Ahmed Dassu Letter to President Joyce Banda

On Jun 7, 2013, at 2:42 PM, Ahmed Dassu wrote:

 Excellency

 I refer to your response to my request for an audience during your visit to London for the G8 summit, which was “not available. JB,” which appears both intentionally abrupt and unbefitting of your high office and public servant number one!  Therefore I feel it prudent to address in this email the issues I had wished to discuss with you had you granted me the audience, in order to avoid any misrepresentation or misunderstanding.

 That I share a passionate interest in Malawi and its future with my colleagues Edgar and Thom of Nyasa Times, as I do with many other Malawians is widely known.  Arising from this I had expressed to Edgar and Thom some concerns regarding recent political developments and the continued unabated and open corruption in the sector of public procurement, and asked if Nyasa Times would carry an opinion piece by me, expressing these concerns.  Instead both Edgar and Thom suggested that as you were travelling to London soon I should meet you, Excellency, to put across my concerns directly.  This is what prompted me to request an audience with you.

 Turning first to the political scene.  On President Mutharika death, although I had previously expressed deep reservations about your leadership in a TV interview on MTV, I was amongst the first to publicly demand that constitutional order should prevail, and that as Vice-President you should be sworn in as President.  I convinced others to do the same, including a person who had during President Mutharika’s administration been at the forefront of publicly humiliating you and who had publicly demanded press censorship – now a leading office-bearer in your party, the PP. 

 Indeed on your swearing-in as President, in common with a majority of Malawians, I considered this as a Godsend for a new beginning for Malawi; this conviction was further strengthened by the words of wisdom in your inaugural address to the nation – full of promise and hope.

 Sadly, in office instead of being the stateswoman we had all expected you to be, you practise the politics of marginalisation and victimisation based on whether one is perceived to be your supporter or not. Instead of honouring the high expectations we Malawians built up on your assuming office, your Presidency is built and sustained on the foundations of Members of Parliament, now transformed into political prostitutes who who have been induced to defect from their own parties to your party by patronage and corruption , which the high office of President enables you to practise. Given the opportunity I would have pleaded with you, Excellency that it was not too late for you to live up to the high expectations and hope for a new beginning that were aroused on your ascendancy to the highest office in the country.  That you should focus on how Malawians judge you and how they will perceive you in posterity, and be the stateswoman that the world assumes you are instead of the power hungry, corrupt, vindictive woman, engaged in theft of public funds and who will do whatever it takes to remain in power, which is what a majority of Malawians now see you as doing.  What we see is you practising the politics of marginalisation and victimisation, all glitter in orange with no substance where it concerns democracy, accountability and transparency. 

 You are not minded to accept that you were not elected to the high office of President, just as your party was not elected to govern.  It is blatantly obvious that you are subjecting Section 65 to the patronage and corruption to sustain you an unelected President, in office instead of leading Malawi by consensus.  You have followed in the footsteps of President Mutharika and set aside Section 65 by encouraging resort to courts in the usurping of the powers of Parliament. You have condoned and sheltered those ‘political prostitutes’ who have defected to your party. In a parliamentary democracy there can be no more damning indictment.  Sadly the Speaker himself has fallen victim to allowing the usurping of the powers enshrined in the Constitution for Parliament and become a political prostitute himself.

Turning now to the issue of business, I believe that Edgar and Thom had conveyed to you the need for the wiping out of corruption in government procurement so that companies like mine and others which were prejudiced during President Mutharika’a administration could be encouraged to submit competitive tenders for fertilizer and in other areas of government procurement and thereby reduce costs and improve delivery.  

 It may be foolhardy to ask you to recall, so in the light of what has since transpired, so permit me to remind you that as Vice-President you had publicly said that President Mutharika had institutionalised corruption in government procurement of fertilizer and that you would be exposing the corruption. So it was reasonable, your having implied President Mutharika was corruptly awarding government contracts to selective companies, that these companies were guilty accomplices in the corruption of which you accused President Mutharika.  However in office you have proved no less corrupt, in fact even more so, as immediately on assuming office you proceeded to award contracts for the supply of fertilizer to the very same Indian-owned companies, except for a black indigenous Malawian who, because of his tribe and colour, was identified as a supporter of President Mutharika, when in fact he was no more a supporter of Mutharika then were Abdul Master, Apollo or the other Indians who are paying you millions of Dollars in corrupt deals.

 Indeed the vast unexplained assets and resources now at your and your party’s disposal since you assumed office are ample evidence of the high level of corruption in your government.  I go so far as to challenge the very concept of the Supplementary Fertilizer Subsidy Programme as being a manifestation of the unprecedented corrupt practices and an instrument for the bribing of voters with corruptly acquired funds by you. For as if you were cheating children in a kindergarten you cloud your corrupt misdeeds by telling Malawians that “I personally and my friends will fund the fertilizer for the Supplementary Fertilizer Subsidy Programme”. Where will the funds come from? No doubt the public purse that you are busy looting.

