[{"bbox": [126, 120, 1104, 204], "category": "Text", "text": "arise on the way to achieving results on a problem-by-problem basis using coaching, brokering between stakeholders, as well as facilitating resources when needed, ensuring the planned change occurs."}, {"bbox": [126, 220, 1104, 393], "category": "Text", "text": "The inclusion of support to improve accountability is important to create domestic and sustained demand for transparency and accountability, indispensable for the overall framework of checks and balances in Malawi. However, as building the capacity of the various actors is not an end in itself, the project is focusing on providing a national platform to broadcast issues of PFM to the attention of millions. Regular TV and radio shows are expected to amplify the voice of accountability actors throughout the country and beyond."}, {"bbox": [126, 406, 1104, 637], "category": "Text", "text": "The Action will be implemented by means of a Service Contract in indirect management to strengthen the capacities of the Ministry of Finance and other core PFM institutions responsible for delivering PFM reforms and a Contribution Agreement with the International Monetary Fund (IMF) to improve the effectiveness and efficiency of tax administration. A call for proposals in direct management will identify the most suitable actions to increase domestic accountably by interventions from the civil society including academia. A service provider will be identified in direct management to establish a TV/Radio platform to sensitise the public on PFM and enhance domestic accountability."}, {"bbox": [126, 678, 275, 703], "category": "Section-header", "text": "# 1 CONTEXT"}, {"bbox": [126, 719, 404, 748], "category": "Section-header", "text": "## 1.1 Context Description"}, {"bbox": [126, 748, 1104, 865], "category": "Text", "text": "Malawi is an underdeveloped, disaster-prone country. The World Bank (WB) ranks Malawi, with a gross income per capita of USD 340, among the poorest countries in the world, ranked in place 170 (of 188) on the Human Development Index 2017. About 90 % of the population live in rural areas and over 70 %² of the population live below the income poverty line."}, {"bbox": [126, 876, 1104, 992], "category": "Text", "text": "Malawi has seen substantial financial and economic challenges. The country's economic growth over the last decade has shown a discernible downward trend, with the respective IMF programme being on- and off-track over periods. The recent outlook is slightly more positive, growth is expected to climb to about 4.5 %, surpassing the population growth rate of 2.87 %."}, {"bbox": [126, 1004, 1104, 1178], "category": "Text", "text": "Malawi is not an easy place to do business. There are different constraints to private sector and trade development conducive to growth. The intermittent power supply, high transport costs, and importantly, the lack of skills of the Malawian labour force are other prominent challenges. The trade and policy environment, unpredictable and politicised, is not conducive to private sector growth. In particular, taxation regime, access to finance and corruption are ranked by businesses as the highest constraints."}, {"bbox": [126, 1190, 1104, 1476], "category": "Text", "text": "The fiscal position continues to remain weak despite recent efforts at consolidation. The government continuously reduced the deficit to 4 % of gross domestic product (GDP), at great societal cost. In order to further improve, Malawi will need to act on the revenue and expenditure side. During the FY 2013/14 and 2014/15, the Government ran large fiscal deficits (around 6 % of GDP), mainly because of inability to reduce spending following the freeze of budget support by all donors.³ In 2015, the Government started to implement the short-term PFM action plan to address immediate shortcomings. These efforts are slowly starting to bear fruit but more needs to be done to restore public trust in the PFM system. Still today, the Government is challenged to keep the deficit in check with significant recourse to costly domestic financing, at times in excess of target limits."}, {"bbox": [126, 1557, 620, 1582], "category": "Footnote", "text": "² http://povertydata.worldbank.org/poverty/country/MWI"}, {"bbox": [126, 1582, 1104, 1629], "category": "Footnote", "text": "³ A forensic audit of the Cashgate scandal (2013) uncovered major weaknesses in the PFM control environment involving government officials colluding to circumvent internal controls."}, {"bbox": [609, 1667, 621, 1687], "category": "Page-footer", "text": "3"}]