## _cr0737 ## Source details **Canonical URL:** [_cr0737](https://www.imf.org/-/media/websites/imf/imported-full-text-pdf/external/pubs/ft/scr/2007/_cr0737.pdf) ## Other formats - [Markdown version](/-/media/websites/imf/imported-full-text-pdf/external/pubs/ft/scr/2007/_cr0737.pdf.md) - [Structured JSON version](/-/media/websites/imf/imported-full-text-pdf/external/pubs/ft/scr/2007/_cr0737.pdf.json) --- ### PARPA II: purpose, structure, and implementation - PARPA II: Action Plan for the Reduction of Absolute Poverty for 2006-09; objective to reduce poverty incidence from 54 percent in 2003 to 45 percent in 2009. - Links to previous plans and frameworks: - Successor to PARPA I (2001); aligned with MDG, NEPAD, SADC. - Incorporated into Medium-Term Fiscal Framework, Economic and Social Plan (PES), and State Budget; specific PARPA elements to be integrated into the Government Five-Year Plan for 2010-2014. - Governance: Government coordinates implementation; cooperation partners expected to finance about 49 percent of the State Budget annually during 2006-09. - PARPA II pillars: Governance; Human Capital; Economic Development — with cross-cutting topics including Gender, HIV/AIDS, Environment, Food and Nutritional Security, Science and Technology, Rural Development, Natural Disasters, and De-mining. ### Poverty definition, measurement, and recent trends - Consumption-based poverty target and measurement: - Goal: reduce poverty from 54 percent (2003) to 45 percent (2009). - Headcount index nationwide: 69.4 percent in 1996-97 → 54.1 percent in 2002-03. - Poverty gap index nationwide: 29.3 percent in 1996-97 → 20.5 percent in 2002-03 (Lower Limit 18.9, Upper Limit 22.2). - Sample and survey notes: - IAF 2002-03 interviewed 8,700 family units; IDS 2003 interviewed 11,500 women age 15–45. - Confidence intervals larger at provincial level; additional non-sampling errors may enlarge intervals. - Geographic and provincial highlights (1996-97 → 2002-03; 2002-03 95% CI when shown): - Nationwide Headcount: 69.4 → 54.1 (Lower Limit 50.6, Upper Limit 57.5). - Niassa Headcount: 70.6 → 52.1 (Lower Limit 41.1, Upper Limit 63.2); Poverty Gap 30.1 → 15.8 (LL 12.5, UL 19.1). - Cabo Delgado Headcount: 57.4 → 63.2 (LL 55.8, UL 70.5); Poverty Gap 19.8 → 21.6 (LL 18.0, UL 25.3). - Zambézia Headcount: 68.1 → 44.6 (LL 34.6, UL 54.6); Poverty Gap 26.0 → 14.0 (LL 9.7, UL 18.3). - Tete Headcount: 82.3 → 59.8 (LL 51.5, UL 68.1); Poverty Gap 39.0 → 26.3 (LL 21.1, UL 31.5). - Sofala Headcount: 87.9 → 36.1 (LL 29.1, UL 43.1); Poverty Gap 49.2 → 10.7 (LL 8.1, UL 13.3). - Inhambane Headcount: 82.6 → 80.7 (LL 75.9, UL 85.5); Poverty Gap 38.6 → 42.2 (LL 37.4, UL 47.0). - Maputo Province Headcount: 65.6 → 69.3 (LL 63.4, UL 75.2); Poverty Gap 27.8 → 31.1 (LL 27.1, UL 35.1). - Maputo City Headcount: 47.8 → 53.6 (LL 47.3, UL 59.9); Poverty Gap 16.5 → 20.9 (LL 17.6, UL 24.1). - Absolute numbers: "10 million Mozambicans still live in absolute poverty" (2002-03 reference). - Heterogeneity and volatility: - Rural poverty declined more (16 percent) than urban (10.5 percent) between 1996-97 and 2002-03. - Progress uneven across provinces; year-to-year fluctuations driven by agricultural cycles, weather, exchange rate, and commodity prices. ### Health, nutrition, and HIV/AIDS - Child mortality trends: - Under-five mortality: 207 per 1000 live births in 1997 → 153 in 2003. - Infant mortality: 149 → 101 (1997 → 2003). - 2003 under-five mortality (153) close to less developed countries average of 160 in 2001. - Malnutrition (selected indicators; share below minimum standard): - Height/Age Total 0-5 years: 42.17 (1996-97 IAF) → 38.03 (2003 IDS). - Weight/Age Total 0-5 years: 24.50 (1996-97 IAF) → 22.25 (2003 IDS). - Weight/Height Total 0-5 years: 6.48 (1996-97 IAF) → 4.01 (2003 IDS). - Target health/nutrition goal (Strategic Matrix): % of children under five underweight Basis 2005: 24% (2003); Projection/Goal 2009: 18%. - HIV/AIDS prevalence and impacts: - Latest estimates: 16 percent prevalence among age 15-49; about 1.5 million Mozambicans living with HIV/AIDS. - 2005 sex-age specific estimates: women age 20-34: 21.9 percent; men age 20-34: 7.2 percent; girls age 15-19: 8.5 percent; boys age 15-19: 2.8 percent. - Estimated macroeconomic impact: HIV/AIDS could reduce per capita economic growth by 0.3 percent to 1.0 percent per annum. - Forecasted deaths and orphans: 800,000 deaths between 2004 and 2010 projected to significantly increase number of orphans. - Health sector targets and strategies: - Increase sector financing from US$10.00 to US$15.00 per capita. - Increase proportion with easy access to a health unit from 36 percent → 45 percent by 2009. - Reduce maternal mortality in hospitals from 182 to 168 per 100,000 live births; overall maternal mortality from 408 → 350 per 100,000 by 2009. - PTV prophylaxis coverage: increase from 2 percent in 2004 to 22 percent in 2009. - Pediatric and infant targets: reduce infant and young child mortality from 178 → 140 per thousand by 2009; ensure 95 percent DPT3 and HB coverage for children under one year. ### Gender: status, labor, education, and recommended actions - Demographics and literacy: - About 52 percent of population are women; 72.2 percent of women live in rural areas; 23.2 percent are heads of families. - Adult illiteracy rate: women 71.3 percent; men 43 percent. - Labor force composition (occupied labor force and PIA figures preserved exactly): - Occupied Labor Force: All Workers 7,172,541; Women 3,971,972; Men 3,200,569. - PIA (age 15–60): All 8,902,220; Women 4,842,658; Men 4,059,562. - Women account for about 55 percent of the labor force by headcount. - Sectoral concentration: 90 percent of economically active women work in farming; for every 100 men in agriculture there are 164 women. - Participation rates: All 80.6; Women 82.0; Men 78.8. - Educational attainment of occupied labor force: - EP1 or less: All Workers 6,508,417; Women 3,791,438; Men 2,716,980. - EP2 – ESG2: All Workers 578,161; Women 160,779; Men 417,382. - Higher than ESG2: All Workers 85,962; Women 19,755; Men 66,207. - Percentage by column (EP1 or less): All Workers 90.7; Women 95.5; Men 84.9. - Key interpretation: Almost 96 percent of women who work did not attend school through or advance past EP1. - Poverty incidence by household head gender: - Families headed by women: 62.5 percent poverty incidence; headed by men: 51.9 percent. - Policy implications and priority initiatives: - Long-term: increase schooling for women to facilitate non-farm sector entry. - Short/medium-term fundamentals: - Disseminate improved farming technologies for food crops involving female labor. - Provide goods/services to reduce domestic burden: reduce distance to water and health services; rural electrification. - Cross-cutting gender actions (selected): - Approve and implement gender policy and institutionalize gender units across sectors. - Revise discriminatory legislation; adopt laws against domestic violence. - Integrate gender perspective into national development policies and sector budgets. - Identify gaps in sex-disaggregated data and design strategy to fill them. - Promote gender balance in leadership positions. ### Macroeconomic and fiscal framework: projections and fiscal program (2005–09, 2014) - Real GDP (constant 1996 prices, MT million): - 2005: 68,581; 2006: 73,999; 2007: 79,179; 2008: 84,721; 2009: 90,652; 2014: 124,130. - Real GDP % annual change: 2005: 7.7; 2006: 7.9; 2007: 7.0; 2008: 7.0; 2009: 7.0; 2014: 6.5. - Real GDP w/o Large Projects (MT million): - 2005: 62,646 → 2009: 83,299 → 2014: 116,504; % annual changes shown (e.g., 2006: 7.7). - Nominal GDP (MT million) and % annual change: - 2005: 153,041; 2006: 180,831; 2009: 266,372; 2014: 469,904. - Nominal GDP % annual change examples: 2006: 18.2; 2007: 15.6; 2014: 11.8. - Inflation (end of period and annual average): - End of period: 2005: 11.2; 2006: 7.0; 2007: 6.0; 2009: 5.4; 2014: 5.0. - Annual average: 2005: 6.4; 2006: 9.5; 2007: 8.0; 2009: 5.4; 2014: 5.0. - Population and growth: - Population (million): 2005: 19.4; 2009: 21.3; 2014: 24.0. - Population growth (%): 2.4 for 2005–2009 and 2014. - Fiscal and financial envelope (Table 11, constant 2006 prices, millions of contos): - Total Resources: 2005 = 41,503; 2006 = 52,881; 2009 = 61,635; 2014 = 75,717. - State Revenues (incl. privatizations): 2005 = 24,057; 2009 = 35,842; 2014 = 50,578. - External Resources*: 2005 = 17,446; 2006 = 25,864; 2009 = 25,793. - Resource envelope [= 1 + 2] (with Net internal credit): 2005 = 40,979; 2006 = 51,548; 2009 = 60,586; 2014 = 75,717. - As % of GDP: State revenues 2005: 14.4% → 2009: 16.2%; External Resources 2005: 10.4% → 2009: 11.6%. - Financial Envelope and principal external resources (Table 12, US$ million): - Principal External Resources: 2005 = 639.5; 2006 = 899.2; 2009 = 956.7; 2014 = 967.2. - Support of the Budget (US$ million): 2005 = 294.0; 2009 = 344.2; 2014 = 356.4. - Project Financing (US$ million): 2005 = 345.5; 2006 = 589.5; 2009 = 612.5. - Fiscal target: increase tax revenues to 15 percent of GDP by 2009 (gradual increase from 14.0 percent in 2005 to 16.2 percent in 2009 is forecast in Table 11). - Investment and expenditure composition (Table 14 & 15, millions of contos, constant 2006 prices): - Total expenditures: 2005: 40,979; 2006: 51,548; 2009: 60,586; 2014: 75,717. - Current expense: 2005: 23,031 → 2009: 31,468 → 2014: 40,251. - Investment expense: 2005: 14,394 → 2009: 26,528 → 2014: 33,661. - Investment expense as % of GDP: 2005: 8.6; 2006: 12.0; 2009: 12.0; 2014: 11.0. - As % of total expenditure (selected): Investment expense 2005: 35.1; 2006: 42.3; 2009: 43.8; 2014: 44.5. - Notes and cautions: - Basic scenario is prudent and assumes external aid remains important; projections exclude large project output for some series and treat extraordinary external resources cautiously. - Exogenous risks listed: reduction in export demand; increases in import prices (e.g., oil); drastic drop in foreign aid; weather-related shocks; macroeconomic shocks. ### External sector, reserves, and monetary projections - Exports and imports projections (US$ million, Table 9): - Exports: 2005 = 1,745; 2006 = 1,803; 2009 = 2,269; 2014 = 3,236. - Exports % of GDP example: 2005: 26.3; 2009: 25.5; 2014: 26.7. - Mega-projects component (US$ million): 2005 = 1,263; 2009 = 1,393; 2014 = 1,809. - Other exports: 2005 = 483; 2009 = 876; 2014 = 1,427. - Imports: 2005 = 2,242; 2006 = 2,643; 2009 = 2,899; 2014 = 3,802. - Imports % of GDP example: 2005: 33.8; 2009: 32.6; 2014: 31.3. - Balance of Trade: 2005 = -497; 2009 = -630; 2014 = -566. - Current Account (balance): 2005 = -761; 2009 = -985; 2014 = -700. - Net international reserves (index, 2006 = 100 and months of imports): - Index (2006 = 100): 2005: 141.4; 2006: 100.0; 2009: 90.3; 2014: 119.1. - Months of imports: 2005: 5.0; 2006: 3.0; 2009: 2.5; 2014: 2.5. - Monetary accounts (Table 10, millions of contos, selected items): - Net external assets: 2005 = 34,316; 2006 = 27,307; 2009 = 24,319; 2014 = 22,973. - Credit to the economy: 2005 = 20,491; 2006 = 23,770; 2009 = 36,150; 2014 = 65,416. - Money and quasi-money (M3): 2005 = -43,441; 2006 = -50,146; 2009 = -72,409; 2014 = -117,893. ### Scenarios for poverty reduction and sensitivity to growth/distribution (Table 19) - Baseline: - Incidence of Poverty: 1997: 69.40%; 2003: 54.10%. - Average consumption by poor (Av. per person per day, % of the poverty line): 1997: 57.80%; 2003: 62.06%. - A. Neutral distribution scenarios (2009 outcomes): - 2% scenario: Incidence 2009: 47.23%; Av. consumption 69.89%; Index 120.92%. - 3% scenario: Incidence 2009: 43.46%; Av. consumption 74.10%; Index 138.20%. - 4% scenario: Incidence 2009: 40.00%; Av. consumption 78.53%; Index 135.87%. - 5% scenario: Incidence 2009: 36.43%; Av. consumption 83.17%; Index 143.89%. - B. 5% growth with distribution variants (2009 outcomes): - (a) Distribution improves for the poor: Incidence 34.13%; Av. consumption 86.77%; Index 150.12%. - (b) Slight deterioration: Incidence 38.66%; Av. consumption 79.88%; Index 138.20%. - (c) Significant deterioration: Incidence 43.44%; Av. consumption 74.21%; Index 128.39%. - (d) Serious deterioration: Incidence 46.59%; Av. consumption 70.59%; Index 122.13%. - C. 2% growth with distribution variants (2009 outcomes): - (a) Distribution improves: Incidence 45.86%; Av. consumption 71.24%; Index 123.25%. - (b) Slight deterioration: Incidence 48.29%; Av. consumption 68.67%; Index 118.81%. - (c) Significant deterioration: Incidence 49.85%; Av. consumption 66.57%; Index 115.17%. - (d) Serious deterioration: Incidence 50.99%; Av. consumption 65.22%; Index 112.84%. - Text commentary: - A neutral distribution with 5 percent annual per capita consumption growth reduces poverty from 54.1 percent in 2003 to 36.4 percent in 2009; average poor family real consumption rises by 44 percent by 2009. - With neutral distribution and 2–3 percent real per capita growth, the headcount would be about 45 percent in 2009. ### Sectoral priorities and allocations (selected) - Education: - Priority: expand EP1 and EP2, first part of secondary up to 10th grade (ESGI); improve teacher/student ratios; targets in Strategic Matrix include Net enrollment rate for 6-year-old girls Basis 2005: 56%; Goal 2009: 70%. - Teacher training, curriculum reform, school feeding policy using local foods, SAN integration in schools. - Water and sanitation: - Rural potable water coverage Basis 2005: 41%; Goal 2009: 53%. - Urban potable water coverage Basis 2005: 37%; Goal 2009: 53%. - Urban sanitation Basis 2005: 38%; Goal 2009: 40%. - Water supply and sanitation targets by 2009: urban water 53% (serving about 4 million urban residents); rural water 53% (serving about 8 million rural residents). - Objective to build 50 dams/excavated reservoirs for water capture. - Health and SAN: - Nutrition target: reduce low-weight-for-age from 24 percent → 17 percent in 2009. - Malaria: by 2009, at least half the population to benefit from protective measures. - Roads, transport, and infrastructure: - Prioritize north-south corridor, strategic bridges (e.g., over the Zambezi), rehabilitation of National Highway No. 1, balance between primary/secondary/highways and neighborhood roads. - Agriculture, rural development, and PPP: - Small family farm sector: 99.65 percent of farm families; 95.19 percent of cultivated area. - PROAGRI II (2005-2009) focus on small producers: access to land, intermediate goods, markets. - Agrarian service priorities: technology access, intermediate goods, irrigation, market information, warehouse capacity, value chain, agribusiness, alternative financing (risk capital, crop insurance, guarantee funds). - PPP strategy: promote agribusiness linkages, transfer public services to private sector, and public participation in private investment. - Energy, electrification, and fuels: - Expand electricity access; targets for people connected example numbers: Indicator 54.a No. of new people connected to the network: 302218; 319136; 400000; 600000; 800000 (sequence). - Promote renewable energy, rural electrification, electrification of district seats, and alternative energy for clinics and schools (Indicator 55.a target up to 500 institutions). - Industry, tourism, mining, fisheries, oil research: - Sectoral actions to increase value-added, certify quality standards, attract investment, environmental safeguards, job creation, and promote regional integration. - Job creation and labor: - Ministry of Labor to promote employment dimension across sectors, monitor associations and cooperatives, identify jobs for graduates, and compile reliable employment statistics. ### Governance, public sector reform, justice, law & order - Governance objectives: - Consolidate national unity, peace, justice, democracy; confront corruption, reduce bureaucracy, strengthen property rights, decentralize functions to district level with budgetary implications. - Public sector reform targets and actions (selected): - Functional analyses and restructuring plans for ministries and provincial/district governments. - Decentralization strategy approval and implementation; develop district planning and finance strategy; expand SISTAFE and e-SISTAFE; integrate off-budget funds. - Human resources management reforms: wage and salary policy review; career ladders; single personnel information system; SIFAP consolidation. - Transparency and anti-corruption: implement Anti-Corruption Law regulations; strengthen Anti-Corruption Office; legislation on access to information. - Justice and rule of law (targets and actions): - Improve access to justice: establish district and community courts; increase legal assistance; increase number of trained legal assistants and community court judges (e.g., aggregate number of new legal assistants graduated Basis 2005: 124 → Goal 2009: 224). - Strengthen judicial infrastructure, computerize notarial offices, build/rehabilitate courts and prosecutor offices. - Prison reform: unify prison system, improve living conditions, rehabilitation plans. - Law and order: - Increase police presence; reform Criminal Investigation Police; set up National Crime Observatory; improve police-community relations; establish counseling centers for victims of domestic violence. ### Social protection, MMAS, vulnerable groups, and youth - MMAS responsibilities: social assistance and integration of less-favored/vulnerable groups; reinforce capacity for poverty reduction. - Programs and targets: - Promotion of associations, income-generating projects and self-employment (priority for female heads of households). - Persons with disabilities: vocational training, community centers, Braille materials, sign-language interpreters; legislative proposals for inclusion. - Children in difficult situations: family reunification, vocational training, support for foster families, assistance for children engaged in prostitution. - Elderly: community centers and financial assistance for those in absolute poverty. - Youth and sports: strengthen youth associations, vocational training, Centers of Excellence in Sports (three Centers), mass participation in sports, inclusion of persons with disabilities and the elderly in facilities. - Orphans and Vulnerable Children (OVC) targets: - Indicator 60.a % of OVC covered by the OVC Action Plan with access to at least three basic services in past two months: 10%, 15%, 20%, 25%, 30% (sequence). ### Monitoring & Evaluation, participation, and foreign aid management - M&E institutionalization: - Strategic Matrix and Operational Matrices; Performance Chart fields (Pillar; Area; Sub-area; Strategic Objective; Impact Indicator; Specific Objective; Results Indicator; Base 2005; Goal 2009; Actions; Responsible Entity; Product/Execution Indicator; annual goals 2006–2009). - Performance Assessment Framework (PAF) to include up to 50 key government indicators; 40 shaded indicators selected for 2007 PAF. - New instrument: Annual Impact Report (RAI) — one RAI during PARPA II cycle to cross-check sources and guide PARPA revision. - Participation and observatories: - Provincial Poverty Observatories and local Participatory Institutions central to participatory M&E; Technical Secretariats (STOP) in Provincial Directorates of Planning and Finance to coordinate. - Foreign aid management principles and targets: - External assistance financed about half of State Budget and ~15 percent of GDP (average 2000-2004). - Government seeks to approve National Cooperation Policy; requests cooperation partners implement Paris Declaration commitments. - Explicit numeric pledges: government appeals that 85 percent of foreign aid be included in the State Budget (no more than 15 percent off-budget) and that at least 75 percent be disbursed on a timely basis. - Preference for multi-year PAP commitments (at least three years, rolling basis) and greater use of General Budget Support (GBS). - M&E deficiencies and priorities: - Improve PES/BdPES alignment; produce RAI; strengthen data systems (IAF, IDS, QUIBB); build M&E capacities (training); ensure indicators reflect government priorities. ### Cross-cutting themes and strategic instruments - Cross-cutting topics (PARPA II): Gender; HIV/AIDS; Environment; Food and Nutritional Security (SAN); Science and Technology; Rural Development; Natural Disasters; De-mining. - SAN objective (PARPA II until 2009): “Between 1990 and 2009, the percentage of the Mozambican population that suffers hunger and chronic malnutrition (transitory and structural food and nutritional insecurity) reduced by 30 percent.” - Science & Technology priorities: - National Research Fund; MSTIS vision for 2015; promote S&T across sectors; expand human resources and funding mechanisms. - Disaster risk and de-mining: - Reduce vulnerability via early-warning systems, hydro-meteorological networks, hydraulic infrastructure; de-mining target to clear suspect areas (Indicator 71.a aggregate area still under suspicion, millions of m2: 172 → 129 → 86 → 43 → 0; Indicator 71.b area cleared, millions m2: 10, 20, 30, 40, 50 sequence). - Strategic Indicators Matrix (selected global indicators and bases/goals): - G.1.1 Poverty Incidence Rate Basis 2005: 54% (2003); Projection/Goal 2009: 45%. - G.1.2 % children under five underweight Basis 2005: 24% (2003); Goal 2009: 18%. - G.1.3 Gender Development Index Basis 2005: 0.3 (2003); Goal 2009: 0.4. - G.2.1 GDP Annual Average Growth Rate Basis 2005: 7.8% (2002 - 2005); Goal 2009: 7.0% (2006 - 2009). - G.3.1 Average Annual Inflation Rate Basis 2005: 12.3% (2002 - 2005); Projection/Goal 2009: < 10% (2006 - 2009). - G.4.1 % population with easy access to 1 health-care unit Basis 2005: 36%; Goal 2009: 45%. - G.5.1 Number of new HIV cases per day Basis 2005: 500; Goal 2009: 350. *Italic: Source — Excerpts from Government of the Republic of Mozambique PARPA II (Action Plan for the Reduction of Absolute Poverty for 2006-09) as compiled in IMF content unit _cr0737.* ### 1. Gender....................................................................................................... ### 1. Gender ### Context within PARPA II - PARPA II is the Government of Mozambique’s Action Plan for the Reduction of Absolute Poverty for 2006-09. - The plan is intended to reduce the incidence of poverty from 54 percent in 2003 to 45 percent in 2009. - PARPA II is a successor to PARPA I (Government of Mozambique, 2001) and shares priorities in the areas of human capital development through education and health, improved governance, development of basic infrastructures and agriculture, rural development, and better macroeconomic and financial management. - PARPA II differs from PARPA I by including greater integration of the national economy and an increase in productivity, with particular attention to: - district-based development; - creation of an environment favorable to growth of the nation’s productive sector; - improvement of the financial system; - measures to help small and medium-size companies to flourish in the formal sector; - development of both the internal revenue collection system and the methods of allocating budgeted funds. - The plan links its specific priorities with allocations of funds for the five-year period. ### Relationship with other planning documents and international frameworks - During planning, executing, monitoring, evaluating and adjusting PARPA II, strategies, programs, and sectoral and cross-sectional programs and plans were used as basic documents. - Regional, African and international agreements and frameworks were respected, including the Millennium Development Goals (MDG), New Partnership for the Development of Africa (NEPAD) and the Southern African Development Community (SADC). - PARPA II is flexible and is adjusted and updated annually using the Medium-Term Fiscal Framework, the Economic and Social Plan, and the State Budget, which are tools used to implement the Government’s Five-Year Plan. - Specific key components of PARPA will be incorporated into the Government’s Five-Year Plan during the subsequent five years, 2010-2014. ### Implementation, participation, and financing - Owing to the extent of poverty in Mozambique, reducing it challenges the State, elements of civil society, and the cooperation partners to dedicate their efforts. - It is vital that there be clear dividing lines between the functions of each of these parties so that coordination and alignment among all of them can be more effective and efficient. - It is the responsibility of the Government of Mozambique to coordinate these activities. - Because PARPA II calls for an increase in internal revenues for 2006-09 in real terms, the Government expects to continue to rely on the contribution of its cooperation partners to finance about 49 percent of the State Budget every year during this period. - The drafting of PARPA II took into account the opinions of civil society and cooperation partners, reflecting the Government’s attachment to participation by civil society and appropriate use of cooperation partner contributions. ### Principles relevant to gender-related programming (implied by PARPA II structure) - Emphasis on human capital development through education and health, improved governance, basic infrastructure, agriculture, and rural development—all areas with gender-differentiated impacts. - District-based development and measures supporting small and medium-size enterprises can affect gendered access to economic opportunities. - Integration of PARPA II priorities with annual budgeting instruments and the Medium-Term Fiscal Framework supports gender-responsive funding and accountability if applied. _Italic: Source — PARPA II (Action Plan for the Reduction of Absolute Poverty for 2006-09), Government of Mozambique (excerpts provided)._ ### 13. The combination of the two processes and instruments has the advantage of ### _cr0737 - 13. The combination of the two processes and instruments has the advantage of ### Overview - The combination of public planning processes and instruments is intended to rationalize the public planning exercise and channel efforts toward implementation of the government’s plan from the very beginning of its term of office. - The new government is expected to align priorities debated throughout 2009 with objectives stated in the Electoral Manifesto. - The government defined its Five-Year Plan for 2005-09 and subsequently prepared PARPA II taking these objectives into consideration. ### Long-term objectives (consensus of Mozambican society) - Improvement of the standard of living and welfare of citizens. - Long-term objectives include: - (i) a balanced economic and social development; - (ii) reduction of absolute poverty; - (iii) consolidation of the peace, national unity, and democracy; - (iv) widespread application of the rules of justice; - (v) improvements in education and health; - (vi) encouragement of work, honesty, zeal, and enthusiasm; - (vii) the guarantee of individual freedoms and social harmony; - (viii) the imposition of laws against criminal acts; the guarantee of sovereignty, and - (ix) the guarantee of sovereignty and the strengthening of international cooperation. ### PARPA II structure: Three pillars - PARPA II is presented with reference to three pillars: governance, human capital, and economic development. - The pillars focus on the functions of social organization via the State, development of individual abilities, and the creation of wealth to improve citizen well-being, and on examining connections among these functions necessary to achieve central objectives. Governance pillar - Seeks to make the apparatus of the State a means of sparking development of human capital and the economy. - Special attention to improving the quality of policy analysis and design to obtain expected results of implementation. - Officials guided by principles and laws of a government ruled by law to ensure transparency and accountability and combat diversion and improper use of public funds and resources. - Includes active enforcement of laws against criminal acts and corruption. Human capital pillar - Provides continuity to plans for developing work-related technical and scientific skills, good health and hygiene, and access to basic resources—especially food and water. - Focus on reducing incidence of diseases affecting the most vulnerable population groups, particularly HIV-Aids, malaria, and tuberculosis. - A special part of state budget resources will finance classic social services that cover a large proportion of the population, including the poorest. Economic development pillar - Concentrates on conditions basic to productive activity: improvement in infrastructures that promote wealth creation and ensure availability of natural resources, reduction in bureaucratic obstacles, and enactment of legislation that safeguards citizen rights and encourages productivity and innovation. - Priority to intersectoral connections to ensure higher productivity in agriculture and related sectors. - Additional priorities: development of banking and financial systems to retain savings and actively finance production, particularly by small and medium-sized companies. Common element across pillars - Building the Mozambican nation: consolidating national unity, developing each citizen’s human potential, creating a functioning institutional system, and increasing ability to create national wealth. ### Implementation, coordination, and infrastructure priorities - Fundamental condition for nation formation success: ensure investments in basic infrastructures and maintenance thereof. - Foster efficient communications from north to south and between rural and urban areas for people, goods, and information to facilitate integration of farmers and other rural and urban residents. - Multisectoral coordination among State institutions, civil society organizations, the business community, and other development partners is the touchstone to ensure harmonious and multifaceted development. - Integrated and balanced development is imperative and will be reflected in priorities associated with each pillar. - PARPA II mindful of need for Mozambique to gradually and progressively integrate into neighboring countries, the rest of Africa, and the world. ### Growth, productivity, and savings - After recovering production capacity in agriculture, construction, and services, economic growth may increasingly depend on productivity gains and the ability to create, retain, and productively use domestic savings—presenting an enormous challenge. - Growth in productivity ties the three pillars: governance improvements (services, analyses, policies, monitoring, and adjustment), quality leadership, technical quality of staff, reduction in bureaucracy, strategic infrastructure investment, incentives for private sector growth, and targeted investments in education, health, and sanitation to create a more effective production force with higher living standards. ### Public planning instruments and relationships (methodology and process) - PARPA II preparation used a participatory methodology with thematic and working groups, a Technical Secretariat, and national and provincial Poverty Observatories. - Preparatory phase: January to March 2005 led to a common approach for reviewing PARPA with government institutions, civil society, and international partners. - The process revived the strategy of consensus from Agenda 2025 and aspects of that preparation process. - Working groups composed of technical personnel from government, civil society, and international partners; government and civil society met without international partners initially; partners entered later to help ensure “appropriation.” - Key steps and dates: - First phase culminated with the 3rd Poverty Observatory, held on August 4, 2005. - Operational and Strategic Matrices were developed to plan/cost activities and to monitor PARPA II. - The 4th Poverty Observatory was held on November 23, 2005 to study a preliminary PARPA II. - Following the 4th Poverty Observatory, PARPA II was completed and sent to the Council of Ministers and the legislature. - Provincial Poverty Observatories were held to receive local contributions from civil society and cooperation partners. - Working groups and topical coverage (Table 1) included: Macroeconomic growth and stability; Poverty analysis and monitoring systems; Management of public finances; Reform of the Public Sector; Decentralization; Reform of the legal and justice systems; The financial sector; The private sector; Agriculture; Infrastructure (highways, telecommunications, ports and railroads); Iron; Infrastructure: energy; Health; Education; Water and sanitation; and cross-sectional topics such as Demining, Environment, Natural Disasters, HIV-AIDS, Gender, Food and Nutritional security, Science and Technology, Rural Development. Note: housing and social action groups were formed later; private sector subgroup discussed tourism, fisheries, mines, industry. ### PARPA review methodology and monitoring - National Poverty Observatories are participative forums including the government, civil society, and international partners to follow PARPA actions and performance. - The drafting process produced matrices: an Operational Matrix for planning and costing activities and a Strategic Matrix with indicators and goals for monitoring PARPA II. - The next chapter (III) examines the evolution of poverty in Mozambique during the PARPA I period (2001-2005). ### Poverty: definition, measurement methods, and targets - Poverty understood as multidimensional; multiple indicators required. - Goal referenced: reducing poverty from 54 percent in 2003 to 45 percent in 2009, referring to a consumption-based indicator. - Consumption per capita used as a basic measure of individual well-being (total consumption by the family unit divided by number of members), encompassing purchased or self-produced items, transfers, and appreciation in value of durable goods. - Two main methods for monitoring/evaluating poverty: - Quantitative studies: based on large representative samples (examples: Survey of Family Units (Inquérito aos Agregados Familiares - IAF) 2002-03 interviewed 8,700 family units; Demographic and Health Survey (Inquérito Demográfico e de Saúde – IDS) 2003 interviewed 11,500 women between the ages of 15 and 45). - Qualitative studies: participative, capture perceptions and causes of poverty but often based on small, unrepresentative samples. - Both methods should complement each other; Mozambique has many quantitative and qualitative studies since 2000 but has not yet fully achieved pluralistic integration of methods. Box 1: What is poverty? - PARPA I definition: “the inability of individuals to ensure for themselves and their dependents a set of minimum conditions necessary for survival and well-being, according to the society’s standards.”* - PARPA II definition: “the impossibility, owing to inability and/or lack of opportunity for individuals, families, and communities to have access to the minimum basic conditions, according to the society’s basic standards.” - Other definitions: - “lack of income necessary to satisfy basic nutritional and non-nutritional requirements” (Absolute poverty, in terms of income.) - “lack of sufficient income to satisfy the essential nutritional and non-nutritional needs, according to the average income in the country.” (Relative poverty) - “lack of basic human capabilities, such as illiteracy, poor nutrition, reduced life expectancy, poor maternal health, and incidence of preventable disease. This definition is related to indirect measurement factors, such as access to goods, services, and infrastructures necessary to achieve basic human capacities—sanitation, potable water, education, communications, energy, etc.” (Human Poverty) - Note: * Definition adopted on the basis of the Avaliações da Pobreza (Poverty Appraisal) studies of 1996-97 and 2002-03. *Source: _cr0737 - 13. The combination of the two processes and instruments has the advantage of* ### 46. Given the importance placed on indicators of consumption, it is worth looking more ### _cr0737 - 46. Given the importance placed on indicators of consumption, it is worth looking more ### Consumption-based indicators: purpose and construction - Consumption is used at the family unit level because: - "Consumption is the most appropriate indicator or measure of achieved well-being, while income is a measuring tool for potential well-being, since the income may or may not be spent on consumption." - "Consumption is the most accurate and most stable indicator of well-being, since it fluctuates less over time." - Poverty lines were constructed as: - Nutritional poverty line based on nutritional standards of approximately 2,150 calories per person per day, plus - A modest portion for non-food expenditures determined from the budget share of families with total consumption approximately equal to the food-related poverty line. - The poverty analysis compares 1996-97 with 2002-03 to assess changes over time. ### Key poverty measures and their interpretation - Headcount index: portion of population with consumption below the poverty line. - Poverty gap index and squared poverty gap index: capture depth of poverty and changes in consumption among the poor; they reflect reductions in poverty when poor individuals increase consumption but remain below the poverty line. - Findings (Table 2 and text): - Nationwide headcount index: 69.4 percent in 1996-97 and 54.1 percent in 2002-03 (decline of approximately 15.3 percent). - Poverty gap index nationwide: 29.3 percent in 1996-97 and 20.5 percent in 2002-03 (reduction of almost a third). - Interpretation: (i) percentage of population below the poverty line fell; (ii) average consumption among those below the poverty line rose between the two periods. - National objective context: - PARPA I objective was to reduce poverty to about 60 percent by 2005; the 2002-03 headcount of 54.1 percent exceeded this goal by 5 percent. ### Scale and geographic distribution of absolute poverty - Absolute numbers and provincial distribution: - "10 million Mozambicans still live in absolute poverty." - Chart 1 (2002-03) shows every province has at least 500,000 poor people and highlights the influence of Nampula and Zambézia in both total population and the impoverished segment. - Regional and provincial trends (selected highlights): - Poverty declined more in rural areas (by 16 percent) than in urban zones (by 10.5 percent). - Provinces with large reductions: - Zambézia and Tete experienced reductions greater than 22 percent. - Sofala reported a reduction of more than 50 percent (moving it from the poorest province to the one with the lowest poverty). - Provinces with increases or marginal change: - Cabo Delgado: poverty increased (57.4 percent in 1996-97 to 63.2 percent in 2002-03). - Maputo Province and Maputo City: poverty increased (Maputo Province headcount 65.6 percent in 1996-97 to 69.3 percent in 2002-03; Maputo City 47.8 percent to 53.6 percent). - Inhambane: marginal reduction from 82.6 percent to 80.7 percent, making it the country’s poorest province in 2002-03. ### Provincial headcount and poverty gap estimates (selected figures from Table 2; 1996-97 → 2002-03 with 95% confidence interval limits for 2002-03) - Nationwide: - Headcount: 69.4 → 54.1 (Lower Limit 50.6, Upper Limit 57.5) - Poverty Gap: 29.3 → 20.5 (Lower Limit 18.9, Upper Limit 22.2) - Selected provinces: - Niassa: Headcount 70.6 → 52.1 (2002-03 Lower Limit 41.1, Upper Limit 63.2); Poverty Gap 30.1 → 15.8 (Lower Limit 12.5, Upper Limit 19.1) - Cabo Delgado: Headcount 57.4 → 63.2 (2002-03 Lower Limit 55.8, Upper Limit 70.5); Poverty Gap 19.8 → 21.6 (Lower Limit 18.0, Upper Limit 25.3) - Nampula: Headcount 68.9 → 52.6 (2002-03 Lower Limit 43.0, Upper Limit 62.3); Poverty Gap 28.6 → 19.5 (Lower Limit 15.0, Upper Limit 24.0) - Zambézia: Headcount 68.1 → 44.6 (2002-03 Lower Limit 34.6, Upper Limit 54.6); Poverty Gap 26.0 → 14.0 (2002-03 Lower Limit 9.7, Upper Limit 18.3) - Tete: Headcount 82.3 → 59.8 (2002-03 Lower Limit 51.5, Upper Limit 68.1); Poverty Gap 39.0 → 26.3 (Lower Limit 21.1, Upper Limit 31.5) - Sofala: Headcount 87.9 → 36.1 (2002-03 Lower Limit 29.1, Upper Limit 43.1); Poverty Gap 49.2 → 10.7 (2002-03 Lower Limit 8.1, Upper Limit 13.3) - Inhambane: Headcount 82.6 → 80.7 (2002-03 Lower Limit 75.9, Upper Limit 85.5); Poverty Gap 38.6 → 42.2 (2002-03 Lower Limit 37.4, Upper Limit 47.0) - Gaza: Headcount 64.6 → 60.1 (2002-03 Lower Limit 53.2, Upper Limit 67.1); Poverty Gap 23.0 → 20.6 (Lower Limit 17.4, Upper Limit 23.8) - Maputo Province: Headcount 65.6 → 69.3 (2002-03 Lower Limit 63.4, Upper Limit 75.2); Poverty Gap 27.8 → 31.1 (Lower Limit 27.1, Upper Limit 35.1) - Maputo City: Headcount 47.8 → 53.6 (2002-03 Lower Limit 47.3, Upper Limit 59.9); Poverty Gap 16.5 → 20.9 (2002-03 Lower Limit 17.6, Upper Limit 24.1) - Note on uncertainty: - Confidence intervals exist because estimates are based on a random sample and are larger at the provincial level than at national or zonal levels. - Additional non-sampling errors (e.g., communication mistakes in surveys) would enlarge confidence intervals beyond values shown. ### Multidimensionality and measurement recommendations - Poverty is multidimensional; reliance on consumption-based indicators alone is insufficient. - Because of uncertainty in any single indicator—especially provincial estimates—the document stresses: - Introducing other ways of measuring poverty. - Making progress in using multidimensional quantitative analyses in future work. ### Health-based indicators: trends and limitations - Child mortality: - Mortality rate among children under age five fell from 207 per 1000 live births in 1997 to 153 in 2003. - Infant mortality declined from 149 to 101 between 1997 and 2003. - Despite improvement, the 2003 under-five mortality rate (153) is still close to the average for less developed countries, which stood at 160 in 2001. - Malnutrition prevalence (Table 3): selected totals and trends by indicator and survey - Height/Age: - Total 0-3 years: 38.66 (1996-97 IAF), 36.21 (1197 IDS), 36.24 (2000-01 QUIBB), 33.94 (2003 IDS) - Total 0-5 years: 42.17 (1996-97 IAF), - (1197 IDS), 40.42 (2000-01 QUIBB), 38.03 (2003 IDS) - Weight/Age: - Total 0-3 years: 25.36 (1996-97 IAF), 26.75 (1197 IDS), 26.08 (2000-01 QUIBB), 24.01 (2003 IDS) - Total 0-5 years: 24.50 (1996-97 IAF), - (1197 IDS), 23.82 (2000-01 QUIBB), 22.25 (2003 IDS) - Weight/Height: - Total 0-3 years: 8.14 (1996-97 IAF), 7.51 (1197 IDS), 7.74 (2000-01 QUIBB), 4.88 (2003 IDS) - Total 0-5 years: 6.48 (1996-97 IAF), - (1197 IDS), 5.86 (2000-01 QUIBB), 4.01 (2003 IDS) - Note: Percentages represent the share of the target population falling below the minimum standard. - Interpretation: - Prevalence of malnutrition among children fell between 1996/97 and 2003 according to three frequently-used indicators, but improvements are smaller than consumption gains and sometimes not statistically significant. - Contributing factors to limited malnutrition improvements despite rapid economic growth include public health constraints (sanitation quality, access to potable water, prevalence of diseases such as malaria) and intra-household food distribution. - Children ages 6-24 months are most vulnerable; improvements in mothers’ knowledge and child-feeding practices are crucial and do not automatically accompany family-level consumption gains. - Recommendation: make mothers the central focus of food policy and programs. ### Other indicators (education, health service access, public and private goods) - Summary across 35 provincial-level indicators (Tables 4a and 4b): - Overall "% IMPROVEMENT" and "% IMPROVEMENT IN ..." metrics were computed across education, health, public goods and services, and private goods and services. - Aggregate result: "the country experienced an 88.4 percent improvement in the indicators of well-being that were considered." - Greater weight was given to access to private goods and services: modern lighting, potable water, improved sanitation, better housing, possession of durable goods. - Provinces with highest percentage of improvement: Tete and Maputo (attributed mainly to favorable developments in health and access to private and public goods and services such as improved roads, markets, and means of communication). - Selected indicator patterns (from Tables 4a/4b): - Education: many provinces show improvements in Gross Rate of School Attendance EP1, Net Rate of School Attendance EP1, Gross Rate of Completion EP1; mixed changes in Pupil-Classroom Ratio and Pupil-Teacher Ratio. - Health: mixed changes across indicators such as average residents per health services unit, average beds per 1,000 residents, access to health posts, coverage of births in institutions, vaccination coverage, and chronic malnutrition among children 1-2 years. - Public goods and services (rural-focused indicators): mixed results with % IMPROVEMENT IN PUBLIC GOODS AND SERVICES varying by province (examples: National 33.3; Nampula 100.0; Zambézia 100.0). - Private goods and services: generally strong improvements in access to modern lighting, potable water, use of modern fuel for cooking, possession of cement walls and bicycles; some mixed results for possession of modern sanitation systems and radios. - Notes: - "+" indicates improvement, "–" indicates deterioration. - Some columns in the original document were cut off; figures in last two columns correspond to the November version noted in the source. *Source: Excerpt from IMF content unit _cr0737.