Abstract
Mozambique's performance under the authorities' program during the first three quarters of 2003 continued to be satisfactory. The discussions focused on the macroeconomic policies for 2004–06 and the government's plans to address pending structural reforms to broaden and sustain growth and further reduce poverty. Discussions on structural issues concentrated on the authorities' plans to remove a number of obstacles to private sector development. A strengthened monetary and exchange rate management will be essential in Mozambique, particularly in view of the high degree of dollarization.
December 10, 2003
The following supplementary information has become available since the issuance of the statement by the staff representative on December 5. The thrust of the staff’s assessment remains unchanged.
Yesterday, the authorities provided the staff some preliminary information on poverty based on the National Household Survey that was finalized in June 2003. Following a few months of statistical analysis, the preliminary results of the survey indicate that the proportion of the population living below the poverty line declined by about 15 percentage points, from 69.4 percent in 1997 to the mid-50 percent range in 2002. This is encouraging news, particularly taking into account that the PARPA targeted a reduction in poverty to below 60 percent by 2005.