Skip to main content Accessibility help
×
Hostname: page-component-78c5997874-m6dg7 Total loading time: 0 Render date: 2024-11-12T16:37:22.591Z Has data issue: false hasContentIssue false

5 - Stable Parties, Limited Democracy, and Partisan Private Sector Development

Mozambique

Published online by Cambridge University Press:  05 June 2012

M. Anne Pitcher
Affiliation:
Colgate University, New York
Get access

Summary

The starting point for the privatization of the Mozambican economy was much worse than that of Zambia. A seventeen-year war that concluded in 1992 had left the economy in a shambles. Infrastructure had deteriorated, many state firms were destroyed or not working, and the salaries of thousands of state workers were in arrears. State capacity in areas such as regulatory enforcement or technical expertise was low. The political environment was also discouraging. The two main parties that participated in the first democratic elections in 1994 were the belligerents in the war, and they brought many of their former grievances into the postwar settlement. The peace accord constructed a political system that relied on institutional means such as the rule of law, but also extra institutional mechanisms such as bargaining and threats to avoid damaging stalemates or a resurgence of conflict.

The experience of conflict, a fragile state, a failing economy, and a hostile political setting – these factors indicated to most observers that the privatization process would be protracted and conflictual; that its impact would lack credibility, and that its consequences would prolong political instability. Yet, not only did Mozambique sell a percentage of state firms comparable to that of Zambia, but also its imperative credibility score was higher than Zambia’s. It sustained positive growth rates over more than a decade and attracted significant amounts of new investment. Particularly noteworthy was that the government relied on private sector development to rebuild state capacity.

Type
Chapter
Information
Publisher: Cambridge University Press
Print publication year: 2012

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

References

World Bank 2004
2006
1995
1995
1998
2007
2005
2007
2001 http://www.mol.co.mz/noticias/metical/2001/en010917.html
Castel-Branco, CarlosCramer, ChristopherHailu, Degol 2001
2005 http://allafrica.com/stories/200504040445.html
2009

Save book to Kindle

To save this book to your Kindle, first ensure coreplatform@cambridge.org is added to your Approved Personal Document E-mail List under your Personal Document Settings on the Manage Your Content and Devices page of your Amazon account. Then enter the ‘name’ part of your Kindle email address below. Find out more about saving to your Kindle.

Note you can select to save to either the @free.kindle.com or @kindle.com variations. ‘@free.kindle.com’ emails are free but can only be saved to your device when it is connected to wi-fi. ‘@kindle.com’ emails can be delivered even when you are not connected to wi-fi, but note that service fees apply.

Find out more about the Kindle Personal Document Service.

Available formats
×

Save book to Dropbox

To save content items to your account, please confirm that you agree to abide by our usage policies. If this is the first time you use this feature, you will be asked to authorise Cambridge Core to connect with your account. Find out more about saving content to Dropbox.

Available formats
×

Save book to Google Drive

To save content items to your account, please confirm that you agree to abide by our usage policies. If this is the first time you use this feature, you will be asked to authorise Cambridge Core to connect with your account. Find out more about saving content to Google Drive.

Available formats
×