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The Year 2008 in Review


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 Politics, Humanitarian Affairs, Economy and
       Food Security


 Humanitarian Affairs

 Economic and Food Security

Un Programmes and operations

 Key aspects for 2009

The Resident Coordinator's Office reports annually to the UN Secretary-General and the executive heads of UN organizations operations. This includes assessment of the performance of the RC and heads of UN Executive Committee agencies – UNDP, UNFPA, UNICEF and WFP – against the implementation of the UN Coordination Annual Work Plan. The UNCT compiles the Work Plan on the basis of the key development challenges and national priorities in the country, and is in line with the UN Development Assistance Framework. The achievements are reported in the UN Coordination Annual Report.

Summary

2008 heralded the UN Reform in action in Malawi following two years of preparation and rigorous consultation and assessment with Government, donors and development partners. The first year of implementation of the UNDAF 2008 – 2011, was deferred by a year to be in synchrony with the national planning cycle of the country’s Growth and Development Strategy (MGDS). While not a pilot country, Malawi’s spontaneity to increase efficiency and coherence, including the innovative Business Plan, are now benchmarks alongside other pilot countries and informing the policy development of UN reform.

Politics, Humanitarian Affairs, Economy and Food Security

Politics

By the end of the reporting period, the political climate was highly charged as preparations for the May 2009 General Elections gained momentum, following the commencement of the voters’ registration exercise, civic education and the political parties’ primary elections.

In just 15 years, since a referendum ushered in multi-party democracy, the country has made great strides to consolidate the transitional and fragile democracy. The constitution now contains all the basic principles of democratic governance and an array of constitutional bodies that have come to characterise good governance in developing countries. These include Parliament, the Anti Corruption Bureau, Human Rights Commission, and the Law Commission, and a decentralisation process to enhance local democracy. During this transition, the government relies on the support of several multi and bilateral developing partners including the United Nations.

Through UNDP, the UN is a principal partner in the electoral process and broader governance ambitions of Malawi and manages a multi-donor fund which is strengthening the capacity of the Malawi Electoral Commission, to conduct 2009 Parliamentary and Presidential elections, with accountability and integrity so that elections benefit the populace and are demonstrative of a thriving democracy.

The increasing appreciation of the electorate of the democratic process has resulted in significant increase in registered voters and scrutiny of the process, which the Commission has responded to suitably. Despite the excitement synonymous with elections, the process has remained peaceful. The ruling by the Commission on the former President’s eligibility to vie for the presidency will determine the atmosphere during the run up to the elections. 

Following the opening of Malawi’s Parliament last April, the impasse due to opposition parties’ persistence on a ruling on section 65 of the Constitution of Malawi delayed the debate and vote for the government’s 2008/2009 budget until August. In addition, debate and passing of decisive bills, many affecting the development agenda, was not conducted. These include National Registration Bill, Child Care Protection and Justice Act and the Wills and Inheritance Act.

Humanitarian Affairs

Malawi was the country worst hit by the food shortage-driven humanitarian crisis that affected southern Africa, with negative consequences, yet to be fully assessed, for millions of Malawians. A combination of erratic rainfall and insufficient access to agricultural inputs in the 2004-2005 growing season led to the worst food crisis certainly since 1994, one compounded by widespread poverty, chronically low levels of nutrition, and the prevalence of malaria and HIV/AIDS. By the end of the reporting period, up to 5 million Malawians were receiving food aid and other assistance in an effort led by government and supported by donors and the United Nations, notably DFID, the European Union, UNICEF and WFP.

The Government received generous donor support for its efforts to manage the growing crisis. In August 2005, with Government encouragement, the UN issued a flash alert with two tracks. Firstly, to seek additional funds both to support the immediate humanitarian response, covering food aid, health, education and protection against sexual and other exploitation and the secondly to minimize the likelihood of a further humanitarian crisis in the 2005-2006 growing season by seeking funds to buy essential agricultural inputs.