 And who are these friends other than those who are awarded the government contracts by you corruptly?

 In conclusion let me add that I know that in writing to you I expose myself to your reknown vindictive nature and possible victimization by you.  But I shall persevere whatever consequences I am made to suffer, for the struggle for a better, democratic, free Malawi, free from the hunger for power of individual politicians like you have turned out to be, is one I have engaged in since 1972.  My commitment to Mother Malawi is for Malawians to judge.  Indeed, I am convinced posterity will judge me a far better citizen of Malawi  than contemporary politicians like you have done.

God Bless Malawi

 Ahmed Dassu

Source: The Oracle

Infrastructure

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While you’ll find several references to Infrastructure on this site, I think this time around I’ll leave it to the experts to do the convincing. Paja akulu anati mutu umodzi siwusenza denga

And if one takes time to browse through the cited references below (some of which are straight off page 1 + 2 of Google), it’s hard to argue against the fact that Infrastructure is one of the essential drivers of economic development. In this sense, and for the avoidance of doubt,  infrastructure is not limited to roads, railways, airports and buildings (for hotels, schools, Universities, hospitals, business centres, research facilities, etc), but also includes for example a good telecommunication network (internet, voice, data and the like) and power supply.

Infrastructure for sustainable development – European Commission

Intro reads: ” Good quality infrastructure is a key ingredient for sustainable development. All countries need efficient transport, sanitation, energy and communications systems if they are to prosper and provide a decent standard of living for their populations. Unfortunately, many developing countries possess poor infrastructure, which hampers their growth and ability to trade in the global economy. “

Infrastructure’s value to economic growth – Richard Lee, Partner, KPMG (via BBC)

which includes the statement : “…In fact, a recent KPMG International survey found that an overwhelming majority – 90% – of business executives said that the availability and quality of infrastructure affects where they locate their business operations…”

Needs For and Benefits of Infrastructure Connectivity – Asian Development Bank Institute
which includes the statement: “… The rapid economic and population growth of Asian economies in recent years has put huge pressure on its existing infrastructure, particularly in transport and energy, but also in communications. Asia’s infrastructure is world-class in parts, but is generally below the global average. This is a bottleneck to future growth, a threat to competitiveness, and an obstacle to poverty reduction.”
which includes the following statement: – “…An adequate infrastructure is a prerequisite to economic development. Transportation and communications are important in developing and strengthening social, political, and commercial ties. These ties must be developed before trade can be handled on a regular basis.”
Why Is Infrastructure Important – David Alan Aschauer, formerly Senior Economist, Federal Reserve Bank of Chicago, and now (at the date of writing/publication) Elmer W.Campbell Professor of Economics, Bates College
Infrastructure and Poverty – The Global Poverty Project
the Intro reads: “Infrastructure – physical resources like roads, telecommunication networks, schools and drains – is necessary for a society to function: people can’t access healthcare if there are no hospitals; trade can’t take place if there are no roads on which to transport goods to markets. Infrastructure facilitates the basic functions of a society that are necessary to transport resources and people, produce and trade goods, provide essential services and ultimately reduce poverty.”
it follows with ” Lack of infrastructure also leads to lack of employment by acting as a disincentive to investment. Companies who struggle to produce and sell goods in an area with inadequate roads, electricity or water supply do not want to set up the factories or businesses that could potentially generate employment, improve living standards and reduce poverty. “
and “Lack of infrastructure can also lead to poor health and high mortality. Where there are no clinics or hospitals available, or where lack of roads or bridges makes them inaccessible, people cannot access the medical services that they require to be healthy and productive. A villager in Mozambique explains “The most dangerous thing is that [cholera] has always appeared during the rainy season, and it is then that the river is in spate and boats cannot cross.”
The Broader Benefits of Transportation Infrastructure – Ian Sue Wing, William P. Anderson and T.R. Lakshmanan, Center for Transportation Studies and Dept. of Geography & Environment, Boston University [similar article here]
uses the term Meso-scale to describe their approach. A slide from their presentation is quite appropriate in summarising some of the developmental + ‘equilibrium’ impacts, and worth replication:-
infra-messo
Finance and Infrastructure: The Economic Benefits of Infrastructure Projects Procured with Private Finance –  Andrew W Morley, International Congress Washington, D.C. USA, April 19-26 2002.
Infrastructure – Engineers Against Poverty
Intro reads as follows: “Without significant progress in the provision of infrastructure services it will be impossible for many countries to significantly achieve the Millennium Development Goals (MDGs). Globally, more than 1 billion people have no access to roads, 900 million do not have safe drinking water, 2.3 billion lack reliable sources of energy, 2.5 billion have no sanitation  facilities and 4 billion are without modern communication services.”
which contains the paragraph “When it comes to infrastructure development, Thailand has done very well compared with some other Southeast Asian neighbors. In fact, appropriate infrastructure, including access to power and water, has helped Thailand fuel rapid economic growth during the past three decades. Good infrastructure has made Thailand attractive to foreign investment, helped facilitate international trade, and improved the efficiency of everyday business activities. All of these led to more jobs, and more jobs led to more income for the poor. For some not-so-poor people, good infrastructure also helps them improve productivity or fulfill their lifestyles.”
RURAL INFRASTRUCTURE AND ECONOMIC DEVELOPMENT –  Dr. Mohammad Tarique, Lecturer, University Dept. of Economics, B.R.Ambedkar Bihar University, Muzaffarpur.
Abstract reads: “Infrastructure development has a key role to play in both economic growth and poverty reduction. Failure to accelerate investments in rural infrastructure will make a mockery of efforts to achieve the Millennium Development Goals in poor developing countries while at the same time severely limit opportunities for these countries to benefit from trade liberalisation, international capital markets and other potential benefits offered by globalisation”
Private Sector Participation in Infrastructure:the case of Thailand – Deunden Nikomborirak – Asian Development Bank Institute Discussion Paper No. 19
Road Funding: Time for a Change :- Economic Growth Benefits of Transportation Infrastructure Investment – Dr. John C. Taylor,  Associate professor of marketing and logistics at Grand Valley State University and a senior policy analyst with the Mackinac Center for Public Policy in Midland, Michigan.
which contains the statement “…No, the key benefit and reason for transportation investment is from helping to make businesses and individuals more productive, across the geographic landscape. We rely on our transportation investments to increase the economy’s overall productivity – both in terms of making individual travel (business and personal) faster and more reliable, and in terms of the productivity benefits of making freight flows faster and more reliable…”
World Bank — Malawi’s infrastructure: A continental perspective: Vivien Foster; Maria Shkaratan, ISSN: 1813-9450.

