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Facing the development challenge in Mozambique: an economywide perspective

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Author Info
Tarp, Finn
Arndt, Channing
Jensen, Henning Tarp
Robinson, Sherman
Heltberg, Rasmus

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Abstract

"Following Mozambique's economic collapse in 1986, the country began a wide-ranging process of reform, with the support of the international community. The diagnosis was of an economy that failed to maintain monetary control, consumed beyond its means, focused production excessively on nontraded goods, and relied on inefficient and inflexible microeconomic structures. Nevertheless, Mozambique was also at war. The pace of stabilization and structural adjustment quickened after 1992, when, concurrent with the demise of apartheid, civil strife finally came to an end. After more than 10 years of adjustment, the reform program has now been essentially implemented. Yet, this does not imply, as shown in this study, that sufficient conditions for sustained economic development are in place. Mozambique remains very poor, and even under highly optimistic assumptions about the future, the development process is set to last for decades. This report attempts to respond to some of the basic development challenges facing Mozambique and to provide both qualitative and quantitative insights for policymaking in the years to come. Throughout, the issues addressed are approached from an economywide perspective ....Finally, this study aims to demonstrate that sophisticated analytical tools can be of significant value, even in “data-poor” situations. The need for a clear perspective and in-depth understanding of the socioeconomic complexities of the country in question stands out. However, while the analyses in this report are Mozambique specific, the basic analytical approach is replicable and could be brought to bear on other countries both within and outside Africa." From Authors' Introduction.

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Paper provided by International Food Policy Research Institute (IFPRI) in its series Research reports with number 126.

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Date of creation: 2002
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Handle: RePEc:fpr:resrep:126

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Related research
Keywords: Structural adjustment (Economic policy) Mozambique.; Mozambique Economic conditions 1975- .; Mozambique Social conditions.; Agriculture Economic aspects Africa.; Poverty.;

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  1. Henning Tarp Jensen & Sherman Robinson & Finn Tarp, 2004. "General Equilibrium Measures of Agricultural Policy Bias in Fifteen Developing Countries," Discussion Papers 04-25, University of Copenhagen. Department of Economics. [Downloadable!]
    Other versions:
  2. Arndt, Channing, 2005. "The Doha Trade Round and Mozambique," Policy Research Working Paper Series 3717, The World Bank. [Downloadable!]
  3. Channing Arndt & Sherman Robinson & Finn Tarp, 2006. "Trade Reform and Gender in Mozambique," Nordic Journal of Political Economy, Nordic Journal of Political Economy, vol. 32, pages 73-89. [Downloadable!]
  4. Arndt, Channing, 2002. "HIV/AIDS, human capital, and economic prospects for Mozambique," TMD discussion papers 88, International Food Policy Research Institute (IFPRI). [Downloadable!]
  5. Heltberg, Rasmus & Simler, Kenneth & Tarp, Finn, 2003. "Public spending and poverty in Mozambique," FCND discussion papers 167, International Food Policy Research Institute (IFPRI). [Downloadable!]
    Other versions:
  6. Duncan Boughton & Rui M.S. Benfica, 2007. "Income Poverty Effects of Expansion and Policies in Cash Cropping Economies in Rural Mozambique: An Economy-wide Approach," International Development Collaborative Working Papers MZ-MINAG-RR-64e, Department of Agricultural Economics, Michigan State University. [Downloadable!]
  7. Channing Arndt & Finn Tarp, 2004. "On Trade Policy Reform and the Missing Revenue: an Application to Mozambique," Discussion Papers 04-19, University of Copenhagen. Department of Economics. [Downloadable!]
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