Political economy of public finance management in livestock development in Malawi

Abstract

This study examines the influence of the political economy of Public Financial Management (PFM) on the development of Malawi's livestock sector. It highlights how political, institutional, and economic factors affect resource allocation and policy decisions in this area, which is crucial for food security and rural livelihoods. Despite its importance, public investment in livestock is significantly lower than in crop production. Using a cross-sectional design with cluster sampling and a mixed-methods approach, 107 respondents were sampled and responded to a survey questionnaire, 30 Key Informant Interviews (KIIs) and 2 Focus Group Discussions (FGDs) with the Parliamentary Committee for Budget and Finance. The quantitative data were analysed using SPSS version 20, and the qualitative data were analysed using content analysis. Findings suggest that political motivations significantly influence the livestock sector's Public Financial Management (PFM). These motivations focus on short-term projects that align with electoral cycles, hindering necessary long-term investment. Institutional challenges hinder effective resource allocation, such as weak accountability and limited capacity within the Department of Animal Health and Livestock Development (DAHLD). Additionally, prioritisation of crop production due to quicker economic returns over livestock influences resource allocation in the agriculture sector. This study offers valuable insights into the relationship between political economy and public financial management (PFM) in Malawi's agricultural policy. The research recommends aligning PFM with long-term strategies, such as Malawi Vision 2063, reducing political interference, strengthening institutional frameworks through depoliticisation of resource allocation, and enhancing accountability to promote sustainable growth in the livestock sector. The study provides a framework for PMS analysis of how political and economic factors shape public finance governance in public sector service delivery, thereby contributing to the body of knowledge on public finance management.