World Bank upbeat on budget support, economic recovery

The World Bank, one of Malawi’s leading development partners, has justified the delay in budget support disbursement by other donors, saying it is in line with an agreed plan.

World Bank Country Manager to Malawi Miss Sandra Bloemencamp said in an interview there was a budget support plan for the 2012/13 financial year where it was envisaged for only World Bank and the African Development Bank-AfDB-to disburse budget support in the first quarter.

Only AfDB and the World Bank have provided Malawi with US $40 million and US$50 budget aid respectively within the first three months of this financial year.

Miss Bloemencamp said the other budget support would be coming in the subsequent months.

“There was budget support plan for the whole year. We are not there yet as US$165 million budget support is what was planned and we hope with the continuation of good programmes and so on, all that will be disbursed in the course of this year,” she said.

According to Miss Bloemencamp, expectations are high that all development partners would adhere to the set plans and pledges

She further projected a quick recovery for the country’s economy which has been in a mess for some years now.

The World Bank representative spoke highly of the recently initiated Economic Recovery Plan by the Malawi Government rating it as timely.

She, however, called for concerted efforts from all key players towards the recovery path.

“All institutions including the central bank, the banks, the government and donors, all need to support the programme. It’s quite a good programme and we need to support it,” she said.

The Malawi government last month introduced a new 18-month recovery plan with optimism that it would cushion the majority of the populace from the effects of some economic reforms the new government of President Joyce Banda adopted upon assuming power in April 2012.

The recovery plan, which includes cash-for-work and subsidies, has nonetheless been under fire from some analysts who say it is a replica of other blueprints that have failed to work before.—