tbf it looks like the categories that drag Malawi’s economy down are the trade restrictions which were discussed and lack of “sound money”: inflation is often a symptom of being poor[1] rather than anything particularly unusual about its institutions.
Even more so if we compare institutions with Botswana and its relative wealth from being able to export diamonds rather than basic food.
productivity growth locally not keeping up with the cost of necessary imports, basically. Looks like Malawi de-pegged their economy from the dollar a while back because of balance of payment problems rather than because of some weird governmental quirk.
tbf it looks like the categories that drag Malawi’s economy down are the trade restrictions which were discussed and lack of “sound money”: inflation is often a symptom of being poor[1] rather than anything particularly unusual about its institutions.
Even more so if we compare institutions with Botswana and its relative wealth from being able to export diamonds rather than basic food.
productivity growth locally not keeping up with the cost of necessary imports, basically. Looks like Malawi de-pegged their economy from the dollar a while back because of balance of payment problems rather than because of some weird governmental quirk.