Resurrecting the vestiges of a developmental state in Malawi: reflections and lessons from the 2005/2006 fertiliser subsidy programme

This paper explores how the experiences leading to the adoption and successful implementation of the 2005/2006 fertiliser subsidy programme can be exploited as the basis for churning out a viable framework for a developmental state in Malawi - broadly understood as the state that seriously attempts to deploy its administrative and political resources to the task of economic development. This is inspired by the fact that the success of the 2005/2006 fertiliser subsidy programme is widely orchestrated as the most significant policy achievement of the government since the advent of a democratic political dispensation over a decade ago especially in view of the fact that the programme was implemented against the advice of a whole gamut of technical experts and development partners.<br /><br />During 2006 a reconfiguring of actors was taking place around a new more coherent policy narrative. A group of donors involving DFID, USAID and the World Bank commissioned studies to learn from lessons from the 2005/2006 experience which encouraged a backing down on the downright anti-subsidy line. In its place a set of conditions for donor support for the subsidy programme were suggested. These included the following: <br /> greater involvement of the private sector in both the procurement and the distribution of subsidised fertiliser and other farm inputs <br /> promotion of choice among beneficiaries in terms of the range of fertilisers involved, and outlets from where fertilisers and seeds are procured extension of the subsidy intervention to other crops besides maize and tobacco in order to promote crop diversification developing plans for marketing and storage especially during times of excess production.<br />Donor dominance still abounds as a result. There is thus an urgent need to invest in institutional strengthening and capacity of the government agencies entrusted with policy functions in terms of both people and systems in planning, coordination and implementation. This is a key concern because the institutional or organisational capacity of the state including its relations to surrounding social structure is vital to the success of a developmental state. The institutional and organisation capabilities of the state are quite important for it to promote and achieve better economic performance. Besides, a powerful, competent and insulated bureaucracy is considered as an extremely important feature of the developmental state.<br /><br />There is no doubt that the experiences with the 2005/2006 fertiliser subsidy could be a precursor for resurrecting the vestiges of the developmental state in Malawi but it is perhaps too early to fully project it as such. The potential of these experiences could be overestimated especially given the unique nature of the politics of food security in the country but these experiences nonetheless invoke some food for thought.