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[ Field reports - Mozambique] |
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Field reports Mozambique
No results – No money
19 donor organisations and countries, including
Switzerland, are co-financing the state budget of
Mozambique. In return, the government commits itself
to work towards 40 goals from various areas of state
activities. If government reforms and their progress
are considered to be satisfactory overall, the donors
agree to support the state also in the following
year.
Law and justice – a luxury?
The experiences made so far with the legal reform
are very mixed. However, the government’s engagement
for this new strategy, for example arresting a number
of people even in among high ranking officials and
former ministers as well as the aims documented
in the budget supports’ performance assessment framework
let one hope that a new area has started when it
comes to reforms in the legal system.
How Mozambique managed Banco Austral’s
crisis
The banking crisis was a threat to the savings of
many small savers who trusted Banco Austral with
their money. At the same time prominent profiteers
and politicians worried about their reputation.
The government foresaw a bank run and considered
Mozambique’s still fragile banking system to be
endangered. Faced with this dilemma, the government
wanted to save the banks at risk with a singular
financial injection.
More self generated income, less dependency
In spite of the continuing dependency on foreign
aid Mozambique’s mobilisation of internal resources
is a success story. In 1996 taxes, customs and other
income amounted to 10.8 percent of the national
income. 12 years later, in 2008, the share was at
16.4 percent.
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Expanding rural infrastructure
A dead hand of the early years of independence is
the concentration of power and the administration
in the capital Maputo. In view of a citizen friendly
administration the donors have promoted decentralisation
for a long time. In return for budget support the
government has, among other things, committed itself
to advance decentralisation.
Holding donors accountable
The principle of mutual accountability has been
anchored internationally for the first time in 2005
in the context of the Paris Declaration on Aid Effectiveness.
Developing countries should not be the only ones
presenting their achievements, also donors should
be assessed with respect to fulfilling their own
principles and promises.
Breaking new grounds
Strengthening local capacities is a paramount accompanying
measure of budget support. Switzerland contributed
considerably to the development of governmental
as well as non-governmental institutions. There
is unanimous agreement when it comes to the significance
of increased local capacities for analysis in view
of alternative economic policies.
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