Malawi Growth and Development Strategy (MGDS) III - Building a Productive, Competitive and Resilient Nation

MGDS Report 2017 2 Rev Black Border.cdr Government of Malawi THE MALAWI GROWTH AND DEVELOPMENT STRATEGY (MGDS) Ill (2017 - 2022) Building a Productive, Competitive and Resilient Nation II HIS EXCELLENCY PROFESSOR ARTHUR PETER MUTHARIKA PRESIDENT OF THE REPUBLIC OF MALAWI FOREWORD The third Malawi Growth and Development Strategy (MGDS Ill) has been formulated following the expiry of its predecessor strategy, MGDS 11, in June 2016. The strategy has been prepared at a time when Malawi has been experiencing multiple shocks including floods, drought and financial crises. While food production improved in 2017, the cycle of food deficit and surplus has kept the country preoccupied with fighting disasters instead of pursuing its development agenda. It is for this reason that the theme of the MGDS Ill is "Building a Productive, Competitive and Resilient Nation". With this theme, the Government of Malawi undertakes to support Malawi's development into a productive nation competing on the global stage while ensuring that the nation builds systems that deal with natural shocks and disasters. MGDS Ill reflects the fact that Malawi is a member of the international community and as such is a signatory to a number of protocols. Among the commitments highlighted in this strategy is Malawi's obligation to implement the Sustainable Development Goals (SDGs), a global agenda for inclusive and equitable growth succeeding the Millennium Development Goals (MDGs), and the African Union Agenda 2063, the long term pan-African vision. The MGDS Ill shows how these international agendas will be operationalized at the national level. In this regard, my Government will stand committed to the development of the country so that we can achieve the aspirations of Vision 2020. The current strategy has departed from the formulation of multiple thematic areas by organizing itself around Key Priority Areas (KPAs). The five KPAs presented in this strategy have been chosen on the basis of their alignment to the SDGs, the AU Agenda 2063 and Malawi's economic and development needs.As such, MGDS Ill is designed to spur growth and remove barriers to development. For the next five years, the KPAs shall be: i) Agriculture, Water Development and Climate Change Management; ii) Education and Skills Development; iii) Energy, Industry and Tourism Development; iv) Transport and ICT Infrastructure; and v) Health and Population. Mygovernmentwill lead the implementation of this strategy and will facilitate private sector and other stakeholder participation. In this regard, I appeal to citizens of Malawi, Civil Society Organizations, development partners and the international community for the same cooperation that prevailed duringthe implementation of MGDS II. It is my hope that all stakeholders will rally around this strategy and align their plans and programmes accordingly. May God bless Malawi. Prof. Arthur Peter Mutharika President of the Republic of Malawi Ill II PREFACE The third Malawi Growth and Development Strategy (MGDS Ill) will be implemented from 2017 to 2022. It is the fourth medium­ term national development strategy aligned to the country's long-term development aspirations which are articulated in Vision 2020. The previous development strategies that were developed to implement Vision 2020 were the Malawi Poverty Reduction Strategy Paper (MPRSP), the Malawi Growth and Development Strategy (MGDS) I and II. The MGDS Ill is the final strategythatwill take Malawi to the realization of Vision 2020. Unlike its immediate predecessor, MGDS Ill is built around a theme that aims to improve productivity, turn the country into a competitive nation and develop resilience to shocks and hazards. The MGDS Ill also consolidates the efforts that Malawi is undertaking to reposition herself as a global player. The current strategy is the outcome of a year-long process of consultations, brainstorming, and validation meetings with stakeholders in and outside government. I am confident that the collective effort which prevailed during its formulation will continue during its implementation. While the national budget will be the main implementation tool for this strategy, I would like to call upon all development players such as the private sector and non-governmental organizations (NGOs) to take part in the implementation of the strategy. It is my hope that all stakeholders will align their programmes and activities to this strategy so thattogetherwe can build a productive, competitive and resilient nation. God bless us all. Goodall E. Gondwe Minister of Finance, Economic Planning and Development Building a Productive, Competitive and Resilient Nation II • ~ .. -~ ~ ·co a. £ >, :, ~o tn GI E ~ ::::, 0 ! '6 GI E GI ~ Sustainable Inclusive Growth (SDGs to be directly impacted on: 1,2, 3,4,5,6,7,8,9, 11, 13, and 16) KPA 1: Agriculture, WatJM Development and Climate Change Management Outcome 1: Inclusive agricultural transformation adaptive to climate change • Increased agricultural Productivity • Improved food safety and diversification • Increased land under irrigation • Increased agricultural diversification • Enhanced Agricultural risk management • Increased agriculture market development agro processing and value addition • Enhanced integrated water resources management at all levels • Enhanced community resilience to climate change impacts • Enhanced climate change research and technology development • Improved weather and climate monitoring for early warning prepairedness and timely response • Strengthened policy operating environment for climate change and meteorological services • Increased access to water resources management KPA2: Education and Skills Development Outcome 2: Improved and