3 The future: mechanisms for providing
aid
Change of Government in Malawi
16. President Mutharika suffered a fatal heart attack
on 5 April 2012. The Malawian Constitution states that—upon
the death of a sitting President—the Vice-President assumes
the Presidency. Given that the Vice-President, Joyce Banda, no
longer represented the same party as the President, elements within
the DPP sought to prevent her from doing so. Within 48 hours,
however, it became clear that such plots would be unsuccessful:
on 7 April, a peaceful transition was completed and Banda was
sworn in as President.[23]
17. Following her succession to the Presidency, Banda
appointed what was essentially a national unity cabinet: it included
eight DPP members who had also been Ministers under President
Mutharika, together with representatives from a number of other
parties.[24] Peter Mutharika,
the late President's brother, was relieved of his Cabinet duties.[25]
When the new Parliamentary session opened on 18 May, it became
apparent the 107 out of 193 MPs were willing to support the new
Government, thus giving it a working Parliamentary majority.[26]
President Banda has also replaced the Inspector-General
of Police, the Head of the State Media and the Reserve Bank Governor,
[27]
as the previous occupants of these posts were regarded as political
appointees.
18. The above developments are to be welcomed insofar
as they demonstrate President Banda's commitment to reform. We
are nevertheless concerned that some recent developments—since
President Banda's ascent to the Presidency—have been unconstitutional.
Section 65 of the Malawian constitution states that MPs must resign
their seats if they change parties, but this does not appear to
have been enforced in respect of those joining President Banda's
PP. (We do accept, however, that rigid enforcement of Section
65 could have been destabilising in the circumstances and undermined
effective government.) Furthermore, we have received written evidence
which claims that President Banda may have strayed beyond her
remit by firing certain senior officials.[28]
As Mark Miller said to us in his written evidence:
...if the UK government donors want checks and balances
to constrain bad presidents, they should also encourage them to
constrain good presidents. [29]
19. Following
the death of the late President Bingu wa Mutharika, the achievement
of a peaceful and constitutional transition of power is a tribute
to the people of Malawi. President Banda's early weeks in office
have been extremely promising, and she has taken hugely significant
steps to reverse the damaging policies of her predecessor. We
note that some recent developments—since President Banda
assumed office—have themselves been unconstitutional: it
is important that the Government of Malawi continues to operate
within the broad framework of the constitution.
New Government's attempts to resolve
the economic crisis
20. The new Malawian Government has moved quickly
to reverse the damaging economic policies pursued by its predecessor.
The Reserve Bank of Malawi (RBM) has devalued the Malawian kwacha
by almost 50%, and has switched to a floating exchange rate.[30]
In her State of the Nation address on 18 May, President Banda
stressed that this was part of her strategy to resolve the shortage
of foreign exchange. Her Government's immediate aim is to ensure
availability of sufficient foreign exchange reserves to meet three
months' import requirements; in the medium-term, it aims to have
sufficient reserves for six months' import requirements.[31]
New Government's attempts to resolve
the political crisis
21. The new Malawian Government has also taken steps
to reverse the drift towards autocracy. It has, for example, indicated
its intention to repeal the laws which the previous Government
left under Law Commission review, such as those allowing the Minister
of Information to ban publications and allowing the police to
search properties without a warrant.[32]
Further indications of the new Government's intention to restore
civil liberties are as follows:
- intention to bring the inquiry
into the shootings of 20 July 2011 to a "conclusive end"
(this inquiry had already been launched under the Mutharika administration),
and to launch several additional inquiries: into the deaths of
various individuals in police custody, and into the death of Robert
Chasowa, a political activist widely believed to have been murdered,
and
- intention for the Malawi Broadcasting Corporation
to act as a "public broadcaster" rather than a "mouth-piece
of a ruling party."[33]
Implications for DFID's delivery
of aid
22. Following the change of Government in Malawi
in April 2012, DFID told us that it had agreed to release £10
million of sector budget support for Malawi's health sector, together
with a further £20 million of assistance of which details
were "still being finalised."[34]
(This was not 'new' funding, but an earlier-than-planned
disbursement of already-allocated funds.[35])
In addition, the Secretary of State told us that the Bank of England
had agreed to provide technical assistance to the Reserve Bank
of Malawi.[36]
23. We welcome
DFID's swift disbursement of funds for Malawi's health sector.
