401. Is Poverty a binding constraint on Agricultural Growth in Rural Malawi?
- Author:
- Mirriam Muhome‐Matita and Ephraim Wadonda Chirwa
- Publication Date:
- 07-2013
- Content Type:
- Policy Brief
- Institution:
- African Economic Research Consortium (AERC)
- Abstract:
- Agriculture remains the most important sector in sub‐Saharan Africa and is a dominant form of livelihood for a majority of the population that resides in the rural areas. In Malawi, agriculture accounts for 35 percent of GDP and generates more than 80 percent of foreign exchange. In addition, agriculture is the most important occupation for 71 percent of the rural population in which crop production accounts for 74 percent of all rural incomes. However, agriculture has failed to get Africa out of poverty, and most countries are experiencing low agricultural growth, rapid population growth, weak foreign exchange earnings and high transaction costs (World Bank, 2008). In Malawi, for a long time, economic growth has been erratic (see figure 1) with huge swings and poverty has remained high. For instance, the annual growth rates in per capita gross domestic product averaged ‐2.1 percent in the 1980‐84 period, ‐2.7 percent in 1990‐94 period, 3.8 percent in 1995‐99 and ‐0.2 percent in the 2000‐05 period.
- Topic:
- Agriculture, Development, Economics, Political Economy, Poverty, GDP, Inequality, Economic Growth, and Macroeconomics
- Political Geography:
- Africa and Malawi