Thesis (M.Comm.)-University of KwaZulu-Natal, Pietermaritzburg, 2009. / This dissertation examines the challenges of poverty alleviation in Malawi, with particular
reference to the period 1995 to 2005. Malawi is a small landlocked country, considered to be one
of the poorest countries in the world. Some of the major indicators of poverty in Malawi are
inequality in income distribution, attainability of basic needs and low levels of development. The
Integrated Household Survey (IHS) of 2004/5 revealed that 52.4 percent of the Malawian
population was living below the poverty line in 2005 (National Statistics Office (NSO), 2005:
139). Poverty reduction strategies in Malawi have had a slight impact on reducing the level of
poverty. Nevertheless, the government of Malawi remains committed to the implementation of
redistributive measures and economic reforms in its quest for economic growth, poverty
reduction and enhanced employment opportunities in the country (Malawi Government, 2006:1).
This study uses an econometric analysis to examine the effects of government spending on
socioeconomic services, foreign aid and Gross Domestic Product (GDP) growth on the levels of
poverty in Malawi, using data for period 1995-2005. The regression results indicate that in GDP
growth and government expenditure on socioeconomic services, particularly on education, have
a significant impact on reducing poverty levels in Malawi. To address poverty, Malawi should
thus pursue an economic growth enhancing strategy, with expansion of human capabilities that
also facilitates fiscal redistribution. The regression results show that if GDP growth is increased
by 1 percent on average, this would decrease the headcount poverty by 0.237 percent, ceteris paribus. The model also shows that, on average, a K1 million increase in government
expenditure on education will decrease the headcount poverty by 0.1 percent, ceteris paribus.
The regression results therefore indicate that GDP growth and government expenditure on
education will have to increase in order for poverty levels in Malawi to decrease in the long run.
The results of a similar comparative regression analysis for Botswana further confirm the
consistency that education is a significant factor in reducing poverty.
| Identifer | oai:union.ndltd.org:netd.ac.za/oai:union.ndltd.org:ukzn/oai:http://researchspace.ukzn.ac.za:10413/1008 |
| Date | January 2009 |
| Creators | Kambalametore, June. |
| Contributors | Mahadea, Darma. |
| Source Sets | South African National ETD Portal |
| Language | English |
| Detected Language | English |
| Type | Thesis |
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