collected snippets of immediate importance...


Thursday, May 17, 2007

two articles on mozambique:
(first, in defense of the economic order:)
Mozambique is one of the world's poorest countries. It's also an African success story. Here, such things are relative. To the immediate west, Zimbabwe's Robert Mugabe misrules his country toward calamity. Nigeria, Ivory Coast and others are beset by civil conflict and corruption. But Mozambique, scarred by 16 years of civil war and Soviet-style economics, turned itself in the right direction on its own. Optimism, however guarded, and Africa do sometimes go together.
(...) But hyperinflation and a stagnant economy forced leaders of the neo-Marxist liberation movement, Frelimo, to shift their approach. Starting in the early 1990s, the ruling party cut subsidies, opened to outside investment, privatized firms nationalized after independence in 1975 and got a grip on borrowing and the budget. An independent central bank brought inflation into single digits. According to the World Economic Forum's competitiveness index, Mozambique has reformed more than any sub-Saharan African country.
(...) The payoff is the highest average growth rate, at 8% over the last decade, among the continent's non-oil exporters. GDP per capita is a still tiny $320, but that's compared with $178 in 1992. Since 1997, poverty rates decreased more in rural areas (from 71% to 55%) than in urban (62% to 52%), according to the World Bank. Child mortality has declined to 152 per 1,000 live births from 235. And primary-school enrollment has risen to 71% from 43%. Once a leading recipient of food aid, Mozambique now exports maize, with 5.6% average yearly growth in farming in the last 15 years. Banks, telecom and tourist firms, many from neighboring South Africa, have come in.
(...) But neighbors in similar straits haven't put in place Mozambique's fixes. Inflation in Zimbabwe is 1,700%; nearby Malawi and Zambia, their economies distorted by subsidies on commodities, are growing haphazardly. "You need political will" to get it right, says Mr. Baxter. "Starting from a low base" or "being a former colony" -- oft-heard excuses for Africa -- has little impact on economic performance. What matters, as regional dynamo Botswana also shows, is governance.
(...) Erratic "Uncle Bob," as his deferential neighbors call Zimbabwe's 83-year-old Robert Mugabe, is a useful reminder that local politicians pose the gravest threat to Africa's future.
(...) In the meantime, having done the so-called first generation of market reforms, the government is dragging its feet on legalizing land ownership, fighting corruption and loosening a restrictive labor code to bring in more investment. "Now they're stuck," says Mr. Lima. "There is a strong socialist background here. If we want to perform, we need to be different."
(second, in response:)
(...) Africa observers often single out a storyline from one country - sometimes it's cheery, sometimes not - in order to apply lessons to the whole continent. But I'm having trouble seeing what Kaminski and others see.
(...) Kaminski's paean to private enterprise leaves me particularly cold. Because Mozambique's development is heavily concentrated in the southern capital, the vast majority of the country sees few of the benefits of growth. And much of the economic improvement over the last 15 years can simply be chalked up to the peace dividend. When hostilities ended - with one million dead - Mozambique had nowhere to go but up. The country currently ranks tenth from the bottom on the UN's Human Development Index (just ahead of Burundi, and well behind Rwanda). It used to rank as the very poorest country in the world. So, yes, I guess things could be worse.
(...) But, most importantly, all this talk about privatization and foreign investment is very much beside the point. As Kaminski concedes, one in six Mozambican adults is infected with HIV. "Appreciating the change for the better takes some imagination," he writes. But you cannot speak of "the change for the better" unless the discussion starts with HIV. It's the only yardstick that matters in Mozambique, and in the rest of southern Africa as well. Some 37,000 Mozambican children contracted HIV in 2006, a jump of 60% over six years before. Nearly four of every 10 adults in Beira, the country's second largest city, are HIV-positive. Those are apocalyptic figures, however creative your thinking.
(...) The luxury building is full of foreigners here on business; the more posh of the country's two shopping malls is on the ground floor. It looks as if the land where the Four Seasons stood will be developed in much the same way, except that Part of the site will be set aside for a new American embassy. I have yet to meet a Mozambican who cares that the hotel is gone or about what will take its place.

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