Transcript Slide 1

FEATS Project
Malawi: Terms of Reference for Second Phase Research Study
A Policy Study of the linkages between Agricultural Productivity and
Rural Livelihoods on the one hand and Trade in Agriculture and Trade
Facilitation on the other: Recommendations for Poverty Reduction and
Development for a Landlocked Country like Malawi
By Lawrence Mapemba
University of Malawi
Bunda College
1st October, 2009
CUTS GRC, GENEVA
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Malawi agro-based economy with 85 percent of the
population depending on agriculture
The agricultural sector generates more than 90 percent of
the export earnings to the economy and contributes 40% of
the GDP
The sector employs a large proportion of population
Dominated by smallholder subsector – contributes 75% of
food crop production in the country
Lack of investment and development resulted inability to
attain its potential in trade performance
International trade can foster economic development and
reduce poverty through employment
There is need for coherence between trade and
development policies
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Collect information and analyze recent trends in
agricultural productivity, agricultural trade,
livelihoods, and trade facilitation measures
particularly in the context of landlocked status of Malawi
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Examine the key linkages and relationships between
these three aspects using a holistic framework
Generate new insights and knowledge that carry
practical implications including possible development of
concrete projects to contribute to the finding of
solutions through a coherent policy framework that will
assist Malawi in meeting the objectives of Vision 2020
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Performance, role and constraints faced by the
agricultural sector with focus on rural livelihoods,
productivity, and trade
Trade facilitation needs and measures with a focus on
those directly related to Malawi as a landlocked
country
Linkages and relationships among agricultural
productivity, trade and livelihoods with focus on
identifying areas of synergy
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Policy frameworks related to agriculture, trade, and
trade facilitation
Development of coherent recommendations in the
areas under study to advance poverty reduction and
development objectives
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Review of literature
Stakeholder consultations and meetings
Sample survey
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The data collected through literature review, meetings with
stakeholders, and by accessing existing data sources will be
complemented with selected field studies/sample surveys where
absolutely needed
Meetings will be done with the following public, private and NGO
stakeholders: Ministry of Trade, Industry and Private Sector
Development; Ministry of Agriculture and Food Security; Ministry
of Finance; Ministry of Development Planning and Cooperation,
Food Early Warning System Network (FEWS NET), Malawi Chamber
of Commerce and Industry, Malawi Export Promotion Council,
National Smallholder Farmers Association, Tobacco Exporter
Association, Mulli Brothers, Trans Globe, Rab Processors
Company Limited, Grain Traders Association, Malawi Economic
Justice Network, and Civil Society Agriculture Network.
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Trends in crop production, agric exports and
imports, employment in agric, rural poverty
and land tenure (last ten years)
Trends in agric productivity – crops and
livestock
Landlocked and trade facilitation issues –
main constraints
Policy framework – agricultural development,
trade facilitation policies and their linkages
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What is the relationship between agricultural
productivity and agriculture trade performance?
◦ Comparison between crop productivity and trade
◦ Effect of increased productivity of tradable crops and
livestock on trade performance (surplus)
◦ Role of agricultural policies influencing productivity
and trade performance in crops and livestock
◦ Linkages among agricultural/livestock policies,
productivity, and imports of livestock products
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What is the relationship between agricultural
trade performance and rural livelihoods?
◦ Livelihoods is defined as access and availability of food
at household level as well as increased rural household
income and sources of incomes
◦ The study will investigate if increased productivity has
resulted in improvements of household food security
through improved incomes
◦ Linkages between increased production of traderelated crops and household income-estimate
subsistence farmers
◦ Informal cross-border trade and rural livelihoods
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What are the main constraints for trade in
agriculture in Malawi resulting from being
landlocked?
◦ Issues to be studied include: costs of transportation;
delayed delivery of goods; and goods lost during
haulage
◦ Available trade corridors and their advantages and
disadvantages (tariff and non-tariff barriers)
◦ Effects of landlockedness on production decisions on
tradable crops and livestock products
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What are the past, present, and planned
trade facilitation measures that attempt to
address the identified constraints?
◦ Efforts achieved through value-addition or processing
before exports to increase the shelf life of agricultural
products
◦ The study will look into any processing done to fish,
meats, vegetables and milk prior to exporting
◦ Major trading partners for such products
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What are the main corridor schemes and how do
they address the identified constraints?
◦ The study will assess efforts on trade facilitation which
aim at promoting trade
 development of trade corridors;
 trade protocols and trade agreements relating to various
corridor schemes.
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What are the key features of national policies
related to agriculture, trade and trade facilitation?
◦ Study national policies related to agriculture, trade and
trade facilitation
 Link with government’s goal of transforming the country
from a predominantly importing and consuming nation to a
predominantly producing and exporting nation (MGDS)
◦ Progress in implementation of the policies and strategies
as well as successes and failures or challenges
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What is the impact of regional (e.g., SADC and
COMESA) and international (under the WTO) rights
and obligations on national policies on trade,
agriculture and trade facilitation?
◦ The study will identify the relevant parts of SADC,
COMESA and the WTO that can either hinder or facilitate
national policy making on agriculture, trade, and trade
facilitation
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Who are the main domestic stakeholders? What
is the level of their respective capacities and
involvement in relevant policy making and
implementation?
◦ Stakeholders that will be involved in this study will
include relevant government ministries and
departments, civil society involved in trade, Tobacco
Association of Malawi, Private Traders, Farmers
Associations e.g. Farmer Union of Malawi and National
Association of Smallholder Farmers
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This will involve data analysis and summarizing
issues out of all information obtained through
consultations, meetings and literature review
◦ Linkages on various aspects of agricultural productivity
– trade performance – livelihoods
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The study findings will provide detailed
recommendations for different stakeholders.
These include the following:
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government
development partners
CSOs, particularly farmers organizations
private sector and business organizations
Questions?