This paper contains spatial and intertemporal comparisons of multidimensional poverty and
inequality in Malawi using two non-monetary dimensions, namely an asset index and child
nutritional status. Through stochastic dominance tests, we establish that poverty and inequality are
unambiguously higher in rural areas, the Southern region and households headed by females. We
find, using decomposition analysis, that most poor people live in rural areas which make up 85% of
total population. Poverty comparisons over time, between 1992 and 2010, show that poverty has
significantly declined in Malawi and that these gains have largely been pro-poor in both absolute and
relative terms. The paper shows that Malawi’s poverty profile is a ‘bad picture’ in the sense that
almost half of the population is still poor but a ‘good movie’ in that the incidence of poverty has
fallen from as high as 80%. Interestingly, we find that poverty and inequality estimates do not vary
much across regions and areas with respect to child nutritional status but large differences exist
when assets are used. We also find that stunting is a bigger problem among under-5 children in
Malawi than wasting and being underweight. Econometric analysis shows that asset ownership is
positively associated with household size (suggesting economies of scale), age of household head
and education attainment. Age dependency ratio and shocks to sickness are negatively associated
with asset ownership. Multivariate analysis of child nutrition reveals that malnutrition first worsens
before improvement begins to take place at some critical age. This is consistent with possible
recovery from malnutrition as has been found in some of the studies that track children over time.
Also consistent with some literature is the finding that boys have weaker nutritional status than girls.