* ### 60. The City of Maputo is a special case because it improved in only 61.6 percent of the ### _cr0737 - 60. The City of Maputo is a special case because it improved in only 61.6 percent of the ### Maputo: special case - The City of Maputo improved in only 61.6 percent of the indicators considered. - In rankings of provinces with respect to the highest level of access to services and infrastructure, the city has always ranked first compared with the rest of the country (the information about “level” is not explicit in Table 4b). - The modest improvement in Maputo may reflect increasing pressures due to territorial expansion and an increase in demographic load. - The increase in mortality among infants and children and chronic malnutrition in Maputo merits special attention. ### Overall results and heterogeneity - No province succeeded in improving all 35 indicators. - No indicator worsened in all provinces. - Quantitative indicators of consumption, health, and other aspects exhibited a tendency to improve between 1996-97 and 2002-03. ### Causes of poverty and historical context - Mozambique in 1992 was known as “the world’s poorest country,” the result of: - a period of colonization that put little emphasis on human capital; - a failed (in economic terms) socialist experience; and - a vicious civil war lasting more than a decade. - The 1991-92 drought, one of the 20th century’s most severe, aggravated the situation. - Since 1992 both the economy and society have been profoundly transformed. - Factors identified in PARPA I as contributing to an improved economic and social situation included: peace and the postwar economic recovery, macroeconomic stability, and the transition to a market economy. - PARPA I focused operationally on: peace and social stability, education, health, agriculture and rural development, basic infrastructures, good governance, and macroeconomic and financial management. - Between 2001 and 2005, remarkable achievements were realized in all these action areas, though interdependencies make formal attribution difficult. - Education is identified frequently and robustly as a fundamental determinant of well-being. - In an economy where 80 percent of the active population (the percentage is higher among the poor active population) works in farming, large-scale reductions in poverty require growth in the agricultural sector. - Despite gains, the historical heritage remains the fundamental cause of the high levels of absolute poverty; shifting the population from majority-poor to majority-not-poor requires decades even with rapid poverty-reduction rates. - Groups with high probability of being poor include uneducated people, family units with high dependency rates, and family units headed by women. ### Qualitative studies: surveys and main findings - Four major qualitative participatory surveys were conducted: - 1995-96: first survey covering 18 districts in ten provinces by CEP-UEM with MPF and others. - 2001: Participative Poverty Appraisals covering 21 districts in 7 provinces (Cabo Delgado, Nampula, Zambézia, Sofala, Tete, Inhambane, and Maputo Province). - 2003: pilot study in Sofala covering three districts (three communities per district) with UNICEF assistance. - 2005: fourth qualitative study in Sofala and Inhambane covering eight districts; selection related to PARPA results where Sofala cut poverty by more than 50 percent while Inhambane showed very little change and became Mozambique’s poorest province. - Comparative findings across the qualitative studies: - 1995-96: widespread reference to the war as a determining factor; “ignorance” and unfavorable weather also mentioned. - 2001 and 2003: the war was less often mentioned; prominent determinants included absence of government/social assistance, lack of employment opportunities (working for other people), limited access to financing, marketing problems, disability (physical and mental), migration forced by war, and factory closures. Theological or fatalistic explanations were also cited. - Remote communities believe those closer to administrative offices get more government assistance and better access to services (education, health, markets) while distant communities feel abandoned. - 2005 appraisal: causes of poverty specifically mentioned included: - (a) Environmental issues, such as droughts and floods; - (b) Human issues, such as a lack of jobs, problems with access roads, exclusion based on partisan leanings, and laziness; - (c) Government protection of animals issues, e.g., bans on killing animals that destroy crops because fields are in a game preserve. - Priority problems to reduce poverty vary by respondent characteristics; the poorest rank priorities (in decreasing order of importance) as: transportation, roads, prices, marketing, access to land and water, and installation of motor-driven mills. - 2001 diagnoses emphasized need for access to basic social services, shortage of health posts, lack of transportation for the sick (ambulances), insufficient personnel, corruption, lack of potable water supply, and poor maintenance of existing infrastructures (such as pumps). - 2005 appraisal added priorities: assistance to widows and orphans, increased police presence, direct assistance to the poor, and agricultural processing plants. - Participative appraisals conducted before some social programs were implemented led many respondents to claim poverty to qualify for programs, complicating the identification of distinct poverty strata. - Perceptions of poverty varied by site; factors associated with being poor included material goods, income sources, and civil relationships/status. - 2005 appraisal: population divided into three wealth groups—poor, middle, and rich. Poor often characterized as unable to work due to physical disability, age, illness, or marital status (widowhood), or working hard but earning little due to unfavorable weather or small, infertile farms. Poverty was also linked to superstition or perceived predestination. - Common social-status indicators across studies (in order presented) included: possession of cattle; employment, a bicycle, or a car; clothing and its quality; house and its condition; money, access to credit, and saleable goods; ownership of a shop or market stall; and access to foods in quality and quantity. - Community-level causes and symptoms focus on lack of basic infrastructures (roads, markets, transportation), poor crop yields, and absence of assistance institutions. ### Volatility of poverty - Dominant impression from quantitative data: living conditions have been improving since the mid-1990s across indicators including consumption-based poverty indices, education, health, infant mortality, and access to services. - Progress is not uniform; it varies markedly by region and indicator category. - For indicators related to government services, differences in distribution of funds and efficiency of use explain some variation. - Underlying regional variations in economic potential, depending substantially on availability of infrastructures, play a dominant role. - Evidence points to a high degree of between-year variation in many indicators; substantial variation would be observed over time in living-condition series. - Many forces drive variation; in rural areas, year-to-year fluctuations typical of farming on dry, non-irrigated lands are primary sources of variability (see Table 5). - Meteorological changes are exacerbated by internal and external economic factors such as exchange rates and prices of oil, cotton, cashew nuts, and corn. - Examples contributing to poor measured performance in southern Mozambique: low rainfall in the South during the crop year prior to the survey; major floods in that zone two years prior to the survey; and substantial depreciation of the metical against the South African rand during the survey period. - Poverty trends are likely non-monotonic; even with strong positive trends, living conditions can deteriorate over short periods in limited geographic areas or for certain indicators. - Limitations in quantitative data availability can result in inaccurate indicators of living conditions; panel or longitudinal data are essential to understand chronic versus transitory poverty. - The 2005 Agricultural Survey Project (Trabalho de Inquérito Agricola – TIA) was the first large-scale panel study in Mozambique and will furnish important information, as will data from subsequent panels. - Large fluctuations in living standards increase family vulnerability: families that escape poverty risk becoming poor again. - Policy objective: not only to achieve rising trends in living conditions of the poor but also to boost families’ ability to withstand shocks and maintain relatively stable living standards. - Supplementary observations: - (a) Poverty persists throughout the country and is severe; every region will be found to have a significant number of poor people regardless of measuring tool. - (b) The influence of Zambézia and Nampula populations indicates that performance in those two provinces is crucial to nationwide indicators; poor performance there will likely yield poorly-performing national indicators. - (c) Underlying variation in indicators, measurement accuracy limits, and information time lags mean care must be taken in distributing resources, particularly using a single indicator. ### Some concerns: HIV/AIDS and orphans - HIV/AIDS prevalence and demographic impact: - Latest estimates indicate 16 percent of the population aged 15-49 are serum-positive, i.e., 1.5 million Mozambicans are living with HIV/AIDS. - 2005 sex-specific estimates: - 21.9 percent of women age 20-34 are infected; - 7.2 percent of men age 20-34 are infected; - 8.5 percent of girls age 15-19 are infected; - 2.8 percent of boys age 15-19 are infected. - The pandemic’s burdens fall mainly on women due to higher infection levels and social responsibilities toward family members. - Economic channels through which HIV/AIDS will negatively impact the economy: - (a) reduction in population growth and accumulation of human capital; - (b) reduction in accumulation of physical capital; - (c) reduction in labor force productivity. - Estimated macroeconomic impact: - HIV/AIDS could reduce per capita economic growth by 0.3 percent to 1.0 percent per annum. - Poverty rates will fall more slowly because of less vigorous economic growth, reduced accumulation of human capital, and increased dependency rates within families (Arndt 2003). - Mortality and projections: - Chart 2 (referenced) shows that, at the national level, total deaths due to AIDS since the disease first appeared are the same as the projected number of deaths for 2006-2010 (INE et al. 2004). - Orphans: - The 800,000 deaths forecast to occur between 2004 and 2010 as a result of Aids and related diseases will significantly increase the number of orphans. - Orphans face serious problems in access to education. - Orphans living in foster families are especially discriminated against in access to family resources (Nhate et al. 2005). - Inadequate access to resources, especially education-related resources, limits orphans’ ability to emerge from poverty. *Source: _cr0737 - 60. The City of Maputo is a special case because it improved in only 61.6 percent of the (PDF chapter as provided).* ### 87. Gender inequality represents an obstacle to this country’s economic growth. In ### _cr0737 - 87. Gender inequality represents an obstacle to this country’s economic growth. In ### Gender inequality and poverty - Gender inequality is identified as an obstacle to economic growth; family units where the woman is discriminated against tend to be poorer. - Improving the education of women increases the efficiency of family unit decisions regarding production, consumption, and savings. - Analyses show families headed by women have a higher incidence of poverty: 62.5 percent compared with 51.9 percent for families headed by men. - Determinants of high poverty among families headed by women include low educational levels, widowhood, high rates of dependency, and incomes too low to meet family needs. ### Labor force composition and sectoral concentration - Women account for about 55 percent of the labor force when using headcount as the basis. - Female labor force concentration in agriculture: - 90 percent of economically active women work in farming, compared with two thirds of the men. - For every 100 men working in agriculture, there are 164 women in that same field. - Sectoral representation of women (percent of the labor force in those fields represented by women): - Construction: 3 percent - Transportation: 4 percent - Government: 25 percent - Participation rates (occupied population relative to population of active age): - All: 80.6 - Women: 82.0 - Men: 78.8 - Note: If the unemployed are included, total participation would be about 3 percentage points higher. - Participation headcounts (Occupied Labor Force): - All Workers: 7,172,541 - Women: 3,971,972 - Men: 3,200,569 - PIA (Population of Active-Age, i.e., those age 15 to 60): - All: 8,902,220 - Women: 4,842,658 - Men: 4,059,562 ### Educational attainment of the occupied labor force - Occupied labor force by highest level of education completed: - EP1 [grades 1-5] or less: - All Workers: 6,508,417 - Women: 3,791,438 - Men: 2,716,980 - EP2 [grades 6&7] – ESG2 [2nd cycle secondary]*: - All Workers: 578,161 - Women: 160,779 - Men: 417,382 - Higher than ESG2: - All Workers: 85,962 - Women: 19,755 - Men: 66,207 - Total: - All Workers: 7,172,541 - Women: 3,971,972 - Men: 3,200,569 - Percentage by row (selected): - EP1 or less: All 100; Women 58.3; Men 41.7 - EP2 – ESG2*: All 100; Women 27.8; Men 72.2 - Higher than ESG2: All 100; Women 23.0; Men 77.0 - Total: All 100; Women 55.4; Men 44.6 - Percentage by column (of participation): - EP1 or less: - All Workers: 90.7 - Women: 95.5 - Men: 84.9 - EP2 – ESG2*: - All Workers: 8.1 - Women: 4.0 - Men: 13.0 - Higher than ESG2: - All Workers: 1.2 - Women: 0.5 - Men: 2.1 - Key interpretation: - Almost 96 percent of the women who work did not attend school through, or advance past, EP1. - This compared with 85 percent of the men. - Crossing Tables 5 and 6 shows that 88 percent of the female labor force is unskilled and concentrated in agriculture. ### Policy implications and recommended initiatives to reduce female poverty - Long-term priority: Achieve higher levels of schooling for women to facilitate entry into non-farm sectors with typically higher pay. - Short- to medium-term simultaneous priorities (two fundamental initiatives): - Development and dissemination of improved farming technologies, particularly for food crops that involve an important contingent of female labor. - Provision of goods and services that can alleviate the burden of domestic tasks on women (examples cited): - Reducing the distance they must travel to get water and health services. - Rural electrification. - These services aim to increase the time women have available to spend in other productive activities and boost their incomes. ### Regional disparities and inequality - Regional patterns: - 2002-03 IAF showed a significant reduction in poverty in northern and central Mozambique, but no change in the South; the South is the poorest region in terms of consumption-based indicators. - Causes noted for southern poor performance include bad weather (floods then drought) and exchange rate volatility due to strong connections with neighboring economies. - Non-income indicators: - Public services are more available in the South; literacy and educational levels are higher in the South compared with northern provinces. - Northern and central provinces exhibit poorer access to health care services, higher rates of infant and maternal mortality, high levels of malnutrition, and low rates of vaccination. - Transportation and market services in central and northern parts are unreliable, restricting benefits from favorable agricultural environments and reducing farmers’ earnings. - Convergence evidence: - Some evidence that regional disparities are narrowing on both income-related and non-income indicators. - Ibraimo (2005) indicates considerable convergence in many non-income well-being indicators. - James et al. (2005) indicates inequalities in consumption occur more within regions than between regions and that between-region inequality has declined somewhat since 1997. - Nevertheless, regional disequilibria remain characteristic of poverty and merit specific attention in PARPA II. ### Inequality trends (Gini and GE measures) - Gini coefficient and GE(1) (Generalized Entropy ratio) time series highlights: - Nationwide: - Average consumption (proportion of the poverty line): 1.28 (1996-97) and 0.40 (1996-97) / 0.42 (2002-03) / 0.31 (1996-97) / 0.37 (2002-03) [table layout preserved as presented in source] - Reported Gini values: - Nationwide Gini: 0.40 in 1997 and 0.42 in 2003. - Provincial notes: - Most provinces experienced a small increase in the inequality estimate; the increase was significant in Maputo City where the poor do not benefit from economic growth as much as the rich do. - Interpretation: - The change in the Gini from 0.40 to 0.42 between 1997 and 2003 is described as statistically insignificant. - Because inequality has not increased significantly in the past five years, the base for economic growth is considered to have expanded. - Continued monitoring of inequality is recommended because worsening inequality could sow seeds for destabilization. *Source: Prepared on the basis of IAF 2002-03 (INE 2003); James et al. 2005; Ibraimo (2005).* ### 98. The objective of constructing a prosperous Mozambican Nation is still valid. It guides ### 98. The objective of constructing a prosperous Mozambican Nation is still valid. It guides ### Objectives and strategic approach - The objective: construct a prosperous Mozambican Nation to guide and motivate the State to promote an increase in productivity (para. 98). - Maintain high average annual rates of economic growth similar to previous years by adopting a comprehensive and inclusive model to improve living conditions, well-being, and reduce poverty (para. 99). - State role: invest in public goods and services to reduce poverty via transfers of resources (redistribution), with relatively more attention to local, endogenous economic development compared with PARPA I, while considering integration into Africa and the world (para. 101). - PARPA II retains redistribution to benefit the poorest but must become more consistent and sustainable so that citizens’ efforts and national savings play a preponderant role (para. 103). - Additional PARPA II objectives: improve monitoring of economic development, play a more active role in regulating private sector activity and competition mechanisms, and allow room for public-private partnerships to create a favorable business environment (para. 104). ### Basic conditions for growth and poverty reduction - Consolidation of peace and democracy, social stability, public safety, and guarantee of individual freedoms are basic conditions for growth and reduction in absolute poverty (para. 100). - Continued importance of external aid and cooperation with government partners in the battle against absolute poverty; civil society institutions remain stakeholders and partners (paras. 102, 106). - Strategy organized around three pillars: governance, human capital, and economic development, integrating cross-cutting topics (para. 107). ### Government priorities and central objectives (by pillar) - General objectives: - Reduction in the levels of absolute poverty. - Promotion of rapid, yet sustainable and comprehensive, economic growth (para. 109). - General priorities: - Carry out policies and use instruments to promote an average annual real growth in national per capita income. - Maintain close coordination with the international community to permit continuation of flows of aid, particularly to the State Budget. - Ensure redistribution of income to the population, particularly the poorest strata, by providing social services. - Continue to monitor trends in poverty levels. - Improve monitoring of trends in the economy, including productivity, using better and more appropriate statistical indicators (para. 109). - Governance — Objectives: - Consolidation of national unity, peace, justice, and democracy. - Confrontation of corruption, excessive bureaucracy, and crime. - Strengthening sovereignty and international cooperation. - The harmonious development of this country (para. ii Objectives). - Governance — Priorities (selected): - Ensure separation of powers: executive, legislative, and judicial. - Keep open channels and spirit of communications among different political forces. - Rationalize government functions to meet objectives, improve intersectoral coordination, and avoid redundancy. - Decentralize government functions down to the district level, entailing budgetary repercussions to facilitate local development. - Review salary and incentives; adopt outsourcing to ensure technical positions are filled by Mozambicans. - Guarantee protection of property rights; rationalize and regulate land use; work with civil society and private sector to solve contract disputes while respecting laws. - Prepare a plan for vulnerability to natural disasters or events of human origin (droughts, floods, plagues, epidemics (e.g. earthquakes [sic]), increases in petroleum prices, drastic deterioration in terms of trade, sharp exchange rate fluctuations). - Ensure effectiveness of inspection authorities and agencies auditing financial and property performance; combat crime; integrate international commitments while protecting producers and consumers; distribute investments and State Budget resources nationwide in a balanced fashion (para. ii Priorities). - Human Capital — Objectives: - Expand and improve levels of education. - Improve and expand access to health care. - Improve and expand access to potable water and adequate sanitation. - Promote and consolidate self-esteem and culture valuing work, enthusiasm, honesty, and accountability. - Help young Mozambicans realize potential, creativity, entrepreneurship, and voluntarist spirit (para. iii Objectives). - Human Capital — Priorities (selected): - Expand access to education and improve efficiency, with attention to women and girls, children with special needs, orphans, and rural children. - Encourage education outputs to respond to business and market needs, using science and appropriate modern technology. - Carry out scientific activity and technological innovation with practical application in production. - Expand health coverage; reduce maternal and infant mortality; curb incidence of HIV/AIDS; reduce deaths from malaria and tuberculosis. - Improve coverage of water supply and sanitation services. - Promote equality of opportunity among women and men; include morals, culture of work, and individual responsibility in elementary curriculum. - Strengthen youth associations; develop social support networks for least favored citizens; integrate systems supporting malnourished citizens and ensure environmental equilibrium in project areas (para. iii Priorities). - Economic Development — Objectives: - Rural development. - Foster development of the national business community. - Create an environment favorable to investment (para. iv Objectives). - Economic Development — Priorities (selected): - Stimulate structural transformation of agriculture: increase productivity and integrate agriculture into the rural sector, the rest of the economy, and world market competition. - Make the north-south corridor a focal point for national development with multisectoral and territorial links. - Draft a national policy for sustainable energy and continue investing in electrification nationwide, especially rural areas. - Help achieve and maintain macroeconomic stability through competent management of public finance and Bank of Mozambique operations. - Gradually increase tax revenues as a proportion of GDP until 2009, to attain a level of 15 percent in that year; revisit rates in VAT, IRPC (Corporate Income Tax) and IRPS (Individual Income Tax) without exacerbating the tax burden. - Ensure State timely payment for services and goods purchased on the market. - Define strategy for guiding, systematizing, and orderly handling of flows of foreign aid and external credit into public sector; find sustainable ways to manage public debt. - Encourage increase in national savings and sustainable increase in credit and micro-credit to the economy, in real terms. - Define international trade policy and regional integration strategy favorable in aggregate terms to Mozambican producers and consumers. - Promote expansion of agroindustrial system, labor-intensive manufacturing, export-oriented local industries, particularly small and medium-scale units with high contribution to income and jobs. - Guarantee sustainable use of natural resources and transparent mechanisms for management and rational exploitation. - Promote, regulate, and monitor tourism development ensuring sustainable net contribution to the State Budget over medium and long term. - Implement program for construction of excavated reservoirs; rainwater collection systems; and small, medium, and large dams to satisfy water needs for human consumption, livestock, irrigation, fisheries, industry, tourism, electricity production, and mitigate droughts and floods to ensure sustainable water resource management (para. iv Priorities). ### Fiscal target - The State will gradually increase its tax revenues as a proportion of GDP until 2009, reaching 15 percent in that year. This should be achieved without increasing the tax burden on the formal sector by expanding the tax base, curbing tax evasion, and reducing tax incentives (para. 105). ### Basic macroeconomic and fiscal scenario (purpose and scope) - Central purpose: present a scenario as basis for the macroeconomic and fiscal framework of PARPA II by quantifying its strategy and identifying opportunity options/costs; forecasts for 2005-09, and 2014 (para. 110). - The basic scenario presents an optimistic goal intended to spur reforms; covers real, external, fiscal, and monetary sectors and is consistent with PARPA II goals (paras. 111–112). ### Real sector projections and key figures (Table 8 projections of GDP, Inflation, and Population: 2005-09, 2014) - Real GDP (constant 1996 prices, MT million): - 2005: 68,581 - 2006: 73,999 - 2007: 79,179 - 2008: 84,721 - 2009: 90,652 - 2014: 124,130 - Real GDP % annual change: - 2005: 7.7 - 2006: 7.9 - 2007: 7.0 - 2008: 7.0 - 2009: 7.0 - 2014: 6.5 - Real GDP (per capita in MT million): - 2005: 3.5 - 2006: 3.7 - 2007: 3.9 - 2008: 4.1 - 2009: 4.2 - 2014: 5.2 - Real GDP w/o Large Projects (MT million): - 2005: 62,646 - 2006: 67,941 - 2007: 72,537 - 2008: 78,055 - 2009: 83,299 - 2014: 116,504 - Real GDP w/o Large Projects % annual change: - 2005: 7.0 - 2006: 7.7 - 2007: 6.2 - 2008: 7.0 - 2009: 6.3 - 2014: 6.9 - Real GDP w/o Large Projects (per capita in MT million): - 2005: 3.2 - 2006: 3.4 - 2007: 3.6 - 2008: 3.7 - 2009: 3.9 - 2014: 4.8 - Nominal GDP (MT million): - 2005: 153,041 - 2006: 180,831 - 2007: 208,970 - 2008: 236,408 - 2009: 266,372 - 2014: 469,904 - Nominal GDP % annual change: - 2005: 14.6 - 2006: 18.2 - 2007: 15.6 - 2008: 13.1 - 2009: 12.8 - 2014: 11.8 - Nominal GDP (per capita in MT million): - 2005: 7.9 - 2006: 9.1 - 2007: 10.3 - 2008: 11.3 - 2009: 12.5 - 2014: 19.5 - Rate of inflation (end of period): - 2005: 11.2 - 2006: 7.0 - 2007: 6.0 - 2008: 5.5 - 2009: 5.4 - 2014: 5.0 - Rate of inflation (annual average): - 2005: 6.4 - 2006: 9.5 - 2007: 8.0 - 2008: 5.7 - 2009: 5.4 - 2014: 5.0 - GDP Deflator (2006 = 100): - 2005: 91.3 - 2006: 100.0 - 2007: 108.0 - 2008: 114.2 - 2009: 120.4 - 2014: 154.1 - GDP Deflator % annual change: - 2005: 6.4 - 2006: 9.5 - 2007: 8.0 - 2008: 5.7 - 2009: 5.4 - 2014: 5.0 - Population (million): - 2005: 19.4 - 2006: 19.9 - 2007: 20.3 - 2008: 20.8 - 2009: 21.3 - 2014: 24.0 - Population growth (%): - 2005: 2.4 - 2006: 2.4 - 2007: 2.4 - 2008: 2.4 - 2009: 2.4 - 2014: 2.4 - Note: “real” means constant 1996 prices (base used by INE – National Statistics Institute). The figures for 2005 were obtained from the December 2005 Report on Budgetary Execution; the 2005 report is preliminary and disbursements for externally-financed projects are incomplete, so external financing is in fact much greater than shown; the big increase from 2005 to 2006 reflects this problem (para. 113 and table notes). ### Role of large projects and sectoral contributions - Big projects play only a minimum role; only change is startup of the Moma Heavy Sands Project in 2006-07. Growth rates are not based on these kinds of undertakings (para. 114). - Main impact of such projects on GDP is broadening production base during first years; after optimal production achieved, contribution to rate of real growth remains relatively low (para. 115). - Agriculture, commerce, and transportation play an important role in growth by helping to integrate the nation’s economy (para. 113). ### Key assumptions underpinning growth forecasts - Assumptions listed explicitly (para. 116): - Stability and peace, both internally and internationally. - Exploitation of the economy’s potential in agriculture, agro-industry, natural resources and tourism. - Continuity of public sector reforms, improving business environment and access to credit, particularly rural credit. - A better banking system and greater sophistication in the financial system. - An additional effort to provide and maintain infrastructures. - Support for small and medium-scale companies. - Inflows of foreign capital in the form of aid and investment. - A deepening of external economic relations, particularly with the Southern African Development Community (SADC). ### Revenue potential from natural resources (example) - Country Economic Memorandum: Mozambique estimates potential public revenues at US$67 and US$215 million in 2005 and 2015, respectively, compared with US$30 million in 2003, at constant prices (World Bank 2005a). As a percentage of tax revenues, these figures represent 5.3 percent and 11 percent in 2003 and 2005, respectively. This favorable trend will be possible if mechanisms for charging fees for use of natural resources are implemented without changes in current legal situation; government priorities for improving revenue-collection mechanisms discussed in Chapter VIII (para. 117). ### Exogenous risks - Potential exogenous risks for the Mozambican economy (para. 118): - (i) reduction in demand for exports; - (ii) increases in the prices of specific imported commodities such as oil; - (iii) a drastic drop in foreign aid; - (vi [sic – iv]) weather-related shocks; - (vii [sic – v]) macroeconomic shocks. ### External sector overview and assumptions - Mozambique is heavily dependent on external flows of funds, has a flexible exchange rate, and a relatively high level of imports, equivalent to 28 percent of GDP (excluding imports for megaprojects), while exports stood at 7,3 percent of GDP (excluding megaprojects) in 2005 (para. 119). - Projections for the external sector take an optimistic view of exports while excluding production by large projects; fundamental assumption: general growth rests on sustainable expansion and improved competitiveness of export industries, crucial to maintaining desired levels of international reserves (para. 120). *Italic source attribution: IMF country report text (PARPA II section).