Dear Mr President
We recently agreed that Malawi should be one of 27 priority countries for future UK development support. Stephen O’Brien discussed our future plans with you in January, and confirmed them in his letter of 24 February to your Finance Minister. But as you know, following your expulsion of our High Commissioner, we’re reviewing the wider relationship with Malawi. Before I make decisions on the future of the aid programme, I would welcome your views on the concerns set out in this letter. Until I have completed my consideration of these issues, following your response, I will not be making any budget commitments to Malawi.
Our partnership is based on a commitment to poverty reduction, respect for human rights and accountability and sound public financial management. Malawi’s economy has grown well in recent years, and good progress has been made on maize production and against some of the MDGs. But major development challenges remain and I am concerned that some of the policies of your government may jeopardise progress in reducing poverty.
First, there are growing risks to the Malawi economy, which if not urgently addressed will seriously limit progress in reducing poverty. Malawi’s chronic foreign exchange shortages are having a very serious impact on the private sector, which should be driving future growth. Declining global demand for tobacco combined with rising fuel and fertiliser prices also suggest a serious terms of trade shock for Malawi.
In the short term this requires some changes to economic policy agreed with the IMF. In the short term export competitiveness, power shortages, high transport and finance costs and skills gaps need to be addressed. These issues are all covered by joint work between your government and the development partners, but I’m unclear what action you propose to take. As a relatively small and landlocked country, there are opportunities to take advantage of regional integration of transport and power. Again I am not sure of your government’s intentions.
Second, on human rights and domestic accountability, I welcome the greater transparency and accountability around the national budget and consultations to inform the new Malawi Growth and Development Strategy. But there have been a number of worrying developments over the last eighteen months. Reports that demonstrations have been suppressed and civil society organisations intimidated indicate that space for normal democratic debate is narrowing and that tolerance for opposition voices, and for organisations that can help to hold the government to account, is declining.
Stephen O’Brien raised with you in January our concerns about the implications of the revised Penal Code for freedom of expression and minority rights. We are extremely disappointed to learn that this Bill was signed into law shortly afterwards and that homosexuality between women will be criminalised. I hope also that we can work together to ensure that institutions, such as the National Audit Office, the Anti Corruption Bureau, the Ombudsman and the Malawi Human Rights Commission, are given the necessary independence and financial support to do their jobs and provide a formal avenue for Malawians seeking redress.
Third, on public financial management, I remain concerned about the use of scarce public resources for luxury items, including the $22 million plane in 2009 and continued purchase of expensive cars. As you will recall, the UK deducted 3 million pounds of general budget support in 2009 and recently reclaimed 500,000 pounds following evidence of poor value procurements in the health sector.
I understand that reviews of fertiliser and road procurement highlight opportunities for major savings. At a time of austerity in the UK when the Coalition Government has agreed to continue increasing the aid budget, I need to be able to assure British taxpayers that partner governments are using our resources, and theirs to deliver better results in reducing poverty. I would welcome reassurance on your commitment to value for money and details of your next steps.
Fourth. I was disappointed with the Government’s slow and limited response to the hunger faced by many families in Southern Malawi, following localised droughts in 2009/10, especially given the assurances I received last November. This weak response undermines the Government’s very positive record in improving food security at the national level.
I look forward to your response on all of these issues, which are fundamental to our future partnership. I would like to reassure you that we respect Malawi’s right to shape its own policies. But you will understand that I also have responsibilities to the British taxpayer to ensure that their money is used to reduce poverty in the most effective way. I will be making decisions on the UK’s development programme in Malawi by the end of June. I would like to take account of your answer to this letter and would be happy to discuss the concerns in this letter with you. I also intend to consult Malawi’s other development partners. The Foreign Secretary, the Right Hon William Hague, will be interested in your reply as he considers other aspects of the UK’s relationship with Malawi.
With best regards
Yours sincerely
ANDREW MITCHELL
SECRETARY OF STATE, DEPARTMENT FOR INTERNATIONAL DEVELOPMENT
CC
Hon Prof Etta Banda MP, Minister of Foreign Affairs
Hon Ken Kandodo MP, Minister of Finance
Hon Abbie Shawa MP, Minister of Development Planning and Cooperation
Wednesday, May 25, 2011
Environmental loss Malawi’s ticking bomb
By Moses Phiri 2011-05-24
In Balaka where forests are scarce every tree counts and cutting down trees on someone’s piece of land is a serious crime—the same as theft of a herd of goat.
It is scary, people can be beaten to death if caught cutting down a tree in someone maize field, because trees are money too.