accessible quality and relevant education and skills for all • Improved access and equity to Early Childhood Development (ECD), basic, secondary, and higher education, and skills development training • Improved quality and relevance of ECD services, primary, secondary, higher education, and skills development training • Improved governance and management of basic, secondary and higher education ~ Summary of Key Assumptions (full details in the write-up/ • Current real GDP growth rate accelerated and sustained, • Conducive and stable macroeconomic environment created through prudent management of fiscal and monetary policies, • Development effectiveness realized by harnessing both domestic and external resources for development financing, • Good governance entrenched and institutionalize practices that avoid wastage of scarce resources, • Continued political stability and greater accountability, • Continued and successful implementation of public sector refonns and provide a framework for the business unusual approach to implementation of key refonn areas. Inclusive and Human Capital Development (SDGs to be directly impacted on: 1, 2, 3, 4, 5, 6, 7, 8, 12, 15, and 16) Outcome 3: Sustainable energy for spurring socio­ economic development • Improved access to reliable and sustainable energy supply • Improved access to affordable alternative sources of energy • Enhanced use of renewable and clean energy • Improved environment for investment and private sector development • Increased production and export of manufactured products • Improved investments in tourism support infrastructure • Improved conservation and management of cultural resources fr Other Development Antas • Governance • Financial services .. • Disaster Risk Management and Social Support • Gender, Youth Development, Persons with Disability and Social Welfare • Environmental Sustainability • HIV and AIDS Management • Nutrition • Integrated Rural Development • Peace and Security • Human Settlement and Physical Planning Resilient People and Institutions who can withstand economic and environmental shocks transformation (SDGs to be directly impacted on: 1, 3,4,5,6,7,/4,15) Outcome 4: Enhanced equitable access to social and economic services, local and international markets through safe, reliable and affordable transport and ICT infrastructure • Reduced travel time and costs for persons and goods • Improved transport reliability, levels of service and efficiency • Increased private sector investment in the operation and management of transport infrastructure • Increased access to information and communication services • Improved ICT broadband infrastructure • Improved efficiency in postal services • Increased stock of ICT skilled and industry ready workforce in public and private sector institutions ?J KPA5: Health and Population i..l Outcome 5: Improved health, nutrition status, and population management and development • Improved access and equitable health service delivery • Improved quality of health services, patient safety and people-centred services • Improved domestic financing for health • Increased retention of human resources for health • Reduced d~ease incidences and prevalence • Improved hygienic and sanitation practices • Reduced morbidity and mortality due to malnutrition • Improved nutritional status and reducing any fonns of malnutrition • Increased maternal, neonatal, infant and child survival • Effective population and development planning at all levels • Increased policy and legislative measures focusing on population Summary of Key Risks (full details in the write-up) • Domestic debt is not curtailed leading to high cost of financing and reduced fiscal space for priority programmes, • Poor and unstable macroeconomic environment, • unfavorable climatic and weather conditions, • Lack of continuity of policies and programmes, • Politicization of planning and implementation of programmes, • Increased pressure on the economy, environment and social services due to high population growth rates, • Poor stakeholder coordination at different levels, • Poor governance and lack of transparency and accountability, • Energy supplies fall short of domestic and industry requirements of 2017-2022, ADMARc7 depots will be better utilized to protect rural communities from price volatility. It is expected that ADMARC markets will assist rural farmers in selling their farm produce and simplifying access to improved seed and other agricultural inputs. Realizing that climate change has adverse impacts on the agriculture sector, a number of adaptation and mitigation strategies will be put in place to address the adverse effects of climate change on the sector. Adaptation will enhance preparation for and negate the effects of climate change, thereby reducing its impact on vulnerability of communities and ecosystems. On the other hand, mitigation avoids escalating the risk of climate change by reducing further release of Green House Gases (GHGs) and by sequestration of GHGs from the atmosphere. Both adaptation and mitigation are not only relevant in agriculture sector, but also other areas. The other affected areas include environment, forestry, water resources, parks and wild life, women and youth productivity, child development, health, education, energy, industrial production and transportation. Projects addressing climate change in Malawi have tended to be small, fragmented pilot projects. In contrast, MGDS Ill will involve a systemic approach to promote agro-processing, value addition and manufacturing initiatives, while enhancing ecosystem integrity. Efforts will focus on developing water resources and ensuring that they are sustainably managed to support interventions in agriculture, health, energy and transport sectors. Sustainable approaches to harnessing water for irrigation will minimize water shortages, environmental degradation, social conflicts and health risks. In addition, due to climate change, water reservoirs do not get adequately replenished. This affects ground waters which call for water recharge mechanisms. It is required for government and all stakeholders to conserve water and improve access to potable water. 