FOREIGN RELATIONS
1. Foreign TradeA fundamental weakness and mistake of the MCP Government in the sphere of foreign trade has been the distortion of export markets through the use of prototype policies, which took satisfaction in the relatively simple exporting of primary products such as tobacco, tea and sugar. The approach should be to develop alternative export products, including finished agricultural products which will increase the country's export earnings.
Unless a country has learned this lesson it cannot develop. Even in the field of agriculture, the MCP Government failed to create or expand export markets for products such as maize in which Malawi processes a natural advantage. The Labour Party will Endeavour to take following steps to improve foreign trade:-
2. Intra-African Trade
Southern Africa regional export market remains surprisingly untapped. To stimulate this, there is need for a new flexibility in exchange rates policy, coupled with reduced tariff and quota barriers.
For the sake of growth in the economy the NARC’S Government will not hesitate to use counter-trade in order to practically by-pass currency convertibility obstacles or lack of foreign exchange.
3. Convertibility of Currencies
1. Above all, the NARC’S Government will negotiate boldly with its trading neighbours such as Zambia, Zimbabwe, Mozambique and Tanzania, for the convertibility of their currencies. This would enable a Malawian exporter to Zambia, to receive his pay in Malawi Kwacha through the bank of Zambia and vice-versa for a Zambian exporter to Malawi. This will automatically result in the expansion of export markets for Malawian farmers and business men.
2. Policy changes in this regard should include automating existing and creating new clearing houses, promoting more trade fairs, encouraging Malawians to purchase and consume African Products and to organize investment forums during the fairs. Other steps will include reduction of heavy taxes on imports and elimination of bureaucratic hurdles which render intra-African Trade uneconomic. Learning from other export nations will be useful, particularly from the agro-industry sectors or South East Asian countries. Emulations from there could include the setting up of free zones, diversifying crop varieties, processing commodity exports through contractors instead of selling them in their raw state, reduce bureaucratic entanglements in the use of letters of credit and import licenses. By and large, it is necessary that Malawian exporters become aggressive, do market research, master the language of the country to which Malawi exports (e.g. master Portuguese if you export to Mozambique). In other words, Malawians must sell themselves in competitive foreign markets.
4. Foreign Policy
NARC’S Government's foreign policy will, first and foremost, seek to meet the interests of the new and changing nation with the prime objectives of maintaining national security and territorial integrity. Factors such as growing human population, limited natural resources base, socio-economic needs, environmental concerns, and land-lockedness of the country will be accounted for in the conduct of the new foreign relations.
In view of these, NARC’S Government's foreign policy will be economic-oriented:
At continental level, NARC’S Government will strive for peaceful co-existence and will cooperate with other African sovereign states for economic advancement of the Region, and above all, of the Malawian people.
At global level, NARC’S Government will entail that the new Malawi is active and sensitive to current international issues, rather than remain docile and isolated in the face of global tension and misery. NARC’S Government will, in this regard, promote friendly and cooperative relations among the family of nations and international organisations with a view to achieving an international order based on justice and fairness. NARC’S Government will also broaden diplomatic cooperation including with those countries which were hitherto cut-off or avoided because of harmless ideological differences.
In pursuit of these objectives, Malawi of the NARC’S will be guided by the following principles:
1. Respect for state sovereignty and territorial integrity.
2. Respect for human rights.
3. Non-interference in the internal affairs of other states.
4. Neutrality and peaceful settlement of disputes.
On regional economic co-operation, NARC’S Government will co-operate with SADCC and PT A to integrate the economies of Eastern and Southern Africa on the basis of equity, balance and mutual benefit.
As regards the donor community, NARC’S Government will co-operate and work with all donors to restore confidence and mutual trust. NARC’S Government will also develop projects and programmes for funding by the International Monetary Fund, the World Bank, the African Development Bank and other donors to promote genuine stability and development of Malawi.