Materials for housing, lighting and firewood all come from trees from individual’s piece of land. Land is inherited or bought at exorbitant price and everyone future lies in how they protect their piece of land.
But what happens to public land, public forests, hills and mountains in Balaka?
Of course those who have depleted their trees look up to the mountains for trees. Today almost all mountains in the area are bare. The forest loss has piled more misery on people in Balaka—an early dry spell that almost wiped out all the maize.
Now they have to buy housing material, parrafin to light their homes and firewood. There is even little to harvest from their fields too.
The cost of degradation is too high to bear, as people in Balaka can testify. But Balaka case is just a tip of an iceberg.
At national level environmental degradation cost the economy $191 million —or in Malawi kwacha terms K26 billion.
This is an equivalent to 2009/10 budget for the subsidy fertilizer programme. This amount is also more than the total funding allocated to the education and health sectors in the 2009/10 annual budget.
“No doubt, Malawi is endowed with abundant natural resources, however, environmental sustainability is one of the challenges that Malawi faces as trends indicate persistent degradation on account of unsustainable use,” says Mzithembi Mbekeani, spokesperson for the Ministry of Development Planning and Cooperation.
In economic language, Malawi loses 5.3 percent of its annual general domestic product (GDP) due to unsustainable use of its natural resources.
This implies that the country would be K26, 574 million (US191m) richer annually—calculated in 2007 prices—if soil, forest, fisheries and wildlife resources were used sustainably according to new findings of a report that was commissioned on the Economic Analysis of Unsustainable use of Natural Resources in Malawi, with assistance from the UNDP, UNEP Poverty and Environment Initiative (PEI).
Unvailed last week, the findings are a wake up call to policy makers and budget drafters in particular that if we do not invest in protecting the environment, like a thin cow we can not milk it anymore.
Sadly, policy makers live in towns and cities. For many of them the environment means a well planned city with lots of flowers, smooth roads, running water, air conditioned rooms for conferences and a good sewer system sometimes. Even a few luxuries too.
But for Gogo Matiasi who lives on the edges of Toleza Farm in Balaka and 80 percent of Malawians their survival depends on renewable natural resources for their subsistence and household income.
Finance minister Kan Kandodo acknowledges that the foundation of the national economy is primarily rain-fed agriculture. Rain fed agriculture thrives on well endowed forests and natural reserves.
What is more worrying as the PEI study found out is that while the economic contribution made by renewable natural resources to Malawi is very significant it is not adequately captured in official statistics.
“Estimates of Gross Domestic Product (GDP) do not record the contribution of soils or wildlife. Even where natural resource use is recorded in GDP, the values tend to be understated.
“For example official GDP figures in Malawi significantly understate the true contribution of forestry by not capturing the extensive use of wood for fuel,” explained Michael Mmangisa project manager for PEI who presented the report to the media in Blantyre.
But why should we be worried? M’mangisa argues we should be worried, “be very worried.”
“Because there is compelling evidence that unsustainable natural resource management leads to increased poverty in Malawi.
For instance, World Bank data from 1992 indicated average annual agricultural yield loss of 4 percent to11 percent as a result of soil erosion, while a 2008 study by Bishop estimated mean annual yield losses of 8 percent to 25 percent,” he explains.
To relate, according to the findings, some evidence suggests that achieving annual 6 percent growth in agricultural yields during 2005-2015 would increase overall GDP growth by 3.2 percent to 4.8 percent per year, leading to the proportion in poverty falling to 34.5 percent by 2015.
This, however, is considerably lower than the 47.0 percent poverty rate projected in the absence of the additional agricultural growth.
“The 6 percent agricultural yield growth results in an additional 1.88 million people being lifted above the poverty. Moreover, if all the lost economic value from unsustainable resource use each year the impact on poverty would be much larger,” says M’mangisa.
Can we learn from elsewhere or may be we can look up to Botswana, a Karahari desert country of 1 million people?
In Botswana, capital lies in a natural resource, the desert and it vast diamonds. The country invests more in these natural wealth. But here at home the picture is different.
“If forest, fisheries and soil nutrient resources are used up faster than they are replenished, Malawi is consuming her natural capital at high speed” warns M’mangisa.
Source:- mosesphiri.blog.co.uk
By Moses Phiri 2011-05-24
In Balaka where forests are scarce every tree counts and cutting down trees on someone’s piece of land is a serious crime—the same as theft of a herd of goat.
It is scary, people can be beaten to death if caught cutting down a tree in someone maize field, because trees are money too.
Materials for housing, lighting and firewood all come from trees from individual’s piece of land. Land is inherited or bought at exorbitant price and everyone future lies in how they protect their piece of land.
