Structural adjustment and poverty: The case of Malawi

Malawi has been regarded by the World Bank as a "strong adjuster", since the introduction of its first structural adjustment programme in 1981. This paper outlines the main effects of the SAPs on the living standards of the poor, while distinguishing between smallholders, agricultural labourers, and the urban poor. It discusses the effects particularly on nutritional standards and food security, of higher foodcrop prices, higher fertilizer prices, liberalization of grain marketing, and falling real wages. It is found that while wage labourers have suffered negative effects, the impacts on the smallholders are more varied. Also, because of combined effected of SAP and other factors, more research is required.