Malawi is one of the poorest countries in the world,1 with 70% of the population living on less than $1.90 a day.2 A low level of economic development – alongside seemingly regular shocks – has left the nation’s finances perpetually constrained. The country is stuck in a deadlock of slow growth which is unequally distributed, where poverty and inequality are two faces of the same coin. Economic inequality is growing significantly: in just seven years between 2004 and 2011, the gap between the richest 10% of Malawians and the poorest 40% increased by almost a third.3 If inequality continues to rise as it has in recent years, by 2020 1.5 million more Malawians will be poor.4 Even rapid economic growth will fail to tackle poverty in the country. A 2015 Oxfam report, A Dangerous Divide – the State of Inequality in Malawi,5 shone a spotlight on the growing problem of inequality. This new paper presents a vision, roadmap and policy recommendations for a more inclusive, equitable and prosperous Malawi. It recognizes that inequality is not inevitable but the result of policy choices made by those with power. The paper shows that to leave no one behind and get on track to achieve the Sustainable Development Goals (SDGs), the government must commit to policies which prevent the country’s elites from appropriating the benefits of economic growth and instead ensure that benefits are redistributed to all. Breaking out of slow and unequal growth requires government, decision makers, development partners and institutions to work for citizens, especially for those living at the margins, rather than serving powerful vested interests within and outside of Malawi. The success of the roadmap hinges on five pillars: 1.  Transparent and accountable government and institutions, and tackling corruption, replacing the political capture of policy making by a powerful minority with inclusive political and economic institutions. 2.  A real focus on women’s economic empowerment and gender equality, with an emphasis on the social and cultural norms that act as a brake on progress. 3.  Policy and investment to improve livelihoods of the poorest women and men, delivering equitable growth, especially in agriculture. 4.  Raising public revenues more progressively, notably from wealthy individuals, domestic and foreign businesses, to reduce inequality and redistribute income; and ensuring sufficient and quality international aid for the short and medium term. 5.  Investing in universal, quality, free public services, such as healthcare and education, that benefit everyone in society, offer social protection for the poorest and dramatically reduce inequality.