1ADMARC is the Agricultural Development and Marketing Corporation, a Government-owned parastatal 11 founded in 1971 to promote the Malawian economy by increasing the volume and quality of agricultural exports. Considering that effective response to climate change is context:specific and often best addressed at the local level, timely, site specific and accurate weather forecasts is essential. While the Malawi meteorological service sector has provided useful information, the sector is facing challenges such as fewer functional observational stations, shortage of trained personnel, vandalism of equipment, weak telecommunications support systems, and inadequate data processing and information dissemination facilities. These challenges compromise service delivery to meet national, regional and international benchmarks. Redress of climate impact span other sectors such as waste management, transport industry and other carbon emitting sectors so that mitigation and adaptation activities go beyond management of weather variations. Addressing these challenges will ensure that actors in climate sensitive sectors can make informed decisions. The government will also focus on strategies that mitigate the effects of climate change and empower women, the youth and vulnerable groups as enshrined in the National Agriculture Policy(2016). Goal To achieve sustainable agricultural transformation and water development that is adaptive to climate change and enhances ecosystem services. II Outcome Strategy CLIMATE CHANGE MANAGEMENT Strengthened policy operating • Harmonizing climate change related policies . environment for climate • Developing and enforcing legal and regulatory framework in climate change and meteorological change management. services • Mainstreaming climate change issues in sectoral policies, plans and programmes. Enhanced community • Promoting the adoption of low carbon emission development resilience to climate change strategies. impacts • Improving adoption of climate change adaptation and mitigation measures. • Enhancing cross sectoral coordination of climate change programmes . • Improving access to domestic bilateral and multilateral climate financing and private sector investments. Enhanced climate change • Promoting research, technology development and transfer in climate research and technology change and meteorology. development 6.3 EDUCATION AND SKILLS DEVELOPMENT An educated and skilled population will help Malawi achieve economic growth and the SDGs. Malawi's high unemployment rate of over 20% is linked to its need for educational reform. Basic literacy among adults is estimated at 65.75%8• Clearly, there is a need for adult literacy programmes. Providing Functional Adult Literacy Programmes will give young people and adults who did not complete primary school an opportunity to achieve literacy. Malawi needs to improve its transition rate from primary to secondary and from secondary to tertiary level education. As of 2017, only 16% of children transition from primary to secondary school, and of those, only 8% move on to tertiary education. The youth who complete their secondary education and do not proceed to higher education tend to be unemployed. In order to match educational curriculum with the needs of the current labor market, the education system needs to be reformed, specifically with regard to STEM9 subjects and entrepreneurship to develop a pipeline of talent for the STEM-related job market. Investment in STEM education will help the country to produce a demographic dividend through improved productivity. This is in line with the SDGs interest in ensuring quality education for all. Increased access to training and skills development opportunities regardless of class, gender, age and disability in our society is pivotal towards capacity development and empowerment among all Malawians especially the disadvantages. The shortage of skills development should be addressed in order to enable the Malawians provide labour and contribute towards productivity in the economy. Education reforms 8UNESCO Institute for Statistics (2016) II 'STEM stands for Science, Technology, Engineering and Mathematics 6.4 ENERGY. INDUSTRY AND TOURISM DEVELOPMENT Energy is the lifeblood of the economy as it serves as a crucial input to all economic and social services. A well-developed and comprehensive energy sector can improve service delivery and increase outputs in industries such as manufacturing, trade, tourism and other services. Access to clean, reliable, reasonably-priced and sustainable energy supply is central to maintaining and improving the living standards of people. It enables communities to power homes, schools, health facilities and support productive businesses. However, in Malawi, energy has been inadequate to satisfy the current demand both for industry and domestic use. Malawi is endowed with a wide variety of energy sources including coal, fuel wood, solar, hydro and wind. However, Malawi depends largely on biomass as its major source of energy. Biomass produces 89% of all energy, while electricity contributes just 3% of Malawi's energy. The current demand of electricity is at 600 Megawatts (MW), but the country is producing around 351 MW, a figure which itself is declining due to small amounts of rainfall. Interventions in this sector should increase production and access to sustainable energy. Industrialization and structural transformation of the economy are essential to