But what happens to public land, public forests, hills and mountains in Balaka?
Of course those who have depleted their trees look up to the mountains for trees. Today almost all mountains in the area are bare. The forest loss has piled more misery on people in Balaka—an early dry spell that almost wiped out all the maize.
Now they have to buy housing material, parrafin to light their homes and firewood. There is even little to harvest from their fields too.
The cost of degradation is too high to bear, as people in Balaka can testify. But Balaka case is just a tip of an iceberg.
At national level environmental degradation cost the economy $191 million —or in Malawi kwacha terms K26 billion.
This is an equivalent to 2009/10 budget for the subsidy fertilizer programme. This amount is also more than the total funding allocated to the education and health sectors in the 2009/10 annual budget.
“No doubt, Malawi is endowed with abundant natural resources, however, environmental sustainability is one of the challenges that Malawi faces as trends indicate persistent degradation on account of unsustainable use,” says Mzithembi Mbekeani, spokesperson for the Ministry of Development Planning and Cooperation.
In economic language, Malawi loses 5.3 percent of its annual general domestic product (GDP) due to unsustainable use of its natural resources.
This implies that the country would be K26, 574 million (US191m) richer annually—calculated in 2007 prices—if soil, forest, fisheries and wildlife resources were used sustainably according to new findings of a report that was commissioned on the Economic Analysis of Unsustainable use of Natural Resources in Malawi, with assistance from the UNDP, UNEP Poverty and Environment Initiative (PEI).
Unvailed last week, the findings are a wake up call to policy makers and budget drafters in particular that if we do not invest in protecting the environment, like a thin cow we can not milk it anymore.
Sadly, policy makers live in towns and cities. For many of them the environment means a well planned city with lots of flowers, smooth roads, running water, air conditioned rooms for conferences and a good sewer system sometimes. Even a few luxuries too.
But for Gogo Matiasi who lives on the edges of Toleza Farm in Balaka and 80 percent of Malawians their survival depends on renewable natural resources for their subsistence and household income.
Finance minister Kan Kandodo acknowledges that the foundation of the national economy is primarily rain-fed agriculture. Rain fed agriculture thrives on well endowed forests and natural reserves.
What is more worrying as the PEI study found out is that while the economic contribution made by renewable natural resources to Malawi is very significant it is not adequately captured in official statistics.
“Estimates of Gross Domestic Product (GDP) do not record the contribution of soils or wildlife. Even where natural resource use is recorded in GDP, the values tend to be understated.
“For example official GDP figures in Malawi significantly understate the true contribution of forestry by not capturing the extensive use of wood for fuel,” explained Michael Mmangisa project manager for PEI who presented the report to the media in Blantyre.
But why should we be worried? M’mangisa argues we should be worried, “be very worried.”
“Because there is compelling evidence that unsustainable natural resource management leads to increased poverty in Malawi.
For instance, World Bank data from 1992 indicated average annual agricultural yield loss of 4 percent to11 percent as a result of soil erosion, while a 2008 study by Bishop estimated mean annual yield losses of 8 percent to 25 percent,” he explains.
To relate, according to the findings, some evidence suggests that achieving annual 6 percent growth in agricultural yields during 2005-2015 would increase overall GDP growth by 3.2 percent to 4.8 percent per year, leading to the proportion in poverty falling to 34.5 percent by 2015.
This, however, is considerably lower than the 47.0 percent poverty rate projected in the absence of the additional agricultural growth.
“The 6 percent agricultural yield growth results in an additional 1.88 million people being lifted above the poverty. Moreover, if all the lost economic value from unsustainable resource use each year the impact on poverty would be much larger,” says M’mangisa.
Can we learn from elsewhere or may be we can look up to Botswana, a Karahari desert country of 1 million people?
In Botswana, capital lies in a natural resource, the desert and it vast diamonds. The country invests more in these natural wealth. But here at home the picture is different.
“If forest, fisheries and soil nutrient resources are used up faster than they are replenished, Malawi is consuming her natural capital at high speed” warns M’mangisa.
Source:- mosesphiri.blog.co.uk
FOTSEKI!!! WHAT POLLS?
First it was the announcement that the long awaited Local Government Polls would finally be held on April 20th, 2011.
“This is what we have been waiting for, we applaud the president for this welcome development,” Aloysius Nthenda, Chairperson of the Malawi Electoral Support Network (MESN) told the local media.
MESN immediately embarked on a tour raising public awareness on the issue. Several trainings and public meetings were conducted in the South, Center and North (Regions). Journalists were not left out. They had their two-day training on Local Government Polls in Mulanje where I was privileged to be elected by fellow journalists into a five-member Media Task Force on Local Government Elections.
