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APC3701 - PAST EXAM SOLUTIONS NOTES
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APC3701EXAM SOLUTIONS
SEMESTER 01 – 2023
1
Title: Mozambique's Economic Inheritance and Expansion Policy Post-
Independence
Introduction:
Mozambique, a country located in Southeast Africa, gained its independence from
Portugal in 1975. The nation inherited a complex economic landscape shaped by
colonial rule, marked by exploitation, underdevelopment, and dependence on foreign
powers. Following independence, Mozambique implemented a series of economic
policies aimed at addressing these challenges and promoting growth and
development. This essay critically discusses Mozambique's economic inheritance and
its subsequent expansion policies post-independence, exploring the successes,
challenges, and long-term implications.
Discussion
Historical Economic Context:
During colonial rule, Mozambique's economy was primarily structured to serve
Portuguese interests, characterized by the extraction of natural resources and limited
industrial development. This economic model left Mozambique heavily dependent on
foreign markets and vulnerable to external shocks. Additionally, the colonial legacy
included inadequate infrastructure, limited human capital development, and stark
regional disparities. These factors posed significant challenges for the newly
independent nation.
Economic Policies and Strategies:
Socialist Model and Nationalization:
In the early years of independence, Mozambique pursued a socialist-oriented
economic model. The government nationalized key industries, including agriculture,
mining, and infrastructure, aiming to redistribute wealth and promote self-sufficiency.
However, the implementation of these policies faced numerous challenges, including
insufficient resources, lack of expertise, and the impact of civil unrest and armed
conflicts.
The new government of Mozambique, led by the Frente de Libertação de Moçambique
(FRELIMO), was committed to socialist economic development. The government
nationalized most industries and land, and embarked on a program of rural
development. However, the government's economic policies were not successful. The
economy stagnated, and the country was plagued by drought and famine.
In 1986, FRELIMO abandoned its socialist economic policies and adopted a market-
oriented approach. The government privatized many state-owned enterprises, and
opened the economy to foreign investment. These reforms led to a period of economic
growth. However, Mozambique remained one of the poorest countries in the world.
, In 2002, the Mozambican civil war ended. The end of the war created a more favorable
environment for economic growth. The government continued to implement market-
oriented reforms, and the economy grew at an average rate of 7% per year between
2003 and 2011.
However, the global financial crisis of 2008 had a negative impact on Mozambique's
economy. The economy grew at a slower pace in the following years, and poverty
remained a major problem.
In recent years, Mozambique has made progress in reducing poverty. The country's
Human Development Index (HDI) has improved, and the number of people living
below the poverty line has fallen. However, Mozambique still faces a number of
challenges, including high unemployment, illiteracy, and inequality.
Mozambique's economic inheritance and expansion policy post-independence have
been a mixed bag. The country has made some progress in reducing poverty, but it
remains one of the poorest countries in the world. The government will need to
continue to implement market-oriented reforms and invest in education and healthcare
in order to achieve sustainable economic growth and development.
Here are some of the key challenges that Mozambique faces in terms of economic
development:
High unemployment: The unemployment rate in Mozambique is estimated to be
around 20%. This is a major challenge for the government, as it means that a large
number of people are not able to find work and earn a living.
Illiteracy: The illiteracy rate in Mozambique is estimated to be around 40%. This means
that a large number of people are unable to read or write. This is a major barrier to
economic development, as it prevents people from accessing education and training,
and from finding jobs.
Inequality: Mozambique is a very unequal country. The richest 10% of the population
control around 40% of the country's wealth. This inequality is a major obstacle to
economic development, as it prevents the poor from benefiting from economic growth.
The government of Mozambique is aware of these challenges, and is working to
address them. The government has implemented a number of programs to promote
economic growth, including investing in infrastructure, education, and healthcare. The
government is also working to reduce poverty and inequality.
The challenges that Mozambique faces are significant, but the country has made some
progress in recent years. If the government can continue to implement its economic
policies and invest in its people, Mozambique has the potential to achieve sustainable
economic growth and development.
Structural Adjustment Programs (SAPs):
During the 1980s and 1990s, Mozambique embarked on structural adjustment
programs as part of the International Monetary Fund (IMF) and World Bank's policy
prescriptions. These programs aimed to liberalize the economy, attract foreign
investment, and promote market-oriented reforms. While SAPs led to some
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