maintain the long­ term economic growth of a country. This is needed to raise per capita income, create sufficient rural and urban jobs and viable entrepreneurship opportunities for both men and women, widen the tax base to finance Malawi's welfare requirements and address an unsustainable trade deficit. Industrialization also benefits other sectors such as Tourism, Health and Education, all of which rely on energy development. Attention will also be placed on mining exploration, extraction and regulation to unleash the sector's potential and empower the rural masses who live around mining sites. The Tourism sector contributed 7% of the GDP and accounted for 6.2% of total employment in 201610• If developed, it can promote job creation in both urban and rural areas. Tourism also creates a demand for farm and lake produce as well as for services such as carpentry, plumbing, repairs, taxis/transport, and sale of curios and other goods to tourists. Tourism is therefore an important factor in the economic development of the country. Malawi has a diversity of natural, cultural and man-made attractions with great potential for tourism development. Unfortunately, the natural resource base is facing tremendous pressure from unsustainable and illegal activities. Mulanje cedar for example, is a species of tree native to Mulanje Mountain that is on the verge of extinction from the wild as only seven trees are remaining. The black rhino was hunted almost to extinction and has only been reintroduced through PPP arrangement to 111 '"Malawi Economic Report (2016) boost the Tourism sector. Improved management and conservation of wildlife and cultural resources are critical. In addition, Malawi has a rich and diverse cultural heritage. There are several distinct ethnic communities in Malawi and each possesses a unique set of cultural practices, beliefs and values. Common among the ethnic societies of Malawi are the humility and friendliness of its people which has earned the nation the name, "Warm Heart of Africa." However, with the increased influence of globalization and foreign cultural practices and norms, in addition to Malawi's transition to democratic ideals, different indigenous cultural practices risk being forgotten or exploited. There is therefore a need to put in place measures that will ultimately translate to sustainable revitalization, preservation, conservation and promotion of Malawi's cultural heritage for posterity, education and eco-tourism. Goal Provide sufficient sustainable energy for industrial and socio-economic development. TABLE 5: OUTCOMES FOR ENERGY, INDUSTRY AND TOURISM DEVELOPMENT Outcome Strategy ENERGY Improved access to reliable • Ensuring reliable supply of electricity to key social and and sustainable energy economic development areas. supply. • Ensuring the connectivity to the international power grid . • Constructing additional hydro power stations along major rivers. • Promoting private sector investment in energy generation and distribution through PPPs and Independent Power Producers (IPPs). Improved access to • Promoting the use of energy efficient technologies and affordable alternative designs. sources of energy. • Promoting the production and use of alternative sources of energy. Enhanced use of renewable • Ensuring sustainable fuel wood management. and clean energy in the • Promoting the use of renewable and clean energy. underserved communities • Promoting sustainable environmental and social management principles in energy development programs. II Outcome Strategy TOURISM Improved conservation and • Developing and maintaining cultural and natural heritage management of cultural sites. heritage resources • Promoting the preservation of museum artefacts and specimens and upgrading retrieval system. • Facilitating construction of community cultural infrastructure . • Developing and updating cultural legal framework . • Preserving Malawi's history and positive cultural values . 6.5 TRANSPORT AND ICT INFRASTRUCTURE Transport and ICT are pivotal in accelerating growth of other sectors and act as enablers for poverty reduction and wealth creation. Access to safe, affordable and sustainable transport and ICT is critical toward enhancing the economic competitiveness of any country. Efficient transport systems are associated with economic and social benefits that result in multiplier effects such as improved accessibility to markets, particularly for rural populations, employment and enhanced investments. On the other hand, ICT forms the backbone of business activity, productivity, trade and social advancement. When pursued together, Transport and ICT rely on each other with Intelligent Transportation System (ITS) requiring the use of ICT for effective and efficient outcomes and in return the transport network supports ICT activities. The 2017 Global Competitiveness report ranks Malawi's infrastructure extremely low on position 135 out of 138 economies, which is well below other SADC countries. High transport costs in part result from the country's landlocked position and poor infrastructure. Population growth has undermined the progress made towards infrastructure development. In this regard, a conducive environment will be provided for continued investments in maintenance, expansion and modernization of infrastructure with greater emphasis on Transport and ICT. Malawi has a multi-modal system consisting ofroad, rail, air and inland water transport. The country's transport system is dominated by road which carries more than 70% of internal freight and close to 90% of international freight. The road network provides access to only about 26% of Malawi's population. An efficient rail and water transport is cheaper to road transport especially for bulk freight over long distances. However the rail routes remain unreliable