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Malawi: Growth and Development Strategy II

Lilongwe: The Malawi Growth and Development Strategy II (MGDS II) is the overarching medium term strategy for Malawi designed to attain Malawi’s long term development aspirations. The strategy covers a period of five years from 2011 to 2016. It follows the successful implementation of the country’s medium term strategy, the Malawi Growth and Development Strategy (MGDS) between 2006 and 2011.

The objective of MGDS II is to continue reducing poverty through sustainable economic growth and infrastructure development. The MGDS II identifies six broad thematic areas, namely; Sustainable Economic Growth; Social Development; Social Support and Disaster Risk Management; Infrastructure Development; Governance; and Gender and Capacity Development.

Within these six thematic areas, the MGDS II isolates nine key priority areas (KPAs), namely; Agriculture and Food Security; Transport Infrastructure and Nsanje World Inland Port; Energy, Industrial Development, Mining and Tourism; Education, Science and Technology; Public Health, Sanitation, Malaria and HIV and AIDS Management; Integrated Rural Development; Green Belt Irrigation and Water Development; Child Development, Youth Development and Empowerment; and Climate Change, Natural Resources and Environmental Management. The selection of the key priority areas is meant to sustain and accelerate economic growth within the available resources.

Through the nine priorities within priorities and the thematic areas, the MGDS II maintains a balance among economic, social and environmental components of the economy. This will in turn reduce poverty and bring about prosperity in the medium term while accelerating attainment of the Millennium Development Goals (MDGs).

Just like its predecessor, the process of developing MGDS II was highly participatory and consultative involving the Executive, through Central Government Ministries and Departments and local authorities across the country; the Legislature; Civil Society Organizations; Donors and Cooperating Partners; Non-Governmental Organizations; Private Sector; the Academia; Youth; Children; Women Groups; Faith Based Organizations and the general public.

Macroeconomic Framework

Successful implementation of MGDS II will largely depend on sound macroeconomic management and a stable political environment. This is necessary to attract investment and mobilize resources with which to finance the budget.

The total revenue and grants are programmed to average 26.8 percent of Gross Domestic Product (GDP) during the implementation period. Total revenue is expected to average 21.1 percent of the GDP. The total government expenditure is expected to average 26.4 percent of GDP. Government will increase its capital expenditure during the period of MGDS II.

The overall fiscal balance is expected to average 0.4 percent of the GDP. The MGDS II budget framework will be geared towards creating an enabling environment for private sector development and improving economic infrastructure such as energy, road networks, water systems and telecommunication.

MGDS II Thematic Areas

The MGDS II identifies six broad based thematic areas, namely; Sustainable Economic Growth; Social Development; Social Support and Disaster Risk Management; Infrastructure Development; Governance; and Gender and Capacity Development.

Date: 
6 August 2012
Source:
Malawi Government
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