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The system worked well enough when Malawians were all farmers and there was plenty of land to go round.
ECONOMIST: No title
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Malawians welcomed his focus on reducing reliance on food aid and attaining self-sufficiency.
CNN: STORY HIGHLIGHTS
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"The fact that we had to devalue by 40% at once means that Malawians are feeling the shock, " Banda says.
CNN: Malawi's head of state: 'Why I'm selling presidential jet'
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During her news conference, Banda, along with former President Bakili Muluzi, called on Malawians to adhere to the constitution regarding the issue of succession.
CNN: STORY HIGHLIGHTS
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But, he warns, ordinary Malawians will measure the president's success on more mundane matters like his ability to deliver drugs to hospitals and fertiliser to farms.
BBC: Bingu wa Mutharika
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These development challenges are intertwined in the lives of Malawians, and we must fight for progress on many fronts if we are to lift my country from poverty.
CNN: Educating girls like Chrissie can save a nation
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He said the health system could not cope with the Aids crisis and Malawians should the scourge by discouraging the kind of behaviour that helps the spread of the disease.
BBC: Funeral of Aids patient in Zambia
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The 33% currency devaluation - although widely recommended by economists - has put huge strain on the treasury, and on many ordinary Malawians, as the price of imported goods has soared.
BBC: UK call to aid Malawi's economy
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Malawians were told to prosper by tilling the land.
ECONOMIST: Hastings Banda
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Demand is brisk: Malawians adore goat stew.
ECONOMIST: No title
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Mr Muluzi, who dubbed himself the "political engineer", sold Mr Mutharika to Malawians as the "economic engineer" and did all the campaigning on behalf of his protege - so much that it was a complete surprise that the two fell out immediately after the elections.
BBC: Bingu wa Mutharika (back) and Bakili Muluzi (front)