Decision Making Processes in the Formulation of Strategies for Economic Diplomacy in Malawi: A Case for Foreign Direct Investment1991- 2018

This research has been driven by the desire (of a practitioner assigned to mobilize potential investors to Malawi in a diplomatic office) to find a solution to challenges faced by Malawi in attracting Foreign Direct Investment (FDI). Starting from a foreign policy analysis point of view, it is clear that foreign policy has two major strands: the traditional power politics which is dependent on military power; and the economic diplomacy which has evolved from commercial diplomacy. Although diplomacy is generally manifested by those actions performed targeting the audience in other territories, studies have shown that the starting point of understanding foreign policy analysis should be the decision-making processes within the state. Graham Allison’s decision-making models form the foundation to understanding how and why decisions succeed or fail. This research investigates the decision-making processes in the Malawi government using Allison’s three models; Rational Actor Model; Organization Process Model; and Bureaucratic Politics Model. The research focuses on identifying actors, the structure for decision-making and the process. The research employed a mixed methodology, relying on both secondary and primary data. The findings indicate that while there is abundant political will to create a conducive and competitive environment for FDI, there is prevalent political jostling with the result that there is lack of coordination in the FDI policy formulation. The research recommends the strengthening of the bureaucratic process model.