66374
      REPUBLIC OF MOZAMBIQUE: POVERTY REDUCTION STRATEGY PAPER
                       AND JOINT IDA-IMF STAFF ADVISORY NOTE
                                    CHAIR’S SUMMING UP
                                Meeting of the Executive Directors
                                          January 10, 2012


        Executive Directors considered Mozambique’s Poverty Reduction Strategy Paper and the
Joint IDA-IMF Staff Advisory Note (IDA/SecM2011-0724). They appreciated the extensive
consultations in its preparation and supported the commitment to keep its implementation an
inclusive process.
       Directors commended the Authorities for sound macroeconomic policies, which allowed
Mozambique to sustain high growth in recent years. They appreciated the candid assessment that
high GDP growth had not been accompanied by strong poverty reduction and noted that
development must become more inclusive and broad-based. In this regard, Directors underscored
the importance of producing tangible results in each strategic pillar, focusing on productivity
improvements, job creation, building skills through training and education, and human and social
development, through good governance and prudent macroeconomic management. The importance
of considering the linkages between economic growth, policy actions and poverty outcomes was
equally emphasized. The need to address the infrastructure bottleneck, develop financial markets
and regulatory framework, as well as improve the overall investment climate was highlighted, as
was the need for strong inter-ministerial coordination.
         Directors welcomed the progress Mozambique has made towards achieving EITI
membership. They emphasized the need to raise farm and fishery productivity and market
participation. Remarking on the vulnerability of the population to frequent climate and other
exogenous shocks, Directors underscored the need to strengthen adaptation and mitigation
strategies, and operationalize strategies developed for natural disasters and provision of targeted
social safety nets. They welcomed the commitment to reduce dependency on external aid by
improving domestic resource mobilization. Directors stressed the importance of managing the
expected revenues from natural resources development so as to maximize their benefits, filling
critical investment gaps in infrastructure and social services.
        With regard to poverty reduction and the Millennium Development Goals, Directors noted
that strategies must take into account significant disparities among regions. They encouraged the
Authorities to deepen decentralization and invest in creating stronger local capacity, including
support to achieve better results in the health sector. They also underlined the importance of a solid
monitoring and evaluation framework capable of tracking achievements against priorities.
        Finally, Directors stressed the critical role of good governance and gender equality for faster
and sustained poverty alleviation and urged the Authorities to live up to their commitment to
fighting corruption, strengthening transparency and accountability in government, and in creating a
dynamic and capable public sector.




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This summary is not an approved record.