72466
    REPUBLIC OF MALAWI: SECOND MALAWI GROWTH AND DEVELOPMENT
        STRATEGY (MGDS II) AND JOINT STAFF ADVISORY NOTE (JSAN)

                                   CHAIR’S SUMMING UP

                              Meeting of the Executive Directors

                                          August 28, 2012



     The Executive Directors discussed the Second Malawi Growth and Development Strategy
(MGDS II) 2011-2016 and the Joint IDA-IMF Staff Advisory Note (JSAN) on the MGDS II
(IDA/SecM2012-0386; /1).

     Directors welcomed the government’s commitment to restore macroeconomic stability and
promote good governance by strengthening public financial management and fiscal policy
framework, as well as improving accountability in the public sector to aid economic growth and
poverty reduction. Directors commended the authorities for the strong economic growth prior to
2011 but noted with concern the rise in inequality, especially in rural areas.

       Directors encouraged the authorities to prioritize reform efforts, to strengthen capacity and
reduce financing constraints. They also urged the authorities to deepen decentralization through
increasing accountability and responsiveness of district governments, district elections, investing
in the creation of stronger local capacity and involvement of the private sector.

       Several Directors underscored the importance of a sound monitoring and evaluation
framework to track achievements against priorities. Directors welcomed the authorities’ aim of
attaining gender balance in all sectors and programs most notably in the education sector,
representation in decision making processes and access to credit and land. Directors highlighted
the importance of donor coordination, good governance and sustained poverty alleviation.
Directors also urged the authorities to strengthen transparency and accountability in government,
and improve the quality and capacity of the public sector.

      Finally, Directors urged the authorities to build up mitigation measures to ensure that
sufficient buffers are in place against vulnerability to external shocks, adverse weather
conditions and terms of trade shocks. The need to improve policy responsiveness to these
external shocks was also highlighted.




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This summary is not an approved record.