Adjusting the institutional environment of risk and uncertainty: Implications for agricultural policy in Malawi

Risk and uncertainty in agriculture retard the rate of agricultural and, hence, economic development. This paper focuses on how the institutional environment can be adjusted to meet the needs of the farming population of Malawi more fully, thereby reducing risk and uncertainty and improving farm decision making. The study reveals apparent lack of coordination between researchers of different institutions; researchers and extension workers; and researchers, planners and policy makers. Also, government policies, e.g., pricing policy, do not always coincide with project plans. Planning has mostly been of the ‘top-down’ nature with the farmer hardly involved in decision making beyond his farm. The effects of risk and uncertainty could be somewhat alleviated if multi-disciplinary on-farm research coupled with ‘bottom-up’ vis-à-vis the currently predominant ‘top-down’ planning were employed.