because of poor infrastructure and the water transport is not fully developed with dilapidated ports infrastructure. In this respect, focus will be on developing road, rail, air, and water transport infrastructure including development of Nsanje World Inland Port as a way of improving multi-modal transport. While Malawi's contribution to global GHG emission is negligible, implementing some activities under climate change mitigation would have major economic, environmental and health benefits. Enforcing II Outcome Strategy INFORMATION COMMUNICATION AND TECHNOLOGY (ICT) Increased access to information • Promoting the participation of community and communications services broadcasting stations, private couriers and privately owned telecommunication service providers; • Improving regulatory framework of the ICT sector; • Developing public online services; • Promoting community ICT and multipurpose information centre. A well-developed ICT broadband • Improving broadcasting distribution, content and infrastructure service provision coverage; • Creating a conducive environment to attract investment in ICT infrastructure and services; • Enhancing enforcement of ICT regulation to protect the public from undesirable effects of ICT; • Promoting integration of ICT into core sector policies, strategies and operations; • Developing a reliable, fast, adaptive and robust ICT infrastructure. Increased stock of ICT skilled and • Intensifying ICT research education and training in all industry ready workforce in public sectors; and private sector institutions. • Developing capacity to generate reliable and accurate local content. Improved efficiency in postal • Introducing economic and social services in the Postal services Sub-sector; • Enhancing the current postal services; • Promoting innovations in postal services . II II 6.6 HEALTH AND POPULATION Health is the linchpin for social economic development. Improving health outcomes is essential and also a prerequisite for increased national productivity, accelerated economic growth and poverty reduction. Health has significant trickle-down social-economic effects on other key elements of development including population, education, agriculture, and industry, among others. Health and population are intervening variables in their interactions with development. These are determinants as well as consequences of each other. For instance, health status influences all components of population change as it directly and indirectly affect levels of mortality, fertility and migration. Conversely, a high population growth rate contributes to increased need for basic necessities of life such as food, health and shelter. Malawi has made substantial health gains under the MGDS II. MGDS II targets for under-5 mortality and infant mortality were surpassed, 63/1000 live births against a target of 78/1000 live births for the former and 42/1000 live births against a target of 45/1000 for the latter. There was also a steady decline in the Maternal Mortality Ration (MMR)which was estimated at439/100,000 live births in 2016, down from 675/100,000 in 2010. The HIV prevalence among women and men age 15-49 age decreased between 2010 and 2016 from 10.6% to 8.8%. Neonatal Mortality Rate (NMR)was estimated at 27/1000 live births in 2016, down from 31/1000 live births in 2010. Despite the progress, Malawi's MMR andNMR are among the highest in Sub-Saharan Africa. Malawi also has a low life expectancy at birth, 57 years for males and 60 years for females. Malawi suffers from a high disease burden from communicable diseases and an increasing burden from non-communicable diseases (NCDs). Malawi has one of the world's highest population growth rates at 3% per year. If the population grows at its current rate, it is expected to double by 2054. Amidst high fertility rates, Malawians increasingly desire smaller families. While the current average family size is about 4.4, ideal family size, as reported by both men and women, is 3.7. Thus, the continued high population growth rate is an indicator of several development failures, including high rates of child marriage, teenage pregnancies, and lack of access to and use of quality family planning services. The healthcare system in Malawi faces many challenges, including shortage of essential medical products and technologies; high vacancy rates for human resources for health, inadequate medical equipment and infrastructure; parallel data reporting systems which weaken the mainstream monitoring and evaluation system and weak governance structures at all levels. The growing population places a rising demand for healthcare services amidst limited resources. In terms of investment in the health sector, Malawi has the lowest per capita investment in Southern Africa, at $39 against the SADC regional average of $229 and is highly dependent on external resources. Even with this little investment, Malawi is the only country that offers free public healthcare in the entire region. Moreover despite high poverty levels, households' out-of-pocket (OOP) expenditure for health stands at 24% of household income which is one of the highest in Africa. This is in contradiction with the Universal Health Coverage (UHC) policy on health-financing which recommends that countries move towards reducing the financial burden on households when accessing healthcare. Adjusting for population growth in 2022, Malawi will need to spend at least $775 million on health per year just to maintain the status quo, and about US$2.8 billion per year to meet the SADC average, compared to the 2017-2018 health budget allocation of approximately US$177 million. Between 2017 and 2022, Malawi will be working to ensure that all Malawians access quality of healthcare. To this end, there is need to increase investment to programmes such as modern family planning. This is crucial to the nation's economic and social success; unlocking people's potential to achieve sustainable development. Goal Improve health and quality of the population for sustainable socio-economic development. II -----~ ~.:::.