EU-Malawi Relations, 1985-2010: Aid and Trade (Tobacco Exports)

Abstract

This study explored, from the recipient-point of view, the European Union and Malawi relations, from 1985 to 2010, focusing on aid and trade commitments by the former to the latter, using the case of tobacco, which is a major Malawi export to the European Union market. The objectives of the study were to examine European Union aid and trade commitments in Malawi; to assess the performance of tobacco exports within the context of European Union trade commitments to Malawi; and to explore the link between trade protectionism and foreign aid dependency and its interplay on Malawi’s economic development. The findings of this study inputs into policies on international development. The study is significant because it contributes to scholarly knowledge, a fresh, country specific, perspective of the interplay between aid and trade. The study was informed by the Dual Gap Analysis Theory and the Harrod-Domar Growth Model. These were used to interrogate aid while the Comparative Advantage/ Stolper-Samuelson theorem was employed to probe international trade relations in respect of trade aspect of the European Union-Malawi co-operation. This study adopted an exploratory research design and purposive sampling technique was utilized. Data was collected from three categories of study population: Malawi government and its respective institutions; delegation of European Union to Malawi and diplomatic missions of its member states resident in Malawi; key tobacco actors, among them government institutions, large and small-scale farmers, seasonal and permanent employees through a questionnaire administered during interviews. Primary data was triangulated with official documents, reports and extensive review of current literature.