* ### 121. Therefore, we emphasize the importance of properly appreciating the role of the ### _cr0737 - 121. Therefore, we emphasize the importance of properly appreciating the role of the ### External sector: export dependence, trade, and reserves - Emphasis: properly appreciate the role of the country’s export sectors and avoid actions that could harm them, with monitoring focused primarily on small and medium-size Mozambican exporters. - Objective: maintain macroeconomic stability and reduce volatility in the exchange rate. - Assumptions: - Stability in the (global) balance of trade and a gradual and prudent strengthening of the net international reserves position. - Foreign aid will continue to be extremely important for financing the deficit in current account and ensuring stability vis à vis the rest of the world. - Table 9 projections (in US$ million) — exports, imports, and balances: - Exports: 2005 = 1,745; 2006 = 1,803; 2007 = 2,016; 2008 = 2,156; 2009 = 2,269; 2014 = 3,236 - annual % change: 20.2; 3.3; 11.9; 6.9; 5.2; 7.7 - % of GDP: 26.3; 26.0; 27.6; 26.7; 25.5; 26.7 - Mega-projects component: 2005 = 1,263; 2006 = 1,215; 2007 = 1,332; 2008 = 1,365; 2009 = 1,393; 2014 = 1,809 - Other exports: 483; 588; 684; 790; 876; 1,427 - annual % change for Other: 19.7; 21.8; 16.4; 15.5; 10.8; 10.0 - Imports: 2005 = 2,242; 2006 = 2,643; 2007 = 2,595; 2008 = 2,723; 2009 = 2,899; 2014 = 3,802 - annual % change: 27.8; 17.9; -1.8; 4.9; 6.5; 5.1 - % of GDP: 33.8; 38.1; 35.5; 33.8; 32.6; 31.3 - Mega Projects imports: 384; 430; 402; 401; 410; 568 - Other imports: 1,858; 2,213; 2,193; 2,322; 2,489; 3,234 - annual % change for Other: 26.0; 19.1; -0.9; 5.9; 7.2; 5.0 - Balance of Trade: -497; -840; -579; -567; -630; -566 - Balance of Trade (not incl. mega-projects): -1,375; -1,625; -1,509; -1,531; -1,613; -1,807 - % of GDP (not incl. mega-projects): -20.7; -23.4; -20.6; -19.0; -18.2; -14.9 - Current Account (balance): -761; -1,091; -910; -894; -985; -700 - Net international reserves (Table 9): - Index (2006 = 100): 141.4; 100.0; 102.9; 104.6; 90.3; 119.1 - as months of imports (of goods): 5.0; 3.0; 3.2; 3.1; 2.5; 2.5 ### Monetary sector: objectives, monetary base, credit, and reserves - Assumptions: fiscal and external sector objectives are achieved because monetary indicators are inherently linked to developments in those sectors. - Control of monetary base expansion is required to keep inflation rates low. Goals based on projections of inflation and real growth. - Projections indicate international reserves held by the Bank of Mozambique will improve gradually until 2014 from 2006 onward; inability to grow exports while controlling imports could exert mounting pressure on the exchange rate. - Government deposits and credit to the government: - Expected net increase in government deposits until 2009; net government will not receive credit from the banking system. - Increase in government deposits will contribute to an average 15 percent per annum increase in credit to the economy. - Warning: failure of the government to exercise fiscal control could undermine the desired expansion of credit to the private sector. - Table 10 projections (millions of contos) — monetary accounts: - Net external assets: 2005 = 34,316; 2006 = 27,307; 2007 = 27,927; 2008 = 27,993; 2009 = 24,319; 2014 = 22,973 - Net internal assets: 9,125; 22,839; 28,949; 36,212; 48,090; 94,920 - Internal credit: 13,477; 11,849; 14,548; 17,437; 20,890; 46,288 - Credit to the government (net): -7,014; -11,921; -12,787; -13,998; -15,260; -19,128 - Credit to the economy: 20,491; 23,770; 27,335; 31,435; 36,150; 65,416 - Other assets and liabilities: -4,352; 10,990; 14,401; 18,774; 27,200; 48,632 - Money and quasi-money (M3): -43,441; -50,146; -56,876; -64,205; -72,409; -117,893 - Currency in circulation: -6,110; -6,770; -7,509; -8,477; -9,560; -15,565 - Deposits: -37,331; -43,377; -49,367; -55,728; -62,849; -102,328 - Balance: 0.0; 0.0; 0.0; 0.0; 0.0; 0.0 ### The Financial Envelope (2006-09, 2014): resources, revenues, and composition - Purpose: defines the total volume of financing available to the government; consistent with macroeconomic goals and forecasts. - Central objective: continue mobilizing domestic funds to increase sustainability of public finance over the long term. - Basic scenario projects an annual average rate of growth slightly above 10 percent in total real funds available between 2005 and 2009, driven mainly by government collections. - State revenues forecast: increase from 14.0 percent of GDP in 2005 (in 2006 prices) to 16.2 percent in 2009. - Forecast increase in external resources in 2006 due to inclusion of off-budget items and low preliminary estimates for 2005. - Caution: funds must be mobilized without jeopardizing private sector growth or incentives for formal sector activity. - Table 11 (millions of contos) — Financial Envelope at Constant 2006 Prices: - 1. Total Resources: 2005 = 41,503; 2006 = 52,881; 2007 = 56,641; 2008 = 59,066; 2009 = 61,635; 2014 = 75,717 - State Revenues (incl. privatizations): 24,057; 27,017; 29,510; 32,633; 35,842; 50,578 - External Resources *: 17,446; 25,864; 27,132; 26,433; 25,793; 25,139 - Donations: 11,731; 16,757; 17,277; 17,213; 17,034; 16,770 - For projects: 5,407; 10,510; 10,995; 10,800; 10,486; 10,122 - Other: 6,323; 6,246; 6,281; 6,414; 6,548; 6,648 - Credits: 5,716; 9,107; 9,855; 9,220; 8,759; 8,370 - For projects: 3,447; 4,711; 5,072; 4,925; 4,782; 4,616 - Other: 2,268; 4,396; 4,783; 4,294; 3,977; 3,753 - 2. Net internal credit **: -524; -1,332; -802; -1,061; -1,049; 0 - 3. Resource envelope [= 1 + 2]: 40,979; 51,548; 55,839; 58,006; 60,586; 75,717 - As % of GDP (Table 11): - Total Resources: 24.8; 29.2; 29.3; 28.5; 27.8; 24.8 - State revenues: 14.4; 14.9; 15.3; 15.8; 16.2; 16.6 - External Resources: 10.4; 14.3; 14.0; 12.8; 11.6; 8.2 - Donations: 7.0; 9.3; 8.9; 8.3; 7.7; 5.5 - Credits: 3.4; 5.0; 5.1; 4.5; 4.0; 2.7 - Net internal credit: -0.3; -0.7; -0.4; -0.5; -0.5; 0.0 - As % of Resource Envelope: - Total Resources: 101.3; 102.6; 101.4; 101.8; 101.7; 100.0 - State revenues: 58.7; 52.4; 52.8; 56.3; 59.2; 66.8 - External Resources: 42.6; 50.2; 48.6; 45.6; 42.6; 33.2 - Donations: 28.6; 32.5; 30.9; 29.7; 28.1; 22.1 - Credits: 13.9; 17.7; 17.6; 15.9; 14.5; 11.1 - Net internal credit: -1.3; -2.6; -1.4; -1.8; -1.7; 0.0 - Notes: - * The increase in external resources between 2005 and 2006 is due to incomplete information on 2005 execution, as well as to the inclusion of 2006 off-budget resources. - ** For 2005, includes “other revenues and expenditures” equal to 326 mde (expenditure). - Interpretation: - Basic scenario reflects heavy influence of external aid in State financial resources; value of external funds to finance State expenditure programs anticipated to remain approximately constant, in dollar terms, from 2006 onward. - Forecast increase in external resources in 2006 due to greater coverage of the State budget (inclusion of previously off-budget external resources). - The projection is conservative and intended as a prudent basis for guiding expenditure programs. ### Principal external resources and implications for the budget - Table 12 (US$ million) — Principal External Resources: - Principal External Resources: 2005 = 639.5; 2006 = 899.2; 2007 = 928.4; 2008 = 944.6; 2009 = 956.7; 2014 = 967.2 - Support of the Budget: 294.0; 309.7; 320.7; 332.1; 344.2; 356.4 - Donations: 231.5; 219.7; 230.7; 242.1; 254.2; 266.3 - Credits: 62.4; 90.0; 90.0; 90.0; 90.0; 89.8 - Project Financing*: 345.5; 589.5; 607.7; 612.5; 612.5; 611.2 - Donations: 207.8; 406.8; 415.9; 420.6; 420.6; 419.7 - Credits: 137.7; 182.7; 191.8; 191.8; 191.8; 191.4 - *Including the Common Funds within the scope of the sectoral strategic programs - Policy stance: - The projection of external aid is neither a ceiling nor a fixed limit; the country remains open to additional aid provided it aligns with government activities and plans. - One implication: size of the financial envelope in terms of GDP does not grow during the period due to forecast about external resources and anticipated considerable decline in internal credit to the government. - Prediction: State will begin to record a budget surplus between now and 2009 associated with greater mobilization of internal funds, control of current expenses, and anticipated reduction in financial operations. - Emphasis: real increase in tax revenues is key to consistency between economic development and tax and budget policies. ### Additional funds scenarios (2006-2009, 2014): debt forgiveness and increased external aid - Basic Scenario: prudent, consistent framework guiding medium-term expenditure programs; open to change based on execution, new information, or policy shifts. - Two factors that could upwardly revise the financial envelope: - (i) supplementary forgiveness of the State’s external debt; - (ii) sustained rise in the volume of external aid. - Scenario methodology: - Budgetary implications estimated in Table 13 using indices of principal expenditure components (2006 base = 100 for each component). - All scenarios assume total resources released are allocated to investment expenses. - Debt Forgiveness Scenario: - Pessimistic scenario: additional external debt forgiveness implies redistribution to investment expenses of 15 percent of expenditures related to debt service (interest and amortization), beginning in 2006. - Optimistic scenario: 30 percent redistribution in 2006, rising to 70 percent in 2008 and 2009. - Important result: from the budgetary standpoint, debt forgiveness programs will not have a considerable impact in either the short or medium term; they have gradual long-term effects and positive effects on the capital account not captured here. - Table 13 (selected index and simulated values; real index valued at constant 2006 prices): - Scenario: basic (index values) - Current expenditure: 86.1; 100.0; 108.2; 113.0; 117.7 (2005–2009) - Investment expenditure: 66.1; 100.0; 108.3; 114.4; 121.8 - Financial operations: 117.5; 100.0; 110.2; 94.7; 85.6 - Total expenditure: 79.5; 100.0; 108.3; 112.5; 117.5 - Scenario: debt forgiveness (pessimistic) - Investment expenditure index examples: 0.0; 144.4; 137.4; 136.8; 139.1 - Value of funds freed up (mde, example row): 0.0; 433.2; 687.2; 957.9; 973.6 - Scenario: debt forgiveness (optimistic) - Investment expenditure index examples: 66.1; 102.0; 111.4; 118.8; 126.2 - Value of funds freed up (mde, example rows): 0; 0; 75; 150; 200 - Corresponding changes vs. “base” (%) and as % of GDP are presented in Table 13 (selected figures): - Investment expenditure change vs. “base” (%): 0.0; 2.0; 2.9; 3.8; 3.7 - Investment expenditure as % of GDP examples: 8.6; 12.0; 13.2; 13.9; 14.3 - Scenario: increase in external aid (simulated) - Simulated increase in US$ million and effects shown in Table 13 (examples): - Investment expenditure index: 66.1; 100.0; 117.2; 132.4; 145.7 - Investment expenditure change vs. “base” (%): 0.0; 0.0; 8.3; 15.7; 19.7 - Total Expenditure as % of GDP examples: 24.5; 28.5; 29.9; 29.9; 29.7 - Increase in external assistance scenario: - Government must consider (i) ability to absorb and manage more aid; and (ii) danger of distortions related to increased aid. *Source: _cr0737 - 121.* ### 145. And so the last scenario in Table 13 calculates (in real terms) the impact of a gradual ### _cr0737 - 145. And so the last scenario in Table 13 calculates (in real terms) the impact of a gradual ### Scenario of additional external assistance and investment impact - The last scenario in Table 13 simulates an increase of US$75 million in 2007 that rises to US$150 million in 2009. - Result: additional funds would finance a higher rate of investment (e.g. 14.3 percent compared with 12.0 percent of the GDP forecast for 2009 in the basic scenario) and an increase in the weight of total expenditure as percentage of GDP. ### Absorption, sustainability, and government stance on aid flows - The government recognizes that effective foreign aid has spurred efforts to reduce absolute poverty and achieve economic growth. - The country has not attained a level of sustainable economic growth that would require a substantial cut in the volume of assistance in the short or medium term. - The government prefers external aid that flows smoothly and with appropriate predictability. ### Basic principles for application of additional external funds - Extraordinary external resources should not be included in medium-term planning because flows will not continue indefinitely and require a specific approach. - Two priority allocation principles emerged: - (a) Investments that need significant startup funding but can be sustained by lower funding during the implementation phase. - (b) Interventions that stimulate the productive sector of the country’s economy. - Two associated concerns with large inflows: Dutch disease and the economy’s ability to absorb funds. Focus on the production sector (principle (b)) is intended to help address both concerns. - The principles aim to prevent an incremental expansion across all expenditure headings that would be unsustainable once extraordinary funding ends. ### Budgetary accommodation of PARPA II and medium-term fiscal framework - Budgetary accommodation of PARPA II translates into the overall financial program supporting the State’s actions. - The program is based on the Medium-Term Fiscal Scenario, updated annually and used to prepare the annual budget. - Projections and allocations are presented at constant 2006 prices. ### Summary fiscal program (selected figures from Table 14) — (millions of contos, constant 2006 prices) - Total Resources: 2005: 41,503; 2006: 52,881; 2007: 56,641; 2008: 59,066; 2009: 61,635; 2014: 75,717 - 1.1 State revenues (+ privatizations): 24,057; 27,017; 29,510; 32,633; 35,842; 50,578 - 1.2 External Resources: 17,446; 25,864; 27,132; 26,433; 25,793; 25,139 - Total Expenditures: 40,979; 51,548; 55,839; 58,006; 60,586; 75,717 - Current expense: 23,031; 26,735; 28,918; 30,215; 31,468; 40,251 - Investment expense: 14,394; 21,788; 23,587; 24,925; 26,528; 33,661 - Financial operations: *; 3,555; 3,026; 3,334; 2,866; 2,590; 1,805 (note: table shows 3,555 for 2006 and other years as listed) - Net internal credit [= 2 – 1] **: -524; -1,332; -802; -1,061; -1,049; 0 - Memorandum items: - Current deficit [= 1.1 – 2.1]: 1,027; 282; 592; 2,418; 4,374; 10,326 - Total deficit [= 1.1 – 2]: -16,922; -24,532; -26,330; -25,373; -24,744; -25,139 - Total deficit (% GDP): -10.1; -13.6; -13.6; -12.3; -11.2; -8.2 - Internal Primary Balance ***: -3,997; -4,681; -4,644; -4,555; -4,874; -7,055 - Internal Primary Balance (% GDP): -2.6; -2.6; -2.2; -1.9; -1.8; -1.5 - Notes: - * Excludes internal debt amortization, which is part of the net internal credit. - ** For 2005, includes “other revenues and expenditures” equal to 326 mde (expenditure). - *** The internal primary balance measures the difference between total internal resources and internal spending, which includes expenditures financed through direct budget support. ### Program of expenditures (selected figures from Table 15) — (millions of contos, constant 2006 prices) - Total expenditure: 2005: 40,979; 2006: 51,548; 2007: 55,839; 2008: 58,006; 2009: 60,586; 2014: 75,717 - Current expense: 23,031; 26,735; 28,918; 30,215; 31,468; 40,251 - Personnel expenses: 11,707; 13,345; 14,580; 15,601; 16,693; 22,870 - Goods and services: 4,826; 5,587; 5,901; 6,315; 6,757; 9,026 - Charges on the debt: 1,367; 1,568; 2,237; 2,174; 1,955; 915 - Current transfers: 4,174; 4,726; 4,755; 4,584; 4,420; 5,336 - Other: 956; 1,509; 1,444; 1,541; 1,644; 2,104 - Investment expense *: 14,394; 21,788; 23,587; 24,925; 26,528; 33,661 - Internal component: 5,349; 6,566; 7,520; 9,199; 11,260; 18,296 - External component: 9,044; 15,221; 16,068; 15,725; 15,268; 15,364 - Financial operations **: 3,555; 3,026; 3,334; 2,866; 2,590; 1,805 - As % of GDP (selected): - Total expenditure: 24.5; 28.5; 28.9; 28.0; 27.3; 24.8 - Current expense: 13.7; 14.8; 14.9; 14.6; 14.2; 13.2 - Investment expense: 8.6; 12.0; 12.2; 12.0; 12.0; 11.0 - Financial operations: 2.1; 1.7; 1.7; 1.4; 1.2; 0.6 - As % of total expenditure (selected): - Current expense: 56.2; 51.9; 51.8; 52.1; 51.9; 53.2 - Investment expense: 35.1; 42.3; 42.2; 43.0; 43.8; 44.5 - Financial operations: 8.7; 5.9; 6.0; 4.9; 4.3; 2.4 - Notes: - * Investment expense includes project expenditure, being current and capital expenditure. - ** Excludes internal debt amortization, which is part of the next internal credit. ### Fiscal policy stance and constraints - Main objective: maintenance of fiscal responsibility to ensure macroeconomic stability and facilitate success of the plan of action. - Evidence of consolidation: negative figures on internal credit to the government (excluding transactions with the Bank of Mozambique) and decline of total deficit and primary balance in terms of GDP until 2009. - Given constraints, radical changes in expenditure structure are not realistic; only minor changes are indicated between now and 2009. ### Investment financing, projections, and sectoral allocation - Investment: expected that the volume of external financing will decline in terms of GDP beginning in 2006. - Even so, control of current spending and increases in State revenues would permit an increase in the internal component of investment spending, ensuring total investment greater than 11 percent of GDP. - Table 16 (Resources allocable to sectors) highlights: - Total Resources: 41,503; 52,881; 56,641; 59,066; 61,635; 61,782 - - Financial Operations *: -3,555; -3,026; -3,334; -2,866; -2,590; -2,445 - - Active (external debt amortization split): -2,751; -2,094; -2,441; -2,024; -1,777; -1,643 - - External debt amortization: -804; -932; -893; -842; -814; -802 - - Charges on the debt: -1,367; -1,568; -2,237; -2,174; -1,955; -1,842 - - Miscellaneous transfers: -3,935; -4,117; -3,929; -3,810; -3,696; -3,588 - + Net internal credit: -524; -1,332; -802; -1,061; -1,049; -897 - = Resources that could be Allocated to the Sectors: 32,123; 42,839; 46,339; 49,156; 52,345; 53,010 - As percent of total resources: 77.4; 81.0; 81.8; 83.2; 84.9; 85.8 - As percent of GDP: 19.2; 23.7; 23.9; 23.7; 23.6; 22.4 - * Financial Operations excludes internal debt amortization, which is part of the next internal credit. ### Methodology and assumptions for cost estimation and projections - Chosen approach: allocate funding that is predictable within the current context rather than “aspirational costing” that sums expenditures necessary to achieve the MDG. - Projections made at constant 2006 prices and account broadly for ongoing projects and specific large activities (e.g., bridge over the Zambezi river, Population Census planned for 2007, installation of provincial legislatures, elections). - Projection does not distinguish between internal and external sources or between operating and investment expenses in aggregate presentation; external financing is allocated according to Government priorities while general Treasury funds offset misalignment. - Investment expense in the State Budget can include both current and capital expenditures organized by project; distinction between “general” (operating) and “specific” (investment) is an operational decision for annual budgeting. - Projection does not take geography into account; territorial distribution is addressed in the CFMP and considers decentralization and implementation capacity. - The projection includes the impact of new hirings but does not reflect changes in wages and salaries; to account for promotions, progressions, and slight real wage increases from 2007 until 2010, a cumulative figure of 3 percent was deducted from the amount to be distributed to the sectors. ### Sectoral priorities and infrastructure focus - Public services and infrastructure necessary for comprehensive, well-balanced economic growth should receive more attention and funding. - Economic sectors requiring more attention: agriculture (especially irrigation, research, extension services, and small-scale fishing), tourism, transportation (including weather forecasting), and the waters sector (to compensate for past low execution rates and rehabilitate certain dams). - Roads and highways: continued prioritization, including construction of strategic bridges and rebuilding of National Highway No. 1 to better integrate North, Central, and South regions; balance between primary and secondary highways and access/neighborhood roads to integrate rural and regional economies. *Source: _cr0737 - 145. And so the last scenario in Table 13 calculates (in real terms) the impact of a gradual* ### 172. Other areas in which a substantial increase in funding is anticipated in order to meet ### _cr0737 - 172. Other areas in which a substantial increase in funding is anticipated in order to meet ### Funding priorities for economic growth - Other areas in which a substantial increase in funding is anticipated in order to meet goals related to economic growth are: - (i) energy, which should contribute by supplying quality electric power to districts that have industrial potential; - (ii) the National Tourism Funds; export promotion; and - (iii) higher education (universities and polytechnic institutes) and vocational/technical education. ### Health and Social Action - Health and Social Action will continue to receive increased funding during the year, in real terms, to permit a rise in expenditures that slightly exceeds population growth. - Sectoral focus: - efficiency and good management; - inter-sectoral allocation of resources. - Anticipated outcomes: - Health sector will experience growth higher than the average for the basic services sector. - Social Action will see an increase, particularly in actions intended to mitigate the effects of AIDS. ### Education - Particular attention reserved for Education: - significant growth in funds allocated to primary school (EP1 and EP2) and the first part of secondary education up to 10th grade (ESGI) is predicted. - Objective: ensure that the increase in the number of students does not cause a deterioration in quality. - Goals: - achieve a gradual improvement in the teacher/student ratio; - better balance among regions. - Note: Potential for improving quality without additional costs through more efficient organization, but expansion with improved quality is not feasible without an increase in funding. ### Other sectoral allocation needs - Sectors where allocations need to increase to keep pace with population growth: - Courts, Law Enforcement, Industry, Commerce, and Tourism (except for the institutions mentioned above), Fisheries and Mineral Resources, and Planning and Finance. - Sectors where allocation of resources to general administrative functions will not change significantly: - Foreign Affairs and embassies; Defense; the units associated with the offices of the President of the Republic, the Prime Minister, and the Governors; the Assembly of the Republic, and Statistical Services. - Special non-recurring expenditures treated separately: - The 2007 census and the 2007-2009 elections. - Adjustments to PARPA strategy will be made by redistributing funds within respective institutions. ### Housing, Environment, Women’s Issues - Current level of spending will be maintained (in real terms) for Housing, the Environment, and Women’s Issues. - Readjustments in internal distribution as needed. - For Women’s Issues and the Environment, priority is redefinition of internal priorities to meet PARPA II goals. ### Limitations of these projections - (a) In many cases, unit cost of the products was not calculated. - (b) Projects now under way and works already assigned funding were not taken into account in detail. - (c) Funds projection assumes a regular flow, without large fluctuations between years. In reality, fluctuations result from the various phases of projects implementation. - (d) Problem remains of apparent scarcity of internal resources to pay VAT tax and to cover joint participation in projects financed from abroad in which the external financing does not include the tax burden. Depending on the solution found, the figures may be changed significantly by the impact of the taxes. - (e) The subdivision of expenditures by programs is not sufficiently developed, since such a subdivision does not exist in the current budget and books of account. - (f) The projection does not discriminate between internal and external financing. Because of inertia in the current structure of external financing, owing to projects under way and medium-term commitments, it will be quite a challenge to allocate the external funds in a way that corresponds to the desired structure. - (g) The figures attributed under the 2006 State Budget served as starting point. These were increased in some cases to take into account certain external financing that was known, but had not been recorded in the budget. This adjustment is, of course, a raw estimate. The affected sectors are HIV/AIDS, Education, Health, and Highways (bridge over the Zambezi River). - (h) In some cases, the figures from the 2006 State Budget may have been under-estimated because the proposals submitted by the sectors were reduced in order to ensure consistency between the State Budget and macro-financial programming. It was not possible to determine, in detail, the real value of the investments financed under the existing projects, even when they were recorded in the budget. ### Evolution and structure of sectoral expenditures (constant 2006 prices; internal and external financing) - Total (in millions of contos): 2006: 44,216; 2007: 46,467; 2008: 48,039; 2009: 50,752; 2010: 52,837. - Table 17: Structure of Sectoral Expenditures (excluding general expenses) 2006-2010 (percent shares) - The State (Office of the President, Legislature, Embassies, Defense, INE, CNE/STAE): 2006: 9.9%; 2007: 11.6%; 2008: 9.8%; 2009: 10.3%; 2010: 8.6%. - General and technical education: 2006: 18.9%; 2007: 18.0%; 2008: 19.0%; 2009: 19.8%; 2010: 21.2%. - Higher education, technology: 2006: 3.1%; 2007: 3.4%; 2008: 3.8%; 2009: 3.8%; 2010: 3.9%. - Health and AIDS: 2006: 19.0%; 2007: 18.1%; 2008: 18.1%; 2009: 18.0%; 2010: 18.3%. - Roads and Highways: 2006: 12.5%; 2007: 13.4%; 2008: 13.8%; 2009: 13.6%; 2010: 13.9%. - Waters: 2006: 5.3%; 2007: 5.3%; 2008: 5.9%; 2009: 5.8%; 2010: 5.5%. - The Legal Structure: 2006: 8.1%; 2007: 7.6%; 2008: 7.4%; 2009: 7.3%; 2010: 7.3%. - Agriculture, MIC [Ministry of Industry & Commerce], Natural Resources, Tourism: 2006: 7.2%; 2007: 7.6%; 2008: 7.6%; 2009: 7.3%; 2010: 7.2%. - Other: 2006: 16.0%; 2007: 15.0%; 2008: 14.7%; 2009: 14.2%; 2010: 14.1%. - Note on 2006 figures: Figures include the estimated value of off-budget items, on the order of US$35 million, and special financing for elections and the census on the order of US$ 30 million. ### “Non-allocated” items, 2007 specifics, and financing gaps - The starting point for the projections is the 2006 State Budget, with some known foreign aid projects added that were not captured in budgeted expenditures. - Macro projections call for only about US$35 million in which the posted external support will increase between 2006 and 2007 because of improvements in budget coverage; hence the deficit. - In 2007, programmed expenditure exceeds resources shown in the macro table because of two specific activities: the population census, and provincial elections. - Projection assumption: regular flow of revenue and other receipts each year, except for fluctuations from specific reasons (end of large projects, special events such as elections and the census normally covered by special external financing). - Expectation: the 2007 deficit gap will probably be closed by special contributions from some cooperation partners. ### Expenditure composition by programs and components (descriptive keys) - Roads and Highways: Primary roads; Secondary roads; Neighborhood and regional roads; Bridge construction and rehabilitation; General expenses; Public works at the provincial level (includes access roads). - Waters: General expenses; Rural water supply; Rural sanitation; Urban water supply; Urban sanitation; Water resources. - Agriculture: General costs; Fishery; Rural extension services; Support for production; Research; Irrigation; Forests and wildlife; Farmland management. - Health and HIV/AIDS: Levels 1 and 2 (excluding wages and salaries); Level 3 (excluding wages and salaries); Level 1-3 Personnel and DPS [Provincial Health Directorates]; Level 4; Medicines; Equipment; Training; HIV/AIDS; Overhead, general expenses. - Education: General education (primary—EP and the first part of secondary education—ES2); Second part of secondary and technical education; Teacher training; Adult education; General expenses, HIV/AIDS. - “The State”: Offices of the President, Governors, and Prime Minister; Legislatures, constitutional conventions; Defense; MAE [Ministry of State Administration], STAE, CNE; INE; MINEC [Ministry of Foreign Affairs & Cooperation], Embassies. - The Legal Structure: Interior; Ministry of Justice, prisons; Courts. - Note: Fluctuations in the percentages mainly reflect sums allocated to the census and the elections. ### Scenarios for absolute poverty reduction (section VI) — context and evidence - Mozambique’s economy has grown at about 6 percent per annum in recent years. - Between 1997 and 2003 a 15.3 percent reduction occurred in the incidence of poverty (see Table 2). - Comparative evidence from Table 18: Annual average change in real per capita GDP and average annual change in incidence of poverty (headcount index) for selected African countries and periods: - Mauritania 1987-1996: Growth*: 90.4; Poverty**: -1.67 - Senegal 1986-1997: Growth*: 110.0; Poverty**: -1.68 - Mali 1986-1996: Growth*: 90.5; Poverty**: -0.76 - Ghana 1988-1998: Growth*: 102.0; Poverty**: -1.86 - Uganda 1993-2003: Growth*: 103.2; Poverty**: -3.90 - Kenya 1989-1998: Growth*: 9-0.2; Poverty**: -0.94 - Tanzania 1992-1999: Growth*: 70.0; Poverty**: 0.53 - Botswana 1984-1994: Growth*: 104.8; Poverty**: -4.50 - Zambia 1992-2001: Growth*: 9-4.0; Poverty**: 0.62 - Zimbabwe 1988-1999: Growth*: 110.5; Poverty**: -0.59 - Mozambique 1996-2003: Growth*: 76.3; Poverty**: -2.60 - Note definitions: - *Annual average change in real per capita GDP (national currency, constant prices). - ** Average annual change in incidence of poverty (headcount index). ### Poverty projections and scenarios (Table 19) — key outcomes preserved verbatim - Baseline figures: - Incidence of Poverty: 1997: 69.40%; 2003: 54.10%. - Average consumption by poor families (Av. per person per day, % of the poverty line): 1997: 57.80%; 2003: 62.06%. - Index (1997 = 100): 1997: 100; 2003: 107.37%. - A. Various scenarios, neutral distribution** - 2% scenario: - Incidence of Poverty 2009: 47.23% - Av. consumption by poor families 2009 (% of poverty line): 69.89% - Index 2009: 120.92% - 3% scenario: - Incidence of Poverty 2009: 43.46% - Av. consumption by poor families 2009: 74.10% - Index 2009: 138.20% - 4% scenario: - Incidence of Poverty 2009: 40.00% - Av. consumption by poor families 2009: 78.53% - Index 2009: 135.87% - 5% scenario: - Incidence of Poverty 2009: 36.43% - Av. consumption by poor families 2009: 83.17% - Index 2009: 143.89% - B. Scenario with 5% growth (distribution variants) - (a) Distribution improves for the poor: - Incidence of Poverty 2009: 34.13% - Av. consumption by poor families 2009: 86.77% - Index 2009: 150.12% - (b) Distribution slightly deteriorates for the poor: - Incidence of Poverty 2009: 38.66% - Av. consumption by poor families 2009: 79.88% - Index 2009: 138.20% - (c) Distribution significantly deteriorates for the poor: - Incidence of Poverty 2009: 43.44% - Av. consumption by poor families 2009: 74.21% - Index 2009: 128.39% - (d) Distribution seriously deteriorates for the poor: - Incidence of Poverty 2009: 46.59% - Av. consumption by poor families 2009: 70.59% - Index 2009: 122.13% - C. Scenario with 2% growth (distribution variants) - (a) Distribution improves for the poor: - Incidence of Poverty 2009: 45.86% - Av. consumption by poor families 2009: 71.24% - Index 2009: 123.25% - (b) Distribution slightly deteriorates for the poor: - Incidence of Poverty 2009: 48.29% - Av. consumption by poor families 2009: 68.67% - Index 2009: 118.81% - (c) Distribution significantly deteriorates for the poor: - Incidence of Poverty 2009: 49.85% - Av. consumption by poor families 2009: 66.57% - Index 2009: 115.17% - (d) Distribution seriously deteriorates for the poor: - Incidence of Poverty 2009: 50.99% - Av. consumption by poor families 2009: 65.22% - Index 2009: 112.84% - Additional scenario commentary from text: - Scenario: annual rise of 5 percent in per capita consumption, neutral distribution — incidence of absolute poverty would decline from 54.1 percent of the population in 2003 to 36.4 percent in 2009. For the average poor family unit, real consumption per capita would climb by 44 percent by 2009. - Slow-growth example: a 2 percent per annum real per capita consumption growth would leave about 47.2 percent of the population below the poverty line in 2009. - Assuming neutral distribution of income and a real per capita growth in consumption between 2 and 3 percent, the headcount index would be 45 percent in 2009. *Source: _cr0737 (IMF content unit provided)* ### 187. These topics are considered as cross-cutting since they cannot be considered in ### _cr0737 - 187 ### Cross-cutting topics: overview and rationale - These topics are considered cross-cutting since they cannot be considered in isolation, because the action plan requires concerted and well-integrated action by a multitude of actors. - Addressing these factors is crucial to the success of the entire growth and poverty reduction strategy. Failure to consider these cross-cutting issues may limit the success of the strategies and programs designed for other sectors. - An integrated approach by PARPA II to the cross-cutting topics will enable maximization of synergies from the involvement and commonality of vision and objectives across sectors, impacting program planning, policy formulation, and implementation. - PARPA II identifies eight cross-cutting topics: - (a) Gender; - (b) HIV/AIDS; - (c) Environment; - (d) Food and nutritional security; - (e) Science and technology; - (f) Rural development; - (g) Natural disasters; - (h) De-mining. - All cross-cutting topics have been addressed on each of the pillars, but PARPA II seeks to make them more visible by identifying key objectives for each. ### 1. Gender — situation, issues, and priority actions - Key statistics and conditions: - About 52 percent of Mozambicans are women, 72.2 percent of whom live in rural areas; 23.2 percent are heads of families. - Adult illiteracy rate: women 71.3 percent; men 43 percent. - Despite improvements in education, proportion of girls in primary education and subsequent levels needs improvement in provinces below the national average. - Women’s vulnerability to HIV/AIDS is increased by incidents of sexual violence. - Given inequalities in education (levels EP2, ESG2, and above), three-fourths of State investment benefits boys, while only one-fourth benefits girls. - Rationale: - Empowerment of women is decisive for the eradication of poverty and battling the spread of HIV/AIDS. - Women are described as the most effective agents for improving socioeconomic well-being; improving their status is characterized as an efficient long-term investment. - Priority actions (cross-cutting, to be addressed by pillars, areas, and categories): - (a) Approve and implement gender policy and strategy; institutionalize gender units in all sectors at central and provincial government levels; train personnel in integration, implementation, and monitoring of gender issues in sectoral plans and budgets. - (b) Integrate the gender perspective into national development policies, programs, and projects. - (c) Revise discriminatory legislation and adopt new laws, particularly against domestic violence; create conditions for enforcement, including training of intervention personnel and dissemination of legal availability. - (d) Expand agricultural extension services to improve transfer of technologies, particularly in rural areas. - (e) Integrate women into strategies for development of small and medium-scale companies, including access to suitable credit and expansion of labor-intensive industry fields. - (f) Identify gaps in sex-disaggregated data gathering and analysis; design and implement a strategy to fill those gaps systematically. - (g) Promote gender balance in leadership positions and increase women’s capacity to assume those positions. - (h) Implement actions to reduce prevalence of HIV/AIDS among women and girls, including promotion of the role of men. - (i) Intensify efforts to reduce gender disparities in basic, middle-level, and higher technical education. - (j) Improve coverage of water supplies and sanitation in rural zones so women and girls travel less for water, improving girls’ school attendance and women’s involvement in productive activities. - Implementation arrangements: - All sectors responsible for integrating gender into planning and budgets. - The Women and Social Action sector serves as coordinator to support integration of gender into PARPA, the PES/OE [Economic and Social Plan/State Budget], and sector activities. - Vital to equip institutions in this sector with necessary technical and financial means. ### 2. HIV/AIDS — scale, impacts, objectives, and funding priorities - Scale and impacts: - HIV/AIDS represents a national emergency with devastating scale and impact on human life, dignity, and enjoyment of human rights; it reduces population size and family well-being, increases orphans and elderly dependent, reduces economically active members, and raises production costs. - It affects all population groups; estimated more than 1.4 million Mozambicans are infected, corresponding to a prevalence rate of 16 percent. - Every day there are 500 new HIV/AIDS infections. - Women (adults and children, especially girls) are most vulnerable: percentage of women among infected individuals age 15-24 is three times that of men. - Statistics for 2004: 800,000 of the infected population are women. - Estimated prevalence among groups: 36.8 percent of men, 57 percent of women, and 6.2 percent of children living with HIV/AIDS. - The burden falls more heavily on women because of increased costs of caring for the home. - Poverty interlinkages: - High poverty rates contribute to rapid spread of HIV/AIDS, and HIV/AIDS exacerbates poverty. - Poor have little access to health care, tend to migrate more (increasing number of sexual partners), may engage in risky sexual activities for survival, and have less access to information. - Strategic framework and actors: - Based on the Second HIV/AIDS National Strategic Plan (PEN II, 2005-09). - Focus on five areas: prevention; stigma and discrimination; treatment; mitigation of the impact; coordination of the national response. - Actors: Ministry of Health, entire public and private sector, NGOs; coordination by the National Council to Combat AIDS. - Fundamental objectives: - (i) Cut the number of new infections from the present 500 per day to fewer than 350 within five years, and to fewer than 150 in ten years; - (ii) make the battle against HIV/AIDS a national emergency; - (iii) diminish stigma and discrimination associated with HIV/AIDS; - (iv) prolong and improve quality of life of persons infected with HIV and those ill with AIDS; - (v) reduce consequences of HIV/AIDS for individuals, families, communities, and companies, as well as the global impact; - (vi) increase scientific knowledge about HIV/AIDS, its consequences, and best practices for combating it; - (vii) improve planning and coordination capacity and decentralize decision-making and resource management mechanisms; - (viii) promote actions that lighten the burden of household tasks on women; - (ix) undertake actions to combat the feminization of HIV/AIDS. - Budgetary and programmatic priorities: - Anticipated increase in proportion of the State Budget allocated to specific areas of the HIV/AIDS program addressing the topics above. - Increased funds to assist sectors in: - (i) mitigation of the impact of HIV/AIDS in terms of human capacity; - (ii) expansion of geographic coverage of the response, particularly less privileged zones lacking prevention and treatment services; - (iii) dealing with rising crisis posed by orphans. ### 3. Environment — links to poverty, priorities, and cross-sector roles - Context and linkages: - Most of Mozambique’s population depends on natural resources for subsistence and income. - Attaining PARPA II objectives depends heavily on management and preservation of natural resources and the relationship between their use/exploitation and benefits for the poor. - Close relationship between poverty and environment: unplanned population density increases accelerate environmental deterioration; poor family units undertake activities that directly impact environment (building/planting in erosion-prone zones, use of woody materials, improper drainage/sanitation, burning to clear land, improper waste disposal). - Urban environmental health impacts: - Environmental deterioration in dense urban zones exacerbates health issues; endemic diseases such as malaria and cholera result from faulty drainage, sanitation, solid waste management, and water supply systems. - Improving these conditions requires planning/reclassification of urban land, land title registration, land use zoning, and proper access, drainage, and water supply infrastructures. - Integrated development of Mozambican territory could curb proliferation of informal peripheral communities that threaten public health, social well-being, and biodiversity. - Major environmental priorities: - (i) cleaning up the environment; - (ii) territorial zoning; - (iii) prevention of soil degradation; - (iv) natural resource management, including control over burning; - (v) legal and institutional aspects: environmental education, compliance with law, and development of institutional capabilities; - (vi) reduction of air, water, and soil pollution; - (vii) prevention and reduction of effects of natural disasters. - Additional attention areas: - Environmental governance; business community responsibilities in environmental and social matters; recognition of environment–poverty relationship with focus on environmental education; role of health, agricultural and rural development, energy, industry, tourism, mines, fisheries, marine/coastal management, technology, vulnerability, and natural disasters. - Mitigation and sustainable use: - Education and identification of alternative income sources for poorest families to relieve environmental pressure. - Gradual introduction and dissemination of alternative technologies for construction, cultivation and fertilization of soils, improved sanitation, and renewable energy are recommended. - Steps to ban water pollution, protect soil fertility, and arrange orderly fishing and forest conservation are needed. - Purpose of cross-sectional approach: - Ensure all development actors, including the State, properly play their role in preserving urban and rural environment. ### 4. Food and Nutritional Security — concept, indicators, and links to poverty - Definition and components: - Food and nutritional security requires that all people have, at all times, physical and economic access to a sufficient quantity of safe, nutritive foodstuffs acceptable within a cultural context to meet nutritional needs and food preferences to lead an active, healthy life. - Four components: availability; stability of supply; access; use of foods. - Food security also encompasses food safety (non-contamination), quality, variety, sustainability of production practices, and respect for traditional cultures. - Objective: - Ensure conditions needed to produce nutritive, healthy foods or enable people to earn means to acquire such foods; promote activities to improve access to resources and means necessary for survival; establish and maintain safety nets or assistance mechanisms for those who cannot support themselves. - A holistic approach is justified because of interdependence between food and nutritional security and other development areas. - National strategy (ENSAN) four dimensions: - (a) sufficient availability of food in a region to supply needs of people of that region; - (b) sufficient purchasing power or production by family units to have physical and/or economic access to enough quality and quantity of food to satisfy nutritional requirements at all times; - (c) sufficient capability of the human body to make biological use of the foods (good health); - (d) sufficient knowledge and proper eating habits at the family level in use of available foods. - Current status and indicators: - SAN [Food and Nutritional Security] remains a burning issue in Mozambique. - Chronic malnutrition indices: 41 percent of children under age of 5 are chronically malnourished — approximately 1.3 million children are chronically undernourished. - Poverty fell from 69.4 percent to 54.1 percent between 1997 and 2003, but malnutrition (percentage of underweight children under five) remained high and did not improve significantly between 2001 and 2003 (down 2.3 percent). - Rural areas: decline of 3.6 percent; urban areas: 0.4 percent increase. - Linkages to growth and poverty reduction: - Very close relationship between poverty reduction, food and nutritional security, rural development, and sustainable economic growth. - Relief of poverty is essential to achieve food security because hunger is both cause and result of poverty; poverty is eradicated when hunger is eliminated, thereby assuring sustainable economic growth. *Source: _cr0737 - 187* ### 217. The overall objective of SAN for PARPA II (until 2009) reads: “Between 1990 and ### 217. The overall objective of SAN for PARPA II (until 2009) reads: “Between 1990 and ### SAN (Food and Nutritional Security) — overall objective and challenges - Overall objective (PARPA II until 2009): “Between 1990 and 2009, the percentage of the Mozambican population that suffers hunger and chronic malnutrition (transitory and structural food and nutritional insecurity) reduced by 30 percent. - Main challenges in the overall SAN context: - (a) Reduce the high levels of chronic and acute malnutrition because they