Malawi

Baroness Kinnock of Holyhead Excerpts

Monday 21st May 2012 Lords Chamber

[Baroness Northover]

It is indeed extremely important to make sure that that kind of support is in place, and DfID has been supporting healthcare in Malawi very strongly. The noble Lord will be aware that the previous high commissioner was expelled by the former president, but the UK has decided to appoint a new high commissioner—a process that is going through at the moment. Meanwhile, the new president has decided to appoint a new high commissioner to the United Kingdom—and that, we hope, will help.

[Baroness Kinnock of Holyhead]

My Lords, I join the Minister in welcoming the leadership in Malawi of Africa’s second woman president, Her Excellency Joyce Banda. Is it not clear that if economic catastrophe is to be averted in Malawi—a country in which 39% of the population lives on less than a dollar a day—she will need a lot of sustained assistance? In those conditions, will the Government seek not only to encourage donors to release funds for Malawi but to discourage the current IMF mission from any recommendation that would further devalue the currency and therefore inflict potentially ruinous extra inflation on the economy of Malawi?

[Baroness Northover]

The noble Baroness is quite right. With these encouraging signs, it is extremely important that President Banda is supported in seeking to deliver these changes. I note that the Bank of England has, for example, sent technical support, as Malawi has just devalued its currency. Therefore, it is in a better situation in some ways but in a very volatile situation in others. International donors and the IMF are acutely aware of the need to provide support in these circumstances and to make sure that the funding is there so that some of the adjustments to the economy can be brought forward and the changes that President Banda has suggested can then be better delivered.