As you can see, the above papers + articles present a credible argument that a good and functional infrastructure is essential for economic development.
But that’s not to say that there are no credible counter arguments against infrastructure. That’s not what I’m saying. I’m sure one can cite the prevention of deforestation or preservation of natural habitats as factors against excessive infrastructure. Also, there is the issue of encouraging tourism which could probably mean encouraging greater biodiversity, creating / preserving forests  and wildlife reserves (but even in such circumstances, you still need a world-class airport for a good first impression (the kind of impression you get when you first land at Hong Kong International); functional roads (at least 3 lanes on each side between major cities) that minimises journey times; and world-class hotels and resorts. Why should you give tourists (who in large numbers can be the source of much-needed forex revenue) less than what they are accustomed to, and expect that they will return to your country, or recommend a visit to their friends?). Never mind recommendation, how can you compete on the global stage, when your facilities are substandard? Further, why shouldn’t it be possible to build modern factories with reduced carbon footprint (see Marks & Spencer’s ‘eco-factories’ initiative here) side by side with wildlife/forest reserves?
So, considering all this, I find it hard to imagine a credible setting in which arguments against infrastructure may find pre-eminence, over arguments for infrastructure; especially for a poor country whose majority infrastructure was built  50-year ago; whose roads are littered with pot-holes, with virtually no world-class business centres; that has old airports – with poor facilities including smelly badly looked after toilets; a country that experiences intermittent blackouts almost every week; that is struggling to attract significant investment from abroad; a country where 74% of the population live below the poverty line; which is heavily reliant on agriculture and dwindling tobacco exports + has negligible industrial output; has few natural resources; has a large relatively unskilled young population and suffers widespread corruption and cronyism, even in the upper echelons of its government.

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My question to you then is: why are the leaders of such countries not investing heavily (sooner than later) into major infrastructure projects, when it is in fact a determinant factor in economic development and a serious game changer? Is it because they are in fact not cut out for the job and would be better followers instead of leaders?

Product Appeal: Winning hearts and minds

feridies-peanuts-us

Remember my post here, on Corporate Longevity?

Well, a friend recently talked about something similar. He suggested that one of the reasons why most African companies, and their products do not receive widespread appeal worldwide is because they make very little effort to win the hearts and minds of the consumers, or of potential customers. Their main focus is too narrow, and they do very little to win customers beyond the horizons.

“It’s as if they know the domestic customers are there to stay and have nowhere else to go get the product” he said

He cited a recent article(OP-ED) (I think I may even have sent this link to him) written in the New York Times,  titled The Romantic Advantage, by David Brooks, which argues that Americans are better than the Chinese at creating well-known brands because Americans put that little bit extra into their brands. Because most of the branding specialists are essentially romantics who see brands more as artistic creations (apparently some even see them as spiritual creations), and not just generic names of products.

“How can they find buyers here, if the product doesn’t look good? Consumers here are demanding, they are sophisticated and want more” he says, and adds  “Never mind what’s inside the can, if the outside is not convincing enough, how will buyers of retailers here or in America even consider it?”

