Impact of key policies on inequality

Section 2 underscores the fact that good coordination of policies that enhance economic growth and simultaneously tackle inequality is key to effectively reducing poverty. Accordingly, as in most countries in Africa, Malawi has witnessed several shifts in its policies in a bid to deal with both poverty and inequality since its independence in 1964. Malawi implemented Structural Adjustment Programmes (SAPs) with support from the World Bank (WB) and the International Monetary Fund (IMF) between 1981 and 1994. The Poverty Alleviation Programme (PAP) was adopted in 1994 which sought to raise national productivity through sustainable broad-based economic development and socio-cultural development (GOM, 2002). Despite some progress in both poverty and inequality, the performance of PAP was seen to have been compromised by a lack of a holistic action plan and clear linkages with the budgeting framework (GOM, 2002). Accordingly, in 1998 Malawi launched the Vision 2020 as a long-term national development plan to anchor the direction of policy through short and medium-term development strategies. Notably, Vision 2020 reckoned the importance of tackling economic growth and inequality for sustainable development and poverty reduction. The Vision 2020 was replaced in 2021 with the Malawi 2063 vision whose focus remains on fostering inclusive growth for sustainable development and poverty reduction.

Sustainable Development Goals:

No Poverty

Gender Equality

Reduced Inequalities