CONTENTS | ANB-BIA HOMEPAGE | WEEKLY NEWS
by Patrick Mawaya, Malawi, March 1999
THEME = ECONOMY
On 27 February 1999, an association called
"The Economics Association of Malawi" (ECAMA)
was launched at the Malawi Institute of Management in Lilongwe
ECAMA's aims are: To promote and encourage open debate and policy dialogue on economic issues in Malawi; to take part in the appraisal of economic conditions and development; to maintain and promote the status of economics as a profession.
In order to achieve these aims, the Association will: Prepare and publish papers and journals that contain the work and deliberations of the Association; act as a way in which individual members can express their opinions; encourage and promote the study of the profession; hold conferences and meetings for the delivery of lectures, presentation of papers and dissemination of the same; form a library for the use of members; collect and publish information of use or interest to members of the profession. It is hoped the Association will provide a forum whereby economists and other interested parties can meet and discuss economic issues and their status furthered.
Giving a keynote address during the launch of the Association, Mr Mark Katsonga Phiri, chairman of the Malawi Chamber of Commerce and Industry, said: "Such an association is long overdue. The economists that the country has produced since the 1960s, have not been given an opportunity to take part in shaping Malawi's economic future. Economists are very important considering that Malawi is experiencing a lot of economic problems. Structural Adjustment Programmes that Malawi started implementing in 1981, have not resulted in economic changes. Poverty is still rampant and Malawi's manufacturing industry is in danger of being wiped out. There's a lack of a coordinated approach that has undermined the success of Malawi's economic policies".
Mr Phiri continued: "Everyone is talking about inflation and devaluation. You do not need to be an economist to understand the economic ills facing our country. But we are not destined to be poor forever. But I wonder; why does Malawi has to wait for donors such as the World Bank and the International Monetary Fund to prescribe solutions to Malawi's economic problems?".
On the same occasion, Dr. Maxwell Mkwezalamba, (who was later elected president of the Association), an economist with the World Bank, presented a paper on "the constraints and opportunities for Malawi's private sector". He said: "Malawi is facing financial constraints, infrastructural constraints, lack of entrepreneurial skills, small domestic market size, unstable macro- environment, scarcity of highly skilled labour, legal and regulatory constraints, the problem of HIV/AIDS, and human resource development constraints. Dealing with financial constraints, Dr. Mkwezalamba said the financial sector is uncompetitive; there's a lack of medium and long-term financial planning; a high cost of borrowing; and commercial banks are too conservative and with limited facilities. He also noted that there are frequent power disruptions, and delays in getting connected when one applies for a telephone.
Concerning the unstable macro-environment, Dr. Mkwezalamba said inflation rates and interest rates of over 50% currently being experienced by Malawi, were not conducive to investment.
"However", Dr. Mkwezalamba said, "there are opportunities despite the problems. Among the opportunities - diversification from the agriculture sector into manufacturing, mining, floriculture and horticulture. But there is need for more policy dialogue to attract investment; the private sector must become competitive; the people's income must be raised; the role of the Malawi Investment Promotional Agency and the Malawi Bureau of Standards must be strengthened; the macro-environment stabilised; the whole economy diversified; the infrastructure developed; there must be provision made for more facilities at the commercial banks; full utilization must be made of trade agreements; and alternative routes to reduce transportation costs must be developed.
Making his contribution, Mr. Alex Gomani, Principal Secretary in the Ministry of Commerce and Industry said the service sector, which contributes 15%-20% of the Gross Domestic Product, was growing while the manufacturing sector was stagnant. Mr. Gomani also said that the agriculture sector which was supposed to be the main stay of Malawi's economy, was also stagnant. He further pointed out that there is a lot of policy unpredictability in the country.
So, now the Economics Association of Malawi has been well and truly launched. What remains to be seen is how it will influence policy- making and policy-changes. The challenge is enormous!
END
CONTENTS | ANB-BIA HOMEPAGE | WEEKLY NEWS
PeaceLink 1999 - Reproduction authorised, with usual acknowledgement