FISP-Driver for Malawi economy?

FISP acronym for Farm Input Subsidy Program is a government initiative to subsidize some of the farm inputs in Malawi. The idea behind FISP is to empower local subsistence farmers whose financial muscle is very low to at least be able to purchase fertilizer and seeds at a lower price. This is achieved by acquiring government FISP coupons through village chiefs.

For the past ten years, a slice of national budget has been directed to FISP program. The program has raised eyebrows among Malawian citizens as to whether it is beneficial or just punching holes to an already staggering economy. Some citizens are opting for the discontinuity of the program while others are in full support.

Looking critically at the program, one can notice that FISP have many upside downs rather than benefits. To begin with, the program main aim is to contribute to a wider economic growth and poverty reduction through increased food availability. The bigger questions are; has poverty been reduced for the past 10 years? Does Malawi have food available throughout the year? Judging from these questions one can tell that the program is not succeeding; in short FISP is failing Malawi. On the other hand FISP has some credit worthy appreciating; it is proving food to those who had none, but the number is very low.

There is also a growing concern that the rich are benefiting at the expense of the poor. FISP target group is poor local farmers who cannot afford to pay the full price of a bag of fertilizer. Instead of poor farmers accessing these FISP coupons, it is the rich who have full access to FISP coupons. The rich of course can afford to buy fertilizer on their own without the subsidy but not our poor local farmers. If poor farmers who are also dedicated farmers are denied these coupons, how can the economy grow?

Not only is FISP blamed on helping the rich in disguise, there is also an increase in corruption cases. FISP coupons are believed to be accessed at an auction price in some parts of the country. People who can offer to pay more than their counterparts are prioritized and issued these coupons. Those with personal hatred with people incharge of issuing coupons, in this case village chiefs are left out. To make matters worse, people in charge of issuing FISP coupons favour their relatives leaving out deserving people. How can one achieve or contribute to food security if he/she is denied the tools to do so?