To deal with the challenge of corruption, the economy must be sorted out first—Chief Economist Chifipa Mhango

* You cannot stop that unless you have an economy that all are benefitting and the welfare is equal

* Because corruption is a symptom of a failed economy and people chasing alternative sources of income or to supplement existing income which is unstainable in a failed economy

By Duncan Mlanjira

Corruption is a society way of living and earning an income when an economy has failed or is mismanaged, says Chief Economist for Don Consultancy Group (DCG), Chifipa Mhango, who is also Alliance for Democracy (AFORD) national director of economic affairs.

“We tend to think that corruption is about Government tender only etc NO! Corruption may occur in collection of a passport, driver’s licenses, traffic cops on the roads etc.

“You cannot stop that unless you have an economy that all are benefitting and the welfare is equal because corruption is a symptom of a failed economy and people chasing alternative sources of income or to supplement existing income which is unstainable in a failed economy.

“In an economy where the cost of living or inflation rate is high, it’s a bleeding ground for corrupt activities. So first, sort out the economy.”

Mhango also emphasises that planning is key in economic policy formulation in relation to Malawi Government’s cushioning of fuel prices.

He brings to light that Brent crude oil figures have increased above US$79.5 per barrel on Monday, “a six-week high following last week’s 9.1% gain, as tensions in the Middle East escalate”.

“Investors are focused on whether Israel will respond to last week’s Iranian missile attack. Fears of broader conflict in the region persist, especially as Israel continues military actions in Gaza and Lebanon.”

Mhango takes note that US President Joe Biden “has discouraged strikes on Iran’s oil fields, stating alternative actions should be considered”.

“Iran’s oil output, now near full capacity, could be at risk. Despite these geopolitical concerns, questions about global demand, — particularly from China — remain, alongside ample oil supply.

“China’s government is expected to unveil new economic stimulus measures, which could influence demand.

“Now see the global politics: Saudi Arabia raised oil prices for Asian buyers but reduced prices for USA and European markets. The question that should be on the mind of economic policy makers in Malawi is, how will the economy cushion this effect?

“We are not part of the ‘preferred nations’ when it comes to reduced oil prices from Saudi Arabia.  Has the Malawi Government started these negotiations or its are waiting for things to hit hard first Planning is key in Economic Policy formulation.”