Congratulations on your election victory – it provides an overwhelming endorsement of what your government has achieved by restoring fiscal discipline and broadly guaranteeing food security through your fertilizer subsidy. On the former I believe you have lessons to share with the
I spent three years working in
Despite the global economic crisis,
Three benefits worth highlighting if you were to follow
(1) A weaker currency would support your aim of making
(2) A weaker kwacha is needed to allow
(3) Finally, tobacco prices are substantially down this year at the auction floors – why not boost farmers’ kwacha proceeds by allowing the currency to depreciate?
And as far as timing is concerned, the best time to do it is NOW because: (1) tobacco farmers would start benefiting immediately; (2) fertilizer and fuel prices have fallen dramatically from last year’s record, so even with a 30% depreciation Malawians should still be able to enjoy lower kwacha prices for these commodities; and (3) by doing it now, the depreciation can still be factored into next year’s budget.
So why not celebrate your victory by setting the kwacha free? And may Malawians be another 30% richer per capita at the end of your next five years.