This paper analyses the performance of a highly innovative intervention in Malawi – the Starter Pack programme – which provided free of charge small packs of improved maize and other seed together with appropriate fertiliser.
This paper provides a brief synthesis of earlier literature on the fiscal effects of aid, which is related to the wider literature on the development impact of aid and on budget choice. The paper presents the econometric methodology used in the country studies of Malawi, Uganda and Zambia (vector autoregression) and its application, and discusses the problem of reconciling data on aid from donor and recipient sources.
The aid effectiveness literature has shown that aid to developing countries tends, on balance, to have a positive effect on growth, though results are sensitive to the econometric method adopted. In recent years, the literature has concentrated on the relative importance of policy and other variables for aid effectiveness, and has less to say about how aid itself affects policy and specifically about the effects of aid on fiscal policy. Aid can affect economic growth, for instance, via its impact on government behaviour, investment and savings. Government consumption or current expenditure can also raise growth, by increasing the general level of economic activity. As much of aid is usually given to the government, its effects on growth and poverty are likely to be primarily mediated by government fiscal policy.
Hunger and food insecurity in Malawi are on-going problems related as much to poor health of the rural population and low incomes as to low maize production and drought.
This report is part of a larger study by the Overseas Development Institute in London on ‘poor performance’ – i.e., those countries that show little sign of economic growth or improved social indicators no matter how much development assistance reaches them.
Although Malawi is not one of the countries to be studied for this project, there has been some work on it at ODI in other contexts in the last three months, and some conclusions are relevant to this study.
This programme of research and advocacy activities seeks to build better understandings of WSS-poverty linkages into development, implementation and monitoring of PRSP expenditure plans.
This research is designed to throw light on factors and processes behind the poor integration of the WSS sector in PRSPs. Focusing on selected sub-Saharan African countries - Malawi, Zambia and Uganda - the research will seek to make recommendations as to how the design, financing and delivery of WSS programmes within PRSPs may be improved.
This study reviews critically current debates regarding aid in ‘poorly performing’ countries. The study sought to clarify and make operational the concept of ‘poor performance’ by analysing the criteria against which performance is assessed, identifying the key constraints to aid engagement and developing an approach at the country level for better understanding poor performance.