Business and Finance

Report exposes glaring poverty

Report exposes glaring poverty

By Mery Matonga:

The 2023- 24 Human Development Index (HDI)—a summary measure of average achievement in key dimensions of human development— has exposed a high level of underdevelopment among Malawians.

The report by the United Nations Development Programme (UNDP) shows that the index has declined in the country in recent years.

Among other findings, the report indicates that if the global HDI value continues to evolve below the pre-2019 trend, as it has since 2020, the losses will be permanent.

Based on the 1999- 19 trends, the global HDI value was on track to cross the threshold defining very high human development (a value of 0.800) by 2030, coinciding with the deadline to meet the Sustainable Development Goals.

“For rich and poor countries alike, some losses will never be recovered. Whatever the charts and indicators may say about people today, the Covid pandemic took some 15 million lives. We cannot get them back, nor the time siphoned off in so many ways— in isolation, in caregiving, in not attending school,” the report reads.

Speaking at the launch of the report yesterday, Minister of Foreign Affairs Nancy Tembo expressed concern over the decline in the HDI, which she said did not meet expectations.

“The report highlights a troubling trend of uneven recovery from the global decline in HDI. While it is heartening to note that HDI was projected to reach record highs in 2023 after declines during 2020 and 2021, it is concerning that this progress is largely concentrated in high-income countries,” Tembo said.

Fenella Frost

UNDP Resident Representative Fenella Frost said some Least Developed Countries (LDCs) are beginning to recover.

“I think Malawi, together with other LDCs, needs to galvanise even more, as the government has spelled out the vehicle for success through the 2063 and ATM (Agriculture Tourism Mining) strategy,” Frost said.

Africa Development Bank Country Manager Macmillan Anyanwu emphasised the importance of unity in developing Malawi, especially as the country approaches elections next year.

“We know that Malawi is facing many challenges in human development in different aspects, and the report will make an impact as it provides possible solutions to these challenges,” Anyanwu said.

Mabvuto Bamusi

Commenting on the report, Political Science Association Publicity Secretary Mabvuto Bamusi rated economic challenges Malawi is facing as man-made.

He said that the main challenge hindering the country’s development is corruption and the huge domestic borrowing that Malawi has incurred.

“There are a number of solutions that Malawi can possibly implement, and among them are the public sector reforms which former vice president Saulos Chilima believed could have been a springboard to improving the governance challenges that the country is facing,” Bamusi said.

He added that it is important to improve the country’s investment in key sectors of the economy to generate more revenue.

The HDR for Malawi, titled ‘Breaking the Gridlock: Reimagining Cooperation in a Polarized World’, assesses the challenges of uneven development, intensifying inequality, and political polarisation Previously Malawi was ranked 169 out of 189 countries and this year Malawi has been ranked 172 out 193.

The report also explores why restoring peace can feel elusive and proposes a path forward that emphasises multilateralism. Its goal is to stimulate policy discussions on issues relevant to human development.