Conclusions and recommendations
DFID Malawi during the Mutharika era
1. We
believe the UK was right to delay the re-appointment of a High
Commissioner while the relationship with Malawi remained strained.
We feel strongly that any re-appointment at that stage could have
been misconstrued. (Paragraph 11)
2. DFID was right
to suspend General Budget Support in July 2011. Given the political
and economic crises in Malawi at that time, general budget support
was not a sensible option. By stopping general budget support
yet maintaining overall aid levels, DFID was able both to send
a signal of its disapproval to the Malawian Government, and—simultaneously—to
continue supporting poor people in Malawi. (Paragraph 15)
The future: mechanisms for providing aid
3. 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. (Paragraph 19)
4. 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. (Paragraph 23)
5. 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. (Paragraph 27)
6. 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. (Paragraph 29)
The future: choice of sectors
7. Cash
transfer programmes can make an important contribution to poverty
reduction. Given its enthusiastic support for such programmes
in other countries such as Zambia, DFID clearly recognises this.
Its current lack of support for cash transfers in Malawi—particularly
given the levels of poverty which exist there—is difficult
to understand. We recommend that DFID join UNICEF, Germany and
the EU in supporting cash transfers in Malawi. (Paragraph 34)
8. The Malawian Government's
Farm Input Subsidy Programme (FISP)—which DFID has supported—has
been a great success. The programme provided subsidised seed and
fertiliser to 1.4 million beneficiaries in 2011-12, and the Committee
saw for itself the benefits of this support. (Paragraph 40)
9. Given the present
concern about the non-involvement of local retailers in distributing
FISP fertiliser, we urge DFID to support the Malawian Government
in its attempts to resolve this. Local retailers are already involved
in the distribution of FISP seeds, and indeed were involved with
FISP fertiliser as recently as 2009. Bringing local retailers
on board can only be a good thing, particularly in view of DFID's
commitment to developing the private sector. (Paragraph 41)
10. We welcome DFID's
intention to support private sector development in Malawi. In
support of this, we recommend that DFID assist the Government
of Malawi to identify 'strategic partners'—organisations
that would be willing to work in partnership with the Malawian
private sector. DFID should also consider what other ways it can
support wealth creation in Malawi, such as by supporting power
generation or providing technical assistance. CDC should also
be encouraged to invest in Malawi. (Paragraph 47)
11. We are concerned
about the shortage of adequately-qualified health professionals
in Malawi. We welcome the Parliamentary Under-Secretary of State's
enthusiasm for encouraging UK-based medical professionals to undertake
secondments in developing countries, as this may be of significant
benefit to Malawi. (Paragraph 49)
12. Empowering women
to choose how many children to have, and allowing them to space
births as they choose, will be critical to Malawi's long-term
development. We commend DFID for its longstanding commitment to
addressing these challenges. In view of evidence which suggests
injectable contraceptives are particularly popular with Malawian
women, we urge DFID to focus more on this particular method. (Paragraph
52)
13. Poor levels of
education constitute a major constraint on Malawi's development.
In particular, public university places in Malawi are extremely
limited. The private university sector represents an alternative,
and we welcome the new Malawian Government's intention to support
the private university sector by means of public-private partnerships.
However, tuition fees are often prohibitively high, putting a
university education beyond the reach of most Malawians. We therefore
urge DFID to consider funding scholarships. (Paragraph 56)
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