I find myself agreeing with him, that essentially the branding of the product must look good to make it to the shelf. Over the last few years I have studied some of the packaging and products out of Africa, including some out of Malawi. Mainly, foodstuffs and other small commodities. I have compared these with some of the branding and packaging of products from Europe and Asia (for example South Korea, Malaysia) and other parts of the world. Not necessarily like-for-like products. To my dismay, most of the products out of Africa simply don’t look good enough, in comparison to those from elsewhere. The quality of branding is somewhat substandard, at times it’s as if it were done in a rush. Some even have spelling mistakes!!

I’m not saying that the branding on all products of African origin (or out of Malawi) is bad, or that the products themselves are no good. No, that’s not what I’m saying. What I’m saying is I think there is quite a lot of space for improvement in terms of the allure of the branding of some of these products.

And while in some cases a company’s cost-saving exercise dictates the amount of money that is spent on branding, such cost-saving can be ‘overdone’, with the consequence that you end up with a product whose appearance is bland and devoid of any appeal. One which does not attract customers, but instead repels them. Branding which will not sell, at least not in markets beyond the home market. Obviously, this is not an ideal situation as it limits the potential of the product. These manufacturers may be losing money simply because their products do not appeal to a wide range of customers, and this anomaly could ultimately dictate the success of the product (or even the company making it)

Below is a random collection of pictures of products from within African and those made outside Africa (which includes the ‘Malawi Mango‘ juice from Bai, an American company)

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Is Islam a Peaceful Religion?

afghan-girls-muslims

As a country which has about 25% of its population as Muslims, I believe this video is relevant, to not only that percentage of Malawian muslims (most of whom are probably ignorant of the stats, people and facts quoted in the above video), but also to non-muslims, in trying to provide a clearer understanding of Islam. While there were different takes on the speech, as you can see from the comments below this article here, I believe Medhi Hasan makes a compelling argument in emphasizing that the majority of muslims are peace-loving and decent people, just as the majority of Christians, Hindu’s, Jews , Sikhs, etc are peace-loving decent human beings, and that we should all strongly reject both the terrorists, and the divisive voices which are trying to create enemity and set one person against another (us, them etc).

Global 100 Voices: No 6

My next guest is a good friend who I have known for just over 13 years now. He’s a Malawian businessman who currently is the manager of Phalombe Hardware in Limbe. Mr Ibrahim Nathanie, thank you very much for taking the time to do the 100 Voices interview.

IbrahimNathanie

farmers

  1. As a Malawian, how important is Malawi’s Socio-Economic stability to you and your family?

As a Malawian, Malawi’s socio economic stability is very important. I am a fourth generation Malawian and all my immediate family has been born and bred in Malawi. We have businesses running in Malawi that have recently struggled when dollars were scarce, fuel queues were rife and inflation was high. Things have now stabilised and as a result business is slowly improving. When things are not stable it directly affects how I can provide for my family.

2. After nearly 50 years since independence, what visible progress do you think Malawi has made since independence, and in your view, what pressing challenges remain? In view of those challenges, what do you think is the role of government and the people in tackling those challenges?

Since independence there has been progress in a few areas. For example we have now more graduates in various fields than we had then, more hospitals, more hotels. However, a lot of the progress mentioned has been donor funded.

Our pressing challenge is to try to reduce our dependence on being donor funded. One way this can be made possible is to take advantage of the natural beauty and fertile land we have in Malawi. Government has to improve infrastructure and provide incentives to the tourism industry. Improve airports, improve electricity generation.

ibs      3. As someone who lived(or has lived) outside Malawi for some time, and has been exposed to modern and progressive ideas, what symbols of development in the foreign country in which you lived have had the greatest impact on you, and why?

I studied in London, and a major symbol of development that had an impact on me was the transport facilities. As a student I could catch a bus or train and travel throughout London and not be dependent on anyone.

Another thing I thought was quite impressive was the NHS (Although I know the British people don’t think it is). Although, I have never had to use the service while I was studying; coming from Malawi I found it very impressive that anyone living in the UK has access to free hospital care.

    4.  What lessons do you think Malawians and the Malawian leadership can learn from those ideas?

Malawi and its leaders really need to look at ways to improve our transport sector. We need to improve our rail link and our airports. We need to break the monopoly South African Airways has on the Malawian market. For example if I wanted to fly Johannesburg from Blantyre it would cost me 450,000 MWK (~£859). If I wanted to fly from Johannesburg to London it would cost me the same. Surely government should realise that they need to open up the skies so that there is competition in aviation field and that potential tourists are not priced out of coming to Malawi.

5. When you last returned to Malawi, what struck you the most as the greatest sign of improvement or development since the last time you left?

When I returned to Malawi in 2006 , the greatest sign of improvement was the opening up of banks and businesses in rural trading areas such as Mangochi, Balaka, Dedza, Ntcheu, Mulanje, etc.

“For example how can employees at the National Food Reserve Agency fail to realise that a silo had a leak. If this happened in the UK the guy who was responsible would have resigned. “

    6. What struck you the most as the biggest sign of stagnation or regression?

The fact that I had to use a paper driving licence for a year as Road Traffic had run of cards to print them on. The fact that nobody in the government is being held accountable for wrongs being done. For example how can employees at the National Food Reserve Agency fail to realise that a silo had a leak. If this happened in the UK the guy who was responsible would have resigned.

