Action Plan for the Reduction of Abslute Poverty (2001-2005) - Republic of Mozambique - Endnotes

¹ In principle, the social action plan should be a "fundamental area" of the poverty reduction strategy. In the current PARPA, however, it is classified as an "other action area" because resources available are still very limited and the number of beneficiaries remains relatively small in relation to the size of the problem. This situation should change as additional resources became available as a result of economic growth.

² For more details on this question see the baseline study Understanding Poverty and Well-being in Mozembique: First National Assessment (1996-97) (MPF, 1998).

³ A poverty line is arrived at by defining a particular level of income or value of consumption, such that those who fall below the line are considered poor. Households with incomes or consumption above the line are considered not poor. A monetary value is therefore assigned to this poverty line.

⁴ For example, a person living in Maputo city needs to spend 2.5 times more on daily consumption (for the basket of goods chosen for the poverty line) than a person who lives in a rural area in Nampula.

⁵ This percentage is based on the IAF figures. According to the Population Census, the percentage of the rural population is 71.42%.

⁶ The abject poverty line (or destitution) is defined as 60% of the poverty line, and reflects a minimum level of subsistence.

⁷ This analysis is based on bivariate correlations between poverty and each of the variables taken into consideration.

⁸ In fact, estimates of the incidence of poverty by group, according to the gender of the head of household, indicate that households headed by men have a poverty prevalence rate of 69.9%, while those headed by women have a slight lower rate (66.8%), which is principally due to their relative presence in rural areas (72.1% for male-headed and 66.9% for female-headed).

⁹ The current state of knowledge allows objectives and measures to be defined specially for girls and women, especially in the fields of education and health.

¹⁰ One should exercise caution in regards to agricultural data, particularly as concerns output per area, given limitations of the IAF 96/97 in this respect. To evaluate with greater precision the current situation, it is necessary to wait for results of the Agro-Animal Husbandry Survey currently under way. More concrete targets, and a more detailed evaluation of the situation, will then be possible.

¹¹ However, gender inequalities in education are particularly high in Sofala when compared to other provinces. It should also be remembered that the situation in rural areas of Sofala in regards to education and other basic rural infrastructure is not very different from that prevailing in the provinces in the North. Therefore it is probably the case that Beira city weight heavily in the aforementioned results.

¹² FEI = Food Energy Intake; CBN = Cosst of Basic Needs

¹³ As already mentioned, the incidence of poverty in Mozambique currently stands at around 70%. A 30% reduction in the incidence rate during the first decade of the new millennium would translate into a reduction in the number of poor from 70% to around 50%.

¹⁴ These estimates are based on a macroeconomic consistency model, which takes into account the real econom, the government budget, and the balance of payments. The model will be refined during 2001 by the MPF. The consistency of the 8% growth rate is supported by two sources. First, by the general equilibrium multi-sectoral model developed by the MPF. Second, by a recent World Bank study (Mozambique: Growth Performance and Reform Agenda, draft 2000), whick concludes that the economy may achieve an average growth rate of between 5% and 7% in the context of current poloicies, and may possibly achieve double digit growth if deeper reforms are carried out, many of which are included in the current program.

¹⁵ The quantitative analysis includes detailed projections for the following mega-projects: MOZAL I and MOZAL II; the Mepanda Uncua project; the Temane and Pande natural gas project, including the pipeline to South Africa; the Maputo iron and steel project; the Gaza heavy sands project. It is expected that these projects will add 2 % of GDP to budgetary revenues, particularly from those projects based on use of natural resources. The quantitative analysis makes a clear distinction between the impact of these projects on GDP and national income. A number of other large projects were not included in these projections, given that discussions are still at an early stage. These include: the port project in Ponta Dobela, Sasol’s petrochemical project in Beira; the iron project in Beira; the Moatize coal project, the aluminum project in Beira; and the heavy sands project in Morna.

¹⁶ Analysis of the impact of HIV/AIDS in terms of GDP growth provides only a partial insight into the social and economic costs of the disease. It is, however, an appropriate indicator for the purpose of adjusting the macro-economic projections.