seriously impair the current and future human capital of Mozambique. - (b) Set up a comprehensive multisectoral and interinstitutional intervention in all three dimensions of SAN and direct it toward vulnerable target groups in order to achieve and maintain food and nutritional security. - (c) Make SAN a central element in the battle against absolute poverty in Mozambique. - Implementation scope: - SAN objectives are included in actions that cover all sectors of the State, but primarily agriculture, health, education, and the provision of infrastructures (roads, energy, and water). *Science and Technology* ### Role and strategic features of Science and Technology (S&T) - S&T is essential to economic growth through innovation; TICs [Information and Communications Technologies] are a specific example. - S&T contributes to poverty reduction by generating new knowledge and applying existing or new knowledge to problems that cause or perpetuate poverty. - Two key features requiring strategic recognition: - Cross-cutting nature: S&T (including TICs) should not be seen as a sector in itself but as a center for exchange of solutions across sectors (health, education, housing, job creation). - Popularization within sectors: S&T must be considered a building block within each sector, not a belated reflection constrained by funds. - Requirements for a strategic S&T role: - A fully developed national S&T system including policy directives and strategies by public and private institutions that generate knowledge and transform it into products, services, and solutions. - Development of human resources: an expanding flow of qualified scientists, engineers, technical personnel and IT experts; funds must be made available to enable sustainable acquisition of scientific and technological knowledge and expertise. - Appropriate funding levels and vehicles, coordination, and control mechanisms. ### National Research Fund and coordination - A National Research Fund (Fundo Nacional de Pesquisa) will give funds for: - Research, on a competitive basis; - Promotion of innovation that leads to new products, the provision of services, and development of solutions; - Support for the S&T infrastructure; - S&T research projects identified by the government as necessary to the achievement of national objectives. - Coordination and control mechanisms will include: - A National Research Agenda; - Evaluation and coordination of sector research plans by the MCT [Ministry of Science and Technology]; - Coordination meetings with financing agencies. ### MSTIS: Strategy for Innovation in Science and Technology in Mozambique - Document: Estratégia de Inovação da Ciência e Tecnologia de Mozambique – MSTIS. - Vision for 2015 (as laid down in MSTIS): - “The omnipresent and equitable availability and the use of science, technology, innovation, and TICs as a right of all Mozambicans to accelerate the reduction in poverty, create wealth, and improve their social well-being.” - Mission: - “To promote the furnishing of scientific and technological solutions to priority sectors as defined in national development programs such as PARPA and Agenda 2025, for the benefit of Mozambican society.” - Basic objectives of the strategy: - (a) Construct and improve the policy instruments, institutions, and infrastructures of the national S&T system; - (b) Establish policies on financing, and mechanisms for research and innovation; - (c) Promote human resources development at all levels in the fields of science, technology, and innovation; - (d) Inculcate a culture of innovation into Mozambican society; - (e) Promote innovation in the existence and use of S&T approaches by poor and less favored communities; - (f) Promote innovation in the industrial and public sectors; - (g) Improve leadership and administration of the S&T system; - (h) Review, evaluate, and improve the performance of the S&T system. ### Rural Development — objectives and determinants - Purpose: Ensure active, direct involvement of poor rural families in rapid growth and guarantee the agrarian economy contributes directly to poverty reduction; most of Mozambique’s poor live in rural areas. - Determining factors (at least five [sic]): - (a) Interdependency among rural communities, urban centers, and the world market; rural development is not synonymous with agricultural development; rural living standards depend on family farm production and salaried work (agricultural and non-agricultural). - (b) The poor rural population can break the vicious cycle of poverty only if it can contribute to and benefit from national economic growth. - (c) Pace of rural development depends directly on the size of investment dedicated to developing rural capital—human, financial, commercial, intellectual, and social capital. - (d) Government investment should prioritize developing rural production capacity, infrastructures, and basic institutional services. - Contextual statistic: - In 2003, 64.3 percent of the Mozambican population was rural. - Observations: - In rural regions, poverty is associated with insufficient development of agriculture, rural infrastructures, and markets; availability of financial institutions is inadequate and great vulnerability persists. - Nationwide activities by State, private sector, civil society, rural communities, and other actors require greater harmonization to be integrated and sustainable. ### Major challenges and PQG/PARPA II rural objectives - Major challenges with respect to rural development: - (i) definition of rural development policies and strategies; - (ii) strengthening government agencies’ role in coordinating intersectoral actions; - (iii) promotion of financial services suited to local initiative; - (iv) encouragement for people to join locally-based and/or community organizations and foster horizontal communication among them; - (v) development of rural markets; - (vi) greater community participation. - PQG emphasis: Rural development, translated into social and economic development and a rise in well-being in rural areas, is the mainstay of overall social and economic development; transformation depends critically on innovation and a significant increase in productivity, particularly in agriculture. - PARPA II objectives for rural development (taking into account the government’s Five-Year Plan and Agenda 2025): - (i) Promote policies to curb exodus from rural areas caused by shortage of local opportunities for commercial activities that could improve rural households’ standard of living; - (ii) Help maintain rapid and comprehensive economic growth and ensure that, during the midterm, growth receives a larger contribution from the rural economy; - (iii) Change the prevailing pattern of capital accumulation in the nation’s economy; - (iv) Break the vicious cycle of rural human poverty by improving productivity, competitiveness, efficiency and quality of human capital in rural areas by providing direct, explicit, and massive support to small and medium-sized companies able to transform the countryside. - Investment in infrastructures must include physical infrastructures and especially institutional infrastructures (legal, administrative, executive) required to convert unproductive capital into productive capital. ### Natural Disasters — risk profile and government objectives - Conceptual points: - Natural hazards become disasters when they impact human activities; disastrous consequences are proportional to community and territorial vulnerability. - 90 percent of disaster victims live in developing countries, in poverty, under conditions that lead them to form communities in hazardous areas. - Disasters are not inevitable; prevention reduces vulnerability but requires current expenditure for future benefits. - Disasters occur when a destructive threat encounters vulnerability; vulnerability determines disaster intensity and human loss. - Mozambique-specific risks: - Natural disasters from climate changes and seismic activities can aggravate absolute poverty by destroying human and socioeconomic infrastructures. - Mozambique’s geographic location makes it vulnerable to weather anomalies. - Response essentials: - Understand threats, vulnerabilities, and community capabilities to mitigate and respond to disaster impacts. - Primary objectives in managing natural disaster threats: - (i) Reduce the number of human victims and the amount of property loss; - (ii) Consolidate a culture of prevention; - (iii) Give the country the means of prevention and mitigation. - Government action plan components: - Advance warning systems for the most frequent disasters in Mozambique—floods and cyclones—and identification and mapping of zones that are at risk. - Appropriate response mechanisms: information for affected population groups, evacuation, search and rescue. - Strengthening institutional, regional, and international coordination; installation of hydro-meteorological networks in the most vulnerable basins for nearly real-time measurement and transmission of information; construction of hydraulic infrastructures such as defense dikes and dams; intensifying civilian training and education related to weather events. ### De-mining — scope and objectives - Strategic importance: - De-mining is crucial to poverty reduction because mines prevent implementation of development projects and programs (opening schools, health clinics, building roads and access routes, erecting power transmission lines and commercial, tourist, or industrial infrastructures). - Current impacts: - Land mines restrict poverty reduction efforts, especially in rural areas. - It is believed that 70 percent of those mined areas are in Cabo Delgado, Nampula, Zambézia, Inhambane, and Maputo provinces. Tete and Gaza are also affected. - Despite intensive de-mining after the end of the war in 1992, areas remain where devices have accumulated, posing hazards and hampering business expansion. - Fundamental objectives (government’s Five-Year Plan, PQG): - (i) Ensure mines are cleared in affected regions to prevent and reduce loss of human life; - (ii) Allow implementation of economic projects, resettlement, and greater mobility of population groups. - Continued de-mining benefits: - Enables freer travel and makes more land available for use. ### Governance — introduction, vision, and challenges - Governance and poverty reduction: - Governance is an extremely important element in reducing absolute poverty; poverty includes lack of access to services, exclusion from decision-making, reduced participation, greater exposure to abuses (including corruption), less protection from crime, and absence of appreciation in property values. - Proper functioning of State institutions, the State’s ability to bring services to citizens, inclusion of participative democracy in public administration, and respect for traditional instruments for conflict resolution are essential to reducing poverty. - The State is not the only actor; public management gains shape when authority is shared. - PARPA II Governance Pillar: - Organized around assumptions inspired by actions under way during PARPA I. - Vision and Challenges: - Agenda 2025 and NEPAD inform PARPA II governance vision. - Current political system (representative democracy involving only political parties) is progress but not completely satisfactory; mechanisms of democratization within political parties and development of participative democracy are essential to ensure representation of various civil society interest groups. - Under PARPA II, specific strategic interventions include: actions in the legislature, strengthening local government bodies, and development of municipal government; reconsideration of juridical and judiciary organization is important due to multiplicity of justice administration systems. - Consolidation of pluralistic democracy requires capacity to develop and manage public policies, decentralized and transparent governance that respects institutional memory, and building of an institutional culture. *Italic source attribution: Content unit _cr0737 - 217. The overall objective of SAN for PARPA II (until 2009) reads: “Between 1990 and 2009, the percentage of the Mozambican population that suffers hunger and chronic malnutrition reduced by 30 percent.”* ### 259. In the area of government institutions, it has been found that far-reaching changes will ### _cr0737 - 259. In the area of government institutions, it has been found that far-reaching changes will ### Governance vision and challenges - Far-reaching changes are necessary to make public institutions more operational and to improve the quality of government personnel and the services they provide. - A deeper public sector reform is vital to: - support the growth of the business community and other institutions of civil society; and - help remove impediments to investment and citizen services. (para. 259) - Key requisites regarding good governance: (i) good governance accompanied by a fight against corruption; (ii) decentralization and de-concentration; and (iii) the rule of law, fiscal probity, and prevention of tax evasion and other forms of fraud against the Treasury. (para. 260) - Challenges include: - districts being defined as a budgetary planning unit and the relationship between this vision and functional restructuring at the central and provincial levels; (para. 260) - the relationship between districts and municipal authorities amid an expected gradual expansion of municipalized spaces; (para. 261) - global developments affecting the rule of law, justice, and civil society—particularly terrorism, money-laundering and illegal immigration—which have effects on foreign investment. (para. 264) ### Democratic governance priorities and institutional reforms - Priorities for Democratic Governance in Mozambique in the near future include: the legislature, human rights, civil society, and the media, aligned with Public Sector Reform and Reform of the Justice System. (para. 262) - Important interventions: - creation of district and community courts; strengthening the legislative function of the Assembly of the Republic; mechanisms to respond to and protect citizens who report acts of corruption by civil servants. (para. 263) - Cross-cutting subjects to be considered in all planning, implementation, and program evaluation under PARPA II: (i) gender; (ii) HIV/AIDS; (iii) food and nutritional security; (iv) environment; and (v) information technology and communications. (para. 265) ### Gender, human rights, and social priorities - Gender: - Gender is crucial to implementation of PARPA II to improve access by women to government services, and the participation, advancement, and status of women in public administration, including state-owned companies. Women must take part in decentralized planning at provincial and district levels. (para. 266) - Revision of the Penal Code and Code of Criminal Procedure should include domestic violence appropriately and effectively to guarantee full protection and ensure access to administration of justice for women and men. (para. 267) - HIV/AIDS: - The government should adopt an inclusive attitude on HIV/AIDS and governance, ensuring rights of individuals affected by HIV/AIDS are respected—especially government workers and those in the private sector—as well as the rights of children, the disabled, and the elderly. (para. 268) - The Human Right to Adequate Food: - Integration of “The Human Right to Adequate Food” into the legislative process to promote Food and Nutritional Security. (para. 269) - Rural development: - Priority: accelerated and sustainable development of rural areas and proliferation of initiatives to create wealth in the countryside to reverse the trend in the incidence of poverty in rural zones. (para. 270) - Challenges: (i) reinforce role of government agencies in coordinating rural development via institutionalized mechanisms for continued dialogue among development partners and promote decision-making fora involving principal actors; (ii) strengthen locally/community-based organizations and promote horizontal communications to furnish access to socio-cultural and socioeconomic information and exchanges and create sustainable locally-based associations and organizations. (para. 271) ### Environment and information technology - Environment: - Ensure efficiency and responsibility of central and local government agents in implementing the poverty reduction action plan. - Empower local communities and institutions through involvement in managing human resources to support poverty-reduction efforts. (para. 272) - Partnership with civil society to adopt environmental management principles that include poor communities in design, implementation, and monitoring of environmental programs at central, regional, and local levels. (para. 273) - Information and communications technologies (TICs): - TICs are priority elements to support good governance, making administrative actions more dynamic and providing efficient methods to facilitate and accelerate change and achieve national program goals (Public Sector Reform and Legal and Justice Reform). - Ensure women have access to information technology, identify barriers, and implement strategies to surmount those barriers. (para. 274) - Study loopholes in current legislation regarding citizen safety, record-keeping (finances, health, safety), and management of cyber-crime. (para. 275) ### Legal reform and rule of law consolidation - Legal reform advances: - Inclusion of a gender perspective in laws resulting from the new Constitution of Mozambique, the Family Law, drafting of the Law Against Acts of Domestic Violence, and revision of the Penal Code, the Inheritance Law, and the Labor Law—demonstrating willingness to ensure legal equality in gender relationships. (para. 276) - Consolidating the rule of law requires implementing a system of fair and expeditious justice with key aspects including: - expansion of citizen protection services; (i) - strengthened actions to curb trafficking in minor children; (ii) - expanding and consolidating community courts as a supplement to conventional courts; (iii) - strengthen actions to protect children such as birth registration; (iv) - integrate HIV/AIDS, gender, natural resources, and environmental management into local planning as part of decentralization. (v) (para. 277) ### Anti-corruption priorities - Corruption impacts: - Corruption inhibits investment, impairs timely provision of quality services, erodes social fabric, destabilizes institutions, saps society’s trust in State agencies, threatens national unity, and delays economic development—key to fighting poverty. (para. 278) - Government stance: - Corruption must be fought energetically in all sectors and at all levels of government, identifying both those who are corrupted and those who corrupt, followed by prosecution. Civil society must be involved. (para. 279) - Promotion of general and professional ethics would improve quality of public services and strengthen democratic participation by citizens at all levels. (para. 280) ### Objectives and Actions — i. Public Sector Reform - General objective: Improve the quality of the public services provided to the citizens. (para. 282) - Specific objective: Restructure and decentralize government agencies to promote efficiency and efficacy in provision of public services. (para. 283) - Action: Finish the functional analysis and drafting of restructuring plans for all ministries and for provincial and district governments. (para. 283) - Specific objective: Strengthen the institutional capabilities of local government. (para. 284) - Actions: - Approve and implement the decentralization strategy and plan; - Develop human resource skills at the district level; - Establish the capabilities of the infrastructure at the district level; - Develop planning and monitoring systems at the district level; - Strengthen the financial management skills of local government institutions; - Approve and implement the national decentralized planning and finance strategy, including its geographical and environmental dimension; - Complete the diagnosis of the creation of new local government in light of Art. 5 of Law 2/97; - Consolidate and expand the number of local governments; - Approve and implement the local administration and urban development strategy and policy; - Make administrative and financial inspection of the Public Administration operational. (para. 284) - Specific objective: Reformulate procedures to make services simpler, more accessible, and satisfactory. (para. 285) - Actions: - Establish one-stop service windows in major urban centers and review/consolidate existing ones; - Implement improvements in efficiency of administrative procedures for services most important to the public (central and local levels); - Connect all public institutions (district to central levels) to the government’s electronic network; - Make information about all public services available in electronic format on the Internet; - Review and implement the policy on public document management; - Improve handling of complaints/suggestions at all public institutions. (para. 285) - Specific objective: Strengthen policy management procedures at sectoral and inter-sectoral levels. (para. 286) - Actions: - Strengthen systems and capabilities for policy management in all ministries and local governments; - Strengthen policy analysis capabilities in municipal legislative bodies; - Strengthen institutions and procedures for coordination of inter-sectoral public policies; - Ensure public policies respond appropriately to cross-cutting issues. (para. 286) - Specific objective: Train government employees to manage public administration efficiently and effectively. (para. 287) - Actions: - Strengthen organizational and managerial abilities of government institutions personnel; - Continue training of government employees; - Consolidate and develop the System for Training in Public Administration (Sistema de Formação em Administração Pública–SIFAP). (para. 287) - Specific objective: Improve human resources management. (para. 288) - Actions: - Review, approve, and implement wage and salary policy at all public institutions; - Review the pensions system for government employees; - Implement system and structure of career ladders at all public institutions; - Develop and implement a single personnel information and management system throughout government service; - Develop a system for managing performance and rewarding merit in government employment; - Disseminate, apply, and monitor the revised General Statute on State Employees (Estatuto Geral dos Funcionários do Estado) at all public institutions; - Adopt new human resources management policies in public institutions in response to problems raised by HIV/AIDS and gender issues. (para. 288) - Specific objective: Improve public planning and budgeting procedures to be better integrated, more effective and efficient. (para. 289) - Actions: - Approve and implement the National District Planning and Finance Strategy (Estratégia Nacional de Planificação e Finanças Distritais). (Integrate geographical aspects, including natural resources management, into district planning); - Develop technical staff to handle fiscal transfers to local agencies of the State; - Extend the SISTAFE [State Financial Administration System] and e-SISTAFE to cover all public institutions; - Integrate “off-budget” funds into the SISTAFE (Make the Central Tax Collection Authority operational); - Strengthen planning, monitoring and evaluation skills in all public institutions; - Complete the harmonization/integration of the Medium Term Fiscal Framework (CFMP), the Economic and Social Plan (PES), and PARPA into the planning process; - Define and approve a legal framework for the national planning system; - Strengthen a planning system integrated from the district to the central level; - Improve efficiency in the tax collection system; - Establish an Accountants’ Association; - Strengthen systems used to manage State property. (para. 289) - Specific objective: Make the public sector more transparent and less infested with corruption through more effective and inclusive accountability and oversight. (para. 290) - Actions: - Disseminate and implement regulations of the Anti-Corruption Law; - Reinforce institutional internal inspection skills as part of the battle against corruption in public institutions; - Draft, adopt, and implement legislation on access to information; - Strengthen the Anti-Corruption Office in the Office of the Prosecutor General of the Republic; - Strengthen the ability of the Assembly of the Republic and municipal legislatures to monitor central government and city councils, respectively; - Conduct regular surveys on governance and corruption; - Strengthen legislation pertaining to government employee integrity, and corresponding implementing mechanisms; - Implement the anti-corruption strategy; - Strengthen the ability of citizens, civil society and the private sector to monitor government performance and to denounce acts of corruption; - Strengthen internal control systems (audits and inspections) in government institutions. (para. 290) ### Objectives and Actions — ii. Reform of the Justice System, the Rule of Law, and the Public Order - General objective: to consolidate a justice system that is accessible, transparent, and inclusive. (para. 291) - Specific objective: Improve access to the justice system. (para. 292) - Actions: - Reinforce and consolidate the independence of the courts; - Increase court productivity; - Strengthen capability of judicial inspection offices and of the Office of the Public Prosecutor in terms of inspectors, support personnel, and equipment; - Improve access to the justice system via hearings, the prosecutor line, the “green line” and the implementation of information and communications technologies. (para. 292) - Specific objective: Make legislation better suited to proper functioning of the administration of justice. (para. 293) - Actions: - Approve and implement the Law on the System of Administration of Justice, which includes the Organic Law on Judicial Tribunals; - Review statutes applicable to judicial magistrates and to court employees; - Review the Organic Law on the Office of the Public Prosecutor and the respective statute on magistrates; - Revise legislation that regulates activities of the Administrative Tribunal (TA) as well as its Organic Law (in light of the 2004 Constitution); - Draft and approve statutes on magistrates who serve on the administrative, tax, and customs courts; - Draft the Law of the Superior Council of the Administrative Magistracy; - Revise the legislation now in force; - Harmonize the Anti-Corruption Law with regional and international laws, particularly the SADC [Southern African Development Community] protocol. (para. 293) *Source: _cr0737 - 259. In the area of government institutions, it has been found that far-reaching changes will (PDF chapter/section).* ### 294. Specific objective: increase efficiency and expeditiousness in the provision of services ### Specific objective: increase efficiency and expeditiousness in the provision of services by the justice system ### Strengthening judicial capacity and infrastructure - Actions: - (a) Define the long-term vision and development strategy for the sector; - (b) Update the strategic plans and the respective operational plans in view of the vision for the sector; - (c) Ensure the training and continuing education of magistrates, offices of the courts, the staff of the secretarial offices, and other justice administration personnel; - (d) Build and rehabilitate infrastructures for use for court operations; - (e) Set up district and community courts and see that they begin to function; - (f) Build and rehabilitate infrastructures for use by prosecutors’ offices; - (g) Set up district prosecutors’ offices and see that they begin to function; - (h) Introduce modern methods of management, monitoring, and evaluation at courts and prosecutors’ offices; - (i) Introduce new financial management tools (SISTAFE); - (j) Consolidate the commissions that monitor the rule of law; - (k) Modernize the registration and notary services. *Specific objective: guarantee legal assistance and protection for the most vulnerable citizens* - Actions: - (a) Reform the court assistance system and the Judiciary; - (b) Increase the oversight by magistrates in the Office of the Public Prosecutor as regards police stations and jails; - (c) Improve the legal and institutional framework for protection of children; - (d) Develop minimum standards for the care of children who are in the custody of institutions such as orphanages and transit centers; - (e) Survey and provide legal assistance to persons who are living with HIV/AIDS, and to orphans and other vulnerable children. *Specific objective: reform the prison system* - Actions: - (a) Reform and unify the prison system; - (b) Improve living conditions in the prison system; - (c) Ensure that prison personnel are trained and re-trained; - (d) Build and rehabilitate prison infrastructures; - (e) Increase educational and vocational training initiatives directed at inmates. *Specific objective: bolster the fight against corruption* - Actions: - (a) Reinforce and expand the provincial anti-corruption offices; - (b) Build the building intended to be used by the Central Anti-Corruption Office (Gabinete Central de Combate a Corrupção – GCCC); - (c) Build the buildings intended for the regional offices of the GCCC; - (d) Build residences for magistrates; - (e) Approve and implement the national anti-corruption strategy as it applies to the justice system; - (f) Draft reports and opinions on the General State Account (Conta Geral do Estado – CGE); - (g) Conduct audits. --- ### Law and Order, Public Safety ### General objective: Ensure law and order to provide citizens with permanent tranquility and to protect their property and assets - Actions: - Increase the police presence and reorient patrolling by policemen in the streets; - Prevent traffic accidents and their consequences by increasing police visibility and by educating drivers. *Specific objective: Reinforce crime prevention and measures to combat crime* - Actions: - (a) Formulate a national law and order policy; - (b) Continue the reform of the Criminal Investigation Police; - (c) Improve the quality of the service rendered by the Criminal Investigation Police; - (d) Equip the crime labs; - (e) Set up a National Crime Observatory. *Specific objective: promote improvement in relations between the police and the community* - Actions: - (a) Develop a strategy for combating corruption within the police force; - (b) Consolidate mechanisms to protect and assist victims of domestic violence; - (c) Create counseling centers to protect victims of domestic violence; - (d) Increase the number of local precincts trained to assist women and children who are victims of violence. *Specific objective: improve the standard of performance by the police forces* - Actions: - (a) Implement the Strategic Plan for the Police; - (b) Draft the organic statute for the Ministry of Interior (MINT) and the respective regulations; - (c) Organize technical and professional training courses for the agents of law and order; - (d) Ensure effective compliance with the health care system, medications plan, and guaranteed social assistance available to members of the police force; - (e) Build police stations and subordinate police units, as well as improving the existing physical, infrastructure, and equipment conditions; - (f) Strengthen and equip the Special Forces and the Reserve; - (g) Expand and modernize the Fire Departments; - (h) Institutionalize and put into operation the HIV/AIDS Prevention and Combat Office (Núcleo de Prevenção e Combate ao HIV/SIDA). *Specific objective: establish modern methodology to evaluate material needs and create a Police database* - Actions: - (a) Improve the budget management performance of the PRM [Police of the Republic of Mozambique]; - (b) Establish mechanisms for gathering and processing data that is broken down by sex. --- ### Other Arenas: Peace, Political and Social Stability; Social Justice; Information and Communications ### Peace, political and social stability - Government priorities and principles: - Maintain peace and political and social stability as crucial to reducing poverty through dialogue, respect for differences of opinion, compromise, and negotiation. - Consolidate the supremacy of law, guarantee permanent order and tranquility for citizens, and promote transparency in public management (principles adopted during PARPA I and reaffirmed in Agenda 2025). - Consolidate the role of the State and civil society as guarantors of national unity, peace, and political and social stability. - Encourage mechanisms based on local custom and rules to prevent conflicts, in partnership with civil society. ### Social justice and the rule of law - Key commitments: - Promote equality of rights and opportunities without distinction as to race, ethnolinguistic group, sex, or culture. - Reduce social and regional inequalities and establish equity in gender relationships. - Encourage respect for the law and efficient administration of justice; protect people and property as prerequisites for good governance. - Foster interactivity between judicial and community tribunals and between police officials and community authorities to help resolve conflicts and allow the rule of law to prevail. - Promote a continuous and participative fight against crime, sharing responsibilities among law enforcement and society at large. ### Information and communications - Strategic stance: - Recognize the right to information as basic to citizenship and democratic participation. - Promote objective and impartial information, communications, and access to information (for example, information about government accounts). - Maintain regular dialogue with local governments and civil society about the contents of the State budget to promote transparency and strengthen good governance. - Consolidate this strategy where local participative institutions and the Poverty Observatories exist, and encourage it where these are still absent. --- ### Human Capital: vision, challenges, and sectoral priorities ### Overall rationale - Human capability is a fundamental asset requiring steady enhancement across education, health, water and sanitation, social action, HIV/AIDS, housing, and cross-cutting topics. - Policies that redistribute income and wealth operate through these areas to increase immediate well-being and long-run sustainability. ### Education and culture - Education is a key sector to combat absolute poverty and to expand human capabilities at all levels (primary, post-primary, and higher education). - Cultural development supports identity, civil and moral values, income-generation (culture industry: books, audiovisuals, live shows), and cultural tourism as sustainable opportunities. ### Health, water, and sanitation - Health is a constitutional right and a priority sector for PARPA focus; a healthy population is vital for sustainable development. - Water is a key strategic resource, vital for life, development, environment maintenance, market functioning, and school attendance (water and sanitation at schools boost attendance and retention, especially for girls). ### HIV/AIDS and social vulnerability - HIV/AIDS could reverse progress against absolute poverty; poverty determinants (gender inequality, hunger, malnutrition, low education, inadequate health access) favor the spread of HIV/AIDS (Second National Strategic Plan - PEN II). - HIV/AIDS reduces productivity, erodes personal savings, and pushes families into poverty and vulnerability. ### Social action and gender - The Women and Social Action sector (MMAS) is responsible for social assistance and integration of less favored and vulnerable groups to ensure participation in sustainable development. - Gender empowerment is integral: education increases women’s productivity and health decisions; specific evidence cited: - For each additional adult woman who has an EP2 education, per capita consumption is increased by 21 percent in urban areas and 34 percent in rural areas. - A child whose mother is literate exhibits z-scores 0.304 standard deviations higher than a child whose mother is illiterate. - When it takes more than two hours to travel to a health care unit, the likelihood that a woman will use that facility for childbirth declines by 0.3 percent. - Failure to invest in human capital and address gender inequality results in unjust and inefficient outcomes that impose costs on women, children, and men and curb human development. ### Housing - Access to quality housing is critical for improved living conditions, public health, and links strongly to water, sanitation, and electricity provision. *Source: _cr0737 - 294. Specific objective: increase efficiency and expeditiousness in the provision of services* ### 326. Education of women is particularly important because it makes it possible, first, to ### _cr0737 - 326. Education of women is particularly important because it makes it possible, first, to ### Education — role and priorities - Education of women: - Creates incentives for women to take a broader view of societal changes and their role in development. - Enables improvement of living standards by increasing production in the countryside, reducing infant mortality, and improving family nutrition—especially for children. - Helps prevent a number of diseases, especially HIV/AIDS, and contributes to dissemination of desirable values in the community. - Gender equality as an engine of a more efficient development strategy requires men to acquire understanding and awareness through education that levels out inequalities. - Macro context and urgency: - Recent growth: about 6 percent per annum. - Growth has not yet translated into increased human development; urgent need to fund recruitment of well-qualified teachers and literacy workers in sufficient numbers to achieve the millennium goals with desired quality. - Investment should target least favored regions and promote education for all, including persons with disabilities. - Need to improve internal efficiency of the sector and effectiveness of outside assistance. - Systemic view of education: - Education is a broad-based system including: adult literacy and education; primary education; general secondary education; technical education (elementary vocational, basic technical; intermediate technical); teacher training; higher education; vocational training. - These subsystems interact and require medium- and long-term treatment from a systemic standpoint and a balanced budget. - Challenges and sectoral actions: - Strengthen quality and efficiency to increase supply of educational opportunities. - Primary education priorities: implement new basic curriculum, teacher training, distribution of educational materials to reduce school abandonment and grade repetition and lower unit cost per graduate. - Build low-cost community-involved construction to educate all school-age children and ensure entry to first grade at age six. - Prepare secondary and technical education to absorb growing numbers of primary graduates and implement curriculum reform to align with life, labor market, and lifelong learning. - Financing must increase proportionately to meet Education for All and growth of other education levels; timely disbursement and balanced distribution across subsystems are crucial. ### Cross-cutting objectives within education - Gender (paragraph 333): - Assure gender equity at the EP1 level by improving access, continued attendance, and safety of boys and girls. - Reduce indices of sexual abuse at school. - Curb school-leaving, particularly by girls, owing to improper water and sanitation. - Create conditions for recruiting female teachers and women into instruction and administration, especially in rural areas. - Conduct awareness campaigns through media and school boards to reduce truancy and convince girls, orphans, and vulnerable children to stay in school. - HIV/AIDS (paragraph 334): - Implement the Strategy for Combating HIV/AIDS (Estratégia de Combate ao HIV/AIDS) by improving planning so HIV/AIDS impact (mortality and teacher absence) is taken into account. - Accelerate implementation and improve quality of national programs on sexual and reproductive health and prevention of STDs/HIV/AIDS, oriented to local contexts with involvement of young people and local communities. - Combat stigmatization, eliminate discrimination in employment, and guarantee support for school attendance by orphans and vulnerable children. - Information and Technology Sciences (CIT) (paragraph 335): - Promote a culture of science at all education levels and integrate basic TIC skills into the curriculum. - Promote use of CIT in the central registry and dissemination to schools (students and professors). - Use CIT to facilitate teacher training, experiment with appropriate technologies for education, and connect education and technological development with private sector