7.  Malawians will be going to the polls in 2014, to elect a new president. In your view what kind of leader does Malawi NEED, considering the country’s current challenges? And specifically, how should that leader approach the top job in terms of creating sustainable development and foreign reducing aid dependency?

I find the work that Joyce Banda has done in the short time she has been president is commendable. There is now forex in Malawi, no shortage of goods and no fuel queues. My only criticism of her presidency is that she has not taken any active steps to reduce our dependency on foreign aid.

I would vote for Joyce Banda but would advise her to introduce incentives for investors to come and invest in Malawi. Provide incentives for our farmers to add value to their crop before exporting their crop. For example instead of Malawi importing cigarettes we should encourage cigarette companies to come and open manufacturing plants in Malawi.

factory

8.  As you know, Tobacco is Malawi’s biggest source of export revenue. Looking at the problems that have plagued the tobacco industry in recent times, what alternatives do you think Malawi has besides Tobacco, and why are they viable alternatives?

Tourism sector really needs to be exploited, you only have to look at how Zambia and Kenya are benefitting from exposing themselves to the rest of the world. We are blessed with beauty that is unmatched in the world; we however are not blessed with people in power who can see this.

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They need to build international airports at the lake, and domestic airports dotted along the lake shore. We need to attract tourists who actually spend money in Malawi not just back packers who are looking to get stoned on Malawi Gold (On a side note we could actually legalize the export of marijuana and rake in substantial forex). We need to reduce the cost of coming to Malawi. I gave an example earlier of how expensive it is for us to fly to Johannesburg.

9.   Considering our troubled history with donors and funders such as the IMF and World Bank, most recently when Bingu Wa Mutharika was president, how do you see Malawi progressing from this relationship in view of the criticisms these organisations have received in the media across the world?

To be honest I feel we have already progressed from this relationship. The donors are in love with the donors.

Without a doubt we have to reduce our dependence on the donors as we all know it’s a vicious cycle. It is not in their interest for Malawi to be self-sufficient; as if we were they could not enforce their views and western cultures upon us.

10. We now know that Malawi has some precious minerals, including Uranium, possibly oil and other natural resources. How do you think the present government is doing regarding managing Malawi’s natural resources?

The people in charge in my opinion have done nothing with regards to managing our resources. This is evident in that Paladin got a great deal from the government for our uranium???

The guys in charge have to look at how Zambia is doing with it copper resources, Ghana with its oil and even other European Countries with their natural resources such as Norway to realise we have got it horribly wrong.

11. In your view, can the government do better to manage natural resources? If so, how can it do better?

Yes. Government needs to follow Norway’s example. I have copied an article that I have read recently and feel this is EXACTLY what government needs to do with our resources, in order to manage it sustainably. This article below is copied from “http://www.theglobeandmail.com/report-on-business/economy/canada-competes/what-norway-did-with-its-oil-and-we-didnt/article11959362/

