Economics, the course I found most difficult to comprehend in my
studies at Harding University, is having a devastating impact on Blessings Hospital. But, there
are some pretty simple economic truths that did make sense and stick with me
until this day, most of which my Daddy taught me before I got to Harding.
- You can’t spend money you don’t have.
- Loans cost more than savings earn (bankers
have to make a living too).
- When the government prints more money, it is
relatively worth less.
And now, a brief summary of
the economic chaos which is Malawi today. For some years Malawi has been
very dependent on outside donors for the normal operations of government, not
just special projects. Forty percent of normal budgetary operating
expenses are paid for by outside donors, with England leading the way. In
August or September, while the president was out of the country, a high-ranking
budgetary official was shot in the face about midnight one night as he was
waiting for the gate to his house to be opened. Other high-ranking officials
were accused of being involved in this attempted murder.
Shortly after this a series
of low and high-ranking officials were found to be in possession of rather
large amounts of cash, extravagant houses, or other things far above their
means for which they could not account. Now, after some weeks of
international forensic auditing, it has been announced that $34,000,000 either
disappeared (half of it) or was grossly misused by government officials in the six months ending in the shooting.
England and the European Union cut off all aid to the country in
anticipation of this result, gutting that 40% of the country’s operating
budget.
The value of the Malawian
currency, the Kwacha, has plummeted, going from a fixed rate of 150 per dollar to a
depth of 430 per dollar in less than 2 years. The troops in the trenches were pressed as salaries decreased in buying power. Some non-governmental international aid organizations
(NGO’s) were able to make salary adjustments to the extent their income was in
dollars, but government no longer had such a luxury. Even the cost of
corn soared as the fuel to transport it and grind it climbed in price. Workers became very restless. Something had to be done. So,
the government gave all its employees a 50% raise.
This eased the
cries of the proletariat, but . . . where did the money come from? Within
a few months reports began to leak out. A friend working in a government
clinic told me that at their site, the only medicines which are available are
contraceptives, malaria medicine, and meds for HIV, all of which are supplied
through special projects mostly administered through NGO’s without the
government touching the money. Other departments reported workers sitting
in their offices unable to do their usual work due to no tools or ability to
take a departmental truck into the field. The one department that seems to
have increased activity is the Malawi Police Force: I have never seen so
many police on the highway handing out fines newly increased from MK 3000 to MK
5000.
The effect on
competition for workers with the private sector has been devastating. Due
to chronic shortages, the government and mission hospitals have not quit hiring
medical personnel. Mission hospitals (called CHAM hospitals for
their membership in the Christian Health Association of Malawi) have been
relatively protected because their clinical personnel are paid mostly by the
government. One large mission provider recently reported that 40% of its
income comes from the Malawi government, 40% from donations from outside the
country, and 20% is generated from church contributions within the country and
from hospital revenues.
Blessings
Hospital is in trouble. We are running out of nurses, and are unable to
hire others at our current salary level. The administration is working hard to
become a CHAM member, but it is estimated that the process will take 2
years. Most of our operating revenue comes from the care we deliver. Our
census is rising. The number of people we are helping is going up.
The number of babies born in our facility is increasing. By the
grace of the Sara Walker Foundation we are visiting an increasing number of
villages with a mobile clinic, villages that are far from medical care whose
only transportation is a bicycle. The same vehicle makes it possible for
us to carry patients who need it to a higher level of care.
Our biggest acute problem is personnel salaries. We need to give our workers a generous raise. We need to hire others. Desperately. We are living off per diem nurses who earn less, mostly government workers who are willing to double on their vacation days. But, the time when most people take vacation is about gone, and our needs are increasing as our nurses leave.
Our biggest acute problem is personnel salaries. We need to give our workers a generous raise. We need to hire others. Desperately. We are living off per diem nurses who earn less, mostly government workers who are willing to double on their vacation days. But, the time when most people take vacation is about gone, and our needs are increasing as our nurses leave.
If you would help us raise a nurse’s salary up to a minimum level, or even explore a partnership like that for one or two years as we process our CHAM papers, please contact me at brucesmithmd@gmail.com We will be happy to share further details with you and explain how to process your tax-deductible contribution so that it can be used most effectively. Learn more about Blessings Hospital through her Facebook page, or for a tour of the hospital, click here.