activities. - Promote creation of funds to support technological development for different education providers. - Implement educational-pedagogical and technological media to assist distance learners; promote CIT in design, production, and implementation of distance learning and develop systems to control quality of instruction. - Improve Food and Nutritional Security (SAN) (paragraphs 336–337): - Include SAN aspects in sector strategy to improve school attendance rates, reduce gender disparities, and improve quality of instruction. - Education’s potential: school orchards; inclusion of SAN in curriculum; supply food aid using local products to disadvantaged children and families. - MEC should have a school feeding policy using local, non-imported foods, include SAN in training, encourage school orchards and micro-nutrient programs, and feed the more disadvantaged children to ensure attendance. - Education plays a central role in implementing the Human Right to Adequate Food. - Physiological link: well-nourished bodies are less vulnerable to infection; food and nutritional security reduces engagement in risky behaviors that increase HIV/AIDS risk. HIV/AIDS and food/nutritional insecurity interact to threaten economic development achieved in recent years. - De-Mining (paragraph 338): - Include surveys and de-mining in interventions when mined or suspected zones are involved. - Appropriate funds should be appropriated to the de-mining component for such interventions. - Consider including civic education on mine danger in schools located in affected or suspected zones. - Environment and water (paragraphs 339–341): - Cultural and environmental education needed so citizens understand natural resources, conservation ethic, and constitutional rights/obligations regarding the environment. - Environmental education is fundamentally important to poverty reduction and informed participation in development programs. - Water: Mozambique’s rivers have sources in neighboring countries, making the country vulnerable; sustainable management of hydric resources at internal and regional levels is vitally important to safeguard quality and quantity for rural residents and activities. - Environmental health: insufficient access to water and poor water quality from lack of sanitation and waste disposal cause serious diseases (malaria, cholera, diarrheal diseases) that disproportionately affect poorer communities, especially women and children; addressing environmental health is a top priority to reduce focal points of disease associated with poverty. ### Culture - Cultural dimension (paragraphs 329–331, 343): - Culture is fundamental to success and sustainability of development programs; culture is a factor in development, job creation, and formation of citizens. - Transmission of culture to new generations is a priority; affirmation of Mozambican identity and national unity requires awareness of the country’s greatness and cultural diversity. - Strategies aim to ensure access to values and products of Mozambican culture, promotion of knowledge, and dissemination nationally and internationally. - Encourage research institutions and cultural promoters to create economic and legal environments favoring cultural industries and civil society involvement. - Challenge: consolidate Mozambican identity, self-esteem, love for country and culture, and make culture a tool for raising education quality and a source of wealth via research, publications, exchanges, heritage preservation education, and strengthening cultural institutions and infrastructure. ### Health — objectives, priorities, and system strengthening - Health context and priorities (paragraphs 344–349): - Direct relationship between poverty and health; sustainable development requires a healthy and highly productive population. - Dominant health burden: communicable diseases (malaria, tuberculosis, parasitosis, acute respiratory infections, diarrhea, etc.) and rapidly spreading HIV/AIDS posing risk to economic growth and national survival. - Non-communicable diseases (cardiovascular disease, diabetes) and traffic accidents are gradually becoming more prevalent. - Coverage of health care services is estimated to be less than 40 percent (IAF 2003). - Note: this indicator is based on the percent of the population who have easy access to one health facility, i.e., resides no further away than 30 minutes’ travel. - Central objective of health component of PARPA II: improvement of the state of health of the general public, particularly the poor, through a sector strategy based on poverty reduction that increases access and responds to growing population needs. - Ministry of Health will continue to expand the health care network to bring it closer to communities and reduce the average number of residents per Health Unit (Unidade Sanitária). - Equity and service provision (paragraph 347–350): - Facility siting must be equity-based to channel funds directly to poorest and most vulnerable groups and expand the network to underserved areas to increase physical access. - Primary health care remains the priority; gradual integration is essential for efficiency and quality. - Priority programs target most vulnerable groups (women, children, young students, adolescents, orphans), focusing on diseases to which the poor are most vulnerable (malaria, tuberculosis, leprosy, HIV/AIDS, parasitosis) and epidemic diseases during emergencies (cholera, dysentery, meningitis). - All Health Units must be gradually adapted in basic infrastructure, starting with reliable water and electricity; given scarcity of funds, generating light using solar energy is a sector priority. - Strengthen the SNS [National Health Service] as a standard for basic specialized care by assigning proper personnel and equipping Health Units according to patient load, and by improving management and organization at all service levels. - Human resources, gender, and community participation (paragraphs 351–353): - Strengthen training and establish comprehensive and sustainable incentive packages to assign and retain staff in least favored areas. - Give particular attention to gender: promote rights of women in the health sector and implement interventions to eliminate barriers and promote gender equity in access to services. - Success depends on consistency among interventions at various levels, active community participation in promoting and safeguarding health, and dynamic partnerships with traditional medicine practitioners, NGOs, and cooperation partners. *Source: _cr0737 - 326. Education of women is particularly important because it makes it possible, first, to* ### 354. Access to potable water and suitable sanitary services are pre-requisites for an increase ### Access to potable water and suitable sanitary services are pre-requisites for an increase ### Water, sanitation, and health - Access to potable water and suitable sanitary services increases productivity and quality of life and is vital to achieving millennium development objectives such as poverty reduction, education, health, and gender equality. - Lack of clean drinking water and appropriate sanitary services are leading causes of water-borne diseases like cholera, malaria, and diarrhea. - Establishing handwashing after latrine use and before meals can cut diarrheal ailments by about 40 percent. - Access to potable water can delay emergence of opportunistic diseases (like diarrheas) among people living with HIV/AIDS and make anti-retroviral treatment more effective. - Infant mortality for children under five is 192 per thousand, with malaria, diarrhea, and cholera as principal contributors (INE 2004). - School-level water and sanitation are prerequisites for girls’ education and help increase school attendance and retention. ### Sectoral challenges and priorities (water and sanitation) - Strengthen planning skills in the sector (provincial master plans) and ability to provide suitable, sustainable services. - Train principal personnel involved in the sector. - Reinforce decentralization and de-concentration, including recruitment of qualified professionals with greater focus on districts. - Assure sustainability of water supply and sanitation infrastructures by focusing on districts/communities. - Promote integrated water supply and sanitation projects to maximize impacts. - Reinforce community education in water, health, and hygiene to encourage safe hygiene practices. - Assure implementation of a utility rates policy that makes it possible to recover costs. - Establish and improve reliable monitoring and evaluation systems (national and provincial databases) for water supply and sanitation services. - Ensure availability of water for crops and rural development. ### Reducing vulnerability to extreme events - Mitigate and manage threats of extreme events (floods and droughts / cyclones and floods). - Expand and modernize the network of hydro-meteorological stations. - Mobilize financing for construction of hydraulic works. ### Reiteration of sector challenges (summary) - Reinforcement of capacity to provide adequate services. - Training of key sector personnel. - Ensuring sustainability of water supply and sanitation infrastructures. - Promotion of integrated water supply and sanitation projects. - Strengthening community education in water, health, and hygiene and ensuring water availability for farm production and rural development. - Reducing vulnerability to extreme events (cyclones and floods). - Expanding and modernizing hydro-meteorological stations. - Mobilizing financing for hydraulic works. - Implementing utility rates policy to recover costs. ### HIV/AIDS - Main challenge: make HIV/AIDS seen nationwide as an urgent problem and provide an effective, sustainable multisectoral response to reduce new infections, prolong life expectancy of people living with HIV/AIDS through care and treatment, and improve socio-sanitary conditions. - Requires recognition that HIV/AIDS is a barrier to development and adoption of sectoral strategies, creation of a favorable juridical and legal environment, and increasingly well-coordinated responses based on socio-cultural realities. - Orphans and vulnerable children due to HIV/AIDS are anticipated to increase considerably as Mozambique approaches “dead man’s curve”; a comprehensive framework is needed to meet their specific needs. - Simulation (Threshold 21 (T21) model, Millennium Institute (2005)): if daily new HIV infections decline from about 600-650 under the basic scenario to 350 or fewer in 2009 and 100 or fewer in 2014: - The average annual rate of population growth would increase by 0.02 percentage points in 2005-09. - The average annual rate of population growth would increase by 0.26 percentage points in 2010-14. ### Youth and Sports - Need to equip young people with life skills to enable active participation in economic life, reduce poverty impact, and promote democratic consolidation. - Development requires cultivating values: culture of peace, mutual understanding, unity in diversity, peaceful coexistence, and sacrifice and tolerance among new generations. - Sports contributes to social cohesiveness, national unity, self-esteem, and national development; government objective is to encourage mass participation and expand sports opportunities. - Primary challenge: energize and support initiatives to promote personality development, creativity, and community service among youth through vocational training, promotion of self-employment, income-generating programs, HIV/AIDS prevention, and formation of youth associations. - For sports: make sports an integrating factor by encouraging mass participation, strengthening sports associations, and supporting innovative education and training via local sports initiatives. ### Women and Social Action (MMAS) - MMAS is responsible for social assistance and integration of less favored and vulnerable groups and for guaranteeing their participation in sustainable development. - MMAS plays a dominant role in poverty reduction through integration of least favored groups and reducing inefficiencies in resource allocation. - Need to reinforce MMAS capacity to encourage public/private sector and civil society participation in reducing poverty and social exclusion across economic, human, socio-cultural, political, and gender-related dimensions. - Gender perspective concerns attribution of roles, resources, responsibilities, and expectations to men and women. - MMAS adopts a transforming approach focused on active participation and empowerment of target groups within communities. - Integration of vulnerable and less privileged social groups into PARPA II is a priority to meet Five-Year Plan objectives and Millennium Development Objectives, spur skills-building, and guarantee participation in development. - Starting point: define regulatory and legislative tools for strategic planning, identification and location of vulnerable groups and those in absolute poverty, and improve MMAS institutional capabilities. - Principal challenges: - Direct resources for poverty reduction to most vulnerable groups via targeted plans. - Vocational training and promotion of self-employment. - Expansion and improvement of income-generating and community development programs. - Encourage association membership to facilitate support and assistance. - Empower beneficiaries using simple, appropriate technologies. - Promote campaigns to eradicate discriminatory practices and violence. - Women’s role: key to SAN strategy sustainability as producers of food, managers of natural resources, income generators, and caregivers; yet face restrictions in access to and management of land, education, training, credit, information, technology, and decision-making, which reduces family productive potential and increases vulnerability. - National Action Plan for Orphan and Vulnerable Children (HIV/AIDS context): main objective to ensure access by most vulnerable children to a package of basic services and social protection network; current support scope for orphans and vulnerable children is still limited. ### Former Combatants and historical heritage - Large number of former combatants require socio-economic integration after transition to civilian life. - Assistance to Handicapped Former Combatants (Antigos Combatentes Portadores de Deficiência- ACPD) is a government priority and required by the Constitution. - Main objective for former combatants: ensure insertion of former combatants, particularly vulnerable ones, into poverty reduction and rural development programs. - Specific objectives: - Promote training and skills-building for active participation in social and economic development and consolidation of peace. - Prepare and implement programs for social and economic integration and encourage entrepreneurship among former combatants to impact communities. - Guarantee implementation of instruments for managing social assistance to former combatants. - History and Historical Heritage objective: promote appreciation of historic heritage and Mozambican revolution history to develop patriotic spirit, solidarity, and national unity. - Specific objectives: - Ensure involvement of former combatants in civic education, especially of children and youth. - Recognize and preserve historical heritage as integral to Mozambican culture. - Foster visiting historical sites as a component of civic education. ### Housing - Access to suitable housing is a universally-recognized right and a challenge for achieving millennium development goals and government objectives. - Poor housing quality exacerbates vulnerability to HIV/AIDS and associated diseases (CNCS 2004). - Precarious housing prevalence: rural areas 93 percent, urban zones 60 percent (INE 2005). - Approximately 62 percent of the population lives in rural zones where qualitative housing needs are concentrated. - Predominant housing materials and conditions: - 37.9 percent of homes have walls made of mático poles. - 31.1 percent are built of adobe blocks. - 75.8 percent have a packed earth floor. - 74.3 percent have roofs of native grasses, thatch, or palm. - Urban areas use better quality materials more frequently but these are not predominant. - Contributing problems: poor material use, noncompliance with standards, cultural aspects, poor-quality building materials, uncertainty of land ownership, and unreliable infrastructure and services (potable water in mains, basic sanitation, electricity, health care, and educational facility networks). - Vision: guarantee basic conditions of human survival through housing policies and programs to improve quality of life. - Challenge: draft and implement housing policy addressing poverty relief and raise funds for housing programs for low-income residents. ### Food and Nutritional Security (SAN) - Major challenges: reduce extremely high levels of chronic and acute malnutrition that seriously affect present and future human capital. - Need to structure a comprehensive multisectoral intervention into the four dimensions of SAN, directed at groups targeted for reduction in chronic and acute malnutrition indicators, especially children. *Source: _cr0737 - 354.* ### 392. The strategy for combating HIV/AIDS must be sufficiently holistic to include SAN as ### _cr0737 - 392. The strategy for combating HIV/AIDS must be sufficiently holistic to include SAN as ### HIV/AIDS and SAN integration - Treat HIV/AIDS and SAN in an integrated fashion as structural problems of development that threaten human capital and institutional capabilities (Triple Threat). - Households with one or more ill persons face redirected financial resources toward treatment and loss of income for food and agricultural inputs. - Prioritize systematic monitoring of SAN, especially in areas with a high percentage of serum positivity, to support objectives that increase opportunities and capacities for income generation and personal food security. ### Science and Technology - Major challenges: - Promote a culture of science-awareness at all levels of education. - Improve the quality and importance of higher education in terms of science and innovation. ### Education and Culture — objectives and actions - Main sector objective: guarantee quality education for everyone, with special attention to primary education; ensure “Education for All” serves girls and children with special needs; develop more vocationally-oriented primary education. - Cultural objective: promote culture as part of patriotic education, a source of income, and factor in sustainable development; reflect cultural diversity in creative and innovative activity. - Fields of action: literacy; non-formal and adult education; primary, secondary, technical/professional/vocational, higher, and special education; teacher training; culture; cross-cutting issues (HIV/AIDS and gender); human rights; anti-discrimination; anti-drug use in schools; environment; institutional strengthening. - Literacy, non-formal, and adult education - Main objective: reduce high rates of illiteracy among men and women, young people and people with disabilities, especially in rural areas, via quality programs using local languages and civil society coordination. - Specific objectives: - Reduce the illiteracy rate by 10 percent by teaching 1,500,000 people to read and write. Of these, 70 percent will be women. - Reduce illiteracy among women by implementing literacy strategy and teaching literacy by means of the radio. - Primary education - Main objective: universal school attendance. - Specific objectives: - Attain a 59 percent completion rate in the 7-grade basic education system, with a 55 percent rate for girls. - Increase attendance by building low-cost community schools and guaranteeing safe, healthful environments. - Improve school management through training of directors and school boards. - Consolidate the Direct Support to Schools (Apoio Directo às Escolas) program; strengthen financial system and increase funding for normal and special programs (support to orphans and other vulnerable children, integration of gender, etc.). - Secondary education - Main objective: expansion of secondary education of high quality and relevance. - Specific objectives: - Complete and implement curriculum reform integrating technical/vocational content. - Expand secondary education with priority to underprivileged children, children with special needs, and girls. - Develop cost-sharing partnerships with private sector, civil society, and families. - Technical education - Main objective: expand access to quality instruction. - Specific objectives include implementing PIREP; expand and improve efficiency and quality; introduce modular courses oriented to rural development; convert trade schools to vocational schools that can serve young people with disabilities; introduce a qualifications system recognizing vocational skills from basic to level IV (superior polytechnic). - Higher education - Main objective: expand access to relevant, good quality higher education with regional and gender equity. - Specific objectives: - Train people for public administration and fields of education, health, and agriculture. - Encourage small business to create capacity for innovation and self-employment. - Ensure research to promote internal management and development skills. - Teacher training - Main objective: ensure teachers are trained for all educational subsystems to promote education for all children and young people, including girls and those with disabilities. - Specific objectives: - Establish a coherent, well-coordinated teacher training system including continued and distance training. - Train teachers in HIV/AIDS-related subject matter to involve them in prevention, mitigation, and assistance programs for orphans and vulnerable children. - Institutional development - Main objective: ensure effective decentralization of educational management to district and school levels with attention to planning, implementation, and accountability. - Specific objectives: - Strengthen planning, coordination, monitoring, and management skills via training in planning, financial management of human resources, and school management at provincial, district, and school levels. - Ensure timely transfers of funds, effective use, and transparency through training and conditions for SISTAFE to function. - Monitor goal fulfillment via annual meetings with sector partners. - Culture - Main objective: promote culture to strengthen Mozambican identity, peace, national unity, and development. - Specific objectives: - Promote recognition and dissemination of Mozambican culture. - Encourage reading as a means of acquiring life skills. - Strengthen culture as a source of income. - Expand and improve the national network of cultural infrastructures. ### Health — strategy, targets, and priority programs - Health sector mission (MISAU through SNS and partners): provide acceptable quality health services to a larger proportion of the poor, free or at affordable prices. - Four key components: improvement of access to health care services; priority programs; improvement of quality; increase in efficiency and cross-cutting topics (gender and intersectoral cooperation). - Increasing access to health care services — strategic objectives and targets: - Increase sector financing from US$10.00 to US$15.00 per capita, ensuring additional funds reach disadvantaged regions. - Increase the proportion of the population with easy access to a single health care unit from 36 percent to 45 percent by concentrating on least-served provinces. - Improve access to basic specialized care and strengthen referral systems via more health units with transportation and communication means. - Gradual increase in access to prevention and control of non-communicable diseases and trauma by preparing and initially implementing the area plan no later than 2009. - Finalize the Gender Action Plan (Plano de Acção do Género) in 2006 to define indicators and goals for increasing access to health care services for women. - Eliminate financial and non-financial barriers via: - Strengthening district health system planning and management tools. - Increasing community participation in promoting and protecting health. - Gradual elimination of financial barriers starting with a comprehensive study on sector funding and review/update of mechanisms for protecting the poor. - Promotion of cooperation with Traditional Medicine to encourage research and practitioner participation. - Priority programs — reproductive, pediatric, school, and PTV targets: - Reproductive health: - Reduce maternal mortality rate in hospitals from 182 per 100,000 to 168 per 100,000 live births via extension, accreditation of units for basic or complete emergency obstetric care, improved communications and referrals, training new professionals, in-service training, increasing SMI personnel, and ensuring essential medications at maternity units. - Reduce overall maternal mortality rate from 408 to 350 per 100,000, with the intention of achieving the millennium goal of 250 per 100,000 in 2015, through increased follow-up coverage, community sensitization and NGO support for mothers' homes, expanding roving teams and family planning, educational materials for key decision-makers, and training traditional midwives. - Increase institutional births from 49 percent to 56 percent. - PTV (Prevention of Vertical Transmission): - Increase prophylaxis coverage for women and newborns from 2 percent in 2004 to 22 percent in 2009 by expanding PTV-capable units; ensuring continued availability of reagents for rapid HIV testing and prophylactic ARV; strengthening community communication; integrating counseling and voluntary HIV testing into sexual and reproductive health services; increasing counseling and voluntary HIV testing availability at all SMI clinics for pregnant women; and ensuring newborns of HIV-positive mothers receive prophylactic ARV at birth. - Pediatric health: - Reduce infant and young child mortality rate from 178 to 140 per thousand in 2009, moving toward the millennium goal of 108, by improving newborn and child care, implementing neonatal health and Integrated Attention to Childhood Diseases (AIDI) strategies, strengthening the Expanded Vaccination Program (PAV) via roving teams and stationary clinics. - Ensure 95 percent of children under one year receive the DPT3 and HB vaccines. - Health in schools: - Provide all primary schools with a complete basic health package beginning with EP1 schools in district seats; current coverage is nearly zero, with the expectation that by 2009 children will have access at half the EP1 schools. - Cross-sector cooperation: - Strengthen liaison between health, education, Ministry of Youth, and Ministry of Social Action to integrate health education into curricula and to reduce risk factors and protect orphans and other vulnerable children (COV). *Source: https://www.imf.org/-/media/websites/imf/imported-full-text-pdf/external/pubs/ft/scr/2007/_cr0737.pdf* ### 431. Nutrition is one of the key areas of the sector. The objective is to contribute, in ### _cr0737 - 431. Nutrition is one of the key areas of the sector. The objective is to contribute, in ### Nutrition - Objective: contribute, in coordination with other sectors, to a reduction in the prevalence of malnutrition. - Role of health authorities: prevent and treat consequences of malnutrition; causes and prevalence require participation by various other sectors at central and local levels. - Target: reduce the prevalence of low-weight-for-age from 24 percent to 17 percent in 2009. - Activities: - Intensive promotion, by health care personnel and community agents, of breast-feeding and appropriate weaning. - Continue preventive administration of Vitamin A to children aged 6 to 59 months. - Curative Vitamin A supplementation in cases of xerophtalmia, persistent diarrhea, serious pneumonia, and malaria to reduce prevalence of Vitamin A insufficiency in children aged 6 to 59 months. - Note: Sector participating in a study of PEN SIDA implementation to review goals for key indicators, including number of women and children who receive PTV. ### Malaria and other endemic diseases - Malaria: - Priority for the sector. - Main objective: ensure that by 2009, at least half the population can benefit from the most appropriate combination of individual and collective protection measures. - Primary strategy: rapid expansion of anti-vectoral battle by spraying homes with insecticides, preferably DDT. - Complementary measures: expansion of presumptive and intermittent treatment of pregnant women at risk; promotion of community participation in environmental sanitation; promotion of community education. - Leprosy: - Objective: reduce prevalence from 2.7/10,000 residents to <1/10,000 residents and obtain WHO certification by 2009. - Required actions: improve geographic and functional coverage; active search for suspected cases for diagnosis and treatment. - Tuberculosis: - Main objective: reduce morbidity/mortality rates. - Target: increase DOTS therapy success rate from 76 percent to 83 percent in 2009. - Actions: improve geographic and functional coverage; gradually integrate tuberculosis care into primary health care services. - Epidemics and surveillance: - Strategy includes reinforcing integrated epidemiological surveillance in all provinces, expanding laboratory capacity, and strengthening emergency response ability at all levels. - Community involvement in risk management and promotion of quality systems is essential. - Advocacy combining epidemiological information and geographic distribution of water sources with the waters sector to better channel water supply investments. ### HIV/AIDS (PEN II - 2005-09 framework and sector evaluation) - Ongoing evaluation of PEN SIDA/PEN II; review to be completed in March 2006 with provincial-level participation. - Consensus: activities and goals (including TARV and PTV for 2009) need revision and redefinition for pregnant women, young people, and children. - Specific program objectives and targets: - (a) Reduce new HIV infections from 500 to 350 per day by: - Encouraging and coordinating information, education, and counseling at community level; - Improving tracking of blood and blood products; - Improving biosafety measures and procedures at all levels. - (b) Reduce HIV prevalence among young people age 15-19 from 5.4 percent to 4.2 percent in 2009 by increasing access to adolescent/youth-oriented services and increasing SAAJ reach from 104,000 to 380,000 in 2009 (SAAJ is cumulative; represents all consultations). - (c) Increase users of STI diagnosis and treatment consultations from 685,000 to 1,500,000 in 2009 and improve quality via reinforcing syndromic approach and accessibility at all health care units. - (d) Increase patients receiving prophylaxis and treatment of opportunistic infections from 7,924 in 2004 to 165,000 in 2009 by improving diagnostic and treatment capacity and access to testing and counseling. - (e) Increase beneficiaries of home care from 11,000 to 200,000 and improve coordination between home care and medical care at Health Units. - (f) Increase number of children aged 0 to 14 years receiving pediatric TARV (1,463 beneficiaries in 2005) by training clinicians and HDD personnel in all provinces; specific goals to be set after study completion. - (g) Increase coverage in prevention and mitigation for women by: (i) increasing access to TARV by women, especially in rural areas; and (ii) expanding and improving information delivery to boys and girls in rural areas. - HIV/AIDS program priorities (five areas): Prevention, Stigma and Discrimination, Treatment, Mitigation of Impact, Coordination of the National Response. - Prevention specific objectives: - 22 percent of HIV + women and newborns receive prophylaxis to prevent vertical transmission of HIV. - 350,000 young people (age 10-24) frequenting the SAAJ. - 60 percent of young people (age 15-24) who are sexually active report they used a condom the last time they had sexual contact with a casual partner. - Reduction in Stigma and Discrimination specific objective: - 60 percent of individuals age 15 to 49 express attitudes of acceptance toward persons living with HIV/AIDS. - Treatment specific objectives: - 165,000 of HIV + adults who are eligible for anti-retroviral therapy are receiving it in 2009, compared with 57,950 in 2006. - 50 percent of HIV + children who are eligible for anti-retroviral therapy are receiving it. - Mitigation of Impact specific objectives: - The ratio of school attendance by children who have lost their mothers is the same as the ratio for non-orphans. - The ratio of prevalence of low weight among orphan children is the same as the ratio for non-orphans. - 30 percent of orphans and other vulnerable children live in families who are receiving outside assistance, free of charge, in caring for these children. - Coordination of the National Response specific objectives: - 100 percent of the State budget annually allocated to the CNCS will be disbursed to that council. - All ministries and provincial bureaus will have received approval of their sectoral plans of action and budgets to combat HIV/AIDS and will have implemented those plans. ### Improvement in the Quality of Services Provided - Strategic objective: improve quality of services to ensure the SNS offers a variety of good quality actions for the entire population and increases user satisfaction. - Infrastructure target by 2009: - All central and provincial hospitals, all rural hospitals, and 75 percent of the Health Centers will have access to a water supply and electricity 24 hours a day. - In-hospital mortality target: - Reduce in-hospital mortality from 7.5 percent to 6.5 percent by increasing diagnostic and treatment capacity, implementing standards, strengthening biosafety measures, reinforcing emergency room services, and increasing scientific research capacity. - Water quality monitoring: - Expand ability to analyze water supply from only provincial capitals to about 60 districts by 2009. - Human resources: - Total staff forecast for 2010: 27,189 (projection considers losses due to HIV/AIDS). - Anticipated appointments between now and 2009: 5,448 basic-level, intermediate, and specialized intermediate technical personnel. - Training: six courses at ISCISA and 124 specialized physicians trained in the same period. - Gender balance and rural recruitment: - Activities to encourage young people from rural areas to take health courses; extend locations of test sites for entrance exams to rural areas. - Indicators to be described in the Gender Plan of Action, to be completed in 2006. ### Improving Efficiency in the Use of Resources - Main objective: increase efficiency in use of existing resources (funds, personnel, infrastructure, equipment, time). - Fund execution target: - Increase degree of execution of funds made available to the sector from 62 percent recorded in 2004 to 90 percent in 2009. - Measures: train personnel at all levels; develop and update an integrated financial management system; implement new instruments and procedures of decentralization properly and timely. - Management capacity: - Increase management skills at Health Units and support systems via courses for managers. - Health Information System (SIS): - Continual improvement and plan implementation focused on sex-disaggregated data, modernization and simplification for efficient, complete, timely data collection. - Once fully implemented, levels 1 to 4 of the SIS should be operating and data quality assured. ### Water and Sanitation - Program purpose: reduce morbidity and mortality from waterborne diseases and poor sanitary conditions. - Components: water supply and sanitation; management of hydric resources. - Cross-cutting actions: institutional skills-building; reinforcement of decentralization and de-concentration; establishment of reliable monitoring and evaluation systems. - Water Supply and Sanitation specific objectives: - Increase coverage of the water supply to 53 percent, thereby serving about 4 million residents living in urban areas by 2009, and achieve 70 percent in 2015, serving 5.4 million people. - Increase coverage to 53 percent of the population, thereby serving about 8 million residents who live in rural areas by 2009, and achieve 70 percent in 2015, serving 11.8 million people. - Increase coverage of urban sanitation services to 40 percent, thereby serving about 3.8 million people living in urban and peri-urban areas by 2009, and achieve 80 percent in 2015, serving 6.1 million people. - Increase coverage of rural sanitation services to 37 percent, so as to serve about 6 million people living in rural areas by 2009, and achieve 50 percent in 2015, serving 8.4 million people. - Water Resources Management main objective: mitigate the effects of droughts. - Specific objective for drought mitigation: relieve shortage of water for population supply, irrigation, and small-scale livestock by building 50 dams or excavated reservoirs to capture rainwater. - Flood Mitigation and Prevention main objective: mitigate the effects of floods. - Flood-specific objectives: - Reinforce water management programs to reduce vulnerability to flooding by: (i) rehabilitating hydro-meteorological stations network; (ii) installing flood warning systems connected to a telemetric network and hydrological prediction models; (iii) mapping areas susceptible to flooding; and (iv) rehabilitation of the Defense Dikes and Refuge Platforms. - Increase capacity for storing water and regulate the Limpopo, Incomodai and Pungué rivers by conducting studies toward future construction of large dams: Barragem Mapai (on the Limpopo), Barragem de Bue Maria (on the Pungué), and prepare the detailed design for the Moamba Major dam (on the Incomodai). ### Women and Social Action - Program sub-areas: development of the family, development of women, persons with disabilities, children in difficult situations, and the elderly. - Development of the Family main objective: promote family stability by encouraging and reinforcing the role of the family in protecting its members. - Development of the Family specific objectives: - Sensitize families to their protective role by training trainers and activists; produce instruments for sensitization; carry out sensitization actions. - Strengthen and expand Family Counseling Centers and increase availability of shelters for victims of violence by publicizing available services; provide intake services, psychological/social care, and legal guidance; build centers and houses. - Prepare and implement strategies and plans to prevent domestic violence and protect victims; train people in planning and statistics. - Strengthen community ability to protect families infected and affected by HIV/AIDS by producing sensitization instruments, training activists, and conducting public information campaigns. - Strengthen actions to battle drug addiction via sensitization activities, building centers for psychological and social assistance to drug addicts, and reintegration activities. - Development of Women main objective: implement policies and an action plan conducive to reduction of absolute poverty, particularly in rural areas, keeping in mind the gender perspective. *Source: _cr0737 - 431. Nutrition is one of the key areas of the sector. The objective is to contribute, in* ### 464. Specific objective: Promotion of associations and building their skills. Establishment of ### _cr0737 - 464. Specific objective: Promotion of associations and building their skills. Establishment of ### Promotion of associations and building their skills - Strategic partnerships to battle poverty by energizing and facilitating the formation and joining of associations by members of the most vulnerable groups with a view to reducing poverty. - Implementation of income-generating projects and self-employment opportunities to assist female heads of households whose economic capability is fragile. - Identification, selection, and establishment of partnerships with organizations active in the fight against poverty. ### Persons with Disabilities - Main objective: ensure that persons with disabilities who are at risk of being excluded from society will receive assistance. - Specific objectives: - (i) provide services to impoverished persons with disabilities by implementing income-generating projects directed to those who are able to work; - (i) set up community centers open to serve persons with disabilities in the community; - (ii) carry out sensitization actions that target various sectors of society in order to socially integrate persons with disabilities; - (iii) provide vocational training in order to integrate persons with disabilities into the job market; - (iv) provide a means of compensation for persons with disabilities; - (v) assist disabled persons who have no family support; - (vi) build special schools for the visually impaired in all three regions of the country; - (vii) provide educational materials, including material in Braille, and train people in sign language; - (viii) propose legislation to require State agencies to have sign language interpreters