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Outline

Title
Abstract
Introduction
Methodology and Background
General Methodology and Literature
Methodology
Results and Analysis
Policy and Planning Implications
Conclusion
References

Chapter 14 Aid and Development: The Mozambican Case

Profile image of Channing ArndtChanning Arndt

2007, Frontiers of Economics and Globalization

https://doi.org/10.1016/S1574-8715(06)01014-1
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Abstract

Studiestraede 6, DK-1455 Copenhagen K., Denmark Tel. +45 35 32 30 82 -Fax +45 35 32 30 00 http://www.econ.ku.dk Abstract d This paper considers the relationship between external aid and development in Mozambique from 1980 to 2004. The main objective is to identify the specific mechanisms through which aid has influenced the developmental trajectory of the country and whether one can plausibly link outcomes to aid inputs. We take as our point of departure a growth accounting analysis and review both intended and unintended effects of aid. Mozambique has benefited from sustained aid inflows in conflict, post-conflict and reconstruction periods. In each of these phases aid has made an unambiguous, positive contribution both enabling and supporting rapid growth since 1992. At the same time, the proliferation of donors and aid-supported interventions has burdened local administration and there is a distinct need to develop government accountability to its own citizens rather than donor agencies. In ensuring sustained future growth, Mozambique will have to develop its capacity to maximise the benefits from its natural resources while ensuring at the same time the necessary framework is put in place to promote constructive integration in international markets. JEL Classification: F35, O10, O55

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  128. Figure B.9: Real exchange rate and net aid (lagged one period) indices, 1980-2004
  129. 0 1980 1983 1986 1989 1992 1995 1998 2001 2004 Real exchange rate Net Aid (t-1)
  130. Figure B.10: Current account deficit, net aid and government deficit before aid (US$ millions), 1980-2004
  131. Net Aid Current Account deficit Gov deficit

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