Malawi is a new and increasingly recognised example of progress in economic conditions. The country has enjoyed seven years of uninterrupted economic growth. Between 2004 and 2009, it averaged 7% annual gross domestic product (GDP) growth rates, performing well above the sub-Saharan average of 5% per year. This progress has been paralleled with notable poverty reduction (NSO, 2009). Nationally reported figures show a decline in the rate of poverty from 52% to 39% between 2004 and 2009. There has also been a notable drop in inequality, with the Gini coefficient falling from 62 in 1993 to 39 in 2004.1 In terms of human development, using Millennium Development Goal (MDG) indicators, the country ranks among the top 20 performers, in relation to both absolute and relative progress (ODI, 2010). The International Monetary Fund (IMF) and the UN Secretary-General have both lauded Malawi as a success story. The reality is more complicated than the macro indicators reflect, however. Malawi presents a complex and mixed picture of progress. It is essentially a story of progress in economic conditions since 2004, driven by macroeconomic stability, an appropriate and effective input subsidy programme, improved policy coherence and strengthened national ownership of development policy. Nevertheless, the story is complicated in that a set of precarious factors has underpinned progress, which raises valid concerns about sustainability. This illustrates that progress in development is neither linear nor perfect, and not all good things occur simultaneously. Malawi provides a more realistic picture of progress in development: three steps forward, two steps backward, one step sideways. Nevertheless, if the country is able to address the fundamental challenges facing it, it may continue to enjoy progress in economic conditions.
