Wednesday, October 15, 2008

THE MALAWI MODEL - A RETURN TO AGRICULTURAL SUBSIDIES?


In recent global headlines Malawi has been featured prominently for the seemingly impossible turnaround from being a net recipient of staple food aid (Maize) to becoming a net exporter of the commodity. The Independent has hailed the development as a 'Farming Revolution'. A driving force behind the 'Malawi miracle' has been heavy government subsidies on agricultural inputs, for example fertilizer prices were reduced by a factor of over 100 from 6000 Kwachas to 600 Kwachas. With the benefits clear for everyone to see, should this hail a return to the pre-structural-adjustment agriculture subsidies for Africa?