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.