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“When oil was discovered in the Norwegian continental shelf in 1969, Norway was very aware of the finite nature of petroleum, and didn’t waste any time legislating policies to manage the new-found resource in a way that would give Norwegians long-term wealth, benefit their entire society and make them competitive beyond just a commodities exporter.
“Norway got the basics right quite early on,” says John Calvert, a political science professor at Simon Fraser University. “They understood what this was about and they put in place public policy that they have benefited so much from.”
This is in contrast to Canada’s free-market approach, he contends, where our government is discouraged from long-term public planning, in favour of allowing the market to determine the pace and scope of development.
“I would argue quite strongly that the Norwegians have done a much better job of managing their [petroleum] resource,” Prof. Calvert says.
While No. 15 on the World Economic Forum’s global competitiveness rankings, Norway is ranked third out of all countries on its macroeconomic environment (up from fourth last year), “driven by windfall oil revenues combined with prudent fiscal management,” according to the Forum.
Before oil was discovered, the Act of 21 June 1963 was already in place for managing the Norwegian continental shelf. This legislation has since been updated several times, most recently in 1996, now considered Norway’s Petroleum Act, which includes protection for fisheries, communities and the environment.
In 1972, the government founded the precursor of Statoil ASA, an integrated petroleum company. (In 2012, Statoil dividends from government shares was $2.4-billion). In the same year, the Norwegian Petroleum Directorate was also established, a government administrative body that has the objective of “creating the greatest possible values for society from the oil and gas activities by means of prudent resource management.”
In 1990, the precursor of the Government Pension Fund – Global (GPFG), a sovereign wealth fund, was established for surplus oil revenues. Today the GPFG is worth more than $700-billion.
While there’s no question that Norway has done well from its oil and gas, unlike many resource-based nations, Norway has invested its petro dollars in such a way as to create and sustain other industries where it is also globally competitive.
The second largest export of Norway is supplies for the petroleum industry, points out Ole Anders Lindseth, the director general of the Ministry of Petroleum and Energy in Norway.
“So the oil and gas activities have rendered more than just revenue for the benefit of the future generations, but has also rendered employment, workplaces and highly skilled industries,” Mr. Lindseth says.
Maximizing the resource is also very important.
Because the government is highly invested, (oil profits are taxed at 78 per cent, and in 2011 tax revenues were $36-billion), it is as interested as oil companies, which want to maximize their profits, in extracting the maximum amount of hydrocarbons from the reservoirs. This has inspired technological advances such as parallel drilling, Mr. Lindseth says.
“The extraction rate in Norway is around 50 per cent, which is extremely high in the world average,” he adds.
Norway has also managed to largely avoid so-called Dutch disease (a decline in other exports due to a strong currency) for two reasons, Mr. Lindseth says. The GPFG wealth fund is largely invested outside Norway by legislation, and the annual maximum withdrawal is 4 per cent. Through these two measures, Norway has avoided hyper-inflation, and has been able to sustain its traditional industries.
In Norway, there’s no industry more traditional than fishing.
“As far back as the 12th century they were already exporting stock fish to places in Europe,” explains Rashid Sumaila, director of the Fisheries Economics Research Unit at the University of British Columbia Fisheries Centre.
Prof. Sumaila spent seven years studying economics in Norway and uses game theory to study fish stocks and ecosystems. Fish don’t heed international borders and his research shows how co-operative behaviour is economically beneficial.
“Ninety per cent of the fish stocks that Norway depends on are shared with other countries. It’s a country that has more co-operation and collaboration with other countries than any other country I know,” Prof. Sumaila says.
“That’s [partly] why they still have their cod and we’ve lost ours,” he adds, pointing out that not only are quotas and illegal fishing heavily monitored, policy in Norway is based on scientific evidence and consideration for the sustainability of the ecosystem as a whole.
Prof. Sumaila cites the recent changes to Canada’s Fisheries Act, as a counter-example: “To protect the habitat, you have to show a direct link between the habitat, the fish and the economy,” he says, adding, “That’s the kind of weakening that the Norwegians don’t do.”
Svein Jentoft is a professor in the faculty of Bioscience, Fisheries and Economics at the University of Tromso. He adds that Norway’s co-operative management style, particularly domestically, has been key to the continued success of the fisheries.
“The management system [for fish stock] is an outcome of the positive, constructive and trustful relationship between the industry on the one hand and the government on the other hand,” Prof. Jentoft says. “They have been able to agree on issues that you and many other countries haven’t been able to, largely because the government has listened to the fishermen.”
However, Prof. Jentoft isn’t on board with all of his government’s policies. He’s concerned about how the quota and licensing system is concentrating wealth and the impact that this will have on fishing communities.
He predicts that Norway’s wild stocks will remain healthy in the foreseeable future and that the aquaculture industry (fish farms), where Norwegians are world leaders, will continue to grow.
In 2009, Norway’s total fish and seafood export was $7.1-billion, $3.8-billion was in aquaculture. By 2011, Norwegian aquaculture exports grew to $4.9-billion. In Canada, total fish and seafood exports in 2011 were $3.6-billion, with approximately one-third from aquaculture.
Norway’s forests are another important natural resource, and its pulp-and-paper industry has many parallels to Canada’s. Both nations are heavy exporters of newsprint. With much less demand since the wide adoption of the Internet and competition from modern mills from emerging markets, both nations have suffered through down-sizing and mill closures over the past decade. Both have been looking for ways to adapt.
The Borregaard pulp and paper mill in Sarpsborg has become one of the world’s most advanced biorefineries. From wood, it creates four main products: specialty cellulose, lignosuphonates, vanillin and ethanol, along with 200 GWh a year of bioenergy.
“You have a diversified portfolio of products,” explains Karin Oyaas, research manager at the Paper and Fibre Research Institute in Trondheim. “The Borregaard mill uses all parts of the wood and they have a variety of products, so if one of the products is priced low for a few years, then maybe some of the other products are priced high.”
She feels this is a key change in direction for the industry in Norway. She doesn’t want to see the industry putting all of its eggs in one basket, as it did with newsprint.
Dr. Oyaas also thinks that rebranding the industry is key to its survival and success in Norway. The forestry industry doesn’t get the same kind of attention as the oil industry, nor does it have the high-tech image. But it is just as high-tech, and it has the bonus of being a renewable resource.
“You can make anything from the forest. You can make the same products that you can make from oil,” explains Dr. Oyaas.”

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12. What is your answer to increasing transparency and eradicating corruption which is plaguing most governments across Africa?

Corruption is prevalent everywhere. It is just more prevalent in Africa. The reason being is that our civil servants e.g. the cops, the guy connecting your water or ESCOM metres are not paid well enough. We need to improve wages.

