The Effect of Farm Input Subsidy Program on Food Poverty Dynamics in Malawi

Abstract

As part of poverty alleviation and reduction of food insecurity in Malawi, the Malawi Government launched the Farm Input Subsidy Programme (FISP) in 2005/06. The programme is a continuation and expansion of previous subsidy programmes which were designed for the same purpose as the current subsidy programme. Although evaluation studies show that FISP registered success in its first five years, there has been limited research analysing the effectiveness of the programme. This study purposed to investigate how the programme has contributed to food poverty transition during the period 2010 and 2013. The study adopts a Multinomial Logit Model and uses Integrated Household Panel Survey Data of 2010 and 2013 from national statistical office to measure food poverty dynamics between the two periods. Other variables which are expected to influence food poverty dynamics are also explored. Results show that FISP does not increase chances of moving out of food poverty. Rather, education greatly provides higher chances of moving out of food poverty. Between gender that have the same qualification, men have a greater probability of moving a household out of poverty. It was also found that household size has a negatively relationship with the probability of moving out of food poverty. The study recommends that government should strengthen the monitoring, evaluation and audit systems in order to make the FISP programme effective again.