~ . . ..,.. ~· ij . . ~-s--.:.. -~ CHAPTER 7: OTHER DEVELOPMENT AREAS 7.1 FINANCIAL SERVICES The financial sector plays a critical role in mobilizing and channeling financial resources for long- term investment and economic development of any country. The sector will be critical to achieving economic growth envisaged in this strategy as it will support the attainment of the objectives of the key priority areas through mobilization of both domestic and international resources. In order to meet the financing needs of the country's growing economy the financial system needs to be efficient, stable and inclusive. Malawi's financial system is still developing. Some of the challenges facing the sector include: • High interest rates • Underdeveloped capital markets that remain narrow and illiquid, limiting access to long-term financing and the country's capacity for local debt and equityfinancing • A lack of innovative financial instruments, notably those geared towards Micro, Small and Medium Enterprises. • Lack of national identification system which makes it difficult for financial institutions to identify customers. • Lowfinancial literacy affecting the uptake of financial services and products. Due to these challenges, 51 % of the adult population in Malawi is without access to any type of formal or informal financial service. This is below the regional average. Many people lack savings accounts; credit from formal credit providers; and insurance. They rarely make or receive payments through formal channels, thereby increasing their financial vulnerability. The focus of MGDS Ill in the area of financial services will be access by all citizens to a range of high­ qualityfinancial services. Goal To create a vibrant, efficient, stable and inclusive financial sector that will meet the financing needs of all. II 7.2 DISASTER RISK MANAGEMENT AND SOCIAL SUPPORT Malawi faces a number of disasters, both natural and human induced, which include floods, droughts, stormy rains, strong winds, hail storms, landslides, earthquakes, pest infestations, disease outbreaks, fire and accidents. The intensity and frequency of disasters has been increasing, in light of climate change, population growth, urbanization and environmental degradation. Disasters disrupt people's livelihoods, endanger human and food security, damage infrastructure and hinder socio-economic growth and development. Disasters exacerbate the poverty of rural and urban households and erode the ability of the nation to invest in key sectors. It is, therefore, important to recognize and address the various livelihood risks faced by Malawians and build resilience to individual, households, and community-level shocks and disasters for socio-economic development of the country. The development of individual, household and community-level resilience will be operationalized through the extension and strengthening of existing social support programmes of the Malawi National Social Support Programme (MNSSP II) that are effective in reducing chronic poverty and provide protection against livelihood shocks and disasters. There is wide knowledge about hazards affecting Malawi among different sectors including government ministries and departments, non-governmental organizations and development partners. In addition, a National Disaster Risk Management Policy (DRM) is in place and a DRM Bill is being finalized. Interventions to address disaster risk and vulnerability are being implemented by stakeholders in different districts of the country. There is, however, a need to ensure proper coordination of the interventions to create synergies and maximum impact in order to build resilience of communities to disasters in the country. The trend of both hazards and vulnerabilities are not well defined because comprehensive risk assessment has not been undertaken in the country. Further, there is limited risk knowledge downscaled to grass root levels. This makes it difficult to design relevant risk reduction measures, including EWS for specific areas. Most sectors also do not know the disaster risks relevant to them as they have not yet mainstreamed disaster risk reduction into their sectors. In addition, integrated and scaled-up social support programmes will contribute towards addressing chronic and transient poverty and build resilience of households and communities to shocks and disasters. In this respect, there is a need to build risk knowledge at all levels; household, community, district and II II 7.3 GENDER, YOUTH DEVELOPMENT, PERSONS WITH DISABILITY AND SOCIAL WELFARE Gender and Social Welfare is a cross-cutting area which is crucial for the socio-economic development as it impacts all sectors of the economy. Systematic mainstreaming of gender, children, youth, persons with disability and the elderly can facilitate effective development planning and coordination, budgeting, implementation and monitoring. In addition, inclusive sport initiatives will also contribute to the national socio-economic development through improved health and productivity of young Malawians. The comprehensive achievement of the outcomes outlined below will entail inclusive national growth and development. Because of limited success with ordinary gender mainstreaming to address structural gender inequalities, there is a need to develop awareness that challenges and redefines rigid gender norms using gender transformative approaches. Gender Transformative Approaches (GTA) are programs and interventions that create opportunities for individuals to not only actively challenge gender