The economic development of Malawi: a study in underdevelopment

Abstract

This paper argue that, both the economic structure as well as its strategy for economic development are fundamentally meant to further perpetuate the present position of dependency, and that therefore, 'economic development' in real terms is just not in sight. The case of Malawi, taking account of the colonial impact, shows that it is making substantial economic growth, given room for the fact that she started from a very low economic base. The two aspects of underdevelopment are complementary and self-reinforcing. The nature of economic relation; give rise to the process of underdevelopment, which set in motion the developing of underdevelopment as a system. The economic growth of Malawi during the colonial period has had three rather distinctive phases. The period between 1891 and 1943, is mainly characterized by the emergence of a cash crop economy. This, period saw the introduction of the major cash crops, namely tobacco, tea, groundnuts, and tung, which in 1962 accounted, for 98 per cent of Malawi's domestic exports valued at $10,16 million Coffee, tobacco and tea were the first to be introduced, and developed mainly as estate crops.