available, and promote inclusive education for the hearing-impaired. ### Children in Difficult Situations - Main objective: guarantee assistance to children at risk of social exclusion. - Specific objectives: - (i) provide services to children who are in difficult situations by holding sessions for families and members of society as a whole to sensitiz[e] them concerning the rights of the child; - (ii) locate the families of separated children; - (iii) reunite separated children with their families; - (iv) assist children who have no family support; - (v) provide technical, physical, and financial support for families who take in orphans and homeless children; - (vi) implement projects to provide preliminary vocational training and projects to generate income for children, including minors involved in prostitution. ### The Elderly - Main objective: guarantee social assistance to the elderly who are in situations of absolute poverty. - Specific objectives: - (i) provide services to the elderly of both sexes who are living in absolute poverty by establishing open community centers; - (ii) financially and physically assist the elderly who have no means of support and are unable to work, who are living alone, or who are caring for others who are infected and affected by HIV/AIDS; - (iii) carry out activities to sensitize people to the rights of elderly men and women, particularly regarding gender-based violence, and assist the elderly who have no family support by receiving them at Social Units. ### v. Youth and Sports - Program includes two sub-areas: Strengthening of associations of young people, and encouraging mass participation in physical education and sports. #### Strengthening of the Youth Associations Movement - Main objective: Make certain that membership in young people’s associations is the most effective way to organize the youth, and a means of encouraging participative learning. - Specific objectives: - Strengthen the youth association movement by encouraging formation of groups and associations based on common interests; - Promote development and training of young leaders, directors, and event hosts with a view to strengthening the ability of the respective institutions to deal with youth-related issues; - Consolidate the CNJ [National Youth Council] as a forum for communication between young people and the State on the one hand, and as an instrument for coordinating the activities of young people’s associations, on the other; - Promote access by youth to training and the development of entrepreneurial skills and business knowledge that can enable them to improve the administration of job-creating activities; - Develop Youth Resource Centers to assist with training and social integration of youth through vocational training activities compatible with the acquisition of the skills necessary to support young people as they enter the labor market or elect self-employment, and/or in the establishment of microenterprises. #### Encouraging mass participation in physical education and sports - Main objective: Make sports an integrating factor—part of the “glue” in the development of a society—by encouraging mass participation in sports and strengthening sports-related associations. - Specific objectives: - Support innovative approaches in education and training, carried out via local sports initiatives; - Forge partnerships with institutions in civil society to promote and carry out physical and sports activities; - Improve access to the practice of physical education and sports by creating and expanding opportunities for access to physical space, facilities, and sports infrastructures where the public can engage in sports; - Develop initiatives intended to discover and enhance the value of athletic talents that emerge during school and community-based competitive sports; - Establish three Centers of Excellence in Sports for the preparation of new Young Talent; - Create conditions for the free access and movement of children, persons with disabilities, and the elderly to and within barrier-free sports facilities. ### vi. Housing - Program has two sub-areas: security in the right to use and exploit land; and housing durability. #### Security in the Right to Use and Exploit Land - Main objective: Implement urban development programs to ensure access to land that has an infrastructure suitable for housing. - Specific objectives: - Reduce the number of family units who lack access to a plot of land for housing (from about 20 percent in 2004 to 15 percent in 2009) by supporting the implementation of partial land use zoning plans; - Work out differences regarding the draft decree regulating urban land use, submit that draft for approval by the Council of Ministers; - Conduct campaigns to study and publicize the legislation on land and housing. #### Housing Durability - Main objective: ensure the durability of housing by implementing housing improvement programs. - Specific objective: - Promote access to appropriate housing by monitoring the training of those who produce building materials in the communities; - Provide technical support to the establishment of resource centers for home-building, including training rural extension workers, and drafting and publicizing the Housing Policy. ### 3. Economic Development — Introduction - Sustainable economic development is one of the necessary conditions leading to a reduction in absolute poverty. - Contribution of this pillar intended to stimulate and promote: - (d) [sic] An increase in per capita income from economic activity, with special emphasis on rural areas, thereby improving well-being, especially the well-being of poor people; - (e) An increase in productivity and intersectoral connections by a better integration, in terms of the nation’s economy, between rural and urban areas from north to south of this country; - (f) Creation and improvement in the quality of employment and self-employment; - (g) Development of scientific and technological infrastructures and skills applied to national and rural productive activity; - (h) Expansion of a strong, dynamic, competitive, and innovative private sector; - (i) Development of a monetary and financial system that fulfills its function of energetically encouraging savings and channeling them into productive domestic investment; - (j) Pursuit of a more comprehensive tax reform in order to increase State assumption of responsibility for the nation’s institutions and citizens, thereby contributing to the expansion of the formal sector of the economy; - (k) Pursuit of a gradual and mutually advantageous integration of the nation’s economy into regional and international markets so as to ensure the movement of goods and services, and increase national production and supply of quality products and services. - Economic development achieved by growth in productive sectors through structural transformation of agriculture, conversion of the informal sector to a formal one, and entrepreneurial competitiveness—especially activities contributing to job creation, exports, foreign exchange, and intersectoral coordination (example: agro-industry). ### Conditions necessary for sustainable economic development - (a) A stable macro-economic situation; - (b) An institutional framework and business environment favorable to investment; - (c) A well-developed and comprehensive financial sector; - (d) Good infrastructures in terms of energy, roads, and transportation; - (e) Modernized companies with technical and technological capabilities, staffed by Mozambican workers who have been taught those skills; - (f) Conditions suited to effective marketing of goods and services on domestic and international markets. - Cross-cutting issues to consider: HIV/AIDS, gender, food and nutritional security, and the environment. - Role of the State: promote investment in economic and social infrastructures, provide basic services and an institutional system that creates an atmosphere favorable to expansion of private Mozambican enterprise and private sector investment, particularly in small and medium-scale companies, with emphasis on rural areas. - Systems actions: rigorous macroeconomic management and maintaining appropriate levels of “openness” to ensure flows of technology, skills, information, financial resources, investments, and trade, and ensure efficient channeling of resources into productive sectors. ### Vision and Challenges (paragraph 487) - Principal challenges for the economic development pillar in PARPA II: - (a) Continue to guarantee macroeconomic stability in Mozambique by solid and stable macroeconomic management of monetary and fiscal variables; - (b) Continue to monitor the State’s financial management practices, including management of public spending, revenue collection, and financial relationships with the cooperation partners; - (c) Promote the consolidation and integration of the domestic market by improving the basic infrastructures and transportation systems, as well as improving the regulation of commercial exchanges on the internal market; - (d) Improve the business and labor climate in Mozambique in order to: (i) encourage domestic and foreign investment; (ii) facilitate formalization of the economy; and (iii) contribute to creation of high-quality jobs; - (e) Strengthen the regulation and supervision of the financial system in order to minimize the risk of financial crises; - (f) Modernize and expand the financial system, by creating new instruments and expanding regional coverage, especially in the rural areas, in order to increase savings and the availability of credit; - (g) Contribute to the creation of a strong, dynamic, competitive, and innovative private sector through more complete integration of the Mozambican economy (intersectoral links), modernization of the productive base of Mozambique, improving the technical and technological capabilities of Mozambican companies and workers, and ensuring a continued supply of energy and a better transportation infrastructure; - (h) Promote the broadening of the business base and development of the priority sectors and activities; - (i) Strengthen the family sector of the economy, with emphasis on activities such as farming and small-scale fishing, with heavy emphasis on rural parts of this country; - (j) Continue to improve the degree to which Mozambique is part of the regional and international economies through continued development of trade and investment relationships with other countries, a gradual and progressive liberalization of international commercial exchanges, and heavier flows of trade and investment with other countries; - (k) Contribute to a comprehensive and sustainable economic and social development (environment, HIV/AIDS, food and nutritional security, rural development, etc.) that contributes to the general well-being of this country’s citizens. ### Objectives and Actions — i. Macroeconomic management (paragraph 488) - Government will guarantee rigorous macroeconomic management by maintaining appropriate levels of openness in the economy to permit flows of funds, technology, trade and investment necessary for stability in the financial sector. - Important actions: consolidation and reform of public finance, monetary management, and improved supervision of banks, insurers, and the social security system. #### Tax Policy (paragraph 489) - Government actions to reform and increase efficiency of tax administration to gradually increase mobilization of domestic funds as a percentage of GDP and reduce external dependency. - Steps to be taken: - (a) Domestic revenues will gradually be increased; - (b) The tax system will be simplified and refined, and the tax base broadened; - (c) Reforms made in direct and indirect taxes will be consolidated; - (d) Simplified taxation regimes will be reviewed, the effectiveness of tax and investment incentives will be evaluated, and the process of establishing tax courts will be continued; - (e) Work on modernizing the tax administration will be continued, to make it an efficient tax-collection system and to curb fraud and tax evasion; - (f) Legislation will be approved that simplifies the relationship between the tax administration and the taxpayers, making it easier for them to exercise their rights and receive the protection assured them; - (g) Tax and customs courts will be effectively implemented; and - (h) Legislation on local government finances will be refined and the conditions of the agencies responsible for collection and control of local government taxes will be improved. #### Monetary and Exchange Policy (paragraph 490) - Monetary policy will be coordinated with fiscal and budgetary policy to avoid excessive rises in the rate of exchange, assure real interest rates remain consistent with proper functioning of the economy, and permit competitiveness. - Anticipated outcomes: - (a) Maintenance of inflation at low, stable levels; - (b) Maintenance of a stable and competitive exchange rate that encourages exports; - (c) Maintenance of international reserves at levels appropriate to the fulfillment of the country’s international commitments. #### Budget Policy and Public Finance Management Policy (paragraphs 491–494) - Policy intended to reduce dependence on outside sources of funds, shrink fiscal deficits and internal and external debt. - Budgetary programming cycle will harmonize PARPA II with public spending; midterm action plan should influence the annual budget and translate it into financial plans. - Given scarcity of funds, strategy to rationally allocate public spending to priority areas. - Mozambique relies on concessional external funding over medium and long term and envisions gradually overcoming dependence on foreign aid. - Efficient and effective use of funds requires strengthening inspections and audits, systematic reviews of public spending, and thorough reform of the SISTAFE. - Steps to be taken: - (a) (i) Increase transparency in the management and use of public funds; (ii) improve the system by which State works projects are paid for; and (iii) adopt a transparent and efficient public procurement system; - (b) (i) Proceed with decentralization of planning and finance by establishing criteria for allocating financial resources to the districts; (ii) establish and harmonize rules and procedures for programming, executing, and evaluating public resources; and (iii) develop midterm and long-term budget programming tools and consolidate the short-term tools; - (c) (i) Consolidate and expand the implementation of the SISTAFE and (ii) put the e-SISTAFE into operation; - (d) (i) Develop subsystems that furnish timely, reliable information on the budget and property status of State agencies and institutions; (ii) implement an accounting system to control budgetary and property execution by the State; and (iii) increase the efficiency of the internal control system so that it is consistent with international practices. *Source: https://www.imf.org/-/media/websites/imf/imported-full-text-pdf/external/pubs/ft/scr/2007/_cr0737.pdf* ### 495. A good business environment is essential for the development of the private sector, to ### _cr0737 - 495. A good business environment is essential for the development of the private sector, to ### Administrative Barriers - Administrative barriers identified as the most serious constraint on private sector development. - Government will review legal and institutional framework to simplify and accelerate licensing of commercial, industrial, and tourism activities, with a view to issuing licenses within the deadlines stipulated in the law. - Government will simplify and unify inspections of business activities and make them more effective. - Anticipated steps: - (a) Simplify procedures for licensing commercial, industrial, and tourism-related activities, and other activities, in light of public sector reform; - (b) Establish and consolidate one-stop service windows in all provinces, and give them full licensing powers; - (c) Computerize notarial records; - (d) Review the regulation of the inspection of economic activities, with special emphasis on joint inspections; - (e) Create an attractive business environment in the field of tourism by adhering to systematized and sustainable tourist zoning rules, by updating and simplifying tourism-related legislation; and - (f) Expedite the processing of tourism investment proposals in coordination with the Center for Investment Promotion (Centro de Promoção de Investimentos – CPI), DINAGECA [National Directorate of Geography and Land Registry] and the provincial tourist bureaus. ### The Job Market - Hiring, employment, and worker protection are important for improving the business environment and creating new jobs. - Government, labor unions, and employer associations to play vital role in evaluating possible changes to make the labor market more flexible and competitive, while considering social norms, cultural habit, and historical past. - Components of a review of hiring, employment, and worker protection: - (a) Review of labor legislation and inspection practices, as well as [other] applicable legislation (Decree 32/98 and Ministerial Document 17/90); - (b) Implementation of a strategy to prevent labor conflicts, and establishment of a commission and centers for labor mediation and arbitration as tools for alternative methods of resolving labor disputes; and - (c) Review of social security legislation and reform and modernization of the legal and institutional framework of social security, specifically the INSS [National Social Security Institute]. ### iii. Development of the Financial System — Overview - Main objective: develop a modern financial system that is comprehensive in social and geographical terms, increases monetization, and finances activities of the productive sectors. - Efforts concentrated in four areas of action: Regulation and Supervision; Modernization and Expansion; National Savings; Insurance and Social Protection. ### Regulation and Supervision of the Financial System - Objective: strengthen regulation and supervision to minimize risk of financial crises by adopting measures that are: - Directed toward seeing that reports on the financial system adhere to international standards (International Accounting Standards/International Financial Reporting Standards); - Aimed at full compliance with the Basel Basic Principles; - Intended to achieve effective control of electronic transactions, particularly the regulation of electronic financial products (credit and debit cards); and - Oriented toward achieving better financial intermediation, including that which is directed toward small businesses and microenterprises. ### Modernization and Expansion - Objective: modernize and expand the financial system by creating new instruments accessible to small and medium-size companies and family units and more widely available geographically, including rural areas. - Main actions: - Introduce new alternative credit instruments; - Increase access to micro-credit by publicizing it, or by training inspectors specialized in the supervision and monitoring of the activities of micro-finance institutions; and - Increasing access to credit. ### National Savings - Objective: encourage national savings, including savings by low-income families, by: - Study the feasibility of offering deposit insurance; - Approve regulations for the Deposits Guarantee Fund for micro-finance institutions that are subject to Bank of Mozambique supervision; and - Introduce new financial instruments and measures to increase access to credit and micro-credit. ### Insurance and Social Protection - Objective: improve the insurance and social protection sector by adopting programs intended to perfect their regulatory framework. - Actions: - Reviewing the legal system applicable to the insurance business, including drafting regulations on private pension funds and a law on insurance contracts; review of the financial guarantees legally required of the insurance business, and review of current legislation applicable to the insurance business; - Modernization of the institutional framework of the sector by preparing a plan for transition of the insurance accounting and reporting system to conformity with International Financial Reporting Standards, as well as providing institutional training for the Office of the Inspector General of Insurance (Inspecção Geral de Seguros – IGS); - Review of social security legislation, and reform and modernization of the legal and institutional framework of social security, specifically the INSS. ### iv. Promoting the Creation of a Strong, Dynamic, Competitive, and Innovative Private Sector - Rationale: a strong, dynamic, competitive, and innovative private sector is necessary for sustained market-economy development and greater presence on international markets. - Productive sectors require availability and quality of factors of production—human capital, technology, electricity, telecommunications—that directly impact international competitiveness. ### Technical and Vocational Training - Invest in technical training of workers to improve human capital and boost employment. - Ministry of Labor interventions: - Implement the Employment and Vocational Training strategy; - Train microentrepreneurs and small businessmen in management of businesses in various fields that would generate income in rural and urban areas; train unemployed persons in various special skills; - Promote vocational internships, traditional apprenticeship, and training of artisans; - Build new vocational training centers throughout the country, giving priority to provinces that have industrial and tourism potential; and - Strengthen the existing partnership between public and private training centers by improving the mechanisms of technical assistance, monitoring, and follow-up of the public and private training centers. ### Building the Technical and Technological Skills of Companies - Improve technical training at Mozambican companies to improve production processes and products. - Ministry of Industry and Commerce (MIC) initiatives: - Formulation of industrial property policy and implementation of policies as regards quality; - Promotion of the certification of production processes and products; and - Restructuring and strengthening of institutions responsible for certification of quality standards and accreditation, including metrology. ### Production, Importation, and Distribution of Electricity — Program and Components - Program to guarantee increased access to electricity for domestic use and business activities. - Actions: expand and improve electricity production capacity and the national electric power grid; distribution and marketing of liquid fuels; startup of operations by the National Electricity Council (Conselho Nacional da Electricidade – CENELEC); supply of unleaded gasoline on a national scale; complete energy projects in the electricity master plan; identify projects for electric power generation and new and renewable energy sources; reforms in the electric power industry. - Four components: electrification, fuels, renewable energy, and intersectoral collaboration. ### Electrification - Country has huge potential for hydroelectric power but the index of access to electricity is the lowest in the region. - Main objectives: expand access to electricity for consumers, especially for production, while curbing environmental impact; improve commercial and financial performance of Electricidade de Moçambique so that revenues increase, as well as exports of electricity. - Principal actions: - Complete the electrification of district seats and administrative posts with a view to replacing diesel generation with the national electric grid; - Promote electricity generation projects, specifically: the Mphanda Nkuwa hydroelectric project, the Moatize thermal power plant, and a thermal power plant fueled by natural gas; and - Promotion of alternative sources of electricity generation to use in electrification of areas that are isolated from the national grid. ### Fuels - Mozambique dependent on imports of liquid fuels; continued rise in world prices has negative impacts. - Main objectives: reduce costs and dependency on imported fuels by-products; promote investment in exploration and production of petroleum. - Principal actions: - Continue efforts to promote the expansion of the liquid fuels distribution network, particularly for kerosene, unleaded gasoline, and liquefied petroleum gas; - Introduce natural gas as a fuel for transportation vehicles; - Review the regulations for sales of fuels in drums; and - License the “artisanal” vendors of petroleum products, and create means for storage and marketing. ### Renewable Energy, New Sources - Energy deficit increases demand for renewable energy: solar, wind, biomass. - Principal objectives: (i) curb the destruction of the forest for the use of its biomass; (ii) increase access to the sustainable and improved use of biomass fuels for cooking; and (iii) encourage the use of environmentally friendly energy sources. - Principal actions: - Continue to extend the rural electrification program to new areas, giving priority to connecting additional districts to the national electric grid, with special attention to new and renewable sources of energy; - Increase electricity supply to hospitals, community health clinics, and schools, based on alternative sources of energy; - Take actions leading to implementation of electricity generating projects by diversifying alternative sources of energy with a view to preserving the resources of the biomass and encouraging recourse to alternative energy sources; and - Promote the use of ovens and stoves that have been improved with a view to sustainable use of biomass energy. ### Intersectoral Cooperation: Industry - Industry, as a major energy consumer, depends on a stable supply of energy sources for viability and competitiveness. - Government should establish new electricity tariffs, as well as tariffs for water and transportation for the productive sector to reduce production costs and promote competitiveness, while managing such services efficiently to avoid unnecessary subsidies. ### Cross-cutting Topics (Energy) - Ministry of Energy will integrate women into sector policies and programs; - Integrate environmental management components into all activities; - Raise awareness of the HIV/AIDS pandemic among sector personnel. ### Telecommunications - Objective under PARPA II: improve telecommunications and postal systems to enhance business competitiveness, energize rural economies, and improve living conditions. - Telecommunications main objective: universal access to telecommunications throughout the country. - Postal services objective: general improvement in service. - Telecommunications objectives and measures: - (i) restructure Telecomunicações de Moçambique (TDM); - (ii) introduce new services and technologies (CDMA); - (iii) complete the backbone of the telecommunications network; and - (iv) set up the Universal Access Fund. - Postal services actions: - (i) reform of the postal sector; - (ii) definition of a policy for the postal sector; and - (iii) restructuring and modernizing Empresa Correios de Moçambique. ### v. Promoting the Priority Sectors, Broadening the Business Base, and Creating Jobs — Overview - Sustainable and comprehensive growth oriented toward job creation depends on developing the productive base—company and family businesses—especially in agricultural, industrial, tourism, fisheries, and mining sectors. - These activities contribute to economic and social development and poverty reduction through income generation, job creation, self-employment, foreign exchange, and state revenues. - Government intends to articulate specific development policies for each sector throughout PARPA II implementation. ### Agriculture — Program for the Sector - Agricultural actions target reduction of absolute poverty; farming predominant in rural areas where absolute poverty is highest. - Small family farm sector represents 99.65 percent of the total number of farm families, and 95.19 percent of the total area under cultivation nationwide (MADER 2004a). - PROAGRI II (2005-2009) principle: greater attention to rights and needs of families of small agricultural producers regarding access to land, intermediate goods, and markets (MADER 2004b). - Sectoral objectives and actions will give particular consideration to the small family farm sector during planning, implementation, monitoring, evaluation, and adjustment of PARPA II. - After more than a decade of postwar recovery, benefits of rehabilitation are becoming exhausted; agrarian actions must aim for higher productivity and intensified vertical and horizontal links within rural and national agricultural economy. - Long-run orientation of agricultural development program: - (i) assistance to small family farms during their gradual transition to commercial operation; and - (ii) assistance to commercial farmers to boost production, productivity, and competitiveness, ensuring basic needs and higher incomes in rural areas, and establishment of agroindustries adding value for domestic and export markets. - Encouragement of stronger links between family farm sector and commercial farming to transfer technology and stimulate rural economic growth and higher incomes. - Public sector reform, particularly decentralization, will require more interventions by public services in rural areas, permitting more interaction between the State and citizens, especially farmers. *Source: IMF staff compilation from the provided PARPA II chapter content.* ### 528. Development of Public-Private Partnerships (PPP) should be adopted as strategy to ### _cr0737 - 528. Development of Public-Private Partnerships (PPP) should be adopted as strategy to ### Public-Private Partnerships (PPP) and structural transformation in agriculture - PPP should be adopted as a strategy to ensure structural transformation in agriculture. - State interventions in PPP can include: - (i) making investments that encourage agribusiness (help the family farm sector supply agroindustry with quality raw materials in the required quantities and at the proper times); - (ii) transferring the provision of public services to the private sector; and - (iii) taking part in private investment. - Expected contributions of these interventions: improved productivity, competitiveness, links among different activities, and producer incomes. - Rural producers need better organization; public investment should reinforce rural institutions and organizations. ### Priority areas under PARPA II - Fundamental areas for achieving objectives and success of agriculture under PARPA II: - (i) agrarian services: increase production and productivity, guarantee food security, raise income and improve competitiveness of farmers; - (ii) natural resource management: assure sustainable environmental management of natural resources (land, forests, wildlife); - (iii) institutional development: reform institutions, manage human resources, manage financial and property aspects, conduct monitoring and evaluation, and implement a strategy to prevent and mitigate HIV/AIDS. ### Agrarian Services - Main objectives: - (i) increase access to technology and to information on extension services; - (ii) increase the availability and access to intermediate goods (seeds and agricultural chemicals); - (iii) encourage construction and rehabilitation of agrarian infrastructures; - (iv) promote food security networks for the most vulnerable groups; - (v) improve access to market information and to the markets themselves; - (vi) promote development of the private sector and of production systems from the standpoint of the value chain; - (vii) encourage producers to organize. - Principal actions: - Generate agrarian technologies adapted to various zones and ecologies. - Publish and disseminate agrarian technologies. - Conduct animal and plant health campaigns. - Improve the provision of veterinary care. - Distribute plant materials and hold fairs at which intermediate goods are available. - Implement programs for propagation of improved seeds. - Build and rehabilitate fisheries infrastructures and water capture systems. - Implement programs to prevent and manage threats related to food and nutritional insecurity. - Promote a service that provides information on market opportunities. - Increase warehouse capacity and reduce post-harvest losses. - Establish a framework of quality standards and sanitary and phytosanitary certification rules for a competitive market. - Promote expansion of the agricultural products processing industry (agribusiness). - Create alternative means of agricultural financing (risk capital, crop insurance, guarantee fund, lines of credit for agribusiness). - Assist and train organizations of producers. ### Natural Resource Management - Main objectives: - (i) improve equitable access by communities and individuals to natural resources for sustainable use and management; - (ii) promote a service that provides information on existing natural resources (land, forests, and wildlife); - (iii) improve oversight of the exploitation of these resources. - Principal actions: - Consolidate and publicize legislation on access to natural resources. - Assist with establishment of local and private Mozambican initiatives in the rational and sustainable use of natural resources (concessions, communities). - Certify and/or deed the rights to land to small and medium-scale farmers for income crops. - Take inventory and map the occupation, use, and exploitation of lands, and routinely update the national cartography. - Oversee compliance with natural resources legislation. - Implement a strategy to manage the conflict between people and animals. - Prevent and control uncontrolled burning of lands. - Develop appropriate technologies for the sustainable management of natural resources. - Develop forestry care systems to establish and enrich forest species and formations. ### Industry - Program goal: promote growth of the industrial sector to increase its contribution to GDP, modernize the economy, create jobs, and interconnect with other sectors (especially primary sectors). - Priority activities: expand employment and exploit comparative advantages from Mozambique (microenterprises, small and medium-scale businesses, and agroindustrial companies). - Objectives and actions: - Objective: contribute to enhancement of natural resources and increase national value-added to raise industry’s contribution to GDP. - Reformulate industrial policy and strategy; formulate and implement sub-sector strategies (food industry, metals and machines, chemicals, graphics and packaging, textiles and apparel, lumber, fishery products processing). - Formulate an industrial property policy and implement a quality policy. - Establish tariffs for electricity, water, and transportation for the productive sector. - Objective: take better advantage of the country’s favorable location. - Promote and develop industries along the north-south axis in zones with growth potential, comparative advantages, and economies of scale. - Establish tax-free zones, provided an evaluation is made in advance of the net contribution to the national economy and to tax revenues. - Objective: contribute to development of MPME (microenterprises, small and medium-scale businesses). - Prepare a diagnosis of the status of the MPME. - Approve a strategy for MPME and create and consolidate the functioning of MPME as an institution. - Establish a liaison program within the MPME to improve integration with suppliers and customers. - Objective: promote maintenance of a sustainable industry using ecologically balanced technology. - Create an institutional framework for promotion of environmentally healthy technologies. - Joint participation by the MIC and MICOA [Ministry for Coordination of Environmental Affairs] in environmental audits of industrial establishments, provided this does not hamper expansion of industry. ### Fisheries - Context: fisheries account for about 8 percent, in terms of volume, of the country’s exports; sector strategies aim to ensure permanent access to international markets through quality control, consolidation of fisheries inspection services, improving competitiveness, and diversifying exportable domestic products. Commercial aquaculture for export is already pursued. - Environmental pressures: overfishing, pollution, habitat degradation, and natural disasters have impaired coastal populations’ ability to meet economic and social needs; PARPA II priority is environmental sustainability via integrated management protecting mangroves, coral reefs, and coastal and interior wetlands. - Non-Industrial Fishing - Objective: improve standard of living of fishing communities and ensure sustainable exploitation of fisheries resources and aquaculture. - Government actions: create/rehabilitate infrastructures for non-industrial fishing in principal fishing centers; increase supply of domestic fish to internal market; encourage distribution and marketing of fish and fishery inputs; raise production in non-industrial aquaculture. - Actions: - Strengthen control and oversight of fishery and aquaculture activities. - Support participation by non-industrial fishermen in fisheries management. - Train management committees and community fishery councils. - Move forward with regulations for non-industrial fishing and aquaculture. - Implement the master statistical plan for fisheries. - Strengthen institutional coordination in managing aquatic conservation areas. - Introduce, perfect, and publicize improved techniques for fishing, conservation, and processing products of non-industrial fishing. - Commercial Fishing - Objectives: improve competitiveness and sustainability to increase contribution to exports. - Programmed actions: - Improve facilities supporting commercial fishing. - Promote training of technical and (land-based) managerial personnel for fishing companies. - Complete reform of the public administration of fisheries. - Strengthen training in basic specialty fields in short supply. - Support creation and certification of Mozambican brands for shrimp. - Establish a national market information system. - Expand areas dedicated to aquaculture (shrimp and algae). - Encourage value addition to fishery products. ### Tourism - Rationale: travel and tourism rank first worldwide in revenue generation and employment; investments and employment in Mozambique’s tourism have increased in the past five years; conservation areas are being revitalized; natural resources are the primary base for tourism. - Main objective: develop and position Mozambique as a world-class tourist destination while ensuring environmentally healthy exploitation of natural resources. - Specific objective (marketing and partnerships): - Implement specific marketing campaigns; form a partnership to benefit from the 2010 FIFA World Cup to be hosted by the Republic of South Africa. - Create effective partnerships with neighboring countries, moving towards regional integration. - Rehabilitate and reorganize conservation sites. - Provide incentives for an attractive environment offering safety and hospitality along tourist corridors via tourist information posts and a suitable tourist gateway. - Institutionalize festivals to diversify attractions and lengthen average stay. - Promote active involvement of local communities in development and benefits of tourism. - Specific objective (products and services to increase jobs and earnings): - Promote local tourist support businesses and local small and medium-scale companies, including public co-financing of private business initiatives in tourism. - Promote participative development of conservation sites by establishing management councils and increasing revenues channeled to local communities. - Facilitate entry of tourists and investors (simplification of procedures, better coordination among government agencies). - Establish institutional framework by designing strategies for various kinds of tourism (hunting, cruises, rural, adventure, etc.). - Assemble a tourism workforce, giving priority to local workers. - Create a national association of the hotel and tourism industry, and adopt a code of conduct. ### Mining - Objectives and targets: - Increase participation by the Mozambican business community in mining to raise number of private operators to 750 from the present 683. - Boost private investment in the sector by 40 percent. - Actions to achieve targets: - Promote geological studies to evaluate carboniferous potential in areas adjacent to the Moatize deposit and others in provinces of Tete, Niassa, Cabo Delgado, and Manica. - Proceed with prospecting and research programs. - Install processing and primary transformation industries domestically. - Legal and fiscal framework objectives: - Reinforce oversight of mining activities. - Publicize basic geological information. - Consolidate the regulatory framework and proceed with institutional reform of the sector. - Research and inventory objectives: - Promote research and prospecting (basic metals, precious metals, gold