Poverty reduction
July 21, 2009
Under fire after cases of alleged embezzlement and misappropriation of funds, the EU recently justified its micro-projects program as a way of improving conditions in its African, Caribbean and Pacific partner countries.
The government of Malawi and the EU Micro Projects Program has a total commitment of 35 million euros ($49 million) for the period 2003 to December 2009. The program benefits rural and urban communities throughout Malawi who are participating in their own development.
National Program Coordinator Isaac Munlo said the micro-projects philosophy did not fit in with the previous governments' philosophy of handouts and the glorification of begging.
"On an appreciation that communities have been exposed to various developments approaches… we wanted to emphasize on contribution ownership and sustainability," Munlo said.
Projects serve common objective
EU Malawi Head of delegation Alessandro Mariani said the EU-Malawi development cooperation is part of an agreement between EU and African, Pacific and Caribbean (ACP) countries on a common objective of poverty reduction.
One of the keys of the micro-project programs is that they are instruments that support individual initiatives by local community groups, he said.
"The overall purpose is to enhance the socio-economic development of local communities," Mariani said.
Construction of school blocks and teachers' houses, health and medical facilities as well as sanitation structures, water supply projects, bridges, roads, agriculture and income generating activities, including beekeeping, fish farming, afforestation and irrigation schemes, are examples of some of the projects supported by the program.
"Poverty reduction can only take place within the context of a dynamically growing economy," said Stephen Nkoka, the Malawi government's EU deputy program coordinator.
Africa's fastest growing economy
Malawi would this year top the list of fastest growing economies in Africa, according to a recent report by the Economist Intelligence Unit (EIU), a UK based economic think tank.
The EIU notes that Malawi's growth is likely to increase by 8.3 percent, slightly above Angola, currently Africa’s fastest growing economy with a growth rate estimated at 8.2 percent.
But in Malawi, poverty cuts across all sections of the population, though in terms of numbers and severity it is foremost a rural phenomenon.
Poverty still rife throughout Malawi
The 2007 International Monetary Fund indicates that the county's poverty level has not changed for the past seven years, saying this suggests that there is continued economic vulnerability in Malawi.
Nkoka said a major share of the growth must be generated by increasing the productivity and incomes of the poor themselves who must contribute their own locally available resources.
"The program has been implemented with respect to five result areas and these include: basic education services and access improved, community development and participation, service delivery at district level improved and production capacity and incomes improved," Nkoka said.
The Malawi government hails the program for the practical responses in conveys to the development needs of local Malawians and enabled them get access to quality social services in their areas.
Deputy National Authorizing Officer in the Ministry of Finance Peter Sambani called upon various stakeholders such as local assemblies to support the program so that many people in the communities benefit.
Funds misappropriated or diverted
But in many instances communities have either squandered the money meant for developmental projects or used it for other projects not covered under the program.
In instances of theft of materials or misappropriation of funds, the community and the police had to take up the issue.
In 2007, the European Union had to suspend funding to the Mzuzu Coffee Farmers Cooperative following rampant mismanagement of funds and abuse of its procurement procedures.
The EU had given the cooperative a grant of 132,000 euros as seed capital for the procurement of inputs for smallholder coffee farmers in the country. According to EU procedures any procurement that is above 5,000 euros has to be advertised and that goods have to be procured from EU countries.
"In most cases, the community had to find ways of replacing the stolen items," Munlo said
"Our emphasis has been that these are community projects to which the program is contributing and not the other way round."
Author: Collins Mtika
Editor: Sean Sinico