Renowned economic guru who is also former Reserve Bank governor, Dr Dalitso Kabambe says President Dr Lazarus McCarthy Chakwera has failed to steer the ship forward due to his poor economic policies and failure to tame corruption in his government.
He was speaking last night in an Exclusive Interview with Times Group.
Kabambe also faulted the Reserve Bank of Malawi for failing to tighten monetary and exchange rate policies in 2020, as one way of taming inflation which is now at 29%, and causing untold miseries on poor Malawians as they cannot afford basic needs.
“The MCP government under Presidentnt Chakwera has failed on fundamental principles of economics which are to managing monetary policy, fiscal policy and exchange rate. The elephant in the room is the appetite by Chakwera himself to continue spending and yet government is ‘broke’, having not more than one month foreign exchange reserves, while implementing policies that are suffocating the private sector, which is an engine for the growth of any economy. Chakwera’s administration continues to borrow money from banks that was supposed to be used for the private sector in producing goods and services”, he said.
“President Chakwera must take drastic measures to stop this unnecessary spending now before the economy completely “collapses” by among others stopping local and international travels, recall some diplomats to cut wage bill and stop buying will nilly goods and services outside the country. This is the time to make sacrifices and save the ship from drowning,” said Kabambe.
Many Malawians who followed the interview, have opined that Kabambe was in a class of his own lecturing President Chakwera, Finance Minister Sosten Gwengwe, and Reserve Bank governor, Dr Wilson Banda on good economic practices that can save Malawi from total collapse.
On politics, Kabambe said he is running for the Democratic Progressive Party (DPP) presidency, but if APM decides to stand at the next year’s convention, he will discuss with APM because “no sensible ‘son’ can challenge his father in an election”.
But, some political and social commentators have commended Dr Kabambe for his maturity and shrewdness in decision making, both politically and economically.
DPP Vice President for the East Bright Msaka, Joseph Mwanamvekha, and Paul Gadama, DPP vice president for the South Kondwani Nankhumwa are other individuals vying for the position of DPP President.