FEATS Project Malawi: 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 1 st 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
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: