, with tobacco, tea, and sugar as our most important export crops. Agriculture represents 34.7% of the GDP and represents about 80% of all exports.
Nearly 90% of the population engages in subsistence farming. Smallholder farmers produce a variety of crops, including maize, beans, rice, cassava, tobacco, and groundnuts (peanuts). The agricultural sector contributes about 63.7% of total income for the rural population, 65% of manufacturing sector's raw materials, and approximately 87% of total employment.
Financial wealth continues to be concentrated in the hands of a small elite.
Malawi's manufacturing industries are situated around the city of Blantyre. Recent years have seen increased activity in Malawi’s historically undeveloped minerals sector. In 2009, a major uranium mine opened in the north of the country that is expected to contribute significantly to export earnings and overall growth domestic products (GDP).
A full bankable feasibility study began in late 2009 on what is projected to be a similarly significant niobium deposit in Mzimba.
Malawi's economic reliance on the export of agricultural commodities leaves it vulnerable to external shocks such as declining terms of trade and drought. Labour costs are low, but high transport costs, which can amount to 50% of the price of imports and exports, constitute an impediment to economic development and trade.
A shortage of skilled labour; corruption; and inadequate and deteriorating transportation, electricity, water, and telecommunications infrastructure further hinder economic development in Malawi.
Although Maupo Chisambi, 24, is semi-literate and does not fully understand economic issues, he confessed on Wednesday that he cannot subscribe to the idea that Malawi is an independent nation amid its economic dependence on the west.
Chisambi thinks we can only pride ourselves as independent if we achieve total freedom from the west.
“What does independence mean if not doing what pleases you without someone interfering? Can we do that today?” he asked. Chisambi cited the recent incident where Malawi government was forced to free the gay couple or face economic sanctions.
President Bingu wa Mutharika pardoned the gay couple who were jailed for 14 years soon after holding talks with United Nations Secretary General Ban Ki-moon in Lilongwe. Although Mutharika initially said the pardon on Steve Monjeza and Tiwonge Chimbalanga was out humanitarian grounds and not because of pressure from the donors, his speech on return from France on June 2, 2010 revealed it all.
“The story ends there… I don’t want to hear anyone commenting on them. Nobody is authorized to comment on the gays. You will spoil things,” Mutharika told reporters on arrival from the France-Africa summit.
“I am looking at donors now… what will they say about the pardon? Is it possible to stop aid to Malawi because of two people who are insane?” Mutharika asked.
Centre for Human Rights and Rehabilitation (CHRR) executive director Undule Mwakasungula says dependence on donor aid is not enough reason for Malawians to lose their sense of independence and freedom.
Mwakasungula believes that we’re very much independent because we have our own elected democratic government. He states that since we are politically independent, that should give us a sense of being a free state.
“Yes, we can’t talk of independence when our national budget is 40 to 50 % supplemented by donors. We have to boost our economic base and increase our revenue collection to support our economy to some way or the other. But being economic dependent will not stop us from enjoying our political freedom,” he argues.
Recent government initiatives targeting improvements in the road infrastructure, together with private sector participation in telecommunications, have begun to render the investment environment more attractive. Negotiations underway with the World Bank and the Millennium Challenge Corporation for major projects in the electricity sector promise to significantly improve access to power.
The 2010 Index of Economic Freedom says Malawi’s economic freedom score is currently at 54.1, making its economy the 122nd freest. Its score has increased 0.4 point from last year, primarily reflecting improved fiscal freedom. Malawi is ranked 22nd out of 46 countries in the Sub-Saharan Africa region, and its overall score is below the world average.
Malawi has achieved average economic growth of 7 percent over the past five years, but sustaining this growth will be challenging without institutional reform. Malawi ranks just below the world average in most areas of economic freedom. However, despite some lingering barriers, foreign investment is generally welcome.
The small financial sector is relatively stable compared to others in the region. Malawi has taken steps to improve its regulatory framework in order to enhance its business environment and encourage a vibrant private sector, but progress has been slow.
United States of America, United Kingdom and other donors continue to assist Malawi in addressing daunting challenges that face the country in areas of health, education, economic development and poverty reduction, among others.
In his speech at the 2008 Independence Day Celebration, U.S. Ambassador Alan Eastham said his government is working diligently to empower Malawians to take hold of their own economic destinies.
“We are encouraging entrepreneurial Malawians through programmes such as those that assist small fish, dairy and coffee farmers, and others that target vulnerable households to increase their food security and incomes,” said Eastham.
Eastham observed that Malawi has taken substantial steps in achieving macroeconomic stability, and I commend the Government for this progress. Inflation and interest rates are down and economic growth has been strong, he said.
“Much work remains undone however. Is the effort to improve the business environment continuing, or has momentum been lost in the face of bureaucratic inertia? Are Malawian markets attractive to investors – be they foreign or domestic? Or are short-term considerations leading government back to the days of continual, short-sighted interference in the markets, as opposed to wise efforts to develop Malawi’s people and thereby its economy?
“I pose these questions, Madam Minister, not in accusation, but out of genuine concern. It has been said that the price of freedom is eternal vigilance. Continued vigilance is equally needed to protect the conditions necessary for economic vitality. The threats posed to Malawi’s economic sovereignty are real and they must be addressed with a view to securing the foundation that the country requires to achieve sustained growth, and break loose of its reliance on donor assistance,” said Eastham.
So maybe as we celebrate this year’s Independence Day, every Malawian’s question should be: what role shall I, as an individual, play to contribute to my country’s total emancipation from donor dependence?
It is possible that you, as an individual, are holding the key to Malawi’s economic independence. As Mwakasungula concludes, stop asking questions about what government is doing to attain economic freedom. It is time to lead the way in liberating our country from relying on donors.
END
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