Book Description

The Government should re-instate its programme of General Budget Support for Malawi, according to MPs on the International Development Committee. The Department for International Development (DFID) suspended General Budget Support to Malawi - the provision of funds directly to the Malawian exchequer - in July 2011, preferring to provide its aid by other means. This decision was taken in response to the policies of the then President of Malawi, Bingu wa Mutharika. His policies had created an economic and political crisis, whilst his authoritarian tendencies were becoming ever more apparent: the UK's High Commissioner had been expelled from Malawi for criticising Mutharika. However, following the death of President Mutharika in April this year, his successor - President Joyce Banda - has begun to reverse many of his policies. The currency has been devalued, whilst the new Government has indicated its intention to repeal many of its predecessor's authoritarian measures. Subject to the continued progress of reforms, general budget support is likely to be the most efficient way of providing aid to Malawi.