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Commitments to Save - Innovations for Poverty Action

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Raising Malawian agricultural productivity<br />

• Government’s main approach <strong>to</strong> raising agricultural<br />

productivity has been large-scale fertilizer subsidies <strong>for</strong><br />

smallholders<br />

– 11% of government budget in 2010/11<br />

– But not sustainable: requires continued donor<br />

support<br />

• An open question: can improvements in rural financial<br />

services improve farmer input utilization without<br />

external subsidies?<br />

3

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