With just about three months to April 20, the closure of the Malawi Electoral Commission (MEC) followed. Millions of kwachas had gone missing at the electoral body, so the world was told. The money went missing at the head office in Blantyre but every MEC office in Malawi was closed. A lot was said but it did not solve anything until, out of his own preference, the Ngwazi, Professor Bingu wa Mutharika ordered the reopening of the offices.
Operating under pressure, MEC announced it would be ready to hold the polls in September 2011. “And preparations have started to that effect so that come September 2011, the polls should take place,” MEC spokesperson Aubrey Sumbuleta told the nation.
In a-not-fully-contented attitude, MESN alongside other electoral stakeholders welcomed the development and cautioned government with both specified (legal) and unspecified action should the polls fail to take place.
BLANTYRE: Tuesday, May 24th. Breaking News: In consultations with the State president, MEC announces there will be no polls in 2011 but in 2014.
Our peaceful Malawi nation is used to such announcements. It has now become part of our daily meal. After all when did we hold last Local Government Elections? I now wonder when I hear the opposition and civil society crying over spoilt milk. Where were you all these years? You will keep weeping after all who told you failure to hold the polls is undemocratic? Fotseki, what polls? Osapanga kunyumba kwanu ngati mukufuna zisankho?
But me, I cry for my beloved mother Malawi. Where is my Malawi heading to? Is this what o’Banda and a Naphiri fought for 1992/3? People had just started calling me a teenager, quite young then coming from Dharap DEC, now Namiwawa, with my best friend Geoffrey Chaipa when we heard mu town mwavuta, anthu akulemera (ndi zinthu za mu PTC shops). We did not want to be left out, we run for it, though it was late by the time we reached at one of the PTC shops (Christwick- along Kamuzu Highway, now Masauko Chipembere).
It was the valor of one Chakufwa Thom Chihana that had stirred Blantyrians, Lilongweans and other Malawians to revolt and say “enough is enough”.
MULUNGU DALITSANI MALAWI!!!
First it was the announcement that the long awaited Local Government Polls would finally be held on April 20th, 2011.
“This is what we have been waiting for, we applaud the president for this welcome development,” Aloysius Nthenda, Chairperson of the Malawi Electoral Support Network (MESN) told the local media.
MESN immediately embarked on a tour raising public awareness on the issue. Several trainings and public meetings were conducted in the South, Center and North (Regions). Journalists were not left out. They had their two-day training on Local Government Polls in Mulanje where I was privileged to be elected by fellow journalists into a five-member Media Task Force on Local Government Elections.
With just about three months to April 20, the closure of the Malawi Electoral Commission (MEC) followed. Millions of kwachas had gone missing at the electoral body, so the world was told. The money went missing at the head office in Blantyre but every MEC office in Malawi was closed. A lot was said but it did not solve anything until, out of his own preference, the Ngwazi, Professor Bingu wa Mutharika ordered the reopening of the offices.
Operating under pressure, MEC announced it would be ready to hold the polls in September 2011. “And preparations have started to that effect so that come September 2011, the polls should take place,” MEC spokesperson Aubrey Sumbuleta told the nation.
In a-not-fully-contented attitude, MESN alongside other electoral stakeholders welcomed the development and cautioned government with both specified (legal) and unspecified action should the polls fail to take place.
BLANTYRE: Tuesday, May 24th. Breaking News: In consultations with the State president, MEC announces there will be no polls in 2011 but in 2014.
Our peaceful Malawi nation is used to such announcements. It has now become part of our daily meal. After all when did we hold last Local Government Elections? I now wonder when I hear the opposition and civil society crying over spoilt milk. Where were you all these years? You will keep weeping after all who told you failure to hold the polls is undemocratic? Fotseki, what polls? Osapanga kunyumba kwanu ngati mukufuna zisankho?
But me, I cry for my beloved mother Malawi. Where is my Malawi heading to? Is this what o’Banda and a Naphiri fought for 1992/3? People had just started calling me a teenager, quite young then coming from Dharap DEC, now Namiwawa, with my best friend Geoffrey Chaipa when we heard mu town mwavuta, anthu akulemera (ndi zinthu za mu PTC shops). We did not want to be left out, we run for it, though it was late by the time we reached at one of the PTC shops (Christwick- along Kamuzu Highway, now Masauko Chipembere).
It was the valor of one Chakufwa Thom Chihana that had stirred Blantyrians, Lilongweans and other Malawians to revolt and say “enough is enough”.
MULUNGU DALITSANI MALAWI!!!
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