Malawi economy and elections

One area of contention during the next elections will be over who can manage the economy better. The graph below tells an interesting story. During the last years of Banda’s rule the economy fluctuated violently and in his last year fell by a catastrophic 10 percent. Not surprisingly during Muluzi’s first year there was a sharp recovery of 17 percent. Unfortunately this did not and probably could not last and growth rates steadily declined, hitting minus 4.4 and minus 5 in 2001 and 2002 respectively. 2003 and 2004 saw sharp recovery but the growth fell 2.5 in 2005. It then shot up to an annual average of over 7 percent for 3 years, giving the country the the highest three year growth period since the 1960s.

Overall under Muluzi the economy grew by an annual average of 3 percent, barely above population growth, higher then the two percent of Banda’s last decade which actually witnessed a decline in  per capita incomes. Bingu’s economy has grown an annual rate of 6 percent, thrice as fast as the population. The opposition is barking up the wrong tree when it denies the obvious economic growth achieved during Bingu's rule. What it should be asking instead is: Is it sustainable and was it equitable? These are the central political questions.

Malawi economic growth