Mozambique Country Economic Memorandum : Growth Prospects and Reform Agenda

This Country Economic Memorandum reviews the significant changes Mozambique underwent in the last five years, specifying that to continue its rapid growth, and reduce its high levels of poverty, the country will need to adopt a new set of reforms. Such reforms, focused on increasing the profitability of agriculture, and promoting labor-intensive manufacturing activities, hold the best hope to move poverty into prosperity. Three factors - increased political stability, deep economic reforms, and foreign assistance - contributed to the positive developments. But the country still faces absolute poverty, particularly in rural areas, where infrastructure, and communications are lacking, aggravated by high illiteracy, and low life expectancy rates. Strengthening the macroeconomic environment will require a reform agenda, reducing the fiscal deficit by increasing tax revenues, while improving public spending. Moreover, the country's external position continues to be vulnerable, thus the external balance needs to be strengthened. Therefore, infrastructure recovery, namely roads, would facilitate rural trade, as will alternative mechanisms not based on trade restrictions, to address food security concerns, and promote improvements in productivity. Strategic actions to prod private sector development, and increase flexibility in the labor market should be decisive, to enhance as well education, and health.

Bibliographic Details

Main Author:	World Bank
Language:	English en_US
Published:	Washington, DC 2001-02-07
Subjects:	ABSOLUTE POVERTY, ACCOUNTING, ADMINISTRATIVE BARRIERS, ADMINISTRATIVE PROCEDURES, AGRICULTURAL GROWTH, AGRICULTURAL OUTPUT, AGRICULTURAL PRODUCTIVITY, AGRICULTURAL SECTOR, AGRICULTURE, ALLOCATIVE EFFICIENCY, AVERAGE INCOME, BASIC EDUCATION, BLOCK GRANTS, BUDGET EXECUTION, BUDGET PROCESS, BUREAUCRACY, BUSINESS COMMUNITY, BUSINESS ENVIRONMENT, CAPITAL ACCOUNTS, CENTRAL BANK, CENTRAL PLANNING, CIVIL WAR, COMPETITIVE EXCHANGE, COMPETITIVE EXCHANGE RATE, COMPETITIVENESS, CONSUMER PRICE INDEX, CONTRACT ENFORCEMENT, CORRUPTION, CPI, CULTIVABLE LAND, DEBT, DEBT RELIEF, DEREGULATION, DEVELOPING COUNTRIES, DEVELOPMENT REPORT, DIRECT INVESTMENT, DIVERSIFICATION, DONOR AID, ECONOMIC ACTIVITY, ECONOMIC AFFAIRS, ECONOMIC DEVELOPMENT, ECONOMIC GROWTH, ECONOMIC RECOVERY, ECONOMIC REFORM, ECONOMIC REFORMS, ELECTRICITY, EMPLOYMENT, EXCHANGE RATE, EXCHANGE RATE POLICY, EXCHANGE RATES, EXPENDITURES, EXPORT TAXES, EXPORTS, EXTERNAL IMBALANCES, EXTERNAL TRADE, FINANCIAL SECTOR, FISHERIES, FOREIGN EXCHANGE, FOREST MANAGEMENT, GDP, GNP, GNP PER CAPITA, GOVERNMENT EXPENDITURES, GOVERNMENT REGULATION, GROSS DOMESTIC PRODUCT, GROSS NATIONAL PRODUCT, GROWTH PERFORMANCE, GROWTH PROSPECTS, GROWTH RATE, GROWTH RATES, HIGH GROWTH, HUMAN CAPITAL, HUMAN DEVELOPMENT, IMPROVING INFRASTRUCTURE, INCOME, INCREASE GROWTH, INFLATION, INFLATION RATE, INSTITUTIONAL CHANGE, INTEREST RATES, INTERNATIONAL DEVELOPMENT, INTERNATIONAL TRADE, JUDICIAL REFORM, LABOR MARKET, LAND USE, LEGISLATION, LITERACY RATES, LIVING STANDARDS, LONG RUN, MACROECONOMIC ENVIRONMENT, MACROECONOMIC FRAMEWORK, MACROECONOMIC MANAGEMENT, MACROECONOMIC PERFORMANCE, MACROECONOMICS, MARKET PRICES, MEDIUM TERM, MONETARY POLICY, MUNICIPALITIES, NATURAL RESOURCES, OUTPUT GROWTH, OVERHEAD COSTS, PER CAPITA INCOMES, POLITICAL STABILITY, POOR COUNTRIES, POPULATION GROWTH, PORTS, POVERTY REDUCTION, PRESENT VALUE, PRIMARY EDUCATION, PRIVATE SECTOR, PRIVATE SECTOR DEVELOPMENT, PRIVATE SECTOR GROWTH, PRODUCERS, PRODUCTIVE ASSETS, PRODUCTIVITY, PROPERTY RIGHTS, PUBLIC ENTERPRISES, PUBLIC EXPENDITURES, PUBLIC FUNDS, PUBLIC SECTOR, PUBLIC SPENDING, RAPID GROWTH, REAL EXCHANGE RATES, REDUCED POVERTY, REDUCING POVERTY, RESOURCE USE, ROADS, RURAL AREAS, SECTOR ACTIVITIES, SECTOR ACTIVITY, SERVICE DELIVERY, SIGNIFICANT FACTOR, SKILLED LABOR, SMALLHOLDER AGRICULTURE, SOCIAL DEVELOPMENT, SURCHARGES, TAX, TAX BASE, TAX INCENTIVES, TAX RATES, TAX REGIME, TAX REVENUES, TAX SYSTEM, TAXATION, TECHNOLOGICAL CHANGE, TELECOMMUNICATIONS, TOTAL COSTS, TRADE REGIME, TRADE TAXES, TRANSACTION COSTS, TRANSPARENCY, VALUE ADDED, WAGES COUNTRY ECONOMIC & SECTOR WORK, MACROECONOMIC STABILITY, EXTERNAL FINANCE, REFORM POLICY, LABOR INTENSIVE INDUSTRIES, INFRASTRUCTURE, EDUCATION SECTOR, HEALTH DELIVERY, SOCIAL ASSISTANCE PROGRAMS, MACROECONOMIC ADJUSTMENT, FISCAL DEFICITS, DEVELOPMENT ASSISTANCE, TRADE FACILITATION, TRADE BARRIERS, FOOD SECURITY, PRODUCTIVITY POLICY, HUMAN RESOURCES DEVELOPMENT, SECTORAL PLANNING, NATURAL RESOURCES DEVELOPMENT, ENVIRONMENTAL CRITERIA,
Online Access:	http://documents.worldbank.org/curated/en/2001/02/1000570/mozambique-country-economic-memorandum-growth-prospects-reform-agenda https://hdl.handle.net/10986/15710
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