Thursday, 27 February 2014

Africa's Unending Poverty challenges: A Case of Malawi

The reports about Malawi being a success story in agricultural production were very interesting and a challenge for many African countries. To date there is a feeling in many African countries that not enough money in the national budget is being allocated to agriculture. Malawi did this starting in 2004 by giving a subsidy to farmers and is reported that Malawi started harvesting maize in surpluses which enabled it to export to other countries. It is reported further that this was opposed by donors who say subsidies were against the principals of free markets. Donors withdrew their usual support for the government budget deficit and the Malawian economy crumbled. What is the problem? The problem is begging. If you rely on donations, when the rag is pulled away from you, you will definitely collapse.

I have argued and will again do so that African emergence from poverty lies on increasing production in and productivity of agriculture. The problem of not being able to produce more has dire consequences not only poverty but hunger. And to overcome hunger, donors must again be gracious enough to donate food to these poor Africans.

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