Public Financial Management for PRSP - Deutsches Institut für ...
Public Financial Management for PRSP - Deutsches Institut für ...
Public Financial Management for PRSP - Deutsches Institut für ...
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<strong>Public</strong> <strong>Financial</strong> <strong>Management</strong> <strong>for</strong> <strong>PRSP</strong> Implementation in Malawi<br />
(1994) and second free elections a (1999) was the conservative United Democratic<br />
Front (UDF) b party and its leader Bakili Muluzi was elected president c . In 2004,<br />
Muluzi did not succeed in changing the constitution to run <strong>for</strong> a third term, mainly<br />
thanks to the resistance of Members of National Parliament (MP) and Civil Society<br />
Organisations (CSO) influence. Bingu wa Mutharika, his successor and winner of<br />
the 2004 presidential elections, however, had enjoyed strong support from the <strong>for</strong>mer<br />
president and seemed to be dependent on his political influence. Nonetheless,<br />
the IMF and other donor organisations quickly hailed the new Mutharika government<br />
as a great hope <strong>for</strong> Malawi, following a new policy approach, being serious<br />
about fiscal austerity and fighting corruption. This was in part driven by the new<br />
president’s decision to appoint Goodall E. Gondwe as Minister of Finance, who had<br />
– among other things - previously served as director of the Africa department at the<br />
IMF. This appointment was interpreted as a strong signal that Mutharika was indeed<br />
committed to sound fiscal policy and to improving Malawi´s relations with international<br />
donors (Meinhardt 2004, 21). However, from the beginning many observers<br />
considered it problematic that the apparently strong commitment to better and more<br />
transparent political leadership depended on very few prominent figures at the top.<br />
In 2005, controversial positions between the president and his predecessor became<br />
more obvious and finally led into open confrontation. Mutharika withdrew from<br />
UDF and <strong>for</strong>med his own Democratic Progressive Party (DPP). Political conditions<br />
in transition countries are often shaped by rapidly changing coalitions and ‘turncoat’<br />
mentalities. This appeared to be the case in this new setting of parties and politicians,<br />
who had left UDF to join the new DPP. These new developments created a<br />
situation of political uncertainty with the result that local government elections have<br />
repeatedly been postponed since May 2005. Calls from voices within society and the<br />
political arena <strong>for</strong> a so-called Government of National Unity (GNU) became<br />
stronger. By the end of 2006, local government elections had still not been held,<br />
although there were signs that preparations were finally under way. By this time,<br />
many observers no longer shared the initial enthusiasm <strong>for</strong> the new administration.<br />
The general impression conveyed that the new president was increasingly turning to<br />
an authoritarian style in his decision-making.<br />
Although this is not unusual in the African context, recent developments seem to<br />
reduce the likelihood of a democratic consolidation to happen soon. The introduction<br />
of a multiparty electoral system by itself does not create a liberal democracy overnight.<br />
Although the democratic changes have increased the likeliness of legal institutions<br />
and procedures to be more predictable, ad hoc decision making and in<strong>for</strong>mal<br />
procedures still exist. Thus, Malawi’s way to consolidate liberal democracy proves<br />
German Development <strong>Institut</strong>e 47