Consumers also need to change the way we operate. In order to get things “done” we feel we need to bribe. This enables people who do simple things like process your driver’s license or come to inspect your imported goods being offloaded not even being shy about asking for a bribe.

I reckon we need to start with these small steps and then look at the bigger bribes.

prprty

13. Any famous last words?

I manage Phalombe Hardware in Limbe – directly opposite Standard Bank in Limbe. At the moment investing in Malawi by building a house or commercial property is the way to go. We can provide all building materials from the foundation right up to the finishing stages for your house. Please visit us on face book or email us for a quote. Phalombe@africa-online.net

Global 100 Voices is a collection of reflections, views, opinions, ideas and thoughts by Malawians across the world, regarding the past, present and future of Malawi

Global 100 Voices: No 4

My next guest is a good friend and a brother who I have known for many years. Based in London, he is a true son of Malawi, and someone who I genuinely believe has a bright future ahead of him. Yet it was only recently that I discovered just how much passion and ‘fire’ he has for Africa. Mr James Woods-Nkhutabasa, thanks for doing the Global 100 Voices Interview!

[ Brief profile: James has several years’ of communications experience working for public and private organisations, in promoting achievement in African leadership, issues concerning global governance and development. He is also one of the founding members of Diaspora Capital LLP (dCAP), a members investment club which seeks to make socially impactful investments in Africa ]
  1. As a Malawian, how important is Malawi’s Socio-Economic stability to you and your family?

I believe a socio-economic stable environment is beneficial not only for the nation only provided government can create an arena of good governance, accountability, transparency and no corruption. This is also attractive for investors.

  1. After nearly 50 years since independence, what visible progress do you think Malawi has made since independence?

The visible progress for me is that Malawi is now a democratic nation, people have more access to goods and are also more connected due to the digital revolution. On the downside Malawi is still fighting the goals set at independence and poverty levels remain high. We still have a long way to go.  Maybe regional integration is key to addressing this weakness through the delivery of wider social and economic benefits that would benefit the country and drive its development further. We need to stop thinking of Malawi as a single unit but think of it as a major part of the remaining 53 nations on the continent. Only then will we sing our success story. But we need to get our house in order first.

recycleds      3. In your view, what pressing challenges remain and what should Malawi aspire towards?

Malawi, similarly to other African countries is facing major corruption issues and a lack of good governance. Our parliament is also filled with recycled politicians – what I aptly name – ‘The Kamuzu/Muluzi Giants’. It seems to me that our politicians change allegiances as much as they change suits. The political world, leading a nation, serving your people should be a vocation or ‘a calling’ but not a pension, as it currently seems to be for some.

Malawi should aim to be a success story in good governance.

  1. In view of those challenges, what do you think is the role of government in tackling those challenges?

Create an environment of patriotism, transparency and competence. The government needs to remember that they are there to serve their people: men, women and children and thus to run the country accordingly as it is their responsibility. We need strong leadership and this can be achieved collectively, through government and civil society. Malawi needs an enlightened and dedicated sort of leadership that looks forward and not backward. Most importantly get the right sort of people involved in government.

  1. As someone who has lived outside Malawi for several years and hopefully been exposed to modern and progressive ideas, what things in your country of residence have had the greatest impact on you, and why?

The competitive work ethic and drive that people have in London is absolutely brilliant. People have the desire and resilience to achieve the best possible outcome. This has taught me to continuously improve to keep up with this ‘rat race’ and be able to be significant in the growth and development of the nation.

  1. What lessons do you think Malawians and the Malawian leadership can learn from those ideas?

Malawi has extremely bright individuals who can contribute great things for the nation. The leadership needs to promote an open society – welcoming of all and not based on ethnicity, tribe or social standing, but instead on what you can offer to drive forward development.

  1. If you have recently visited Malawi, what struck you most as the greatest sign of improvement or development?

The amount of women and youth trying to make a living through a business; truly inspiring to see the entrepreneurial spirit and a can-do attitude, be it selling vegetables on the side of the road to managing small wholesalers. It is really amazing at how they have adopted technology such as the use of mobile phones to sell and place orders. This has inspired me.

  1. What struck you most as the biggest sign of stagnation or regression?

I believe the lack of good educational standards and opportunities have really been under-played. Youth are the future of Malawi, the leaders of tomorrow; they are being frustrated by the lack of opportunities and a lack good of education. These youth can be a curse or a blessing and rather sadly it has been a curse on the nation with increased criminal activity. If we do not invest in the youth and create jobs how are we to have a good future? Without the right investment we will continue to face the same problems of corruption, poor leadership and bad governance.

  1. Malawians will be going to the polls in 2014, to elect a president. In your view what kind of leader does Malawi NEED, considering the country’s current challenges?

