Evaluation of Effectiveness of Integrated Rural Development Programs in Malawi

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  • CHAUTALA Andrews
    Reitaku University Chikuro Hiroike School of Graduate Studies, Japan
  • OKIYAMA Mitsuru
    Institute of International and Regional Development Studies, Reitaku University, Japan
  • TOKUNAGA Suminori
    Faculty of Economics and Business Administration, Reitaku University, Japan

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<p>Malawi is a landlocked, densely populated, low-income country with a per capita Gross Domestic Product (GDP) of US$388.5 in 2017. The economy is agro-based, with many small scale farmers dependent on rain-fed agriculture. The government introduced an Integrated Rural Development (IRD) strategy into the national agenda in 2006 to address rural poverty levels. However, the effectiveness of IRD programmes on Malawi’s economy remains unclear. This paper analyzes ripple effects on the assumption that the export of each commodity rises. We examine the Extended Multisectoral Model, based on Malawi’s 2014 Social Accounting Matrix (SAM), and income inequality within-group and between-group of urban and rural households using Theil’s T Index to assess the programs’ impacts on output, final demand, disposable income, poverty levels, and consumption. The findings indicate that products from the agricultural sector have high economic ripple effects without expanding income inequality.</p><p>JEL Classifications:R13, F17, C68</p>

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