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The Malawi Growth and Development Strategy II (MGDS-II) is a poverty reduction strategy for the period 2006–11, which is aimed at fulfilling Malawi’s future developmental aspiration—Vision 2020. The strategy identifies broad thematic areas and key priority areas to bring about sustained economic growth. A striking feature of this strategy is that the various governmental organizations, private sector, and general public are equal stakeholders. However, successful implementation of MGDS-II will largely depend on sound macroeconomic management and a stable political environment.
According to MGDS-II, certain major factors such as Malawi’s vulnerability to external shocks, inadequate policy response, and weak implementation capacity have hindered growth and development of the economy. The political risks resulting from the upcoming 2014 tripartite elections have also been cited as a major issue. The report suggests that the government should look into the issues of corruption. IMF staffs has put forth certain guidelines that need to be followed when the first Annual Progress Report is prepared.