norms but also to promote positions of social and political influence for women in communities, and address power inequities between persons of different gender. Goal To build an equitable society where opportunity is not defined by sex, age, disability and other vulnerabilities. II Outcome Strategy Improved coordination and • Facilitating the inclusion of the elderly, persons Equitable access to social services with disabilities and albinism in social support among the elderly, persons with programs. disabilities and albinism • Improving capacity to effectively undertake and coordinate elderly and disability programmes. Enhanced mainstreaming of • Promoting inclusion of needs of persons with disability issues across sectors disability in sectoral policies, laws and programs. Strengthened national protection • Protecting children, older persons and persons systems for older persons and with albinism against violence, abuse and persons with albinism exploitation. • Promoting advocacy and awareness of elderly and albinism; • Enhancing community participation in the protection of older persons and persons with albinism. 7.4 HUMAN SETTLEMENT AND PHYSICAL PLANNING Malawi is experiencing profound demographic changes which present an unprecedented need for land and housing. This has led to the growth of slums and squatter areas, encroachment, illegal developments on public land and various land conflicts. These challenges are particularly acute in cities. As many as 76% of Lilongwe residents live in substandard housing and/or informal settlements, characterized by lack of access to public services and tenure insecurity. Some settlements have spread to fragile and high-risk areas such as wetlands, steep slopes and river banks. Effective mechanisms must be developed to ensure that all housing developments take place in accordance with physical II 7.5 ENVIRONMENTAL SUSTAINABILITY The success of many important sectors of the economy relies on environment and natural resources to enhance their productivity. The degradation of the environment and natural resources continue to be a major threat to the social and economic development of Malawi. These include deforestation; decreasing soil fertility and increasing erosion; water depletion, loss of biodiversity; and increasing pollution and vulnerability to climate change. It is imperative that the environment and natural resources are sustainably managed. Goal To promote sustainable management of the environment and natural resources. TABLE 12: OUTCOMES AND STRATEGIES FOR ENVIRONMENTAL SUSTAINABILITY Outcome Strategy Strengthened • Integrating Environmental management in development activities. environmental • Promoting public participation in environmental management programs. management • Promote integrated afforestation for wood fuel, fruit production windbreak and shade, timber and poles at household and community level to address wood fuel shortage and curb encroachment into reserves. • Ensuring that public works programmes comply with principles of environmental sustainability. • Promoting environmental education, awareness and information sharing among stakeholders. • Enhancing community based natural resource management . • Conserving and sustainably use of water sources such as lakes, rivers and wetlands . • Enhancing conservation and sustainable utilization of biological diversity . • Promoting research, planning, monitoring and evaluation of Environment Natural Resources Management (ENRM) programs. Enhanced environmental • Enforcing Environmental Impact Assessments (EIAs) and other related environmental degradation preventive laws. measures • Enhancing trans-boundary initiatives in environmental and natural resources programmes. • Strengthening compliance on pollution control and waste management. • Strengthening nuclear safety and security to ensure protection of the people and the environment. II 7.7 NUTRITION Adequate nutrition throughout the lifecycle is the centerpiece for physical and intellectual development. Nutrition is a major determinant of one's intellectual performance, academic and professional achievements, and overall work productivity at later stages. Malawi has one of the highest rates of stunting in Africa, but significant progress has been achieved since 2010. The percentage of children under five years of age who are stunted has decreased from 47.1 % in 2010 to 37.1 % in 2015-16. The prevalence of under-nutrition is high among adolescent girls at 15.6 %. The DHS 2015-16 showed relatively stagnant rates of anaemia in children since 2010, reported at 62.5% and 62.6% respectively. Similarly, the Infant Young Child Feeding practices need to be improved as only 7.8% of children aged 6-23 months consume foods that meet the minimum acceptable diet. Even with the noted decline in under-nutrition, continued efforts are needed to address micronutrient deficiencies and the high rates of stunting. The causes of under-nutrition are manifold: repeated infections, diarrhoea, malaria, suboptimal breastfeeding and infant feeding practices resulting in inadequate dietary intake are the immediate causes of malnutrition. The underlying causes include food insecurity, gender inequality, poor hygiene practices and lack of safe water and sanitation. As such, malnutrition is a complex problem that persists due to multiple causes rooted in various sectors. In addition to nutrition-specific interventions, nutrition-sensitive interventions that are multi-sectoral are essential in reducing and eradicating malnutrition in Malawi. In addition to a high prevalence of under-nutrition, the prevalence of overweight and obesity is 7.9 INTEGRATED RURAL DEVELOPMENT The majority of the country's population live in rural areas where poverty levels are high due to limited opportunities of income-generating activities