Economic policies hurting the poorest of the poor

Mary speaks little of politics. At nearly 100 years old, her primary concerns are her failing eyesight, her sore knees, and having enough food for her daughter and four grandchildren. Yet when asked if she thinks that politics in Malawi are getting better or worse, she doesn’t hesitate. Times used to be much better.

“The government used to have money, and care for the vulnerable. But now, the people in town have forgotten about us. I don’t even have ufa (maize flour) to cook with.”

And while Mary didn’t participate in the countrywide demonstrations on June 20^th and 21^st, she and the other are among the most affected by president Bingu wa Mutharika’s poor governance and failing economic policies.

Mutharika, in his speech to demonstrators on June 20, emphasized the need for Malawi to become self-sufficient and independent of donor aid. Mutharika’s “zero-deficit budget-” which will supposedly draw in 242 billion in tax revenue- is supposed to limit the country’s reliance on foreign aid by generating domestic revenue.

But in a country that receives 40% of its current budget from foreign aid, and which is facing aid cuts from Britain and the IMF due to Mutharika’s poor governance- Mutharika’s plan only further strains an already burdened population.

“The private sector, which is being taxed more in the budget, is sitting on the edge of survival and that some of the taxes in the budget could knock some companies out of the market,” says The Economics Association of Malawi.

Furthermore, basic commodities like salt, bread, water, meat and dairy products will be subject to a 16.5% tax. People like Mary and her family will be the first to suffer from these policies.

Demo Updates

Updates on the Demonstrations

Area 47 was eerily quiet this morning- no people, no minibuses, no bicycle taxis. Almost everyone was staying indoors, crowding around the radio to wait for news of the demonstrations.

The broadcasts weren’t encouraging.

“The police are arresting and stripping anyone wearing red!” a reporter shouted.

“They are tear gassing the demonstrators! I just saw a journalist badly beaten and taken to the hospital!”

It was frustrating, knowing that important things were going on nearby, while we sat inside a silent compound. When one of the Malawians we are staying with, James, hopped on his bike to go to town, Erin (another individual volunteer) and I decided to venture out. On the way there, the streets were almost completely deserted. There were a few pedestrians and a couple of police cars driving around, but other than that, the city seemed quiet.

It wasn’t till we got closer to town that we saw black smoke billowing from the skyline. About that time, we got a text from a friend, who had gone into town earlier.

“Been to downtown, its bad, even shooting. Burning vehicles, police homes.”

We decided to stop at the lodge where the group was staying, and found Daniel there. He said he had watched the demonstrators battling the police with stones, and that his friends had seen a man get shot in the head.

From friends’ accounts and radio broadcasts, rioting continued in the afternoon. The police tried to disperse the crowds with tear gas.

June 19

Tension here in Malawi is palpable as the country prepares for county-wide, anti-governmnet demonstrations. The demonstrations, which were originally planned for June 20^th, were meant to call attention to President Mutharika’s increasingly dictatorial tactics. And while the protestors pledged to remain peaceful, rumors of violence rippled through social network sites and news sources.

On Tuesday, youth bearing the leading party’s insignia paraded through the streets of the commercial capital, Blantyre, brandishing machetes.

Around the corner from my guesthouse, a local radio station’s vehicle was vandalized following a broadcast in support of the demonstration. One vehicle was set on fire by masked men after the staff had left the office, while another was smashed in during broad daylight.

In the capital city’s main market, vendors packed up early on Tuesday afternoon, fearful of looting and lawlessness during the demonstrations.

And while these threats have deterred some people from the demonstrations, the challenge has fueled others.

A couple of people I’ve talked to have said that they still plan to attend the demonstrations.

“How can we stand by and watch the government ignore the rule of law? I will wear red (the color of the demonstrators) tomorrow.”

The demonstrations follow months of mounting frustration against Mutharika and his ruling party, the Democratic People’s Party (the DPP). While citizens suffers under economic stagnation and fuel and electricity shortages, members of Parliament have continued to enrich themselves, voting to raise their own salaries by 300%. Meanwhile, the DPP has sought to silence all forms of opposition: closing two colleges in the university of Malawi after professors were critical of the government; expelling MPs who strayed from party lines; ousting a British diplomat who referred to Mutharika as a dictator; and threatening to arrest anyone who protests.