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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Stefan Leiderer et al.<br />
its relevance <strong>for</strong> the PFM in so far as the absence of a dysfunctional system in favour<br />
of arbitrary procedures and weak institutions is a precondition <strong>for</strong> successful and<br />
sustainable management of finances <strong>for</strong> development.<br />
a<br />
b<br />
c<br />
Elections are held in five-year terms. The president and the legislative branch are<br />
elected at the same time (CIA Factbook, 2004).<br />
UDF entered a coalition with AFORD (Alliance <strong>for</strong> Democracy) and the Malawi Congress<br />
Party (MCP). The characteristic of national party politics became clear after the<br />
elections. All three parties are not characterised by strong ideological ties but frequent<br />
shifts of alliances. Personality matters and people vote along regional patterns: UDF<br />
established strong ties in the south with connections to the Chamber of Commerce.<br />
AFORD shows affinity to the north and various trade unions, whereas the <strong>for</strong>mer Banda<br />
party MCP could preserve its connections to the centre region of Malawi (Hussein<br />
2004, 109-112)<br />
Muluzi is a <strong>for</strong>mer MCP member, who – like many other politicians in Malawi –<br />
changed his party affiliation after the end of the Banda era.<br />
4.2 Decentralisation in Malawi<br />
Malawi is a unitary state with strong centralistic features. However in recent<br />
years, it has begun to devolve functions and responsibilities to local levels of<br />
government. This new approach is not least due to donors, who felt that a<br />
fresh impetus was needed and hence strongly argued <strong>for</strong> the need to develop<br />
a national decentralisation strategy. Thus, when in 1995 a new constitution<br />
was adopted it entailed the requirement to establish local government authorities.<br />
In 1998 the National Decentralisation Policy (NDP) was approved, and<br />
incorporated into the Local Government Act. The NDP along with the Local<br />
Government Act provide the main framework <strong>for</strong> decentralisation in Malawi.<br />
This framework establishes political decentralisation through democratically<br />
elected local assemblies and the devolution of central government functions<br />
to local government level.<br />
The NDP is <strong>for</strong>mulated and reviewed by a Cabinet Committee on Decentralisation<br />
and seeks to achieve the following objectives (Decentralisation Secretariat<br />
1998, 2–3):<br />
— creating a democratic environment and institutions in Malawi <strong>for</strong> governance<br />
and development; at the local level which will facilitate the participation<br />
of the grassroots in decision-making;<br />
48 German Development <strong>Institut</strong>e