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We don't know why Malawi is poor

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Re: We don't know why Malawi is poor

#11
Perhaps there are cultural reasons that explain this, such as attitudes towards work, entrepreneurship, private ownership etc?

I have no idea if Rwanda and Malawi have difference there, but globally one can see clearly see the impact of culture. Just look at how well Japan did despite losing WW2 and having little natural resources, or how badly Russia has done despite its huge landmass and resources, because the political culture always seems to lead to really bad autocratic governance.

In my country (Finland) areas where Swedish speaking people are the majority do consistently better than neighbouring areas with Finnish speaking majority - lower unemployment, less health and social issues and so on. Some of that may be due to historical accumulation of wealth, but I'm convinced that mostly it's because of differences in cultural values and attitudes. Some studies indicate that the Swedish speakers tend to have better social life, which improves life outcomes in many ways.

Re: We don't know why Malawi is poor

#14

[flagged]

It does:

> Geography. Jeffrey Sachs and others have long argued that geography is destiny: landlocked, tropical, distant-from-markets countries face structural penalties through transport costs, disease burden, and weak agricultural conditions. Malawi has all three. Sure, but the empirical literature pegs the landlocked penalty at about 1% of annual growth. This is meaningful over decades, not enough to close a gap this large in per-capita income. Rwanda is more landlocked than Malawi and has grown faster. Uzbekistan is double-landlocked and has roughly tripled per-capita income since 2000.

Did you even ctrl+f?

Re: We don't know why Malawi is poor

#15
The conclusion of the article is interesting:

> 'The unit of analysis for "why is X poor" may be the political coalition, not the country.'

So maybe the real question here is not about the absolute poverty, but the derivative: "Why hasn't Malawi seen meaningful growth for 30 years?" — And the answer could be surprisingly related to first-world countries like Finland that also have experienced decades of stunted growth.

Like Malawi, Finland has functional and stable multiparty politics. Like Malawi, Finland's politicians have spent decades locally optimizing for minor benefits towards their preferred flavor of the median voter (right wing cuts taxes a bit, left wing improves benefits a bit, nobody offers anything transformative).

Too much stability at the wrong time might be a slow curse.

Re: We don't know why Malawi is poor

#16
I think just you can get a glimpse by what they export (from Wikipedia):

- Malawi: tobacco (55%), dried legumes (8.8%), sugar (6.7%), tea (5.7%), cotton (2%), peanuts, coffee, soy (2015 est.)

- Rwanda: Gold, tin ores, coffee, malt extract, rare earth ores

I can easily see why one has a higher GDP than the other. Very little mistery to me.

Re: We don't know why Malawi is poor

#17
post #14

[flagged]

It does: > Geography. Jeffrey Sachs and others have long argued that geography is destiny: landlocked, tropical, distant-from-markets countries face structural penalties through transport costs, disease burden, and weak agricultural conditions. Malawi has all three. Sure, but the empirical literature pegs the landlocked penalty at about 1% of annual growth. This is meaningful over decades, not enough to close a gap t…

Yes, but for "land locked". I've been owned.
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