Pekka Virtanen () (University of Tampere, Finland) Dag Ehrenpreis () (International Poverty Centre)
Abstract
Mozambique has experienced more than a decade of sustained economic growth based on two sectors, agriculture and industry. Absolute poverty has fallen rapidly. The main factor in the reduction of poverty since the mid 1990s has been increased production in agriculture, the main source by far of livelihoods in the country. However, this growth represents only a ?bounce-back? to pre-war levels of agricultural production, without any substantial improvement in productivity, which remains very low even when compared regionally. Growth in industrial production has been the main driving force behind Mozambique?s rapidly growing exports. Based on a few mega-projects, this growth has, however, created few jobs while its contribution to public revenue has been marginal when compared to its value of production. Due to the enclave character of such projects, the spillover effect in terms of technology transfer or skills development has been minimal. External aid provides a major part of all foreign exchange available to Mozambique, and it has thus far had a positive effect on growth without major negative impact on the real exchange rate. Aid must be allocated now to crucial services for creating globally competitive agricultural production capacity, including rural infrastructure, in order to promote sustainable livelihoods and enhance labour productivity.
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Publisher Info
Paper provided by International Policy Centre for Inclusive Growth in its series Country Study with number
10.
Length: 26 Date of creation: Sep 2007 Date of revision: Publication status: Published by UNDP - International Poverty Centre, September 2007, pages 1-26 Handle: RePEc:ipc:cstudy:10
References listed on IDEAS Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
Tarp, Finn & Simler, Kenneth & Matusse, Cristina & Heltberg, Rasmus & Dava, Gabriel, 2002.
"The robustness of poverty profiles reconsidered,"
FCND briefs
124, International Food Policy Research Institute (IFPRI).
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