Blessings Chinsinga
August 2007

Malawi has experienced two distinct phases of development (although sub-phases can between be distinguished, especially in the second phase). The first phase spanned from the attainment of independence in July 1964 to the end of the 1970s, whilst the second phase began with the adoption of structural adjustment programmes (SAPs) in 1981 (cf. Chipeta, 1993; Chirwa, 1997; Harrigan, 2001; Chinsinga, 2002). The 1964–1979 period saw the country?s economy registering very high growth rates and enjoyed relatively favourable balance of payment positions. Almost every sector experienced tremendously rapid growth to the extent that the country was characterized at one point, alongside the Ivory Coast, as a star performer (cf. Archaya, 1978; World Bank, 1982). In stark contrast, the post-1979 phase witnessed almost every sector of the economy experiencing a stupendous decline, followed by persistently erratic recovery trends of boom-and-bust type patterns (cf. Kaluwa, et al., 1992; Chirwa, 1995; Chilowa, et al., 2000).