I think we need a bit of the positive characteristics that our past and present leaders have shown but most importantly we need a leader who has an entrepreneurial spirit, a socio-entrepreneurial impactful spirit. We as African’s are natural-born entrepreneurs…we need a leader who will use an entrepreneurial approach to create sustainable development and leadership in so doing promoting a culture of hard-working, ambitious young people to drive forward development. A leader who has innovative ideas and simply not just focussing on what has been done, but looking at what can be done. We need a leader who will deal with disparities in wealth that exist between the poor, the middle class and the rich. High on their specification will be better business and financial acumen, infrastructure, education, employment and better health services.

  1.  Specifically, how should that leader approach the top job in terms of sustainable development and reducing aid dependency?

I believe aid is still vital to Malawi for the next few years at least, but our president needs to really focus on the fruit of a stronger regional economic integration across the continent; and build economies of scale to enable Malawi and Africa to better compete in the global economy. Malawi seems to be attracting a lot of investors to the vast minerals in the country ranging from bauxite, gold, limestone (marble), monazite, niobium and uranium…then we’ve got oil and agriculture. The key aspect to ensuring the leadership moves away from aid dependency is to create a strong and efficient financial system that could support high levels of investment…also the need to eliminate the tax breaks these foreign investors have in the country as we are losing millions of US dollars annually.

Malawi can have a wonderful future. By strengthening its financial and legal systems respectively, and focusing on regional integration, Malawi has the potential to become one of Africa’s fastest growing economy by the end of this decade provided that political stability, social protection, quality education, private sector and good governance are implemented.

  1. Looking at the problems that have plagued the tobacco industry – which is our biggest source of export revenue– in recent times, what alternatives do you think Malawi has besides Tobacco, and why are they viable alternatives?

There is a major problem by relying on tobacco. Let us look at the bigger picture – tobacco farming is a major employer in Malawi where it employs 70% of the nations workforce – in terms of providing a living to the population it plays a big part.

The country does need to diversify and not only focus on tobacco as the international controls on tobacco are surely having or going to have an effect on the economy.

I think a strong emphasis should remain on agriculture produce such as tea, coffee, macadamia nuts, groundnuts, sugar, cotton, soya and timber. The potential for agribusiness is there but we need the right mentality in promoting good practice to increase efficiency and bring in investment and expertise to help scale up production but also go into agroprocessing, where higher prices for commodities can be achieved.

Infrastructure development is vital for Malawi’s economy to flourish. There is a need for better roads, airports and aviation, rail, ICT, water and sanitation.

Stronger focus on the extractive industries and corporate realisation of Malawi’s objectives in oil found in Lake Malawi. Mining currently accounts for only around 2% of GDP, with tobacco, sugar and tea remaining the main exports by value, but we all know the short and long-term potential of the mining industry if we play our cards right.

Tourism is another sector to focus on. This would bring the needed foreign exchange and foreign direct investment and importantly raise the profile of the nation as truly ‘the warm heart of Africa’. I do not know if you are aware but Malawi was recently crowned runners up in the 2012 Safari Awards “Best Africa Tourist Board” beaten by Kenya. This is definitely an important space.

12. Considering our troubled history with donors and funders such as the IMF and World Bank, how do you see Malawi progressing from this relationship in view of the criticisms these organisations have received in the media across the world?

Malawi, is still too fragile to sustain herself – as mentioned earlier I believe once the powers that be start developing the nation, attracting more investors and regional integration is in place Malawi will be on the right path to stand with the rest of Africa as partners and not rely on these international bodies.

13. How do you think the government is doing regarding managing Malawi’s natural resources?

Problems are there, such as issues to do with mining legislation. The main legislation governing mining is the Mines and Minerals Act 1981.

The Mines and Minerals Act 1981 states that companies operating in Malawi need to employ and train local staff but this is left at the discretion of the company, thus local workforce are often found to be losing out. There is lack of regulation, think of the people who are displaced by the mining companies? There is no protection for these people – regulatory framework for resettlement only requires compensation to be given for land, livestock etc…but nothing is in place to give those people back land of same quality. Most people living in villages where these mines are based do not own the land through purchase but through living there for generations thus when the mining companies come, these people are evicted and not titled to any compensation. Most importantly there is a lack of transparency – mining companies are not revealing their profits in line with expenditure and taxes. The mining companies are not required by Malawi government to reveal their spending in Malawi.  

14. Can the government do better to manage natural resources? If so how?

Government needs to address the points I’ve just raised and ensure something is done to curb this behaviour of secrecy. They need to tighten legislation, this will be achieved by revising the Mines and Mineral Act 1981 – I understand that this is being done.

15. What is your answer to increasing transparency and eradicating corruption which is plaguing most governments across Africa?

African governments need to be accountable to their citizens. The responsibility for dealing with corruption and transparency falls equally on all parties from governments and donors, to civil society and citizens. We all have to fight to ensure we can develop better leadership with the tools of good governance.

We have to remember, when we the people have information; we have the power to hold our leaders and governments accountable to improve the systems, tackle corruption and have transparency.

16. Any famous last words?

Let’s continue driving our country and continent forward. In the words of Kwame Nkrumah ‘’We face neither East nor West: we face forward’’.

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