and access to social services. Inclusive and integrated rural development requires that all stakeholders are involved regardless of sex, age, race religion and ethnicity. The Government put in place a decentralization policy to devolve functions from the central government to local councils. If Malawi is to achieve a meaningful improvement of the socio-economic welfare of its people, it needs to concentrate development interventions in rural areas where the majority of the poor people live. Upon effective decentralization, the country will realize participatory planning, implementation, monitoring and evaluation of policies and programmes; and increased impact of development interventions at the local level. MGDS Ill implementation will emphasize devolution of the functions that are currently handled by central government. It is expected that local councils will take an active role in development programmes that help the country attain sustainable national development. Involving all stakeholders in rural development will promote synergies in resource mobilization, planning, coordination, implementation, monitoring and evaluation. This is opposed to the previous fragmented, piecemeal and uncoordinated approach that characterized development interventions in rural areas. Development of rural growth centres will be at the centre of the integrated rural development. Goal To improve local governance and participatory democracy to attain social economic development. II II Figure 9. 1: Conceptual Framework for MGDS Ill Monitoring and Evaluation Monitoring Financial Physical Outcome and Impact Implementation Monitoring Monitoring I 1 Socio-economic Transformation -.., Output Indicators I Outcome and Impact I Indicators Progress reviews I towards 2022 I Performance based Mid-term and final Impact I 11 J, contract monitoring Evaluation I evaluation -- -• • Evaluation The M&E framework is based on the prevailing national M&E Master Plan (2007) as indicated in Figure 9.2. The framework identifies main M&E components and sets the scope of the M&E processes, which follows a value-chain approach. The framework delineates clear roles for review, monitoring and evaluation. The roles and responsibilities of each node, as assigned to institutions, are explained in the section below. 9.4 Institutional Coordination of MGDS Ill Monitoring and Evaluation Roles and Responsibilities National Planning Commission(NPCJ The department responsible for M&E in the NPC will act as the secretariat for monitoring and evaluating MGDS Ill and international frameworks and will coordinate outcome and impact assessments across all sectors. It will act as a data repository of socioeconomic statistics and analysis. The secretariat will also be responsible for disseminating information as articulated in the communication plan. The NPC will carry out mainstreaming and policy harmonization functions to ensure that policies at sector levels are aligned to the national and international agendas. In addition, it will be responsible for reporting development progress at all levels. The PSIP will serve as the basis for monitoring the implementation of the MGDS Ill. This will involve close collaboration with the Development and Budget Divisions in MoFEPD as well as monitoring and evaluation units within the Planning Directorates in key line ministries. The NPCwill drive the MGDS Ill II The National M&E Coordination Committee The National M&E Coordination Committee will review technical reports and recommendations from the sectors and will make recommendations to the Steering Committee. Membership in the M&E Coordination Committee will be interministerial and will include Directors of Planning. The National M&E Technical Working Groups The M&E Technical Working Groups will be based on the existing Sectoral Working Groups (SWGs). These will comprise Ministries and Departments, Development Partners Cooperation (DP(), CSOs, media, academia, the private sector and parliament. This forum will be actively involved in the review and oversight of the MGDS Ill implementation. It will also act as a national accountabilityforum for the implementers and facilitate information dissemination, discussion and policy recommendations. Principal Secretaries Steering Committee The PSS Committee will provide oversight to the M&E Coordination Committee. Reports from the Principal Secretaries will be reviewed by the Cabinet to ensure participation, progress and accountability. Figure 9.2: The MGDS Ill Monitoring & Evaluation Institutional Coordination National Stakeholders 1111 • Cabinet 1111 • National Assembly Forum t f t Principal Secretaries t lnterministerial M&E Coordination Committee & M&E Technical Committee (TWGs) - Performance Contract NPC f-+ MFEPD Monitoring (OPC) (Secretariat) I CSOs, Academia and Private sector t - • • +--• Local Councils VDCs, ADCs, Communities 9.4.1 MGDS Ill Annual Reporting The MGDS Ill annual planning, budgeting, and monitoring cycle will be aligned to the national budget cycle and will run concurrently. The MGDS Ill targets will be disaggregated at sectoral and district levels, whenever possible. This will allow sectors and districts to plan and budget their activities. Based on the approved plan and budget for the coming financial year, the various sectors and districts will implement their activities. This will ensure that there is a link between the annual plans and the monitoring reports. Reports will be submitted quarterly. The second quarter report will be the main input into the mid-year budget report and the fourth quarter report will be the Annual MGDS Ill review report. The reports will include physical progress of implementation, output indicators, targets, expenditure and qualitative assessments of progress by the implementing institutions. The various - ' • )