Whose Wealth Is It Anyway? Mozambique’s Outstanding Economic Growth with Worsening Rural Poverty

By Benedito Cunguara, Joseph Hanlon on May 17, 2012

Despite rapid economic growth and massive inflows of aid, rural poverty
in Mozambique is worsening. Agricultural production and productivity
have not increased in the last decade. Use of chemical fertilizers and
other modern technology is at a low level and decreasing. The present
development model emphasizes that the role of government and donors is
to provide human capital and infrastructure, while the private sector is
responsible for economic development and ending poverty. The most
recent national surveys confirm what is being seen elsewhere in Africa —
that this non-interventionist strategy does not raise agricultural
productivity or reduce poverty. While 80 per cent of Mozambique's
population is engaged in agriculture, this sector contributes only 20
per cent of GDP. This suggests that investments in agriculture are
likely to generate pro-poor growth, both to rural and urban dwellers.
This policy failure is increasingly recognized, but donors and
government have invested too much political capital in the current
policy to change easily.

View list of all: Journal Articles