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We don't know why Malawi is poor

https://newsletter.deenamousa.com/p/we-dont-know-why-malawi-is-poor
40•alphabetatango•1h ago

Comments

addaon•28m ago
"70% of Malawians live on less than $2.15 a day. Under the World Bank’s revised $3-a-day poverty line, it’s 75%."

This sounds like an extremely bimodal distribution -- a 40% increase in the cut-off line only captures 5% more of the population, so only a small number of people are in this "poor but survivable" zone, with most well under and some well over, I assume. Does this map to the usual rural/urban divide?

erxam•26m ago
Regarding Rwanda, I think we're forgetting that a large part of their success comes from their plundering of the Congo's resources, mineral and otherwise.

There have been two gigantic continent-wide wars over the Congo, for fuck's sake.

rwyinuse•23m ago
Perhaps there are cultural reasons that explain this, such as attitudes towards work, entrepreneurship, private ownership etc?

I have no idea if Rwanda and Malawi have difference there, but globally one can see clearly see the impact of culture. Just look at how well Japan did despite losing WW2 and having little natural resources, or how badly Russia has done despite its huge landmass and resources, because the political culture always seems to lead to really bad autocratic governance.

In my country (Finland) areas where Swedish speaking people are the majority do consistently better than neighbouring areas with Finnish speaking majority - lower unemployment, less health and social issues and so on. Some of that may be due to historical accumulation of wealth, but I'm convinced that mostly it's because of differences in cultural values and attitudes. Some studies indicate that the Swedish speakers tend to have better social life, which improves life outcomes in many ways.

RobotToaster•15m ago
Malawians have a reputation of being extremely kind people, maybe that makes them bad at capitalism?
peterfirefly•15m ago
More like: Rwanda has a competent dictator (and has had the same one for 26 years, more if you consider the years where he was the strongman behind the President). A competent dictator is better than an incompetent dictator -- or even, in many ways, an incompetent democracy.
ViktorRay•10m ago
Is Malawi an incompetent democracy? Based on the article it seems to have a functioning stable democracy.

Are you implying that a dictator would lead to Malawi becoming wealthy? Seems like a disturbing argument. If that’s not what you are implying then what are you implying?

therein•4m ago
Are you implying that a "functioning" democracy automatically leads to good decisions being made and crowd always has good wisdom regardless of the attributes of the crowd?

To lead a country to prosperity is as simple as letting a nation vote and counting their votes and then giving power to the guy they voted for?

dirasieb•23m ago
malawi is poor because of colonialism, it used to be rich and prosperous before europeans went there and destroyed everything
WhatsTheBigIdea•20m ago
Can you cite a reference for this assertion? I'd like to read about it if true.
geneticf8•18m ago
didn't europeans colonize and destroy everything in the United States?
tptacek•18m ago
The article discusses this, and compares it to other labor-extractive colonial states in subsaharan Africa. If there were an easy explanation, it appears like it would be in the article, which is pretty expansive.
ascorbic•17m ago
So were lots of other countries that went on to grow a lot faster. That's what the article is about.
mdasen•10m ago
The point of the article isn't "Malawi is poor compared to Europe," but rather comparing Malawi to other countries that were similarly colonized and how other colonized countries have done a lot better than Malawi - despite often having more adversity in their post-colonial existence.

Yes, being exploited will leave you in a bad state, but it's also important to learn why other similarly colonized countries have done a lot better over the past 30 years - what are the conditions and policies that improve things

pavlov•23m ago
The conclusion of the article is interesting:

> 'The unit of analysis for "why is X poor" may be the political coalition, not the country.'

So maybe the real question here is not about the absolute poverty, but the derivative: "Why hasn't Malawi seen meaningful growth for 30 years?" — And the answer could be surprisingly related to first-world countries like Finland that also have experienced decades of stunted growth.

Like Malawi, Finland has functional and stable multiparty politics. Like Malawi, Finland's politicians have spent decades locally optimizing for minor benefits towards their preferred flavor of the median voter (right wing cuts taxes a bit, left wing improves benefits a bit, nobody offers anything transformative).

Too much stability at the wrong time might be a slow curse.

tdb7893•13m ago
Is Finland doing that badly? It seems like a good place to live
yorwba•4m ago
Finnish GDP per capita is growing much, much faster than Malawi's: https://data.worldbank.org/indicator/NY.GDP.PCAP.PP.CD?locat...
xandrius•21m ago
I think just you can get a glimpse by what they export (from Wikipedia):

- Malawi: tobacco (55%), dried legumes (8.8%), sugar (6.7%), tea (5.7%), cotton (2%), peanuts, coffee, soy (2015 est.)