and diamonds, ornamental rocks, industrial minerals). - Promote geological mapping (coal, the coastal zone). - Small-scale and non-industrial mining objectives: - Provide technical support to prospectors to improve mining tools. - Support promotion of associations, cooperatives or companies, and other organizational forms in extraction and processing. - Environmental objectives: - Guarantee environmentally sustainable exploitation by regulating and monitoring environmental performance. - Promote reduction of risk from heavy metals and other toxic substances by training non-industrial miners in cleaner production methods. - Environmental actions: - Continue to publicize and monitor environmental regulations applicable to mining. - Proceed with inspection and oversight of companies operating in geological/mining field. - Prevent water pollution and mitigate groundwater pollution by establishing monitoring systems and effective legal frameworks. - Arrange geological and environmental mapping of the coast of Mozambique. ### Oil Research - Objective: Maximize value of oil resources to benefit whole society. - Actions: - Maintain a transparent legal, regulatory, and contractual system to attract investments and foster judicious resource management, emphasizing health, safety, and environmental aspects. - Establish national sovereignty over part of the continental shelf pursuant to the UN Convention on Maritime Law. - Systematically map and survey resources based on Concession Agreements signed with qualified companies in a competitive and transparent process. - Ensure rational and efficient use of production and transportation infrastructures. - Ensure development of the domestic market for natural gas, condensed natural gas, and other oil products. - Ensure education and training of Mozambicans to participate in all stages of oil operations, including provision of goods and services. - Foster regional cooperation with neighboring countries and ensure unitization and coordinated exploitation of common resources; develop an efficient regional natural gas market, use common technical standards, and implement capacity and contingency measures throughout the region. ### Fostering Job Creation - Government will coordinate specific initiatives aimed at job creation to generate income and reduce absolute poverty. - Roads and highways initiatives to create seasonal and permanent jobs: - Give priority to labor-intensive technology in maintenance of tertiary and neighborhood roads. - Make it mandatory that all unskilled labor be recruited locally. - Promote participation of women in roads projects. - Design specific programs to use labor-intensive technology. - Contribute to reduction in HIV/AIDS infection rates and discrimination in the highway industry by inserting contract clauses relating to programs that combat HIV/AIDS. *Source: _cr0737 - 528. Development of Public-Private Partnerships (PPP) should be adopted as strategy to* ### 558. Furthermore, the Ministry of Labor will promote job creation in all sectors of the ### _cr0737 - 558. ### Ministry of Labor — Promoting Job Creation - Objectives and actions: - Promoting the employment dimension in all sectoral policies, programs, and projects, thereby assuring widespread adoption of a pro-employment economy in the battle against absolute poverty. - Making its contribution to job creation, especially through associations of producers. - Follow-up and monitoring of production activities undertaken by associations and cooperatives. - Identification of employment opportunities for newly-graduated young people, and promotion of the hiring of such candidates for employment. - Gathering statistics on employment/unemployment that are both reliable and current. ### Improving Integration of Mozambique into the Regional and International Economy - Rationale: Integration through trade and investment can contribute to economic growth by: - increasing availability of less expensive goods and services, of better quality, to the general public and the productive sectors; - affording new business opportunities for domestic companies and in the context of direct foreign investment; - creating jobs; - reinforcing the productive fabric; - facilitating technology transfers; and - permitting better integration into regional and international chains of value. - Risks: If the nation’s institutions are not ready for integration, Mozambique could suffer significant losses, as has been happening with local industry, especially the cashew industry. ### Globalization Strategy (Ministry of Industry and Commerce and Bureau of Customs) — PARPA II implementation period - Building institutional skills: - Developing strategies for exporting oilseeds and tropical fruits. - Creating an inter-ministerial working group to ensure simplification of the procedures adopted for export promotion and the attraction of strategic investments that make intensive use of labor. - Establishing an inter-institutional committee on foreign trade. - Improving statistical information. - Developing the capabilities of the institutions involved in international trade negotiations, and reinforcing the country’s diplomatic missions in Brussels, Geneva, Washington, Beijing, and Brasília. - Trade agreements: - Maximize benefits of participation in bilateral and multilateral preferential trade agreements by: - concluding bilateral agreements for the free trade zone; - identifying and facing up to the existing constraints in order to exploit the preferential access opportunities granted to Less Advanced Countries; - evaluating the impact of the 2010 SADC customs union; and - evaluating the implications of Mozambique’s accession to the SACU. - Promotion of Mozambique’s image: - Objective: develop a strategy for attracting investment (foreign and domestic) that involves various sectors. - Facilitating trade: - Objective: reduce the time required for customs clearance so that it conforms to international standards, by taking initiatives directed toward: - Implementation of a Transit Module and adoption of a Single Document (DU) that is common within the Region. - Use of new information technologies to accelerate clearance of goods by electronic transmission of the Single Document and implementation of an electronic container verification using scanners. - Improving customs infrastructures by developing communications and information facilities and installing and operating a “Dry Port” at Ressano Garcia (Railway Terminal). - Improving the technical and professional skills of customs personnel. ### Promoting Integration and Consolidation of the Domestic Market - Rationale: Consolidation and better internal coordination of the domestic market will permit: - better distribution of the nation’s products—agriculture, industrial, etc.—and their integration into regional and international markets; - effective circulation of people, goods, and information; and - access by the public to a larger number of goods and services of better quality. - Four priority areas during PARPA II implementation: - (i) transportation systems; - (ii) highways; - (iii) distribution and the national commercial network; and - (iv) regulation of internal trade. - Responsible ministries: transportation and communications; public works and housing; commerce and industry. ### Transportation Systems — Objectives and Actions - Highway transportation (Objectives): improve the efficiency and access to highway transportation; organize the highway transportation system; facilitate connections among cities and provinces; guarantee the operational sustainability and safety of highways; ensure Mozambican operators can compete equally with neighboring countries. - Initiatives include: - creation of the Highway Fund; - renovation and expansion of the fleet; - revision of the Automotive Transportation Regulations (RTA), including a strategy for organizing semi-collective transportation; - approval of the Regulations for Passenger Transportation Terminals; - revision of the policy regarding technical assistance to the country’s automobiles; - monitoring the implementation of bilateral agreements. - Water transportation (Objective): revitalize and improve maritime, river, and lake transportation by taking actions to: - liberalize the entry and operation of private parties in cabotage and crossings; - dredge the ports of Beira and Quelimane; - purchase vessels for the crossings at Maputo/Catembe, Inhambane/Maxixe, Beira/Buzi/Machanga and Quelimane/Ricamba; - rehabilitate the bridges at Catembe, Maputo, and Inhambane; - build a shipyard at Inhambane; and - make certain that the management of all principal and secondary ports in this country is efficient and effective. - Ports and railways: - Contribute to development along the Beira Corridor and foster market competition by: - rehabilitating the Sena line; - maximizing the use of the port of Beira; and - establishing the regulatory authority for ports and railroads. - Highways and bridges — Construction and rehabilitation: - Continue the rehabilitation and maintenance of highways and bridges to improve trafficability and reduce vehicle operating costs. The north-south axis is the national priority. - Detailed actions include: - continuing rehabilitation of principal routes, specifically, the N1 Maputo-Pemba, N14 Lichinga-Pemba, N13 Lichinga-Cuamba; the N103 Cuamba-Nampevo, and others; - continue programs for rehabilitating tertiary roads; - build bridges over the Zambeze, Rovuma, Meluli, Lugela, Guijá, and Moamba rivers; - finish the rehabilitation of the Ilha de Moçambique bridge; and - keep the entire highway network in reasonably good condition. - Building institutional skills for the sector: - (i) continuing the institutional reforms program; and - (ii) continuing the program of improving institutional skills. ### Marketing System and Regulation of Internal Trade - Marketing system: - Promote development of the commercial network, the agricultural marketing network, and stabilization of the consumer goods market by: - financial assistance to development of the commercial network; - implementing the Agricultural Marketing Strategy (Estratégia de Comercialização Agrícola - ECA II); - disseminating information about markets and prices, and implementing actions aimed at gradual accommodation of the informal sector within the formal economy. - Regulation of internal trade: - Improve conditions of competition on the domestic market to curb unfair competition and reduce losses from monopolistic markets by: - formulating and implementing policies and legislation relating to competition; and - training the staff of the Ministry of Industry and Commerce in this subject. ### Factors Determining Success in Implementation — Key Elements - 1. Ownership/Participation by the Various Actors - Role of the State: direct drafting and implementation of PARPA II in cooperation with civil society and the international community; link development vision, government priorities, state budget, and actions to reduce absolute poverty. - Conditions for success in participation, preparation, execution, monitoring, evaluation, and adjustment of the action plan: - (a) Close coordination among the parties involved in all phases of the action plan, leading to reaching consensuses or including different points of view; - (b) Clear definition of the functions and assigned duties of each party involved so that the process is effective and efficient, avoiding the costs associated with redundancy and the sacrifice of actions not carried out; - (c) Clear commitment by the parties involved in carrying out the action plan; and - (d) Actual allocation of the resources planned for the defined activities. - PARPA II Communications Strategy: - Purpose: expand a culture of participation by citizens, institutions in organized civil society, children and youth, and others, with emphasis on the national and provincial Poverty Observatories and the Institutions for Community Participation and Consultation (Instituições de Participação e Consultas Comunitárias – IPCC). - Timeline: in 2006 the Communications Strategy will be completed and implemented, along with its action plan for the PARPA II period, 2006-2009. - Roles of specific actors: - Provinces: assist with preparation by reporting on the Provincial Poverty Observatories. - International Community: role referenced to be detailed later (cooperation partners). - Private Sector: grow the economy by creating jobs, increasing productivity, adopting innovative technology, raising incomes of workers and returns for capital owners, integrating sectors of the domestic and international economy. - Workers’ Organizations: ensure some productivity gains benefit workers; protect jobs during bankruptcies or ownership changes. - Non-Governmental Organizations: complement the role of the State; important to the action plan for reducing absolute poverty. - Religious Confessions: important role in alleviating poverty, re-establishing social fabric, and assisting with pacification; traditionally important in education and health; proposed creation of a permanent, stable, and regular channel as a sounding board with authority to solve problems. - Young People and Students: can work through their organizations to help prepare and comment on PARPA II. - Media: important for dissemination; PARPA II Communications Strategy emphasizes their role in mobilizing the public. - Mozambican People: contribute through participation mechanisms including Provincial Poverty Observatories and civil society organizations. - 2. Political Leadership - Government leaders have led drafting of PARPA II and explicitly stated the objective of reducing absolute poverty. - Importance of exemplary behavior toward laws, social norms, and public property across government hierarchy. - Role for opposition parties: (i) support PARPA II on points of agreement; and (ii) offer constructive criticism and viable alternatives on points of disagreement. - 3. Coordination among Sectors, Including Cross-Cutting Issues - Coordination occurs at several political and technical levels: working meetings called for by law; in programs of activities; resolution of unanticipated issues; drafting and execution of government five-year program, PARPA, sectoral and provincial strategic plans, medium-term fiscal scenario, Economic and Social Plan, State budget, and other government tools. - Intersectoral coordination originates with the Council of Ministers and extends through specialized councils such as the Economic Council and topic-specific meetings (e.g., HIV/AIDS or the SADC) down to multiple technical-level meetings. *Source: _cr0737 - 558.* ### 600. The intersectoral coordination that occurs with respect to programs, plans, strategies, ### _cr0737 - 600. ### Intersectoral coordination and PARPA II working groups - Intersectoral coordination with respect to programs, plans, strategies, budgets and other instruments adheres to the priorities defined by the government, and the availability of funds. - Cross-cutting issues are addressed in the various global, sectoral, and specific plans and strategies. - The PARPA II Working Groups are described as ideal forums for reaching agreements among the government, civil society, and the cooperation partners; these groups must stay active and involved in the battle against absolute poverty. ### Government’s position on assistance from cooperation partners - Given the major importance of external funding to implement PARPA actions, the government stresses the need for a clear, comprehensive strategy shared by the government and cooperation partners to direct, systematically organize, and re-stabilize flows of foreign aid into Mozambique. - The government is committed to drafting the National Cooperation Policy. - The government intends to develop an external assistance system led by the State that reflects its priorities in a coherent and comprehensive partnership with cooperation partners, to minimize macroeconomic distortions associated with sizeable inflows of outside financing. - Public debt is not addressed in this section; it will be included in “Mozambique’s Debt Strategy.” ### Analysis of the situation — dependence and implications (selected quantitative facts) - External assistance in recent years has financed about half of the State Budget and, on average, about 15 percent of GDP (average for the five-year period 2000-2004, General Account of the State. Figures may have been underestimated due to exclusion of off-budget funds). - World Bank figures (2005b) indicate Mozambique is one of the countries most dependent on foreign aid. - High dependence on external financing implies: - Vulnerability to macroeconomic volatility if shocks occur in the volume or form of external financing. - Challenges to the quality/effectiveness of foreign aid, including: - Risk that government institutions may become more accountable to cooperation partners than to the Mozambican people. - Absence of transparency due to sources of financing outside the State Budget. - Weak coordination and systematization of information flows among cooperation partners, MINEC, recipient sectors, and other State agencies. - Administrative burden from varied information requests and differing evaluation methods by cooperation partners. - Distortions within the public sector from proliferation of projects. - Coordination and appropriation issues for technical assistance/training. - Example of improved practice: direct support to the State Budget via Program Aid Partnerships (Parceiros de Apoio Programático – PAP) based on a Memorandum of Understanding, aligned with goals from the 2005 Paris High-Level Forum for Developing Countries and Donors (predictability, ownership, alignment, harmonization, preferred modes). - The government will approve a new National Cooperation Policy and has implemented reforms in public finance management. ### General principles for foreign aid management - Focus foreign aid on priority areas with sufficient institutional capacity, or bolster capacity where needed. - Consider ability to manage macroeconomic impacts and need to improve quality/effectiveness of external assistance. - To consolidate macroeconomic management of outside financing the government proposes: - (i) increase the predictability of aid flows; - (ii) gradually reduce dependence on external financing by achieving economic growth and improving internal revenues; - (iii) increase both the quality and distribution of information on foreign aid; - (iv) improve understanding of interactions between foreign aid and the macro-economy in the Mozambican context. - To improve quality/effectiveness of external assistance the government proposes: - (i) increase governmental “ownership”; - (ii) ensure the sustainability of activities financed through external aid; - (iii) strengthen alignment and harmonization of foreign aid with government priorities and procedures; - (iv) improve accountability of the government and cooperation partners; - (v) proceed with reforms in a comprehensive and participatory manner. ### Strategic objectives (with explicit numeric targets and modalities) - Formulation and approval of the National Cooperation Policy to govern cooperation activities. - Government appeals to cooperation partners to implement Paris Declaration commitments, including: - a pledge that 85 percent of foreign aid would be included in the State Budget (i.e., that no more than 15 percent would be off-budget), and that at least 75 percent would be disbursed on a timely basis. - Government will continue efforts to strengthen public finance management, particularly integration of off-budget funds into the State Budget, execution reports, and the General Account of the State. - Improve the quality and frequency of data on external financing and circulation between government agencies and cooperation partners. - Improve understanding of impacts on the Mozambican economy by taking into account aid flows as expected in the medium and long term. - Establish a strategy for allocating funds to sectors consistent with government priorities, examining: - (i) ideal balance between domestic funds (tax revenues) and external aid for State expenditures; - (ii) volume of financing desirable and absorbable—total and by sector—considering absorption capacity and State influence on the economy; - (iii) ideal balance among types of financing. - Government preference that a greater proportion of funds be channeled through Public Treasury Accounts, mainly through direct support of the State Budget (General Budget Support, “GBS”). - Within direct support to the State Budget, preference that all PAPs adopt multi-year commitments (i.e., commitments for at least three years, on a rolling basis) to facilitate government programming (within the CFMP, for example). - Develop a joint strategy, well integrated with government priorities, to coordinate external assistance channeled through programs supporting technical assistance and institutional capacity development (based on an initiative already in progress and supported and coordinated by cooperation partners). - To facilitate implementation, an Action Plan will be established in 2006 (led by the government, in cooperation with cooperation partners) that takes into account initiatives underway and the principles, priorities, and objectives in this document (particularly the importance of implementing the Paris Declaration). Consideration could be given to introducing a Comprehensive Memorandum of Understanding to be signed by all cooperation partners and the government. ### Monitoring and Evaluation — purpose and role - Objective: create conditions for the government to maintain consistency in implementing PARPA objectives and actions. - Monitoring and Evaluation (M&E) generates information enabling informed, timely decisions on program changes, and identifies initiatives worthy of scaling. - M&E keeps the government, civil society, the Mozambican legislature, and cooperation partners informed of PARPA implementation progress and difficulties. - M&E monitors effectiveness and efficiency, evaluates impact, and determines how public policies influence poverty reduction among social categories; it captures changes in forms and types of poverty, including inequalities. - M&E is integral to the planning cycle and creates accountability to rationalize strategies and actions aimed at reducing poverty. - The PARPA II (2006-2009) Communications Strategy will determine dissemination of M&E information to stakeholders and the public. ### M&E progress and needs (selected achievements and gaps) - Participatory M&E advanced during PARPA I via Poverty Observatories at central and provincial levels, institutionalizing civil society participation in M&E. - Progress in Poverty Analyses with reports on determinants and profiles of poverty, emergence of inequalities, and comparisons between IAF 1996-97 and IAF 2002-03. - Improvements in integrating Performance Assessment Framework (PAF) indicators into the Economic and Social Plan (PES), the State Budget (OE), and the Medium-Term Fiscal Scenario (CFMP) using the Consolidated Process Methodology (Metodologia do Processo Único) and strengthening the PES Balance Sheet (BdPES). - The BdPES is now a better reflection of PES implementation but still needs to provide more analytical information on public policy implementation. - Qualitative monitoring is oriented toward complementarity and triangulation of quantitative and qualitative data. ### Challenges facing Monitoring and Evaluation (items a–f preserved) - (a) Improving existing M&E tools (PES/BdPES) and implementing missing tools (example: the Annual Impact Report – (Relatório de Avaliação de Impacto - RAI)); - (b) Strengthening and clarifying efficient and effective linkages among levels and types of M&E, and between M&E and planning; strengthening analytical ability to relate public policy causes and effects; - (c) Aligning the decentralization process with participatory requirements surrounding national and provincial Poverty Observatories and new local participatory institutions created under the Local Agencies Law (Lei das Órgãos Locais); - (d) Establishing an organizational structure for M&E that ensures cooperation and effective information flow; crucial to improve intersectoral coordination so that high-quality disaggregated data can be generated in the proper time frame for planning purposes; - (e) Creating and developing skills centered on training programs that address all sectors and levels of planning and M&E; - (f) Ensuring selected indicators for M&E reflect government priorities as expressed in national policies (the Government Program, PARPA, PES, and sectoral plans); these policies must determine indicators within operational and strategic matrices to be used for M&E exercises (BdPES, PAF, MDGs). ### Fundamental principles of Monitoring and Evaluation (items a–e preserved) - (a) Consistent and appropriate integration of PARPA monitoring into existing mechanisms for monitoring government programs; - (b) Differentiation between results indicators (evaluating achievement of specific defined objectives) and product indicators (measuring degree of fulfillment of activities conducted); - (c) Combination of quantitative and qualitative monitoring and their implications for information collection methods and institutional partnerships; - (d) Use of PARPA monitoring as a mechanism for continued review of goals and programs to maintain central strategic objectives; - (e) Participatory approach in M&E, especially regarding data collection at the base, consensus on monitored objects, and analysis and dissemination of results to the public. ### Mechanisms and instruments of Monitoring and Evaluation - Two levels of matrices presented: - (i) Strategic Matrix: concise selection of key indicators for M&E of government priorities and strategic objectives (presented in its entirety at the end of the document). - (ii) Operational Matrices: include objectives, results indicators, product/execution indicators, actions, and goals. - The Strategic Matrix is derived from the Operational Matrices and should be used in conjunction with them. *Source: _cr0737 - 600.* ### 624. As a means of rationalizing the Monitoring and Evaluation system, the government is ### _cr0737 - 624. ### Integration and rationalization of Monitoring and Evaluation - The government is integrating the monitoring of PARPA into mechanisms already in effect to avoid duplication of reports and preventing placing an excessive burden on the institutions involved. - Objective: fully integrate PARPA II into the overall program of activities of the Executive Branch and the various sectors involved. - PARPA II period: 2006-2009. ### Performance Chart, Planning, and the PES/BdPES - The activities and programs of the sectors within PARPA II are reflected in the Economic and Social Plan (PES), whose annual balance sheet (BdPES) is the principal monitoring tool. - Structural changes to PES/BdPES aim to: - Make the PES a more results-oriented planning instrument. - Make the BdPES a more effective monitoring tool. - A “Performance Chart” has been created with the following structured fields (as presented): - Pillar; Area; Sub-area; Strategic Objective; Impact Indicator; Specific Objective; Results Indicator [source of verification]; Base 2005; Goal 2009; Accomplishments (Actions); Responsible Entity; Product/Execution Indicator [source of verification]; Base 2005; Goal 2006; Goal 2007; Goal 2008; Goal 2009. - The “Performance Chart” will be the basis for central and provincial planning, facilitating prioritization of activities and follow-up on principal indicators. - Indicators selected in the Strategic Matrix become the basis for the new Performance Evaluation Framework (PAF) to focus attention on strategic objectives and priorities in annual Monitoring and Evaluation. - The relationship between the Strategic Matrix and the PAF used by the Program Aid Partnerships (PAP) is not yet finalized; the PAF is anticipated to be a subgroup of the Strategic Matrix indicators. - The PAF will continue to include no more than 50 key government indicators, arranged by pillar, and determined in discussions with the PAPs. ### Indicator typology and functions - New typology introduced: results indicators and product (or execution) indicators. - Mandatory for all sectors to systematically distinguish between: - Results (outcome) indicators: serve to assess the extent to which sector objectives were attained; must be designed as a function of the objectives. - Product (output) indicators: measure the degree of execution of actions defined by sectors as means to achieve sectoral objectives included in the Strategic Matrices. ### State Budget reporting and monitoring - The Report on Execution of the State Budget (Relatório de Execução do Orçamento do Estado) is retained with the same functions as under PARPA I: - Monitoring allocation of resources at budgetary programming and budgetary execution levels, with emphasis on PARPA priorities summarized in the Operational Matrix. ### Evaluation approach and the Annual Impact Report (RAI) - PARPA II introduces an evaluation approach centered on triangulation of: - Quantitative information: IAF, QUIBB [Questionnaire on Basic Indicators of Well-Being], and IDS [Demographic and Health Survey]. - Qualitative studies: sociological and anthropological studies, analyses of poverty. - A new instrument: the Annual Impact Report – RAI. - Proposal: produce one RAI during the PARPA II cycle, preferably one year prior to the next revision of the PARPA, for submission to the national and provincial Poverty Observatories. - RAI functions: - Cross-check all sources and types of relevant information. - Serve as an analytical and explanatory document addressing attribution (relationships between causes and effects). - Orient future revisions of PARPA, using all available documents (e.g., evolution of indicators in MPD objectives, relevant evaluations and poverty studies) that meet scientific quality standards and/or were presented at a Poverty Observatory. - Note: Production of the RAI must be adjusted to existing capacities under the MPD. ### Participation in Monitoring and Evaluation - Participation is essential to increase efficiency and effectiveness of poverty-reduction public policies and to foster national “ownership” by democratizing decision-making. - Need for participation increases down the administrative-political hierarchy; local-level participation is emphasized for joint monitoring with beneficiary populations. - Participatory Monitoring and Evaluation principles: - (i) mutual transparency; - (ii) reciprocal accountability; and - (iii) democratic dialog. - The PARPA II (2006-2009) Communications Strategy must ensure accessibility of information in formats suited to different target groups. - The system is organized around: - Central and provincial Poverty Observatories. - Community Participation and Consultation Institutions operating at districts, administrative posts, and localities. - Poverty Observatories: participatory fora including government, civil society, and cooperation partners; designed to monitor and evaluate public and private actions against poverty; prerogatives and responsibilities are defined in respective terms of reference. - District/local Participatory Institutions’ functions are defined by the local government agencies law. ### Institutional framework and responsibilities - Central level Monitoring and Evaluation activities undertaken by MPD directorates: - National Directorate of Planning (Direcção Nacional de Planificação). - Directorate of Policy Studies and Analysis (Direcção de Estudos e Analises de Políticas). - Coordination with the National Statistics Institute (INE), particularly for quantitative surveys (IAF, QUIBB). - The Technical Secretariat of the Poverty Observatory will be positioned around the two MPD directorates. - Emphasis on establishing an effective internal communications and cooperation network among all authorities and actors with Monitoring and Evaluation responsibilities. - Operational performance depends on communications and cooperation networks with national directorates, sectoral provincial directorates (including Provincial Directorates of Planning and Finance), and other partners. - Civil society can encourage debate on public policies based on Monitoring and Evaluation results presented at central and provincial Poverty Observatories. - Provincial level: - Provincial Directorates of Planning and Finance (DPPF) continue key roles with sectors and civil society. - A Technical Secretariat of the Poverty Observatory (STOP) will be created in each DPPF to liaise with partners and local participatory institutions. - STOPs will coordinate determination of the need for impact studies. - District level: - Local government, with Community Participation and Consultation Institutions, is responsible for managing Monitoring and Evaluation; will monitor quality, utility, sustainability, and accessibility of goods and services produced under PARPA II programs. - Communications networks are vital and addressed by the PARPA II (2006-2009) Communications Strategy to maximize information flows among parties and within government. ### Monitoring and Evaluation products, responsibilities, and frequencies (as summarized) - Monitoring Products and frequency: - National PES balance sheet — Annual — Responsible: MPD; sectors/ministries and directorates/provincial governments supply inputs; MPD/MF; Economic Council; Council of Ministers; Assembly of the Republic; National Poverty Observatory. - Provincial PES balance sheet — Annual — Responsible: Directorates/Provincial Governments, coordinated by the DPPF; MPD/MF; Provincial National Poverty Observatory. - Reports on Execution of the State Budget — Annual — Responsible: MF/MPD; DAF of the Sectors/Ministries; DPPF; MPD/MF; Economic Council; Council of Ministers; Assembly of the Republic; Central Poverty Observatory. - Evaluation Products, submission, and frequency: - Annual Impact Report (RAI) — Submission: MPD to National and Provincial Poverty Observatories — Timing: 1 year prior to PARPA revision. - Surveys and sample instruments: - Survey of Family Units (IAF) — Responsible: INE/MPD/MISAU — Frequency: IAF/IDS (every 5 years). - Questionnaire on Basic Indicators of Well-Being (QUIBB) — Responsible: INE/MPD — Frequency: Frequency and subject matter will vary; QUIBB (every 2 years). - Demographic & Health Survey (IDS) — Responsible: INE/MPD — Frequency: IAF/IDS (every 5 years). ### Provincial Poverty Observatories — principal intentions (summarized by strategic pillar) - Governance priorities include (selected items): - Improve the quality of public services; Reduce bureaucracy and increase transparency; Invest in priority infrastructures for administrative posts; Provide incentives to persuade qualified staff to migrate to the districts; Consolidate district-level planning and operationalize district consultative councils; Ensure provincial sensitivities are included in monitoring; Facilitate procedures enabling local communities to acquire legal status (personalidade jurídica); Ensure Civil Registry services function correctly; Define indicators for return of responsibilities and transfer of assigned duties; Publicize legislation (Forestry and Wildlife Law, Lands Law); Establish consultation mechanisms to avoid conflicts with legal framework. - Human Capital priorities include (selected items): - Expand health care services network with infrastructure investments especially for rural areas; Promote training/recycling of health technical personnel; Organize roving medical teams for remote rural communities; Achieve better coordination among thematic interventions (HIV/AIDS, malaria); Expand school system to interior areas; Improve access and quality of basic and technical vocational education with gender equilibrium; Expand vocational training in district seats oriented to employment/self-employment; Incentivize assignment of outstanding female teachers to rural areas; Expand water supply infrastructure in districts using sustainable, low-cost systems emphasizing dams; Improve management of water sources and create management committees; Set up district-level factories to produce improved latrines. - Economic Development priorities include (selected items): - Increase availability of agricultural credit and support small and medium-scale farmers and agroindustry investors; Create rural credit institutions to develop micro-finance and encourage savings; Reactivate paralyzed agroindustry facilities and supply them from local raw materials; Reactivate rural commerce networks; Promote rural tourism leveraging parks and beaches; Disseminate agricultural market information at provincial level; Build small irrigation systems and dams; Expand agricultural marketing via agricultural fairs; Foster drought-resistant strategic crops; Expand transportation and communications coverage focusing on productive areas; Build and rehabilitate roads to areas of potential agricultural development; Electrify rural areas, prioritizing administrative posts and expansion of fuels supply network. - Cross-Cutting priorities include (selected items): - Disaster-mitigation activities (re floods and droughts) and broadcasting advance warnings; Prioritize prevention and treatment of HIV/AIDS including anti-retrovirals; Disseminate HIV/AIDS prevention methods in local languages; Assist elderly caretakers of children orphaned by HIV/AIDS; Encourage vocational training for children in difficult situations; Award micro-credit to widows for income-generating projects; Build capacities of institutions and communities for design/implementation of programs for vulnerable groups; Publicize low-cost energy production technologies to reduce deforestation; Promote community-led protection and sustainable environmental management with environmental inspection mechanisms. *Source: Government of the Republic of Mozambique, PARPA II (2006-2009) text excerpt.