The carrot and the donkey: Of Malawi and devaluation

The recent devaluation by the Malawi Government has once again demonstrated our short sightedness as a nation.

For many years we have been trying to solve long term problems by using short term solutions. These short term solutions however always end up offsetting the intended long term benefits. As a result we find ourselves in a vicious cycle. Reaching for but never reaching.

One is tempted to compare our nation to a donkey that is tricked by its rider with a carrot, by dangling it in front. The donkey in its stupidity and greed thinks it will reach the carrot. Its greed blinds it to the fact that it is being manipulated into performing acts of labour.

Malawi was fooled by promises of being showered with donor aid and loans by the international community.

The International Monetary Fund(IMF) as standard procedure, states that in order to provide funds to an economy, the economy must get into a position to start repaying as quickly as possible.

The IMF believes this is achieved through the country reducing its balance of payments position. The receiving country therefore needs to reduce the demand for goods and services by taking necessary action(eg by increasing taxes and cutting government spending) and in our case through devaluation.

With these steps it is expected that in the short term standards of living will fall and unemployment will rise. These negative effects are however considered short term until the balance of payments position improves.

So while one has to appreciate the benefits of devaulation, such as the immediate availability of FOREX, meaning our businesses can easily trade again, one has to question our long term position and wether what was the root cause of the problem that brought us to this point has been permanently solved.

The root cause of our problem is that Malawi has been in a balance of payments deficit position for a long time, importing more than it exports.

Devaluation now only means that exports are now cheaper and our imports more expensive. This will further worsen our balance of payments position and lead to more borrowing and hence the need for more devaulation.

The money we receive only serves to provide capital so we can produce raw materials to sell to our providers of capital, until they sell us finished products at prices that will make one wince.

Malawi therefore needs to find itself in a position where it is exporting more than it imports and the rest will follow.

Unless Malawi becomes a producer economy, capable of producing to sustain its own needs and those of others, it will forever be stuck in this tragic dance of comedy.

Devaluation is therefore not the solution, but the carrot and Malawi is just a donkey.

Change

I need change like a beggar at a PTC//
Like a game at halftime wheres my referee?//
I need God, but I heard God lives in me//
So when I talk to God am I just talking to me?//
No blasphemy meant, I hope that you pardon me//
I felt misery, I swear it was part of me// Aint been to church I am messing up horribly//
But still touch the bible I heard that's where you be//
Despair, to the point I think woe is me//
Bad thoughts in my head till they poison me//
Enemies around me, plenty foes on me//
These walls around me, Jericho walls on me//
So I blow my horns loud, till they fall around me

First blog

I have long had the desire to have a blog of my own. A place where I can post my random ramblings and restless thoughts.

I have on many an ocassion imagined with glee all the things I would write, all the subjects I would tackle. Such has been the fancy of my heart but I never quite got the time to actually sit down and write. On this particular night I have decided today is as good a day as any for me to start writing.

I finally got down to writing, but when it came to the issue of what subject to choose as my first topic I became blank. Being a multi-dimensional human being selecting a topic most suited to represent me has always proven taxing. Even with all my clarity of thought it is as though several personalities are at war within me. Most noticeably these personalities appear to be the cold,disciplined logical side of me and the more creative, loose and not so logical side of me. One side is immature, playful and a tad irresponsible while the other side is the direct inverse of that. Upon further reflection I realise that these are simply the traits of a well balanced human being.

However, the issue remains what the topic of my first post should be. Must I give in to my more creative side and concentrate on fiction? Or must I focus on non fiction so as to please my more logical side? As I contemplated the issue of my first topic I came to the conclusion that my first blog should be an introductory piece of sorts. A piece simply to welcome those interested in my blogs to my blogspot.

Subsequently, I intend to focus on both works of fiction and nonfiction so as to cater for both sides of my personality so as not to deprive my followers or subscribers of either side of me.

I hope you find my posts to be interesting reads that will keep you captivated enough to keep coming back for more.