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Abstract:
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This paper reviews the link between agricultural growth and poverty reduction in Malawi. The contribution of the agriculture sector in Malawi has been fairly stable over time, accounting for more than one-third of gross domestic product. However, the performance has been mixed in terms of growth rates, with more growth witnessed in the 1960s and 1970s and erratic growth rates in subsequent periods. The analysis also shows no significant link between the growth in the agricultural sector and indicators of poverty such as malnutrition rates and poverty head count ratio. The disappointing performance of the agriculture sector can be attributed to many factors including declining farm productivity, rain-fed nature of cultivation and associated exogenous shocks, thin agricultural markets, policy reversals and associated uncertainties, and declining public investments in the agricultural sector. In order to revive the agricultural sector, the study recommends policies towards greater commercialization, revitalization of extension services and increased investments in marketing systems, rural infrastructure and irrigation development. |