Bingu wa Mutharika, who was elected to a second term as president of Malawi in May, is an international economist with a PhD from Pacific Western University in Los Angeles in the United States. Since he was first elected in 2004, succeeding Bakili Muluzi, Mutharika has championed rapid economic growth and the fight against corruption. Although he received 66 percent of the votes, his opponent, John Tembo, has called the process flawed and has gone to court to contest the outcome.
Last week, while in New York for the United Nations General Assembly, Mutharika addressed a roundtable convened by the Business Council for International Understanding to promote Malawi as an investment and tourist destination. He summarized his message in an interview with AllAfrica's Reed Kramer. Excerpts:
You have been talking about the 'economic miracle' in your country. How do you reconcile that with the fact that Malawi ranks quite low on the Human Development Index and other poverty gauges?
We are saying we are an economic miracle because, five years ago, we were an economic pariah. The World Bank, the IMF and the donors almost abandoned us, because we were following policies that were not taking us anywhere.
Malawi is not a poor country. The people are poor, and that is where the miracle started. We said that we could transform our wealth, natural resources - minerals mainly - into new wealth-creating employment. When I took over, we started off by saying, 'Look, we will do the reforms on our own, not at the insistence of the World Bank'. We self-evaluated our economy and our performance, and indeed, the IMF and the World Bank came again. That was the beginning.
Now we are a miracle, because we have been able to feed ourselves consistently over the past five years. We have surplus food production - not only maize but all the other staples. This was not considered possible some years back.
We have an average growth rate of 7.5 percent starting from 2004. Last year, we posted 9.7 percent. We are classified as the second fastest growing economy in the world, after Qatar. Employment opportunities are increasing, incomes for people are increasing. We have increased the number of hospitals available. We have increased the number of children in school - under a roof, not under a tree. We have a school feeding program.
We have successfully introduced HIV/Aids management programs. The rate of new infections of HIV has now tapered off. It was rising, it steadied, and it's now declining. We have reduced infant mortality [and] child mortality as well as maternal mortality.
We believe that, all in all, we are doing very well. We have a proven track record, and donors have [designated] Malawi as one of the best-managed economies in sub-Saharan Africa. Some of them have used the words 'economic miracle'.
Did Malawi's transition from autocracy - three decades under 'President-for-Life' Kamuza Banda - contribute to these economic successes?
Yes indeed. We had elections, free and fair, credible elections. [After that] we wanted to create rapid macro-economic growth within a stable political and economic environment. We have succeeded. The economy has been stable. We have a steady exchange rate regime. We have low interest rates and low inflation, and these have been able to fuel growth that is sustainable. Despite the oil price hike that we had the past two years, we were still able in 2008 to post, as I said, 9.7 percent growth.
How did Malawi manage that transition?
My immediate predecessor, Bakili Muluzi, was the one who started the multiparty democracy. Malawians accepted the concept of multiparty democracy - they voted in a referendum and so we went into multiparty mode. Democracy is now established and firmly consolidated.
Are you attracting investors?
Yes, investors come [to Malawi] and say 'I think if I put my money here I will be able to make money'. And they do. They do make a lot of money.
The return is very high in Malawi. Economic returns are actually higher in Malawi than in the United States. Their investment is safe, and they themselves are safe.
Safe in what regard?
Safe because of the political environment but also because we police all the areas where people are staying, in the factories where they work. We got rid of the street boys - offered them some businesses to work out.
You can walk any street these days without expecting anybody to mug you or to rob you. That was not the case five years ago.
Your economy is heavily dependent on agriculture. Among the major crops is cotton, and lately there has been controversy over the price that farmers are paid. Your government set a minimum, and many cotton buyers are not happy with that action, I understand.
We just want to get a fair price for our people. Basically, we look at the cost of inputs by ordinary farmers and then the price at which they sell a kilogram of cotton, and it is not matching. We are saying: move up the prices.
They [the buyers] are telling us the international price of cotton is depressed. But they don't know that I know the international market better than they do. It's not a convincing argument. Taking into account all the cost factors and the global market, we believe farmers should be paid a little more.
I want to ask you about a young Malawian whose ingenuity and determination are attracting worldwide attention. William Kamkwamba's new book, The Boy Who Harnessed the Wind, recounts his creation of a windmill from scraps, which not only brought electricity to his village but has brought him access to education, when that seemed a remote possibility only a few years back.
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I know the story and I'm going to see him soon. I am always thrilled to see this kind of innovation. From time to time you get young people with bright ideas. There was also someone who had his own small hydro-power plant for his village. It's encouraging to see that kind of innovation among the youth.
Now that you have been elected to a second term, where do you hope to lead your country?
Some countries have broken out of the poverty trap - Malaysia, Singapore, Taiwan, Korea, Hong Kong and so on. And in Latin America - Brazil, Mexico. In Africa we have some countries, like South Africa, coming out of it.
We are saying: why is it that others come out of poverty and the rest stay there? That is what is propelling Malawi. We are determined to come out of poverty. We will come out of poverty and, relatively, in a shorter period perhaps than the others. They invented the wheel. We will not invent a new wheel. We will just make it faster.
RELATED:
Malawi Millenium Development Goal Report on Malawi Government site
Human Development Index, Malawi - United Nations Development Fund
The Boy Who Harnessed the Wind - William Kamkwamba's Blog
The Boy Who Harnessed the Wind - Ethan Zuckerman's Blog
