Mozambique’s model of donor coordination has considerably improved aid effectiveness, holding lessons for sub-Saharan Africa. In 2006, the Mozambican government formulated its second poverty reduction strategy (PRS)—entitled in Portuguese the Plano de Acgão para a Redugão da Pobreza Absoluta (PARPA II)—which sets out goals and performance indicators for 2006–09.1 Since 2000 an increasing number of donors have agreed to common financing schemes that support the government’s poverty reduction strategies in an efficient, predictable, and noncumbersome way. This chapter sheds light on how this framework, referred to as the “Mozambique model,” has evolved into an institutional setup that is often praised internationally as a best practice.
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