Republic of Mozambique: Selected Issues
IMF Staff Country Reports, July 31, 2007
Source details
- Canonical URL
- Republic of Mozambique: Selected Issues
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Bibliographic details
- Published: July 31, 2007
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781451931129.002
Summary
- This Selected Issues paper on the Republic of Mozambique reports key policy and institutional issues in the macroeconomic management of scaled-up aid and in promoting sustainable private-sector led growth.
- A further moderate scaling-up of foreign aid could continue to be fully spent and focus on productive priority sectors.
- This would help achieve the Millennium Development Goals while at the same time eliciting a supply response to mitigate potential Dutch-disease effects brought on by an appreciating real exchange rate.
Major themes and analysis
- Macroeconomic management of scaled-up aid:
- Emphasis on fully spending a moderate scaling-up of foreign aid.
- Focus on directing aid to productive priority sectors to support development goals.
- Promotion of sustainable private-sector led growth:
- Identification of policy and institutional issues that affect private-sector development.
- External sector and exchange rate considerations:
- Recognition of potential Dutch-disease effects associated with an appreciating real exchange rate.
- Importance of eliciting a supply response to mitigate such effects.
Policy recommendations and implications
- Continue a moderate scaling-up of foreign aid with full utilization of resources.
- Prioritize productive sectors in aid allocation to:
- Help achieve the Millennium Development Goals.
- Elicit supply responses that mitigate Dutch-disease effects from an appreciating real exchange rate.
- Address key policy and institutional constraints to promote sustainable private-sector led growth.
Content in this bundle
- Republic of Mozambique: Selected Issues; IMF Country Report 07/258; June 1, 2007