¹⁷ This table serves to update and revise the analysis presented in chapter 3 and Table 3.10 of the study on Poverty and Wellbeing in Mozambique - First National Assessment, MPF, 1998. The calculations are based on IAF 96/97 data, with levels of consumption adjusted to 2001, based on INE estimates of private consumption expenditure until 1999, and estimates from DNPO for the period 2000-2001. The adjustment presupposes a population growth rate of 2.3% for this period, and a neutral distribution of growth (taking into account the fact that the agricultural sector grew at approximately the same rate as real GDP).

¹⁸ This includes families, enterprises, associations, religious institutions, NGOs, clubs, etc.

¹⁹ Only 12% of workers in the Public Administration completed the first or second level of secondary school.

²⁰ It should be remembered that the high school system also provides graduates for the labour market, as well as candidates for the training of primary, secondary and other teachers.

²¹ In prosperous Sub-Saharan African countries such as Botswana, Mauritius and South Africa, annual state expenditure on education ranges from 6%-9% of GDP.

²² This includes pre-school education.

²³ This includes those aspects, which would give it a more practical character, with an emphasis on “knowing how to do something”. Introduce subjects on “basic arts and crafts”.

²⁴ Amongst other aspects of the process of curriculum reform, it is important to ensure that industrial and agricultural technical courses contain elements of business and commercial accounting and financial management. These subjects are vital to graduates, apart from the purely technical and technological knowledge they acquire. In effect, technicians should be capable of dealing with questions related to the management of production and businesses when they embark on self-employment or as entrepreneurs (as businessmen and employers). For this group of workers, the marriage of technical and managerial capabilities constitutes, in principle, an important basis for a spirit of innovation that is essential for the success and survival of businesses. From these professionals, a new wave of local businessmen may emerge.

²⁵ The expansion of higher education can be promoted through cost recovery by institutions at this level, to increase the number of places available and improve quality. The eventual solution will be for students to pay adequate fees at the institution of their choice. This would lead to competition between institutions in offering more places and better teaching at a lower cost. The feasibility of students paying fees to cover costs may come from the establishment of a scholarship foundation. Eventually, this fund could also be used for the expansion of intermediate technical education.

²⁶ This could contribute to a certain amount of cost recovery and improve the financial viability of these schools and technical institutes.

²⁷ In the prosperous countries of Sub-Saharan Africa, such as Botswana, Mauritius and South Africa, annual health expenditure in the budgets varies between 3%-4% of GDP.

²⁸ The municipalities are responsible for urban roads.

²⁹ The objectives of the roads programme are to be achieved in conjunction with activities for coastal shipping, as dealt with in the section on transport.

³⁰ Those programmes connected to infrastructure and services are dealt with in other sections of the poverty reduction and economic growth strategy.

³¹ Unfortunately, the most relevant quantitative indicators are not yet available. The nationally representative baseline information, which will allow for the monitoring of progress in the agricultural-animal husbandry sector (monetary income, use of inputs) will come from the Agricultural Survey Work (TIA 2001) and may be incorporated in the next revision of the PARPA in 2002.

³² The other principles are indirectly linked to poverty reduction to the extent that they deal with the restructuring of the MADER in order to improve its capacity to deliver appropriate services in an effective manner. These are: (1) the activities of MADER are limited to key functions, with strengthening of MADER to carry them out, and (2) Good Governance.

³³ This refers to producers in the family sector who, in the context of the programme, will adopt new technologies.

³⁴ In this sense, decentralisation is critical for the priority areas.

³⁵ The project includes selecting sites for the centers, recruiting and training local technicians responsible for the project; conducting a census of the operators to receive training; acquisition of equipment and machinery for training; training of operators with an emphasis on mining techniques, processing and transportation of minerals as well as preservation of the environment, and monitoring.

³⁶ See section on macroeconomic context/Part III.

³⁷ Persons, groups or institutions who have an interest, responsibility, commitment to a particular issue or programme of action as players, implementers, beneficiaries/affected, financiers or simply listeners.

³⁸ This applies to both the PARPA 2000-2004 (which corresponds to the PRSP-I) as well as the current version.

³⁹ In fact, for a number of reasons, including post-emergency reconstruction and the need to clean up the banking system referred to above, budgetary expenditure for 2000 and 2001 shows considerable deviations from past trends in public expenditure which stood at around 22%-23% of GDP.

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