Mozambique’s Economy Essay

Submitted By laxer13
Words: 1160
Pages: 5
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Kyle Wardin
POLS 352-01
December 6, 2012
Dr. M
Revamping Infrastructure Mozambique’s has had a troubling past; they were one of the last countries in Africa to gain their independence from their colonial rulers. The Portuguese were not the worst colonial leaders but when they left in 1975 the country slipped into an economic depression and political turmoil. There was also a huge toll taken on the country because there was an armed struggle that lasted for 10 years before he Portuguese granted them independence. This armed conflict destroyed roads, buildings, and ports that Mozambique needed to continue to prosper. The FRELIMO (The Liberation Front of Mozambique) was the party that took over the country and formed a one-party state that was allied with the Soviet Union. Shortly after taking over FRLIMO was under attack from RENAMO (Mozambican National Resistance), this sparked a fifteen year civil war that lasted from 1977 to 1992. This civil killed over one million civilians and displaced another 1.7 million people to neighboring countries. This plunged the country into economic depression which caused a collapsed infrastructure, lack of investment from foreign investors. This worsened the country with the government cutting spending to all civil programs because of the ongoing civil war. This worsened the conditions of the infrastructure including the roads, rail lines and the Port of Maputo. In the last fifteen years Mozambique’s economy has grown “steadily at an impressive 7.7 percent per year, driven by the service sector, light industry, and agriculture. This growth rhythm of the economy is expected to be maintained or even increase with a massive influx of investment, already identified, on the order of $15 billion–$20 billion. These projects, presently under implementation or consideration, will be mostly undertaken by the private sector, and mostly associated with the exploitation of valuable natural resources, particularly coal. Mozambique is well endowed in natural resources”( Domínguez 8). Mozambique is lucky, its geography is in a great location it gives its landlocked neighbors an exit to the sea. And its port allows for trade with South Africa and other Countries that need to use their port in trade. Mozambique “is well endowed with hydropower potential; it is already a net exporter of electricity, and can expect to play a critical role in the power trade of the region through the development of its hydropower potential in the near future”(Domínguez 8). One of Mozambique’s largest exports right now is electricity to neighboring countries. This is one of the few was right now that Mozambique is trying to offset its trade deficit. Should Mozambique really be focusing on improving its infrastructure? Mozambique is one of the poorest countries in the world. The population of Mozambique lives on an “average income that is not much more than USD 400 a year and over half of the 23-million population ekes out a living below a poverty line of 50 U.S. cents” per day (Belcsak 2012). Also the access to basic infrastructure services like “power, transport, water and sanitation, and telecom—are below regional averages. To maintain high rates of economic growth, reduce poverty, and make development sustainable, Mozambique needs to continue improving the provision of infrastructure services and conspicuously increasing the connectivity of people and markets” (Domínguez 11). Should the government focus on social programs that would help the population have a better life and improve its standings in the world? No. There have been studies done that link infrastructure to economic growth which is why there is a great importance to improve the infrastructure in Mozambique. Mozambique has seen the potential of connecting its land locked neighbors to its port in Maputo so the east west railroads are fairly well established, the same can be said with the roads. In my experience with driving from South Africa and the
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