Malawi in crisis, 2011–12

Click to increase image sizeClick to decrease image size

Notes

Compared to the chaotic economic policies and free-for-all of the latter Muluzi years, Mutharika's first term provided macroeconomic stability, GDP growth, national food security, and better bureaucratic discipline (Cammack and Kelsall 2010).

Malawi has a unicameral national assembly though it is commonly referred to as parliament and its members as MPs.

The IMF complained about ‘low levels of reserves, the damage made to credibility of the authorities by the loose macroeconomic policies and the authorities’ track record in the area of the forex regime' (Daily Times 2012a).

According to the Malawi Chambers of Commerce and Industry, the top ten problems facing business are: utilities–electricity, crime–theft, exchange rate policy, corruption, cost of finance, lack of market information, utilities–telecommunications, economic and regulatory policy uncertainty, tax administration, and effectiveness of national assembly at law making (The Nation 2011b).

Due to the volatility of donor support, ‘there is a risk that where disbursement does not occur, Government borrowing is impacted’. Thus all donor aid would be channelled through the development rather than the recurrent budget (Ministry of Finance, 2010).

‘She said government is aware of the problem of forex and fuel. But she argued these items do not affect people in rural areas. She said rural masses do not have vehicles and, therefore, should not raise their voice on the forex and fuel shortages’ (Malawi Today 2011a).

Including its land-locked position, high rates of illiteracy and low rates of educational attainment, a paucity of natural resources (though exploration is now vigorous), high rates of population growth and high population densities on degraded land, a single rainy season, etc.

There are reports that he became an American and gave up his Malawian citizenship when living in the USA, but these claims are not proven and the US government refuses to comment.

The cause of these bizarre attacks, which spread to Mzuzu and Blantyre, was not known, though people speculated. An APPP researcher reported that one Mzuzu man told him that people ‘wanted to revenge the 20th July saga [deaths]. “The whole situation is not about harassing women but trying to provoke the situation and revenge to police officers. Can't you see that the police are not arresting people, if they dare do that, you will see stones” he said’. In Lilongwe he reported one woman saying ‘“this is because of unemployment. If these people were employed or financially supported, they would not find time to do such stupid acts”. I heard another man outside the bus saying, “Abambo ako mu trouser naweso mu trouser, zimezo ayi” which means “your father is putting on a pair of trousers and you are doing the same and that should be stopped”‘. Pers. Comm., Moir Walita Mkandawire to Diana Cammack, 20 January 2012. Women organised and were allowed on 20 January to march against men publicly undressing women who wear trousers and miniskirts, and minor scuffles were reported.

This is suggested by Nico Assets Manager Ltd Annual economic report, 2011 (Weekend Nation 2012c).