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Tuesday, 18 December 2007

Malawi denies Madonna's adoption over


US pop star Madonna's adoption of two-year-old David Banda is not completed contrary to foreign media reports that it has been approved by the Malawian government.

Official Malawi News Agency (Mana) reported that Deputy Director for the Ministry of Women and Child Development, Cyrus Jeke, has said the adoption is not and that government has no jurisdiction to complete the process but the courts.

"It is not up to government to make the final verdict as to whether Madonna is going
to adopt David or not. An adoption case is usually between the petitioners (parents) and courts and government only comes in as a mediator or facilitator," the ministry official told Mana.

Jeke said Madonna would have to follow the whole adoption process which is expected to last for 18 months. But the ministry official said the findings will be tendered in court and used to make a determination as to whether the pop star is suitable to adopt the Malawian orphan.

International media has been quoting the assessment report that it recommended that “it is in the best interest of the child" to be adopted by the Madonna and his husband Guy Ritchie.

Jeke was did not comment on the report but hinted it was positive and that the acceptance of David’s biological father attaches more advantages for Madonna’s wish to adopt.

It has also been gathered that Malawi social welfare official will be making a second trip in February next year to London, the home of the Ritchie’s as part of the adoption process to make another assessment.

IMF Completes Fourth and Fifth Reviews under the PRGF Arrangement for Malawi and Approves US$18.1 Million Disbursement

The Executive Board of the International Monetary Fund (IMF) today completed the fourth and fifth reviews of Malawi’s economic performance under a three-year Poverty Reduction and Growth Facility (PRGF) arrangement. The completion of the review enables the release of SDR 11.45 million (about US$18.1 million), bringing total disbursements under the arrangement to SDR 33.4 million (about US$52.9 million).

The three-year PRGF arrangement for Malawi was approved on August 5, 2005 (see Press Release No 05/188), for a total amount of SDR 38.2 million (about US$60.4 million) to support the government’s economic program for 2005-2007.

Following the Executive Board discussion on Malawi, Mr Takatoshi Kato, Deputy Managing Director and Acting Chair, stated:

“Malawi has shown commendable performance under its PRGF-supported program. Economic growth remains high and inflation has continued to decline. This should continue to support Malawi’s poverty reduction and development efforts.

“The domestic debt burden has declined further, though somewhat less rapidly than expected. Fiscal policy implementation has been supported by strong revenue performance, and the recent improvement in the government’s control of payroll execution has facilitated the lifting of the program’s ceiling on the wage bill. However, the government’s domestic borrowing targets came under pressure from unforeseen challenges, including delays in aid disbursements and unexpectedly high interest payments. It will be important to keep careful control over public spending moving forward.

“The improvement in the macroeconomic environment has permitted the monetary authorities to bring inflation down to single digits while maintaining a stable exchange rate. Inflation is expected to remain in single figures. However, monetary policy implementation came under some strain in mid-2007, and the authorities need to address the ensuing rapid monetary expansion.

“The program envisages economic growth in 2007 /08 spreading beyond the agricultural sector and remaining high. Further declines in the domestic public debt burden should continue to support robust private sector credit growth.

“The progress in stabilizing Malawi’s macroeconomic environment will continue to support economic growth and poverty reduction. Sustaining progress will require greater emphasis on structural reforms. Improvements in public financial management have been substantive if somewhat slower than foreseen, and more needs to be done to translate budget resources into better service delivery. The authorities will also need to focus on strengthening financial intermediation and creating a better business environment,” Mr. Kato said.

A Harvest Of Good Sense

Due to a calamitous corn harvest in 2005, many of the 13 million people in the African country of Malawi were hungry and in need of emergency food assistance. But then, as The New York Times recently reported, the country's leaders took a bold and courageous pass at common sense. They reinstated and increased government subsidies for fertilizer for the country's farmers.

Voila. Fertilizer, abetted by good rains, led to bumper crops. This year, Malawi grew more food than it needed and became a food-exporting country. Instead of being a basket case, it is filling its neighbors' baskets. The Times reported that Malawi is selling more corn to the U.N. World Food Program than any other country in southern Africa and is exporting hundreds of thousands of tons of corn to Zimbabwe.

If it were this simple, why didn't it happen before? The answer has to do with the utopian naivete of the World Bank and Western nations, which have provided aid to Malawi. They urged the country to follow free-market policies and cut back or eliminate fertilizer subsidies (even though the United States and Europe extensively subsidize their own farmers).

But after the disastrous 2005 harvest, Malawi president Bingu wa Mutharika took a hard look at his situation. Malawi's soil is seriously depleted and many, if not most, of its farmers are too poor to afford fertilizer at market prices. Mr. Mutharika reasoned, correctly, that government subsidies for fertilizer and good seed would translate to successful farming.

That he had to buck the wishes of donor countries and organizations says more about them than Malawi. There is a long and sad history of monumental waste, well-intended stupidity, patronizing attitudes and support of corrupt governments in the foreign-aid arena, well-documented in the recent book "The White Man's Burden" by ex-World Bank economist William Easterly.

The World Bank's own internal watchdog concluded in October that not only had the removal of subsidies led to exorbitant fertilizer prices in African countries, but the bank itself had often failed to recognize that improving Africa's declining soil quality was essential to lifting food production.

The Malawi story underscores the need for new thinking in foreign-aid policy. We must lose the old imperialist attitude that the West knows best and listen to the indigenous people. Mr. Easterly, who now teaches at New York University, suggests that gradual and incremental assistance — such things as inoculations, clean water, indoor-smoke removal, insecticide-treated bed nets — are often more effective than big-bang government loans. He also thinks aid agents should be held accountable for their actions.

At the very least, the success of the Malawi farmers should teach us to act with humility.