FEATS ProjectMalawi: Terms of Reference for Second Phase Research Study

A Policy Study of the linkages between Agricultural Productivity and Rural Livelihoods on the one hand and Trade in Agriculture and Trade Facilitation on the other: Recommendations for Poverty Reduction and

Development for a Landlocked Country like Malawi

By Lawrence Mapemba

University of Malawi

Bunda College

1st October, 2009

CUTS GRC, GENEVA

Malawi agro-based economy with 85 percent of the

population depending on agriculture The agricultural sector generates more than 90 percent of

the export earnings to the economy and contributes 40% of the GDP

The sector employs a large proportion of population Dominated by smallholder subsector – contributes 75% of

food crop production in the country Lack of investment and development resulted inability to

attain its potential in trade performance International trade can foster economic development and

reduce poverty through employment There is need for coherence between trade and

development policies

Collect information and analyze recent trends in agricultural productivity, agricultural trade, livelihoods, and trade facilitation measures particularly in the context of landlocked status of Malawi

Examine the key linkages and relationships between

these three aspects using a holistic framework

Generate new insights and knowledge that carry practical implications including possible development of concrete projects to contribute to the finding of solutions through a coherent policy framework that will

assist Malawi in meeting the objectives of Vision 2020

Performance, role and constraints faced by the agricultural sector with focus on rural livelihoods, productivity, and trade

Trade facilitation needs and measures with a focus on those directly related to Malawi as a landlocked country

Linkages and relationships among agricultural productivity, trade and livelihoods with focus on

identifying areas of synergy

Policy frameworks related to agriculture, trade, and trade facilitation

Development of coherent recommendations in the areas under study to advance poverty reduction and development objectives

Review of literature Stakeholder consultations and meetings Sample survey

The data collected through literature review, meetings with stakeholders, and by accessing existing data sources will be complemented with selected field studies/sample surveys where absolutely needed

Meetings will be done with the following public, private and NGO stakeholders: Ministry of Trade, Industry and Private Sector Development; Ministry of Agriculture and Food Security; Ministry of Finance; Ministry of Development Planning and Cooperation, Food Early Warning System Network (FEWS NET), Malawi Chamber of Commerce and Industry, Malawi Export Promotion Council, National Smallholder Farmers Association, Tobacco Exporter Association, Mulli Brothers, Trans Globe, Rab Processors Company Limited, Grain Traders Association, Malawi Economic Justice Network, and Civil Society Agriculture Network.

Trends in crop production, agric exports and imports, employment in agric, rural poverty and land tenure (last ten years)

Trends in agric productivity – crops and livestock

Landlocked and trade facilitation issues – main constraints

Policy framework – agricultural development, trade facilitation policies and their linkages

What is the relationship between agricultural productivity and agriculture trade performance? ◦ Comparison between crop productivity and trade◦ Effect of increased productivity of tradable crops and

livestock on trade performance (surplus)◦ Role of agricultural policies influencing productivity

and trade performance in crops and livestock◦ Linkages among agricultural/livestock policies,

productivity, and imports of livestock products

What is the relationship between agricultural trade performance and rural livelihoods?◦ Livelihoods is defined as access and availability of

food at household level as well as increased rural household income and sources of incomes

◦ The study will investigate if increased productivity has resulted in improvements of household food security through improved incomes

◦ Linkages between increased production of trade-related crops and household income-estimate subsistence farmers

◦ Informal cross-border trade and rural livelihoods

What are the main constraints for trade in agriculture in Malawi resulting from being landlocked? ◦ Issues to be studied include: costs of transportation;

delayed delivery of goods; and goods lost during haulage

◦ Available trade corridors and their advantages and disadvantages (tariff and non-tariff barriers)

◦ Effects of landlockedness on production decisions on tradable crops and livestock products

What are the past, present, and planned trade facilitation measures that attempt to address the identified constraints? ◦ Efforts achieved through value-addition or processing

before exports to increase the shelf life of agricultural products

◦ The study will look into any processing done to fish, meats, vegetables and milk prior to exporting

◦ Major trading partners for such products

What are the main corridor schemes and how do they address the identified constraints? ◦ The study will assess efforts on trade facilitation

which aim at promoting trade development of trade corridors; trade protocols and trade agreements relating to various

corridor schemes.

What are the key features of national policies related to agriculture, trade and trade facilitation? ◦ Study national policies related to agriculture, trade and

trade facilitation Link with government’s goal of transforming the country from

a predominantly importing and consuming nation to a predominantly producing and exporting nation (MGDS)

◦ Progress in implementation of the policies and strategies as well as successes and failures or challenges

What is the impact of regional (e.g., SADC and COMESA) and international (under the WTO) rights and obligations on national policies on trade, agriculture and trade facilitation? ◦ The study will identify the relevant parts of SADC,

COMESA and the WTO that can either hinder or facilitate national policy making on agriculture, trade, and trade facilitation

Who are the main domestic stakeholders? What is the level of their respective capacities and involvement in relevant policy making and implementation? ◦ Stakeholders that will be involved in this study will

include relevant government ministries and departments, civil society involved in trade, Tobacco Association of Malawi, Private Traders, Farmers Associations e.g. Farmer Union of Malawi and National Association of Smallholder Farmers

This will involve data analysis and summarizing issues out of all information obtained through consultations, meetings and literature review ◦ Linkages on various aspects of agricultural

productivity – trade performance – livelihoods

The study findings will provide detailed recommendations for different stakeholders. These include the following:◦ government◦ development partners ◦ CSOs, particularly farmers organizations◦ private sector and business organizations

Questions?