Clearly the change of Government in Malawi enabled the UK to respond
more quickly than it would otherwise have done.
24. Subsequent to its announcement of this funding,
in late May 2012, DFID re-launched its Operational Plan for Malawi.
(This plan is aligned with the Malawian Government's 'Malawi Growth
and Development Strategy II' or 'MGDS II,' which was agreed by
the new Government recently.) The Operational Plan states that
DFID will "narrow its focus", since—compared to
other donors—it has a low ratio of staff to programmes in
Malawi. It sets out a proposed 'division of labour' between donors,
with:
- DFID leading on health and
education;
- the US and the Global Fund for AIDS, TB and Malaria
leading on malaria, and
- multilateral agencies (e.g. World Bank, EU) leading
on infrastructure.
25. DFID also states in its Operational Plan that:
- It will "consider whether
general budget support should be resumed through the Common Approach
to Budget Support (CABS) process." (The Secretary of State
told us that he hoped to reinstate general budget support before
the end of 2012.)
- For health, HIV and education it intends to use
sector budget support.[37]
(As stated above, sector budget support remained in place throughout
the period of crisis.)
26. Given DFID's status as Malawi's largest bilateral
donor, whatever decision it takes on general budget support is
likely to have a catalytic effect—other donors are likely
to follow suit. The Secretary of State told us that he had held
discussions with a number of donors, including the Government
of Germany, the EU, the IMF and the World Bank.[38]
In his Budget address of 8 June, the Malawian Minister of Finance—Dr
Ken Lipenga—announced that the IMF had agreed to resume
support and the World Bank was proposing to provide $150 million
of additional funding.[39]
27. Subject
to the continuing progress of economic reforms in Malawi, we urge
DFID to reinstate general budget support. In view of President
Banda's commitment to reform, general budget support is likely
to be the most effective way of providing support to Malawi. It
is important to avoid continuing uncertainty, especially given
that other donors are likely to follow DFID's lead. DFID currently
expects to make a decision by the end of 2012, but we would urge
it to make its decision as soon as possible.
28. If general budget support is reinstated, it will
be important to minimise the risk of it being suspended again.
One way of doing this would be to support the strengthening of
Malawi's democratic institutions. There is no guarantee
that future presidents will share President Banda's respect for
democracy, so it is important that presidential power is subject
to appropriate checks and balances.[40]
The Secretary of State assured us that DFID is willing to respond
to any requests from the Government of Malawi for assistance with
this.[41]
29. We welcome
DFID's willingness to assist with the strengthening of democratic
institutions in Malawi. If general budget support is reinstated,
DFID's work to strengthen democratic institutions may help to
minimise the risk of it being suspended again.
23 "Malawi's Joyce Banda puts women's rights at
centre of new presidency", The Guardian, 30 April
2012, p 14 ; Ev 28; Ev w18 Back
24
Ev 29 Back
25
"Malawi President Banda sacks rival Peter Mutharika",
BBC News Online, 27 April 2012, www.bbc.co.uk Back
26
"DPP 'tsunami' in Parliament, PP in majority", Nyasa
Times Online, 18 May 2012, www.nyasatimes.com Back
27
Ev 29 Back
28
Ev w45; "JB faulted on appointments", The Daily
Times Online, 16 April 2012, www.bnltimes.com Back
29
Ev w45 Back
30
Ev 28 Back
31
State of the Nation address by Her Excellency Mrs Joyce Banda,
President of the Republic of Malawi, 18 May 2012 Back
32
Malawi's political settlement in crisis, 2011, Africa power and
politics background paper (Diana Cammack), November 2011, www.institutions-africa.org;
State of the Nation address by Her Excellency Mrs Joyce Banda,
President of the Republic of Malawi, 18 May 2012 Back
33
State of the Nation address by Her Excellency Mrs Joyce Banda,
President of the Republic of Malawi, 18 May 2012 Back
34
Ev 28-9 Back
35
"Britain stands by Malawi", DFID press release, 12 May2011 Back
36
Q 33 Back
37
DFID Malawi, Operational Plan 2011-2015 (refreshed May 2012) Back
38
Q 33, Q 46 Back
39
2012/13 Budget Statement, delivered in the National Assembly of
the Republic of Malawi, 8 June 2012. Back
40
Ev w45 Back
41
Q 44 Back
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