The challenges of poverty alleviation in Malawi : 1995-2005.
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2009
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Thesis (M.Comm.)-University of KwaZulu-Natal, Pietermaritzburg, 2009.
This dissertation examines the challenges of poverty alleviation in Malawi, with particular reference to the period 1995 to 2005. Malawi is a small landlocked country, considered to be one of the poorest countries in the world. Some of the major indicators of poverty in Malawi are inequality in income distribution, attainability of basic needs and low levels of development. The Integrated Household Survey (IHS) of 2004/5 revealed that 52.4 percent of the Malawian population was living below the poverty line in 2005 (National Statistics Office (NSO), 2005: 139). Poverty reduction strategies in Malawi have had a slight impact on reducing the level of poverty. Nevertheless, the government of Malawi remains committed to the implementation of redistributive measures and economic reforms in its quest for economic growth, poverty reduction and enhanced employment opportunities in the country (Malawi Government, 2006:1). This study uses an econometric analysis to examine the effects of government spending on socioeconomic services, foreign aid and Gross Domestic Product (GDP) growth on the levels of poverty in Malawi, using data for period 1995-2005. The regression results indicate that in GDP growth and government expenditure on socioeconomic services, particularly on education, have a significant impact on reducing poverty levels in Malawi. To address poverty, Malawi should thus pursue an economic growth enhancing strategy, with expansion of human capabilities that also facilitates fiscal redistribution. The regression results show that if GDP growth is increased by 1 percent on average, this would decrease the headcount poverty by 0.237 percent, ceteris paribus. The model also shows that, on average, a K1 million increase in government expenditure on education will decrease the headcount poverty by 0.1 percent, ceteris paribus. The regression results therefore indicate that GDP growth and government expenditure on education will have to increase in order for poverty levels in Malawi to decrease in the long run. The results of a similar comparative regression analysis for Botswana further confirm the consistency that education is a significant factor in reducing poverty.
This dissertation examines the challenges of poverty alleviation in Malawi, with particular reference to the period 1995 to 2005. Malawi is a small landlocked country, considered to be one of the poorest countries in the world. Some of the major indicators of poverty in Malawi are inequality in income distribution, attainability of basic needs and low levels of development. The Integrated Household Survey (IHS) of 2004/5 revealed that 52.4 percent of the Malawian population was living below the poverty line in 2005 (National Statistics Office (NSO), 2005: 139). Poverty reduction strategies in Malawi have had a slight impact on reducing the level of poverty. Nevertheless, the government of Malawi remains committed to the implementation of redistributive measures and economic reforms in its quest for economic growth, poverty reduction and enhanced employment opportunities in the country (Malawi Government, 2006:1). This study uses an econometric analysis to examine the effects of government spending on socioeconomic services, foreign aid and Gross Domestic Product (GDP) growth on the levels of poverty in Malawi, using data for period 1995-2005. The regression results indicate that in GDP growth and government expenditure on socioeconomic services, particularly on education, have a significant impact on reducing poverty levels in Malawi. To address poverty, Malawi should thus pursue an economic growth enhancing strategy, with expansion of human capabilities that also facilitates fiscal redistribution. The regression results show that if GDP growth is increased by 1 percent on average, this would decrease the headcount poverty by 0.237 percent, ceteris paribus. The model also shows that, on average, a K1 million increase in government expenditure on education will decrease the headcount poverty by 0.1 percent, ceteris paribus. The regression results therefore indicate that GDP growth and government expenditure on education will have to increase in order for poverty levels in Malawi to decrease in the long run. The results of a similar comparative regression analysis for Botswana further confirm the consistency that education is a significant factor in reducing poverty.
Keywords
Poverty--Malawi., Malawi--Economic conditions., Theses--Economics.