## Republic of Mozambique: Selected Issues

_IMF Staff Country Reports, July 31, 2007_

## Source details

**Canonical URL:** [Republic of Mozambique: Selected Issues](https://www.imf.org/en/publications/cr/issues/2016/12/31/republic-of-mozambique-selected-issues-21221)

## Other formats

- [Markdown version](/en/publications/cr/issues/2016/12/31/republic-of-mozambique-selected-issues-21221/index.md)
- [Structured JSON version](/en/publications/cr/issues/2016/12/31/republic-of-mozambique-selected-issues-21221/index.json)
- [Bundle manifest](/en/publications/cr/issues/2016/12/31/republic-of-mozambique-selected-issues-21221/bundle-manifest.json)

## Bibliographic details
- Published: July 31, 2007
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781451931129.002

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### 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.

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## Content in this bundle

- **Republic of Mozambique: Selected Issues; IMF Country Report 07/258; June 1, 2007**
  - [Republic of Mozambique: Selected Issues; IMF Country Report 07/258; June 1, 2007 (Markdown version)](/-/media/websites/imf/imported-full-text-pdf/external/pubs/ft/scr/2007/_cr07258.pdf.md){rel="alternate" type="text/markdown"}
  - [Republic of Mozambique: Selected Issues; IMF Country Report 07/258; June 1, 2007 (PDF)](/-/media/websites/imf/imported-full-text-pdf/external/pubs/ft/scr/2007/_cr07258.pdf){rel="external" type="application/pdf"}

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_Source: https://www.imf.org/en/publications/cr/issues/2016/12/31/republic-of-mozambique-selected-issues-21221_