eradicating poverty

The Successes (and Failures) of Seed Subsidies in Malawi

While corn is not native to Malawi, it has become the country's staple crop. Photo: <a href="http://www.flickr.com/photos/nglklm/5081662199/">Nathan Laurell (flickr)</a>
While corn is not native to Malawi, it has become the country's staple crop. Photo: Nathan Laurell (flickr)

Teach a man to fish and you feed him for life; if you give a family seeds, do you feed them forever?

For decades, the people of Malawi have lived with chronic food shortages, prompting massive food aid interventions. But these unending handouts of foreign-grown food are unsustainable, so how can one of the poorest countries in the world enable its population to produce the food they require? One answer is to give the Malawian people the tools to grow it themselves.

A scorching drought ruined the 2005 Malawi growing season. Compounded with an economy that didn’t allow many to plant in the first place, this left the people hungry, reported the New York Times. Five million Malawians, almost 40 percent of the population, required emergency food aid -- the proverbial fish handout. At the time, World Bank policy was to promote cash crops and exports. This incentivized farmers to grow crops for use outside of the country, that would in turn allow they to buy food. But after more than a decade of implementation the strategy had yet to pay off, the Times notes.

After the food crisis in 2005, something changed. Newly elected President Bingu wa Mutharika defied the decades-old advice from the World Bank. Instead of encouraging cash crops, the government started subsidizing fertilizer and maize seeds for the poorest of the poor. At the time, the national poverty rate was at 53 percent, so this was a huge undertaking. This move defied the conventional wisdom of the West and the World Bank and carried a sizable risk of alienation and failure, reports the Times.

Despite these challenges, the government of Malawi distributed millions of coupons for two 50-kilogram bags of fertilizer -- enough to treat an acre -- and seeds to fill half that space. These coupons allowed the holders to purchase fertilizer and seed at a fraction of the retail cost. With such small allowances the program was targeting subsistence or small-scale farmer, who likely only owned a few acres, this giving the common people of Malawi the tools to support themselves.

The crops and fertilizer, when combined with the abundant rainfall of 2006, completely transformed the barren landscape. Maize production more than doubled that year, from 1.2 million metric tons to 2.7. By 2007, production was up to 3.4 million and instead of importing food aid, Malawi became the largest exporter of corn in Southern Africa to the World Food Program.

However this success has come at a cost. Between 2008 and 2009, the government of Malawi dedicated a full 16 percent of the national budget for seed and fertilizer subsidies. This strain prevented other projects, such as irrigation systems, from getting off the ground. And some question the sustainability of the subsidies. Elizabeth Sibale, a consultant at the UN Food and Agriculture Organization in Malawi, commented that “[Malawi is] forgetting all the other problems that affect farmers and putting a Band-Aid on them."

It has been a full six years since the initiation of the subsidy program and it's harvest time again in Malawi. But even as the corn is harvested and processed, the Malawian government is debating the future of the subsidies. The program officially ends in June and while the program has been successful at raising corn production and lowering poverty levels, the true cost of the subsidies has been steep.

So the question remains: Are fertilizer subsidies teaching families to fish, or are they just handouts wrapped in a new package? The answer seems to be somewhere in between. Ensuring access to seeds and fertilizer is an important step in reducing poverty, but it is only one step. In 2004, about 60 percent of Malawi's population was impoverished. Today the poverty rate has fallen to 40 percent. These numbers seem to suggest that the idea is working, but the remaining poverty level demonstrates that it’s not enough.

The Gift that Keeps Giving

Working Villages International (WVI) is an NGO with a unique take on how to eliminate poverty in Africa. Their new initiative, Village Reliance, aims to combat poverty directly, rather than dealing only with its effects. They want to give people the skills and tools to take control of their own lives and bring themselves out of poverty.

The goal of this program is to build a village that will be environmentally and economically self-sustainable for people living in the Ruzizi Valley of the Democratic Republic of Congo.

They are building from scratch a model village which will have full employment, private ownership of small farms and businesses, zero carbon footprint and total 100 percent recycling. This project is a practical demonstration that it’s possible to profoundly increase living standards in rural Africa without hampering local culture and ingenuity.

In the future, WVI hopes to spread these villages across the DRC and the entire continent.

From the Archives

Investing in the Poor

Previously filed under: Opinions and Editorials
A fresh idea, drawn on old principles, is offered for helping the poor save for the future.

From the Archives

The Future of Microfinance and the World Bank's Role

Previously filed under: Interviews
The director of the Consultative Group to Assist the Poor discusses what is and isn't needed to help the poor.

Stories We're Watching

Jobs for Billionaires - By Joshua E. Keating

Foreign Policy - Thu, 05/24/2012 - 07:25
A few problems back here on Earth in need of some serious capital.

Panda glasses are Toms shoes for your face

Washington Post - Innovations - Thu, 05/24/2012 - 02:30
Growing up in a Chinese home, Vincent Ko saw the many uses of bamboo — in the kitchen utensils, decorations and even furniture. Years later, as a recent Georgetown University graduate, Ko began to wonder if the trendy Asian grass had a place in fashion — in sunglasses, to be exact.

Old Ways Disappearing In The New Mongolia

NPR - Thu, 05/24/2012 - 00:17
With desertification, drought and a booming mining industry, Mongolians are leaving the traditional life of herding. Herdsman Bat-Erdene Badam says he will be the last in his family to tend livestock. His children are trading in their nomadic lives for more stable, often urban jobs.

Two Worlds, One Climate - By Peter Passell

Foreign Policy - Wed, 05/23/2012 - 14:35
Forget Kyoto. There’s a much better way to persuade the developing world to fight climate change.

Brazil and China, Oiling the Wheels of Business

Inter Press Service - development - Mon, 05/28/2012 - 06:21
China's voracious demand for energy has prompted it to embrace Brazil as a major oil partner, fuelling the dramatic expansion of Chinese companies in this South American country. But while some see this as a boost to the Brazilian economy, others fear that it poses a risk to this country's future self-sufficiency.

Recent comments

Countries

An initiative of Mercy Corps
“You must be the change
you wish to see in the world”
Mahatma Gandhi
Learn more about Mercy Corps >

Efficiency

Over the last five years, more than 89% of Mercy Corps' resources have been allocated directly to programs

Excellence

America's premier charity evaluator gives Mercy Corps four stars in organizational efficiency. Click here to learn more.

High Value

Every dollar you donate to Mercy Corps helps us secure $11.16 in donated food and other critical supplies.

Mercy Corps — Dept. W — 45 SW Ankeny — Portland, OR 97204
All original content Copyright © 2009 Mercy Corps. Quoted and linked content is property of the creator(s). Mercy Corps will not sell, rent or trade your personal information.