Malawi has slipped on an economic index by six steps, from I82 to 190, prompting economists to advise the government change the trend.
An international organisation, Bertelsmann Stiftung’s Transformation Index (BTI) says it has been collecting data from 129 countries in the last three years before coming up with the index.
BTI says Malawi is also failing to bridge the gap between the rich and the poor as the halves are increasingly becoming richer whilst the halve nots are increasingly becoming poorer.
The organisation acknowledged economic problems the country is going through following donor aid withdrawal and natural disasters.
BTI analyzes and evaluates whether and how the surveyed countries are steering social change toward democracy and a market economy with a total of 17 criteria, including rule of law, stability of democratic institutions, political and social integration, level of social-economic development, organization of the market and compensation, currency and price stability, private property economic performance, sustainability, consensus building and international cooperation.
“The independence of the Reserve Bank of Malawi [RBM] remains debatable given that the President appoints the governor and the two deputies. In fact, the trend has been that any change in the political leadership has resulted in changes in the central bank’s top leadership,” reads the report in part.
Economists Association chairman Henry Kachaje said the report is a wake up call for the government to address economic problems the counrtry is going through.
“This is a very good feedback which shows the economic developments undertaken by the government asre not benefitting the majority poor. This means are economic development plans are not coherent,” said Kachaje.
He blamed all this on politics saying governments tend to abandon economic. Programmes initiated by previous governments just for political reasons.
Malawi Economic Justice Network executive director Dalitso Kubalasa asked the government to take the report seriously and improve on the highlighted shortfalls.
Ministry of Finance spokesperson Nations Msowoya blamed the slip on the economic index to donor drought and natural disasters like drought and floods.Follow and Subscribe Nyasa TV :