REMARKS BY

THE MINISTER OF ECONOMIC PLANNING

AND DEVELOPMENT:

HONOURABLE DAVID FAITI (MP)

Representatives of the Donor Community,

Members of the Diplomatic Quo,

Chief Executives,

Senior Government Officials,

Distinguished Participants,

Ladies and Gentlemen,

I am greatly honoured to stand before you to day to open one of the several consultations on a very important process of formulating the Comprehensive Development Strategy the Malawi Government has embarked on.

Distinguished Participants, you are ware that the Government of Malawi is currently in the process of finalizing a comprehensive development strategy called “Malawi Growth and Development Strategy – MGDS” as a medium term development strategy over the 2006-11. For the sake of those who are attending the consultations for the first time, Ladies and Gentlemen, allow me to give a brief background to the evolution of this Strategy. You will recall that in April 2002, Government launched the Malawi Poverty Reduction Strategy-MPRS as an overarching development strategy for a three year period, up to 2005. Thus, the Strategy came to an end somewhere in the middle of this year. Following that a comprehensive MPRS review was started in order to assess the successes made in the implementation of the Strategy but also get lessons for the design of new development strategies. The MPRS Review report should be ready early next year and will be widely circulated.

Distinguished Participants, others who have been closely following formulation of development strategies in this country might say that the Malawi Economic Growth Strategy – MEGS, which was formulated to complement Pillar One – Sustainable Pro-poor Growth, should replace the MPRS. MEGS could not replace the MPRS because it did not tackle issues of human capital development, good governance and protection of the most vulnerable. These are important aspects of development in any country.

Ladies and Gentlemen, the end of the MPRS was the main reason which necessitated the formulation of the Malawi Growth and Development Strategy to guide development planning from 2006 to 2011. In addition, there are other reasons such as emergency of new policies and strategies such as the land policy, economic empowerment policy, public-private partnerships, private sector development strategy and national export strategy which were not part of the ended MPRS. Again, the national focus as espoused in the State President Dr. Bingu Wa Mutharika’s “The Road to Prosperity: Delivering on Our Promises’ has to be accommodated in the Strategy. The State President said that to transform Malawi, Government would:

· Design and implement Public and Private Sector Reforms aimed at creating stable macroeconomic conditions for growth and re-establishing donor confidence in the government’s ability to adhere to international commitments through the following interventions:

- Fighting and stamping out corruption;

- Civil Service Reforms aimed at improving the conditions of service and professionalism in the civil service;

- Developing and strengthening the business enterprise to contribute to economic growth; and

- Economic empowerment of the poor in the rural and urban areas,

· Introduce new Agricultural Sector Reforms in order to develop and strengthen agriculture and to produce enough food for the country;

· Develop infrastructure and communications in order to improve the movement of goods and services;

· Develop adequate and reliable sources of energy to support industrial development, manufacturing as well as social and economic transformation;

· Develop trade and tourism as a basis for macro-economic growth.

The focus of this new strategic document is poverty reduction through sustainable economic growth and wealth creation and all the above are well articulated in the Strategy. The Strategy presents a policy framework that articulates issues related to both economic growth and social development. The purpose of the MGDS is to serve as a single reference document for policy makers and implementers in Government, the Private Sector, Non Governmental Organizations and Cooperating Partners on Government’s socio-economic development priorities. Development partners are expected to use this Strategy in the formulation of their Country Assistance Strategies to our country. Already a number of development partners are waiting for completion of this Strategy in order to align their country assistance strategies. The Strategy will also guide the National Budget preparation process.

Distinguished Participants, the MGDS is not a stand-alone policy document as it has been derived from the current long-term policy objectives of the country prescribed in the Vision 2020. In addition, it is based on past experience in the implementation of medium-term policy frameworks such as the Malawi Poverty Reduction Strategy (MPRS) and Malawi Economic Strategy (MEGS). It is important to understand that the MGDS is not an alternative to MPRS or MEGS or the Vision 2020, but rather a Strategy to translate goals and objectives, which emerged from a nation-wide consultation processes; and reflected in Vision 2020, MPRS, MEGS, Millennium Development Goals, into an implementable medium term strategy.

The Strategy requires a broad consensus from all stakeholders on the direction for economic growth and wealth creation for Malawi. For the Strategy to be successfully implemented and attain its goals and objectives it has to be owned by all of us in this country. This ownership starts with participation in its formulation. This participatory consultation started sometime ago and all stakeholders or representatives of stakeholders: public institutions, cooperating partners, civil society organizations/non-government organizations and the private sector have been involved in one way or the other; and will be involved till the Strategy is finalized. Allow me, Ladies and Gentlemen to say that the formulation is just the beginning. Experience has shown that the implementation is the most difficult stage of the development planning cycle. It is in this context that I urge you all to come up with the most effective implementation framework through which all the stakeholders shall continue participating in the implementation of this Strategy.

Ladies and Gentlemen, the MGDS is based on five thematic areas namely; Sustainable Economic Growth; Social Protection (Protection of the Most Vulnerable); Social Development; Infrastructure Development and Good Governance. More importantly, cross cutting issues of HIV and AIDS, science and technology, gender, empowerment and environment are streamlined within these themes of the MGDS. All these thematic areas are closely linked to each other.

Distinguished Participants, this meeting today bears testimony that the MGDS is a product of a highly consultative and participatory process that identified specific strategies and focus actions that will be pursued and implemented in the medium-term in order to attain the aspiration of the nation. In addition to the past lessons and experiences of the MPRS implementation the Strategy has been formulated taking into consideration the current political, economic and social developments in the country. The MGDS has also been aligned with existing key sectoral strategies and policies from both private and public stakeholder institutions.

However, it is important to recognize that other important stakeholders are yet to be consulted to make it complete. These include the communities at grass root levels and their political representatives in the National Assembly (Members of Parliament-MPs). The MGDS would be incomplete without their inputs. To this end, my Ministry has made arrangements to consult these groups of stakeholders very soon. You may appreciate that it was necessary to develop the basic framework that would be required for such consultations.

Ladies and Gentlemen, once again, you have been provided with another opportunity to refine the Development Strategy Document. This meeting has come at the opportune time when the Strategy actions are about to be prioritized and costed. It is only when actions are carefully prioritized and allocated adequate financial, human and physical resources that they can effectively be implemented and have the desired impact. I urge all of you to constructively contribute to the process so that we all own the implementable Strategy. Let us make this a “Christmas or a New Year Gift” to our nation-Malawi.

Ladies and Gentlemen, allow me to thank all development partners who have been very supportive of the process, which was not very common in the past. Donors used to have their own agenda. Special thanks to the European Union through the Capacity Building Project for Economic Management and Policy Coordination who have facilitated this meeting. Finally, we are thankful to the Management of Cresta Lodge Hotel for provision of excellent conference facilities.

With these remarks, allow me, Distinguished Participants, to declare the meeting officially open and wish you all good deliberations.

THANK YOU FOR YOUR ATTENTION.