By the end of the reporting period (February 2006), of the approximately US$ 63 million requested for immediate humanitarian activity, and US$ 36 for emergency inputs, approximately US$ 49 million and US$ 7.5 million respectively, had been received. The request for funds for the second, agricultural inputs, track was suspended in October 2005 as the planting window of opportunity had closed.

The President and Minister of Finance were directly engaged in management of the response to the food crisis; this included the President’s launch of ‘Feed the Nation Fund’ to seek support from Malawian citizens and companies not least to make the point that Malawi needs to help itself.

Government leadership and collaboration with the development community including the United Nations family ensured that widespread deaths from starvation were averted. However, the experience also revealed underlying problems in developing and implementing a consistent food security policy. Agriculture and food security remain highly politically contested areas with differing views in key areas between the development fraternity and the Government. Contested areas include the wisdom and effectiveness of input subsidies, the sale of maize at subsidized prices through Agriculture Development and Marketing Corporation (ADMARC) stores and the respective roles of government and the private sector in importing, distributing and sale of basic agricultural items.

 

Economy and Food Security

Continued improvements in fiscal management of the country encouraged the United Nations and developing partners towards increased collaboration and partnership and attracted development funding from news donors, including the Africa Development Bank and the Irish Government. International budgetary support to Malawi’s 2008/2009 budget increased by 24% from the previous year to approximately Kwacha 90 billion (~ $620 million) indicating the country’s aid dependence of over 40% of the national budget.

Economic growth rate for 2008 was 6.7% down from the forecasted 7%. The annual average national inflation rate settled at 8.7% , 0.7 points higher than in 2007, while the year-on-year headline inflation for the year ended at 9.9 % against the Government’s target of 8.2%, mainly due to emerging food scarcity in some parts of the country during the lean months which start in November.  

The global economic meltdown did not affect the economy significantly; however, the high international fuel and fertiliser prices at the start of the year were key attributes in the economic growth and high inflation. The country earned a record $450 million from the main cash crop tobacco, and which, together with tight monetary and fiscal policy kept the growth rate from plummeting and the inflation in check.

Malawi through its President, received international recognition for bold efforts to improve smallholder productivity and reduce vulnerability to food security and hunger through the Agricultural Inputs Subsidies Programme, which was introduced against a background of scepticism in 2005/2006 planting season.

The 2007/2008 agricultural season marked a third consecutive year of surplus maize yields of 2.9 million metric tons credited to favourable rains and the subsidies scheme; this is half a million metric tons above the country’s average annual requirement, but a 14% reduction from the previous year. In addition to good cereal yields, the output of other crops such as rice, pulses, groundnuts, cassava, sweet and Irish potato also increased, indicating a significant improvement in the diversification of food crop production.

While the number of vulnerable people has decreased in the last three years, there is still a proportion of the population that requires assistance; living in ultra poverty, dealing with the burden of diseases such as malaria, tuberculosis and AIDS or affected by extreme weather patterns.

To consolidate the gains of the last 3 years, increased investment is vital to tackle factors outside the government’s control including changing weather patterns and increases in the cost of fertiliser. Other areas for investment are introduction of drought resistant seed, irrigation, crop diversification, road infrastructure, communication and marketing systems and storage facilities.

UN Programmes and Operations

Progress on UN Reform and UNDAF Outcomes

A first of its kind, the UN Business Plan for Malawi, developed in 2007, defines the strategic objectives of the UN programmes, articulates the parallel operational structures to achieve these objectives and is ultimately the vehicle towards ‘Delivering as One’. The UNDP Change Management Team adopted the Business Plan as a strong strategic framework and vision. Alongside the work streams, the Business Plan presents a governance system consisting of clusters, chairs, outcome leaders and accountability and reporting structures.

The first year of implementing the One Programme or UNDAF 2008 – 2011, as the first Business Plan work stream, saw increased collaboration between UN agencies and marked improvement in our engagement with the Government and development partners. Notable accomplishments have been in resource mobilisation towards the UNDAF’s unfunded gap as more donors are keen to pool funds into the One Fund, a departure from the past where resources where channelled through individual agencies. The Mid Term and End of Year Reviews have set the stage for better analytical appraisal of the reform process and impact assessments of the UN’s support to Malawi’s development ambitions and a shift from process reporting to strategic analysis.