* ### Annex 3: Strategic Indicators Matrix ### Annex 3: Strategic Indicators Matrix ### Overview - The Strategic Indicators Matrix (Strategic Matrix) is the PARPA II monitoring and evaluation instrument for objectives, results, actions and key outputs of the PARPA II. - Forty shaded indicators were selected as indicators for the 2007 Performance Assessment Framework (PAF) to provide input for decisions adopted by the Programmatic Assistance Partners (PAPs) regarding their pledges in regard to General Support for the State Budget. ### Global Indicators - Objective: G.1. Reduce Poverty (par. 109) - G.1.1. Poverty Incidence Rate (par. 1) [Poverty and Well-Being in Mozambique: 3rd National Assessment] - Basis 2005: 54% (2003) - Projection/Goal 2009: 45% - G.1.2. % of children under five years of age who are underweight (par. 215) [Demographic and Health Survey] - Basis 2005: 24% (2003) - Projection/Goal 2009: 18% - G.1.3. Gender Development Index according to established goals [Global Gender Development Indicator and other reports, Ministry of Planning and Development—MPD] - Basis 2005: 0.3 (2003) - Projection/Goal 2009: 0.4 - Objective: G.2. Promote rapid, sustainable, and broad-based economic growth (par. 109) - G.2.1. GDP Annual Average Growth Rate (table 8) [Macro Table, MPD] - Basis 2005: 7.8% (2002 - 2005) - Projection/Goal 2009: 7.0% (2006 - 2009) - G.2.2. Annual Average growth rate in real per capita GDP [INE – Statistics Yearbook] - Basis 2005: 5.3% (2002 - 2005) - Projection/Goal 2009: 4.0% (2006 - 2009) - G.2.3. Inequality (GINI efficient) [IFA Surveys of Family Units] - Basis 2005: 0.42 (2003) - Projection/Goal 2009: 0.44 - Objective: G.3. Ensure strict macro-economic management (par. 488) - G.3.1. Average Annual Inflation Rate (Table 8) [INE – Statistics Yearbook] - Basis 2005: 12.3% (2002 - 2005) - Projection/Goal 2009: < 10% (2006 - 2009) - Objective: G.4. Improve the quality of public services delivered to the citizens (par. 282) - G.4.1. % of population with easy access to 1 health-care unit, i.e. residing less than 30 minutes away (8) [IAF] - Basis 2005: 36% - Projection/Goal 2009: 45% - G.4.2. Net enrollment rate for 6 year old girls in the 1st class [Statistics MEC] - Basis 2005: 56% - Projection/Goal 2009: 70% - G.4.3. Level of public trust in the Justice Administration (to be assessed though the survey carried out by the Technical Unit for the Reform of the Public Sector (UTRESP), based on the perceptions of citizens)** [UTRESP] - Basis 2005: n/a - Projection/Goal 2009: 70% - Objective: G.5. Arrest the spread of HIV/AIDS (par. 199) - G.5.1. Number of new cases of HIV/AIDS per day (par. 200) (Report on the Revision of the HIV Epidemiological Surveillance Data) - Basis 2005: 500 - Projection/Goal 2009: 350 - Note: *The global indicators summarize the fundamental objectives of the PARPA II, recognizing however, that their achievement depends on the joint effort between the Government, civil society and the cooperation partners. ** Indicator needs to be clarified to reflect the fact that “trust” is a relative concept. ### Macro-economy and Poverty – Poverty Analysis and Monitoring Systems - Objective: 1. Make the key factors available to all stakeholders: adequate, accurate, disaggregated and timely information on the implementation of the PARPA (pars. 621 & 622) - 1.1. Key stakeholders well informed of the implementation of the PARPA [RAI] - Basis 2005: PARPA RAI not prepared - Goal 2009: RAI prepared and published along with a performance evaluation of the PARPA II indicators - Execution (Actions): Establishment of at least one Provincial Poverty Observatory (PPO) in each province - Responsibility: MPD - Product/Execution Indicator: - 1.a. Number of provinces with PPOs executed (Summary of PPOs on the website and on DNP) - Basis 2005: 9 - Goal 2006: 10 - Goal 2007: 11 - Goal 2008: 11 - Goal 2009: 11 - 1.b. Action Plan prepared and implemented [Action Plan] - Basis 2005: 0 - Goals 2006–2009: X (action plan prepared and implemented) - 1.c. Research studies assessing the impact of PARPA actions in the reduction of poverty, executed and published (Research Program and related documents published) - Goals 2006–2009: X - Objective: 2. Harmonize the short and medium-term planning, budgetary and monitoring instruments. (par. 621) - 2.1. Level of alignment among the planning, budgetary and monitoring documents (PES, BdPES, OE, REO, CGE, CFMP, PARPA II) [Independent Evaluation Study] - Basis 2005: Lack of alignment - Goal 2009: PES, BdPES, OE, PARPA and CFMP considered to be in alignment - Execution (Actions): Development and implementation of an Action Plan aimed at strengthening the PARPA II M&E system - Responsibility: MPD - Product/Execution Indicators: - 2.a. Study executed and Action Plan adopted and undergoing implementation [Action Plan] - Goal 2006: X - 2.b. % of strategic indicators integrated in the PES and reported in the BdPES [PES and BdPES] - Goal 2007: 100% - Goal 2008: 100% - Goal 2009: 100% - 2.c. (central) PES/OE and BdPES produced according to the guide [National PES/OE] - Goals 2007–2009: X (production according to guide) ### Macro-economy and Poverty – Management of Public Finances - Objective: 3. Improve efficiency and efficacy of management of Public Finances (pars. 289 & 494) - 3.1. Aggregated Expense as a % of approved State Budget [OE] - Basis 2005: 90% - Goal 2009: ÿ 95% and ÿ % (The same goals for 2007 and 2008) - Execution (Actions): Allocation of public resources according to the PARPA II objectives, taking into consideration the allocation for priority sectors as indicated in PARPA (Table 17) - Responsibility: MF - DNO / MPD - DNP - Product/Execution Indicators: - 3.a. Budgetary allocation in the CFMP in line with PARPA II [CFMP and PARPA II] - Basis 2005: N/a - Goals 2006–2009: X - 3.b. Allocation in the State Budget (OE) in line with the Medium-Term Fiscal Framework (CFMP) [CFMP and OE] - Basis 2005: N/a - Goals 2006–2009: X - 3.c. Budgetary execution rates for current expenditure in the areas of education and health ÿ general execution rates [REO] - Goals 2006–2009: X - 3.d. Budgetary execution rates for current expenditure at provincial and district levels in year “n” > Rates in year “n-1 ” [REO] - Goals 2006–2009: X - 3.e. Beginning budgeting by program for inclusion in 2009 OE. [MPD and MF] - Basis 2005: (blank) - Goal 2006: OE 2007 introduces functional classifier - Goal 2007: OE 2008 with some OP pilots - Goals 2008–2009: X - 3.f. Tracing and finding Public Expenditures (“PETS”) executed on a biannual basis [MF and MPD] - Execution notes: Initiated and effectively executed at the level of MEC; Actions in response to PETS 2007 implemented; Research executed - 3.g. Number of Ministries, State bodies and UGE’s [MF] - Basis 2005: 0 - Goal 2009: 22 (in table shows intermediate 25 and Ministries, entities and at least 291 UGEs — entries “To be defined” for later) - 3.h. Modules developed and implemented [SISTAFE ABP06-09, annual review e-SISTAFE CF and Joint Review] - Execution notes: CUF (Payroll), Receipts Management of assets and liabilities [verify based on the APB] - Objective: 4. Increase coverage of the State Budget (pars. 133 & 179) - 4.1. % of revenues internally generated and reflected in the State Budget, relative to total initial revenue [OE, REO and CGE] - Basis 2005: N/a - Goal 2009: To be defined - Execution (Actions): Inclusion of own revenues and reflected in the OE - Responsibility: MF - ATM (DGI) - Product/Execution Indicator: - 4.a. Amount of revenues collected in the current year exceeds the level of revenue for the previous year. (OE) - Goals 2007–2009: X - 4.2. % of external resources executed by CUT [Technical Note of the Performance Assessment Framework (PAF) of the Program Aid Partnerships (PAPs)] - Basis 2005: N/a - Goal 2009: 60% (2007: 45%; 2008: 55%) - Execution (Actions): Inclusion of the majority of the external funds in the OE. - Responsibility: MF - DNCP/ DNO - Product/Execution Indicator: - 4.b. % external funds included in the OE [OE and PAF Matrix for the PAPs] - Basis 2005: n/a - Goal 2007: 82% - Goal 2008: 85% - Goal 2009: 90% - Objective: 5. Progressively increase domestic revenues and expand tax base (pars. 487, 489 & 609) - 5.1. Total revenues as a % of GDP [OE] - Basis 2005: 14.0% - Goal 2009: 16.2% (2007: 15.3%; 2008: 15.8%) - Execution (Actions): Rationalizing the granting—and improving the management—of fiscal benefits - Responsibility: MF - ATM / MPD - Product/Execution Indicators: - 5.a. Data used for the improvement of management of granted benefits [MF - ATM and MPD] - Execution notes: Systematize data on benefits; Published statistics for subsequent years - 5.b. Integrated system for the management of information systems within the context of the approved PDTI [ATM] - Execution notes and milestones: - Preparation and approval of PDTI, within the ATM context - Developing the nucleus of the integrated system for the ATM, including integration of IT infra-structure - Integrated management of revenues and development of the banking collection management module - Integrated systems in full operation. - 5.c Increasing the number of audits and improving quality (annual revenue recovered in the amount of 0.2 % of GDP) [ATM] - Basis 2005: To be defined - Goals 2006–2009: To be defined - Objective: 6. Make the State goods and services procurement system transparent and efficient (par. 494) - 6.1. % reduction of procurement costs. [Impact Assessment] - Basis 2005: N/a - Goal 2009: To be defined - Execution (Actions): Creation, budgeting and operation of the Public Procurement Supervision Unit (USAP) - Responsibility: MF – DNPE - Product/Execution Indicators: - 6.a. USAP in operation [DNPE - MF] - Goal 2007: X - 6.b. Procurement system operational [MF - DNPE] - Goals 2007–2009: X, X, X (progressive operationalization up to district level) - Objective: 7. Increase coverage and efficiency of internal and external audit bodies (pars. 290 & 494) - 7.1. % of public expenditures audited by SCI. [SCI Annual Progress Report] - Basis 2005: N/a - Goal 2009: To be defined - Execution (Actions): Increase number of central and provincial level bodies with an operational internal control unit - Responsibility: IGF - Product/Execution Indicator: - 7.a. % of central and provincial level units with operational internal control units [Annual Progress Report of the Internal Control Sub-system, SCI] - Goal 2007: 30 - Goal 2008: 65 - Goal 2009: 100 - 7.2. % of public expenditures audited by the Administrative Court - TA [Annual Progress Report] - Basis 2005: N/a - Goal 2009: To be defined - Execution (Actions): Increase number of financial audits - Responsibility: TA - Product/Execution Indicator: - 7.b. Number of financial audit reports approved by TA [Annual Progress Report] - Basis 2005: 68 - Goal 2006: 70 - Goal 2007: 90 - Goal 2008: 118 - Goal 2009: 144 ### Pillar I – Governance – Public Sector Reform - Objective: 8. Restructure and decentralize government structures so as to promote efficiency and effectiveness when rendering public services. (par. 283) - 8.1 % of budget managed by the provinces, districts and municipalities [UTRESP] - Basis 2005: N/a - Goal 2009: To be defined - Execution (Actions): Completion of the functional analysis and preparation of the restructuring plans for all ministries, provincial and district governments - Responsibility: CIRESP - UTRESP / ANFP / Public Institutions - Product/Execution Indicator: - 8.a. Number of Ministries with a Restructuring Plan in implementation [Ministries] - Goal 2007 and Goal 2009 lists: 7 Ministries: MIC, MINAG, MISAU, MEC, MAE, MF, MPD - Objective: 9. Strengthen institutional capacity of local governments (par. 284) - 9.1 % budget execution in the districts and local governments (autarquias) [MPD-MAE] - Basis 2005: N/a - Goal 2009: To be defined - Execution (Actions): Implementation of national strategy for decentralized planning and finances - Responsibility: MPD / MF / MAE - Product/Execution Indicators: - 9.a. % of budget transferred to: - provinces - districts - and local governments (autarquias)* [OE] - Example figures presented: - 24.0% 3.0% 0.8% (context: presented in table; follow-up goals labeled To be defined) - 9.b. % of districts with District Development Strategic Plans PEDD, as well as Economic and Social Plans and District Budgets (PESOD) [Districts] - Basis 2005: 45% - Goal 2006: 50% - Goal 2007: 70% - Goal 2008: 85% - Goal 2009: 100% - 9.c. % of operational district consultative councils (minimum 3 meetings every year) rendering government accounts [MAE] - Basis 2005: 25% - Goal 2006: 40% - Goal 2007: 60% - Goal 2008: 80% - Goal 2009: 100% - 9.d. % of operational district consultative councils (minimum 2 meetings every year) rendering government accounts [MPD/MAE] - Basis 2005: 50% - Goal 2006: 75% - Goal 2007: 100% - Goals 2008–2009: 100% - 9.e. % of own revenues (in relation to annual budget) per category of the 33 municipalities: - Villages - Other cities - Capital cities [Municipalities (municipios)] - Baseline/Goals matrix: - (unspecified baseline) → 25% 30% 35% - → 30% 40% 45% - → 40% 50% 55% - → 45% 55% 60% - Execution (Responsibility): MAE - Objective: 10. Reformulate service delivery processes so that they may be simpler, more accessible and satisfy clients’ needs (par. 285) - 10.1. Level of citizen satisfaction in relation to key public services [Annual survey implemented by civil society] - Basis 2005: N/a - Goal 2009: To be defined - Execution (Actions): Connecting all public institutions and the districts to the Government electronic network - Responsibility: MAE / ANFP / MCT - Product/Execution Indicator: - 10.a. Provinces and districts linked to the Government network ** [MAE] - Goal listing: X - Objective: 11. Improve Human Resources management systems (par. 288) - 11.1. % senior staff (category >7) with the required level of training for the assignment [ANFP] - Basis 2005: N/a - Goal 2009: To be defined - Execution (Actions): Expanding SIFAP coverage within the framework of training civil servants. - Responsibility: ANFP - Product/Execution Indicators: - 11.a. Number of yearly graduates in the basic, intermediate, and higher education categories disaggregated by sex. [ANFP] - Intermediate: 126; Inter-mediate: 300; basic:180 inter-mediate:1197 higher: 352; básics:420 medium:1115 higher: 360; básics:840 medium:1354 higher: 360 - (table shows progressive annual targets across categories) - 11.b. Statistics Yearbook on civil servants published [BdPES, ANFP, Ministerial, Provincial annual and midyear reports] - Execution notes: Census and CUF; Goals show X for subsequent years - 11.c. Human Resources Management System established and operational at the ANFP. [BdPES, ANFP, Ministerial, Provincial annual and midyear reports] - Goal listing: X - 11.d. Statistics Yearbook published [BdPES, ANFP, Ministerial, Provincial annual and midyear reports] - Goal listing: X - 11.e. % of staff integrated into the new pay policy [ANF/CM] - Goals: 25% then 100% then 100% - Objective: 12. Strengthen public policies management processes (par.286) - 12.1. Timely approval of crucial policies and plans [UTRESP – MAE] - Basis 2005: N/A - Goal 2009: To be defined - Execution (Actions) and Products: - 12.a. municipal and urban development policy and strategy approved [MAE] - Goal listing: X - 12.b. Decentralization Policy approved [MAE / UTRESP] - Goal listing: X - 12.c. Proposal to increase number of municipalities submitted to the Parliament [MAE] - Execution progression: Study Finalized; Legislation of the criteria approved by the Municipal Council and submitted to the Parliament - 12.d. National survey on good governance and corruption implemented and report disseminated [UTRESP] - Goal listing: X - Note: * Does not include financial operations or debt service charges in the calculation of the goals. The calculation of these percentage goals has been obtained by adding up the capital and current expenditures of each territorial unit, relative to total expenditures. ** Relevant and disaggregated goals can be found in the cross-cutting issues within the science and technology section. ### Pillar I – Governance – Justice, Legal and Public Policy Reform - Objective: 13. Improve access to justice (par. 292) - 13.1. % of cases processed by the legal and judicial assistance services based on the number of existing legal practitioners [MINJ] - Basis 2005: N/a - Goal 2009: To be defined - Execution (Actions): Reform legal assistance and legal representation system - Responsibility: MINJ - Product/Execution Indicators: - 13.a. New IPAJ Law [MINJ] - Goal listing: X - 13.b. Aggregate number of new legal assistants graduated [MINJ] - Basis 2005: 124 - Goal 2006: 149 - Goal 2007: 174 - Goal 2008: 199 - Goal 2009: 224 - 13.c. Aggregate number of district IPAJ branches in operation [MINJ] - Basis 2005: 45 - Goal 2006: 60 - Goal 2007: 75 - Goal 2008: 90 - Goal 2009: 105 - 13.d. New law on community courts [MINJ] - Goal listing: X - 13.e. Aggregate number of community court presiding judges trained [MINJ] - Basis 2005: 0 - Goal 2006: 100 - Goal 2007: 812 - Goal 2008: 1218 - Goal 2009: 1624 - 13.f. Number of new community courts beginning operation. [MINJ] - Basis 2005: 1547 - Goal 2006: 1567 - Goal 2007: 1587 - Goal 2008: 1607 - Goal 2009: 1627 *Source: Annex 3: Strategic Indicators Matrix (PARPA II Strategic Indicators Matrix).* ### 14. Increase efficiency and ### 14. Increase efficiency and speed in the provision of justice services ### 14.1 Quantity and quality of statistical information and reports; court productivity - Design master plan: 10 subsystems implemented. - Increase productivity of the courts — TS. - 14.a. Number of cases tried by judge per year [TS official statistics]: - 150; To be defined; To be defined. - Strengthen and consolidate the courts’ independence in the preparation of budgets — TS / MINJ. - 14.c. Law on Court Budgets [PES Review]: X. - 14.i. Computerization of notarial offices and case management [TS/BdPES Annual Report]: X, X, X (three X entries). - Modernizing registry and notary services — MINJ. - 14.k. Registry and notary services computerized - Commercial, Civil and Criminal Registry - Real State and Automobile Registry [Sector BdPES]: - X; X X; X (multiple X entries across years). ### 14.2 Public trust and detainee metrics - 14.2 Level of public "trust" in the justice administration (to be assessed through independent surveys) [UTRESP]: - N/a; 70%. - 14.b. % of detainees awaiting trial in prison [MINJ]: - 35%; 30%; 30%. ### Court expansion, staffing, and inspections - Physical expansion of courts and institutional strengthening — TS. - 14.d. Number of provincial courts (new constructions) [TS Annual Report]: - 0, 0, 3, 1, 2 (sequence across reporting periods). - 14.e. Number of district courts (new constructions) [TS Annual Report]: - 0, 3, 9, 8, 8. - 14.f. Aggregate number of judges appointed [TS Annual Report]: - 186, 205, 220, 235, 250. - 14.g. Aggregate Number of judicial officers [TS Annual Report]: - 637, 697, 757, 817, 877. - 14.h. Aggregate number of judicial officers [PGR]: - 251, 281, 321, 351. - 14.j. Aggregate number of judges appointed [TS Annual Report]: - 186, 205, 220, 235, 250. - 14.l. Number of inspections carried out [CSMJ]: - 8, 0, 5, 5, 5. - Strengthen capacity of judicial inspection services — CSMJ. - 14.m. Number of monitoring subsystems (software) established in sector institutions [CCLJ]: - 0, 3, 3, 4. ### Attorney General’s Office expansion and staffing - Physical expansion of Attorney’s Office and institutional capacity building — PGR. - 14.n. Number of provincial attorney offices [Annual Report of the Attorney General (PGR)]: - 3, 3, 3, 3. - 14.o. Number of district attorney offices [Annual Report of the PGR]: - 8, 8, 8, 8. - 14.p. Aggregate number of government attorneys (procuradores) appointed [Annual Report of the PGR]: - 180, 200, 220, 240. --- ### 15. Strengthen and consolidate the correctional system (ensure detainees treated according to international human rights, standards and principles) ### 15.1 Efficiency of corrective system improved; unification and living conditions - Efficiency indicator: N/a; To be defined. - Unify the prison system — MINJ. - 15.a. Approved laws and regulations [MINJ]: X, X. - 15.b. Unified prison directorate in operation [MINJ]: X. - Improve living conditions in the prison system. - 15.c. Rehabilitation plan approved, budgeted and undergoing implementation [MINJ]: X, X, X. --- ### 16. Make legislation more conducive to the proper functioning of the justice administration ### 16.1 Legislative drafting, human rights policy, and law-making capacity - Indicator status: To be defined. - Schedule the drafting and plan the approval of legislative bills — MINJ. - 16.a. Schedule prepared [MINJ]: X. - Design and approval of national policy on human rights — MINJ. - 16.b. Policy approved [MINJ]: X. - Increase institutional capacity in law-making — MINJ. - 16.c. Aggregate number of recruited professionals [MINJ]: - 10, 20, 30, 40, 50. - 16.d. Action plan for dissemination of laws drafted [MINJ]: X. --- ### 17. Strengthen fight against corruption ### 17.1 Citizen victimization and judicial integrity plan - 17.1 % of citizens stating that they have been victims of corruption in the justice institutions (UTRESP Research): N/a; To be defined. - Approval and implementation of national strategy to combat corruption within the justice sector — TS / PGR. - 17.a. National plan for judicial capacity building and integrity [TS, PGR]: X, X. - Investigation and closure of corruption cases — PGR. - 17.b. Number of corruption cases: A) Reported B) Under investigation C) a- Accused b- Not accused (awaiting production of better evidence) c- Filed away D) Sentenced [PGR]: - Published Statistics (no numeric values provided). - Drafting reports and opinions on the State General Account (Conta Geral do Estado – CGE) — TA. - 17.c. reports and opinions on the CGE issued [CGE Report]: - 1, 1, 1, 1. --- ### 18. Strengthen prevention and combat of criminal behavior ### 18.1 Criminal investigation reform, case processing, and recording - Average time between detention and accusation: N/a; To be defined. - Continue with reform of the criminal investigation police — MINT / PGR. - 18.a. PIC reformed [MINT]: X, X, X, X. - Improve quality of criminal investigation police service — MINT / PGR. - 18.b. % of cases examined within preparatory examination timeframes [MINT/PGR]: - 50%, 50%, 50%. - Systematic recording of occurrences of criminal behavior — MINT / PGR. - 18.c. Systematic recording of occurrences [MINT]: X, X, X, X. --- ### 19. Increase level of performance of the police forces ### 19.1 Public trust and police resolution rates - 19.1. % of citizens who say that they trust the police force: N/a; To be defined. - Improve operation of the PRM — MINT. - 19.a. % criminal proceedings resolved [MINT]: - 73%, 73%, 74%, 74%, 75%. *Source: _cr0737 - 14. Increase efficiency and* ### 29. Increase population's ### 29. Increase population's access to potable water in the rural areas (par. 455) ### Rural potable water coverage (performance indicators) - 29.1. % of the population with access to potable water (rural areas) [Annual reports from DPOPH and from the water companies] - Basis 2005: 41% - Goal 2009: 53% ### Execution actions, responsibilities, and product/execution indicators - Construction of new widely distributed sources - Responsibility: DNA / DPOPH’s - 29.a. Number of new widely distributed sources constructed [DPOPH annual reports]: - 1090 - 725 - 1055 - 1055 - 1034 - Rehabilitation of widely distributed sources - Responsibility: DNA / DPOPH’s - 29.b. Number of rehabilitated sources [DPOPH annual reports]: - 1235 - 625 - 805 - 805 - 866 - Rehabilitation of small water supply systems (PSAA's) - Responsibility: DNA / DPOPH’s - 29.c. Rehabilitated PSAAs, aggregate number [DPOPH annual reports]: - 5 - 10 - 15 - 20 - 25 --- ### 30. Increase population access to potable water in urban areas (par. 455) ### Urban potable water coverage (performance indicators) - 30.1. % of the population with access to potable water (urban areas) [Annual reports from DPOPH and water companies] - Basis 2005: 37% - Goal 2009: 53% ### Execution actions, responsibilities, and product/execution indicators - Establishing new domestic connections - Responsibility: DNA / FIPAG - 30.a. Nº of domestic connections established [FIPAG annual reports]: - 7500 - 2500 - 2500 - 3500 - 4500 - Rehabilitation of existing water points - Responsibility: DNA / FIPAG - 30.b. Number of public water points rehabilitated [FIPAG annual reports]: - 0 - 30 - 45 - 75 - 65 - Construction of new water points - Responsibility: DNA / FIPAG - 30.c. Number of public water points constructed [FIPAG annual reports]: - 20 - 70 - 105 - 225 - 385 --- ### 31. Increase population’s access to sanitation services in urban areas (par. 455) ### Urban sanitation coverage (performance indicators) - 31.1. % of population with access to sanitation services (urban areas) [Demographic and Health Survey] - Basis 2005: 38% - Goal 2009: 40% ### Execution actions, responsibilities, and product/execution indicators - Rehabilitation of Beira sanitation network - Responsibility: DNA / Municipalities - 31.a. Expansion of sanitation system works concluded [DNA annual reports]: - X - Rehabilitation of sanitation network in the peri-urban areas - Responsibility: DNA / Municipalities - 31.b. No. of improved latrines [DNA annual reports]: - 7800 - 8000 - 8000 - 8000 - 8000 --- ### 32. Increase population’s access to sanitation services in rural areas (par. 455) ### Rural sanitation coverage (performance indicators) - 32.1. % of population with access to sanitation services (rural areas) [inquiries carried out by INE] - Basis 2005: 35% - Goal 2009: 37% ### Execution actions, responsibilities, and product/execution indicators - Design and implementation of technical, social and institutional guides - Responsibility: DNA - 32.a. Finalized and approved technical, social and institutional guides [Guide]: - X - Demonstration units rollout - Responsibility: DNA - 32.b. Aggregate number of provinces with demonstration units [Demonstration Units]: - 3 - 6 - 9 *Source: _cr0737 - 29. Increase population's* ### 45. Increase access to ### 45. Increase access to technologies and extension information ### Agrarian technologies and extension - Indicator 45.1: % of assisted holdings that adopted at least one new technology [TIA] - 28% - 36% - Activity: Dissemination and dissemination of agrarian technologies - Responsible: MINAG – Agrarian Extension - Indicator 45.a: Total aggregate number of farmers assisted by public extension services, including sub-contracting. [REL] - 177000, 193500, 222300, 258300, 500700 - Activity: Evaluation, generation and transfer of agrarian technologies adapted to the different agro-ecological zones - Responsible: MINAG - IIAM (Research) - Indicator 45.b: No. of varieties of new, free crops [REL] - 4, 4, 4, 4, 3 ### Agrarian infrastructure — irrigation - Objective 46: Promote the construction and rehabilitation of agrarian infra-structures - Indicator 46.1: % of agrarian holdings that use irrigation techniques [TIA] - 6% - 8% - Activity: Construction and rehabilitation of water harvesting infra-structures for the agrarian sector - Responsible: MINAG – Agrarian Services - Indicator 46.a: No. of new irrigation hectares rehabilitated with public funds put under the management of the beneficiaries [REL] - 2500, 3200, 4000, 3 400, 3 000 ### Livestock inputs and animal health - Objective 47: Increase the availability and access to livestock inputs - Indicator 47.1: % of agrarian holdings that use at least one livestock input (vaccination) [TIA] - 3% - 4% - Activity: Performance of animal health campaigns - Responsible: MINAG – Veterinary authority - Indicator 47.a: Aggregate no. of vaccines against Newcastle disease [REL] - 1988000, 2300000, 2700000, 3100000, 3600000 ### Access to information and agrarian markets - Objective 48: Improve access to information and agrarian markets - Indicator 48.1: % of agrarian holdings with access to information on market prices via the radio [TIA] - 30% - 38% - Activity: Promotion of an information service on market opportunities - Responsible: MINAG – Economy Directorate - Indicator 48.a: Aggregate no. of hours of radio programs that broadcast market information [REL] - 87, 130, 173, 173, 173 - Indicator 48.2: % of agrarian holdings with at least one associated member [TIA] - 6% - 7% - Activity: Assistance and training of producer organizations - Responsible: MINAG – Agrarian Services - Indicator 48.b: Aggregate no. of producer associations assisted by MINAG, including outsourcing [REL] - 2476, 2550, 2700, 3050, 4250 ### Private sector development and value chains - Objective 49: Promote the development of the private sector and of production systems from the viewpoint of the value chain - Indicator 49.1: Value of the agrarian, cashew, cotton and sugar exportations (millions of USD) [REL] - 95.5, 110 - Activity: Establishment of a quality standard table, and health and health-oriented certification standards for a competitive market - Responsible: MINAG – Plant and Animal Health Department / MIC - INNOQ - Indicator 49.a: No. of health and plant health licenses and certificates issued [REL] - 2000, 2500, 3000, 5000, 7000 ### Access to natural resources, land documentation and community registration - Objective 50: Improve the communities’ access to natural resources in a equitable manner for sustainable use and management - Indicator 50.1: % of agrarian holdings with documentary proof of occupancy [MINAG] - 1.20% - 1.70% - Activity: Land inventory, mapping of land occupation, use and utilization - Responsible: MINAG – Lands and Forests - Indicator 50.a: % of cases processed and registered in 90 days [MINAG] - 78%, 85%, 90%, 95%, 99% - Indicator 50.b: No. of delineated and registered local communities in the registry atlas [REL] - 180, 198, 220, 242, 266 ### Inspection and compliance in natural resources - Objective 51: Improve inspection of the development of natural resources - Indicator 51.1: Fewer violations with respect to the management of flora and fauna [MINAG] - 1100, 660 - Activity: Inspections to monitor compliance with laws on natural resources - Responsible: MINAG - Lands and Forests - Indicator 51.a: Average area covered per inspector [REL] - 1128, 1128, 1128, 806, 627 ### Roads — transit ability - Objective 52: Improve transit-ability - Indicator 52.1: % of roads in good and reasonable condition * [ANE Report] - 71%, 78% (2007: 76%; 2008: 77%) - Activity: Rehabilitation and maintenance of the national network of roads - Responsible: MOPH - Indicator 52.a: % of km of roads [ANE Report] - 71%, 75%, 76%, 77%, 78% - Note: Good condition = may drive at 80km/h; reasonable condition = may drive at 40-50km/h safely. ### Energy — productivity, access and services - Objective 53: Improvement in productivity in the energy sector - Indicator 53.1: Reduction in Distribution Losses [ME] - Lack of a monitoring system → An effective monitoring system including allocated resources - Activity: Preparation of an operational plan, the regulations and operator monitoring programs (operational CENELEC) - Responsible: CENELEC / ME - Indicator 53.a: Reports on the efficiency of the operators in the sector and evaluation by CENELEC[ME] - Re-structuring of CENELEC; Finalized plan to make CENELEC operational; Evaluation of the fulfillment of the EDM contract by CENELEC; Evaluation of the efficiency of EDM and CENELEC - Objective 54: Expansion of the energy services for domestic use - Indicator 54.1: % of people with sustainable access to modern energy services [ME] - 7%, 10% - Activity: Expansion of the national network - Responsible: EDM / ME - Indicator 54.a: No. of new people connected to the network [ME] - 302218, 319136, 400000, 600000, 800000 - Objective 55: Expansion of the energy services for health and education - Indicator 55.1: No. of new institutions with sustainable access to modern energy services outside the network [ME] - Pilot projected, launching of the call for bids for implementation of the project - Target: 500 - Activity: Analysis of the existing pricing structure, subsidies, policies, and options with the aim of promoting interest among investors, reduction of costs and implementation of a maintenance system - Responsible: FUNAE / ME - Indicator 55.a: No. of hospitals and schools that have access to modern energy services, and with maintenance contracts for isolated systems [ME] - 100, 200, 300, 400, 500 ### Gender mainstreaming - Objective 56: Promote gender equality and strengthen women’s empowerment (pars. 192 and 193) - Indicator 56.1: Gender mainstreamed into the planning process [PES, BdPES] - 0%, 100% - Activity: Submission of the gender policy and the implementation strategy to the General Assembly for approval - Responsible: MMAS - Indicator 56.a: Gender Policy approved by Law [Government Gazette] - Policy and strategy not approved → X - Activity: Preparation and approval of the Regulations for the Gender Policy Law - Responsible: MMAS - Indicator 56.b: Regulations approved by the CM [Government Gazette] - Regulations not approved → X - Activity: Preparation of sector strategies for gender; Mainstreaming of gender issues in PES/OE and BdPES - Responsible ministries listed; Indicator 56.c and 56.d track prepared strategies and reflection of gender actions, budgets and progress in sector plans ### HIV/AIDS — national response, prevention and care - Objective 57: Strengthen management and coordination capacities and involve the entire society in the fight against the epidemic (par. 200) - Indicator 57.1: Composite Index of the national response [M&A System of the National Response] - 82%, 95% - Activity: Assistance to the sectors designing and implementing plans for the fight against HIV/AIDS within the sector - Responsible: CNCS - Indicator 57.a: % of OSC and institutions in the public and private sectors trained in the management of Programs directed to the fight against HIV/AIDS [Data from CNCS] - N/a, 30%, 55%, 75%, 90% - Objective 58: Reduce Stigma and Discrimination linked to HIV/AIDS - Indicator 58.1: % of people between 15 and 49 years of age who show acceptance toward people living with HIV/AIDS [INE/IDS] - 8% of the women (between 15 and 49 years of age) and 16% of men (between 15 and 49 years of age); 60% - Activity: Implementation of CNCS’s national communication strategy - Responsible: CNCS - Objective 59: Prevention of the transmission of HIV (pars. 193 & 449) - Indicator 59.1: % of youths between the ages of 15 and 24 who are sexually active and reported having used a condom in their last casual sexual contact [INE/IDS] - 29% of young women (between 15 and 24 years of age) and 32% of young men (between 15 and 24 years of age); 60% - Activity: Distribution of condoms, implementation of CNCS’s national communication strategy and expansion of the vertical transmission prevention services - Responsible: CNCS/MISAU - Indicator 59.a: % (and number) of HIV positive pregnant women who have been receiving complete prophylaxis treatment in the past 12 months so as to reduce the risk of vertical transmission from mother to baby[MISAU] - 5% (7297), 10% (16500), 13% (22500), 17% (30400), 22% (42000) - Objective 60: Improve the quality of the lives of the infected and affected people (par. 200) - Indicator 60.1: Ratio of orphaned children (6-17 years of age) and non-orphans who are at school [Demographic and Health Inquiry (IDS)] - 0.8, 1 - Activity: Guarantee of material, nutritional, moral, psycho-social support to the OVCs - Responsible: CNCS / MMAS - Indicator 60.a: % of OVC covered by the OVC Action Plan with access to at least three basic services in the past two months [MMAS] - 10%, 15%, 20%, 25%, 30% ### Environment — territorial planning and integration - Objective 61: Improve territorial planning and management (par. 205) - Indicator 61.1: No. of people living in informal settlements and areas of risk has reduced [Review of the Sectoral PES] - 75% of the population living in informal settlements and areas of risk - Activity: Preparation and approval of district plans on the use of land - Responsible: MICOA / MPD - Indicator 61.a: Aggregate no. of district development strategy plans (PEDD) with the spatial component (use of land) integrated that have been prepared and approved [Review of the Sectoral PES] - Process has been initiated (Sofala, Tete, Manica, Zambézia and Nampula) → Being prepared 26, 26, 33, 40 - Indicator 61.b: Intervention strategy in the informal settlements has been prepared [Review of the Sectoral PES] - Prepared → X - Indicator 61.c: Aggregate number of urban re-qualification plans that were prepared, approved and are currently being implemented [Review of the Sectoral PES] - Initiated, 1, 2, 3 - Objective 62: Ensure a cross-cutting approach to the country’s environmental management (par. 209) - Indicator 62.1: Integration of environmental issues into the economy and municipals’ key sectors [Review of the Sectoral PES] - Environment integrated in some sectors → Environment totally integrated into the key sectors of the economy and the municipalities - Activity: Approval and Dissemination of the Environmental Strategy for Sustainable Development (EADS) - Responsible: MICOA - Indicator 62.a: Strategy approved (EADS) [Review of the Sectoral PES] - Prepared → X - Activity: Establishment of environmental units in the key sectors of the economy and municipalities - Responsible: MICOA / Sectors / Municipalities / Civil Society - Indicator 62.b: No. of environmental units that were created [Review of the Sectoral PES] - 5 (MINAG, MOPH, MIREM, ME, MITUR), 13 ### Food security and nutrition - Objective 63: Guarantee that all citizens have physical and economic access at all times to the necessary foodstuffs (par. 210) - Indicator 63.1: Weight per height for children under the age of 5 (acute malnutrition) [IAF/IDS] - 4%; Rate stable at 0-5% - Activity: Monitoring and evaluation of the chronic and acute lack of food and nutritional security; make recommendations to the sectors with regard to the priority actions - Responsible: SETSAN - Indicator 63.a: SAN included in all sectoral and multi-sectoral action plans (PES, PEDD) – food security and nutritional action plan (PASAN) [SETSAN] - X - Indicator 63.2: % of the population with an acceptable diet quality [Data from SETSAN] - 7%, 15% - Objective 64: Design a multi-sectoral and broad-based inter-institutional policy (par. 218) - Indicator 64.1: SETSAN efficient and effective with regard to its fulfillment of functions [Review of Implementation of the Strategic Plan] - Lack of efficiency, especially in the provinces → Efficient and effective - Activity: Preparation and approval of a legal board for the SETSAN at national level - Responsible: SETSAN, Council of Ministers - Indicator 64.a: Prepared and approved [Government Gazette] - Legal framework not prepared → X - Indicator 64.b: Regulations submitted [Regulations for the DHAA Law] - Law not approved → X ### Science and technology - Objective 65: Promote the development of human resources at all levels in the areas of science and technology (par. 224) - Indicator 65.1: No. of Mozambicans studying for their masters and doctorate degrees in the domains of science and technology [Review of the Sectoral PES] - 660, 1715 - Activity: Award of scholarships for masters and doctorate degrees - Responsible: MCT - Indicator 65.a: Aggregate no. of Mozambicans sent for advanced training in science and technology [Review of the Sectoral PES] - 660, 924, 1187, 1451, 1715 - Objective 66: Promote research and innovation to overcome subsistence and promote use of science and technology by poor and disadvantaged communities (par. 220) - Indicator 66.1: No. of communities trained in the use of appropriate Technologies for the resolution of local problems. [Review of the Sectoral PES] - 8, 32 - Activity: Organization of scientific expeditions to the rural areas - Responsible: MCT - Indicator 66.a: Aggregate no. of communities visited per year [Review of the Sectoral PES] - 8, 16, 24, 32, 32 - Objective 67: Promote the use of information and communication technologies for poverty reduction and economic growth (par. 227) - Indicator 67.1: (Rural and urban) Population with access to and basic knowledge of Information and Communication Technologies [Review of the Sectoral PES] - 8.40%, 22% - Activity: Expansion of the E-Government network - Responsible: MCT - Indicator 67.a: Aggregate no. of State institutions linked to the E-Government at central level [Review of the Sectoral PES] - 25, 50, 70, 100, 100 - Indicator 67.b: Aggregate no. of State institutions linked to the E-Government at provincial level [Review of the Sectoral PES] - 31, 190, 250, 360, 360 - Indicator 67.c: Aggregate no. of State institutions for the E-Government at municipal and district levels [Review of the Sectoral PES] - 0, 2, 50, 150, 384 - Indicator 67.d: Aggregate no. of districts with Internet access points for the communities [Review of the Sectoral PES] - 14, 22, 32, 47, 65 - Indicator 67.e: Aggregate % of users of mobile and land lines [Review of the Sectoral PES] - 8.20%, 10.50%, 13.10%, 17.30%, 21.50% ### Rural development — competitiveness, finance, and communication - Objective 68: Increase the competitiveness and capital accumulation of the rural economy (par. 237) - Indicator 68.1: Average rural income per capita [EDR-IAF Monitoring reports]* to be negotiated with INE - USD 263, USD 310 - Activity: Coordination of the implementation process for the Local Economic Development Agencies - Responsible: MPD - DNPDR - Indicator 68.a: Aggregate no. of operational Local Economic and Financial Development Agencies [DNPDR monitoring reports] - 5, 6, 8, 10, 10 - Indicator 68.b: Aggregate no. of provinces with an Agricultural Markets Assistance Program [DNPDR, PAMA monitoring reports] - 3, 5, 8, 10, 10 - Indicator 68.c: Aggregate no. of legalized associations operating sustainably [DNPDR monitoring reports] - N/a, 30, 50, 75, 100 - Indicator 68.d: Aggregate no. of operational community radios and televisions [DNPDR monitoring reports] - 10, 13, 16, 20, 20 - Objective 69: Create a favorable environment for carrying out rural financial activities (par. 235) - Indicator 69.1: % of the rural population with access to loans [DNPDR Monitoring reports] - 5%, To be defined - Activity: Approval and implementation of rural finance and micro-finance policies and strategies throughout the entire country - Responsible: MPD - DNPDR / FARE - Indicator 69.a: Aggregate no. of rural finance and micro-finance institutions that successfully adopt the sector’s approved policy and strategy [DNPDR, FARE monitoring reports] - 30, 30, 35, 40, 45 - Indicator 69.b: Aggregate no. of customers the micro-finance institutions have [DNPDR, FARE monitoring reports] - 95000, 100000, 125000, 150000, 175000 ### Disaster management - Objective 70: Reduce the negative impact of disasters (par. 244) - Indicator 70.1: No. of people assisted by UNAPROC [Review of the PES] - 0, To be defined - Activity: Establishment of a National Civil Protection Unit (UNAPROC) - Responsible: INGC / MINT / MDN / MISAU / CVM - Indicator 70.a: No. of training, search and rescue centers that have been created [Review of the PES] - 0, 0, 2, 1, To be defined - Indicator 70.b: No. of trained UNAPROC members [Review of the PES] - N/a, To be defined (2006–2009 entries) ### Demining - Objective 71: Ensure greater freedom of movement for human beings and availability of land for their use (par. 251) - Indicator 71.1: Increase in the areas that were cleared or de-mined [Data from IND] - 30 million m2, 50 million m2 - Activity: Reducing the size of the area under suspicion - Responsible: IND - Indicator 71.a: Aggregate area still under suspicion, millions of m2 [Data from IND] - 172, 129, 86, 43, 0 - Indicator 71.b: Aggregate area cleared, millions of m² [Data from IND] - 10, 20, 30, 40, 50 *Italic source attribution:* _Content unit: _cr0737 - 45. Increase access to — extracted from the supplied PDF content._ --- _Source: https://www.imf.org/-/media/websites/imf/imported-full-text-pdf/external/pubs/ft/scr/2007/_cr0737.pdf_