Malawi Economic Recovery Development Policy Operation 1

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The objectives of First Economic Recovery Development Policy Operation (DPO) Program for Malawi is to strengthen macroeconomic and public finance management and lay the foundation for stronger growth and protection of the poor. The program is geared towards consolidating macroeconomic policy reforms implemented under the stabilization effort undertaken since May 2012, as well as prepare the ground for longer term structural reforms for the post-election era. This program document the economic recovery development policy operation to the Republic of Malawi for SDR 33.4 million (50 million US dollar equivalent), on standard International Development Association (IDA) terms. The DPO series is designed to assist the Government of Malawi (GoM) consolidate reform measures undertaken since May 2012 aimed at stabilizing the economy, supporting quick growth rebound and protecting the poor and the most vulnerable while setting the stage for longer term structural reforms. Specifically, the operation will support two key pillars: (i) strengthening the macroeconomic and public finance management through measures aimed at strengthening fiscal discipline to entrench macro-stability as well as improving efficiency and the transparency of the public finance management; and, ii) laying the foundation for stronger growth and protection of the poor through reform measures aimed at enhancing agriculture productivity and diversification; improving energy efficiency and the regulatory environment; improving efficiency in the provision of social safety nets; and, strengthening the country's statistical capacity.