During the year, the first review of the MGDS was conducted concurrently with the Mid Year Review of the UNDAF and centred on Sector Working Groups, which were set up. The process has mirrored the improved efficiency of delivering development programmes through the UNDAF cluster structure.

Some accomplishments in 2008 include successful conducting of the 2008 Population and Housing Census, whose preliminary results were released last September, supported by the UN through UNFPA and British and Irish Governments. The updated gender disaggregated data and reliable statistics is crucial if Malawi is to enhance its efforts towards more evidence-based policymaking. The last census was held in 1998 and Malawi’s population has since transformed immensely in distribution, composition and size. UNFPA support included the largest pre-census mapping which together with the data collated, will provide district planners with vital indicators to reinforce the bases of decentralization by compiling district data banks.

The Malawi 2008 MDG Report, supported by the UN, was published and presented at the General Assembly in September. It shows progress in most indicators including extreme hunger, education, child mortality, HIV and AIDS, Malaria and Tuberculosis, water and sanitation and six of the goals are likely to be met by 2015. Notably, Malawi is one of few developing countries that are projected to exceed the targets of infant and child mortality by 2015. However, against current efforts, Malawi is unlikely to achieve the targets to promote gender equality and empowerment of women and to reduce the maternal mortality ratio by three quarters.

Government, through its Ministry of Women and Child Development and working with the UN has stepped up efforts to accelerate progress to achieve MDG 3 and 5 through increased investment in equality of rights, resources and voices of women. Initiatives launched last year include the MDG 3 Torch Campaign, a Danish Government international initiative and the 50-50 campaign to advocate for equal representation of women in leadership positions, and which is expected to impact on the upcoming elections. The country needs to accelerate implementation of the Road Map to combat maternal and infant deaths, which was launched in 2007, and in particular, strengthen the health system to reduce maternal morality rates, which are among the highest in the world.

National programmes towards the prevention, treatment and care of people living and affected by HIV and AIDS continue to garner good results with increased awareness on HIV prevention, access to testing, antiretroviral therapy and prevention of mother to child transmission services nationally.

In adherence to the Paris Declaration, the UN is making tremendous progress in supporting the government to institutionalise Education, Agricultural and Water SWAps, which are informed by the success of the existing Health SWAP.

To enhance aid coordination and effectiveness, Government and development partners launched the Development Assistance Strategy (DAS), 16 Sector Working Groups (SWGs), and the Aid Management Platform (AMP). Application will greatly affect national budgeting, macroeconomic monitoring, aid management and project monitoring.

The UN system adopted a common operational framework - Harmonised Approach to Cash Transfer (HACT) - for transferring cash to government and non-governmental implementing partners in 2008. Its implementation will significantly reduce transaction costs and lessen the burden that the multiplicity of UN procedures and rules creates for its partners.

The year ended on a high note, with the operationalisation of the One Fund, which will enhance resource mobilisation, allocation and disbursement of donor resources to the UNDAF, and through which donors can commit un-earmarked funds. The Royal Norwegian Government became the first donor to the fund putting 15 million Kroner.

This was a remarkably eventful year for the UN Country Team in Malawi marking UN reform as a reality. Despite capacity and operational challenges, the UN family is building synergies in programme management towards improved coherence and most importantly impact of our programmes, to realise improved quality of life of Malawians.

Key Aspects in 2009
The End of Year Review was particularly important to enhance the collective monitoring and evaluation system and now includes an analysis of the policy environment and its effect on the delivery of interventions. Significant challenges that will take priority in 2009 to accelerate reform efforts include inadequate government leadership; especially, creating broader appreciation across Government, development partners and the private sector, of how Malawi can use the UN to achieve development ambitions and the Millennium Development Goals. 

The national social economic priorities into 2009 remain food security and improved fiscal management. However, the General Elections will be the key event to monitor towards further advancement of the country’s democratic progression.

 

Yours sincerely


Michael Keating
Resident Coordinator
UN System in Malawi