- Rwanda: Gold, tin ores, coffee, malt extract, rare earth ores

I can easily see why one has a higher GDP than the other. Very little mistery to me.

exe34•14m ago
The agricultural exporters probably have a lot less heavy metal in their blood.
alephnerd•9m ago
Also, foreign aid. Rwanda received massive amounts of foreign aid unlike Malawi [0] and de facto colonized the DRC's mine fields [1]

[0] - https://data.worldbank.org/indicator/DT.ODA.ODAT.GN.ZS?locat...

[1] - https://www.reuters.com/world/africa/rwanda-exercises-comman...

londons_explore•6m ago
Foreign aid is rarely a gift - in almost all cases it is a business transaction. It is given as a loan, or in return for some mineral rights, or for an important UN vote, or for allegiance in a war.

For the loan cases, the terms are often unaffordable, effectively handing effective control of the entire country to the entity who has the other end of the loan - it is the modern empire-by-debt.

sofixa•5m ago
There are a few things to note here.

For both, around half of GDP is in the services sector. It doesn't matter that much what raw resources they export when it's a smaller portion of GDP (23% in Rwanda, 15% in Malawi). Also, almost all of those raw resources that Rwanda exports are stolen from the DRC by Rwanda-backed militias.

Foreign aid, and Rwanda's ability to position itself geopolitically as a trusted stable partner (which enables more aid and for it to get away with theft and murder) have more impact than maize vs gold.

boelboel•4m ago
There's barely any mines in Rwanda btw. DRC is closer to the later in terms of exports and I wouldn't say it's doing better.
WillAdams•20m ago
If one wants to vote with one's wallet:

https://www.heifer.org/our-work/where-we-work/malawi

Currently being matched 5 to 1.

csomar•18m ago
Malawi is poor because there is no reason for it to grow above the normal growth rate. Countries usually find themselves in a high growth situation if they are at the cross-road of major trade or geopolitics (ie: Singapore, UAE, korea, Taiwan, etc.) Of course the opportunity has to be cultivated but it has to be there in the first place.

There isn't much in Africa especially in the part of Malawi. They are not even coastal (they are landlocked) which makes their situation even worse.

forinti•18m ago
The Central African Republic, which has a low population density, lots of water and arable land is also very poor. As is South Sudan. It must be very hard to trade your way out of poverty if you are landlocked in a poor continent. All the countries in Europe are well off by world standards because there's an enormous market next-door.
ascorbic•13m ago
The question isn't "why is Malawi poor compared to European countries", it's "why is Malawi poor compared to other countries in a similar – or worse – situation"
forinti•7m ago
Look at the map in the article. It's a lot lighter in the middle than around the coastline. Niger, Chad, Burundi, South Sudan, CAR. These are all very poor. Malawi is not really an exception.
alephnerd•15m ago
This is a dumb take that highlights the common lack of experience with Africa that arises with anyone who writes about it - Malawi was always much poorer than the rest of East Africa as can be seen by the 1990 HDI [0].

Starting from a lower base as well as weak institutions, weak capital markets, and political instability during the transition to democracy lead Malawi to underperform.

Additionally, Rwanda received massive amounts of foreign aid to a degree that Malawi and other African nations never saw [1]

[0] - https://countryeconomy.com/hdi?year=1990

[1] - https://data.worldbank.org/indicator/DT.ODA.ODAT.GN.ZS?locat...

vondur•15m ago
Malawi needs to drop tobacco as their main export. Tobacco is hard on the soil and requires more fertilizer and acidifies the soil. Swapping out tobacco for something like a specialty coffee would be far better (and Rwanda has done that) Bringing some hard specie with Coffee would really help and the foreign aid could help them make the transition, which would take a few years to get going.
Joker_vD•2m ago
> Malawi needs to drop tobacco as their main export

That's the product they have most comparative advantage of producing. You're literally suggesting they should cut their income down.

sb057•12m ago
Rwanda has prospered for the past three decades while Malawi has floundered because Rwanda is run by an effective dictator engaging in developmentalist nation-building. Malawi has no equivalent power center, and certainly none with the beneficence to try and raise up their countrymen.
alephnerd•11m ago
Rwanda also got significantly more foreign aid than Malawi [0] and other peer countries in Southern and Eastern Africa.

A lot of Rwanda's success is overstated as well as I've pointed out before [1].

A better model from an LDC perspective would probably be Uganda.

[0] - https://data.worldbank.org/indicator/DT.ODA.ODAT.GN.ZS?locat...

[1] - https://news.ycombinator.com/item?id=43375524

rdtsc•4m ago
> It ranks 107th out of 180 on Transparency International’s Corruption Perceptions Index, which is middling, but not especially bad, roughly comparable to Indonesia and Brazil.

I would still guess corruption is a major reason. Sometimes the way it’s measured and how it’s reported is not accurate. People internalize corrupt practices as normal and stop viewing it as corruption. A bribe is a gift, a nepotistic appointment is “taking care of one’s family”.

It also doesn’t always make sense to compare only corruption with other countries. Some may be more corrupt but they have enough positive factors that they develop better despite the corruption.

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