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land area and cropping pattern. The basis for the profile
models are static, not behavioral; i.e., they do not a
consumption patterns in response to price changes. Or
the only staple food crop. In reality, cropping patterns
simplification, the profiles allow us to identify short-ter

 Table 2.1 shows characteristics of the five house
household types in the rural economy, their cropping
five-year period from 1990/91 to 1994/95.

 Overall,_families who have access to purchased
hybrid maize have done well with liberalization. Their in
in real terms, to such an extent that they can acquire enoi
These families often have above average farm size. I
intermediate case. Until 1994/95, nominal income was s
cotton market was opened up to competition and prices r
normally be food secure, but, until last year, it would nol


However, if cotton prices stay high, this situation may change.


 a / V
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 Households which are maize deficient and have no resources to invest in improved maize
varieties have lost out due to rising market prices, although, as they have very little marketed
output, the size of this loss is limited. These households tend to have below average size. One
type of household which is not represented in the models above is the very poor family who has
virtually no interaction with the market. There are indications that the poorest rural households
in Malawi, whose number is difficult to estimate, exist in a world of their own production and
bart=L They perform ganyu largely for maize, and they barter any spare vegetables or pulses for
food. Market liberalization has almost certainly had very little impact on them.

 If these findings are representative, they raise important issues about how poor rural
households can be given some ability to participate in markets on better terms than they are doing
now. Unless they can develop the ability to buy inputs, raise cash crops, and otherwise improve
their productivity, they are fated to a life of increased marginalisation if they continue to depend
on agriculture for their major income source.

 The main hope for these households to break away from poverty and become food secure
 is through employment or other income generating activities. The principal form of employment
 in the rural area is ganyu. Other income generating activities will primarily come through off-
 farm activities such as petty trading, food processing and catering. Poor households' ability to
 find employment or engage in incon egnerating activities depends on two factors: general growth



 2 Details on methodology and data sources are given in Annex C.


BI