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From Gas to Cash : Policy Options for Transferring Resource Revenues to Citizens in Mozambique

LIVING STANDARDS PER CAPITA CONSUMPTION POLITICAL ECONOMY ANALYSIS CREDIT MARKETS EXTRACTIVE INDUSTRIES RISKS HOUSEHOLD SIZE POVERTY LINE SUBSISTENCE IMPACT ON POVERTY ECONOMIC GROWTH ACCOUNTING LOCAL ECONOMY OLD AGE POLITICS POVERTY LEVELS INFORMATION SYSTEM FOOD CONSUMPTION INCOME SCHOOLING POVERTY RATES AGRICULTURAL PRODUCTION EMPLOYMENT OPPORTUNITIES NATIONAL POVERTY LINE GOVERNMENT REVENUES OPTION COUNTERFACTUAL PAYMENT SYSTEM HOUSING POLITICAL ECONOMY REVENUES FOOD POLICY FISCAL POLICY NATIONAL POVERTY HOUSEHOLDS WITH CHILDREN POOR PEOPLE POVERTY GAP INDEX TAX NATIONAL POVERTY RATE CASH TRANSFER INCOME TAX SOCIAL ASSISTANCE BENEFICIARIES CONFLICT MEASURES PENSION REGION POVERTY REDUCTION BUDGET LABOR MARKET CASH TRANSFER SCHEME SAVINGS RURAL HOUSEHOLDS DISTRIBUTION OF BENEFITS FOOD POVERTY LINE POOR HOUSEHOLD POVERTY GAP POVERTY REDUCING FOOD PRICE INCOME INEQUALITY INFLATIONARY PRESSURES OPTIONS TRANSFERS MARKETS HOUSEHOLD INCOME POVERTY MAPS POOR INDIVIDUALS HOUSEHOLD SURVEYS SOCIAL SECURITY SOCIAL PROTECTION POOR BENEFIT CASH TRANSFERS POVERTY HEADCOUNT INDEX BANK POLICY ADMINISTRATIVE COSTS EXPENDITURE PEOPLE WITH DISABILITIES UNEMPLOYMENT INVESTORS CONSUMPTION BUDGET CONSTRAINT HUMAN CAPITAL FOOD SECURITY FOOD POVERTY CASH TRANSFER PROGRAM REDUCTION IN POVERTY SCHOOL ATTENDANCE HIGHER INEQUALITY FUTURE RETURNS CAPACITY CONSTRAINTS VULNERABLE GROUPS SAFETY NET RURAL OPPORTUNITY COSTS IMPACT ON POVERTY REDUCTION ANIMAL HUSBANDRY MARKET PUBLIC WORKS HOUSEHOLD BUDGET POVERTY SEVERITY TRANSFER PROGRAMS AGRICULTURAL ACTIVITIES IDIOSYNCRATIC SHOCKS TREASURY FEMALE LITERACY AGRICULTURAL INPUTS INSURANCE TARGETING POOR POPULATION WELFARE MEASURES GOODS SECURITY WAR INVESTMENT REDISTRIBUTIVE POLICIES EXTREME POVERTY SHARE RURAL AREAS POVERTY BENEFICIARY HOUSEHOLDS HOUSEHOLD CONSUMPTION REVENUE AGRICULTURAL PRODUCTIVITY INVESTMENTS POVERTY DYNAMICS CASH TRANSFER PROGRAMS DECLINE IN POVERTY DECLINE IN POVERTY RATES POVERTY RATE POOR INSTRUMENT FOOD PRICES PUBLIC SPENDING SELF-EMPLOYMENT INCOME LEVEL POVERTY ALLEVIATION HUMAN DEVELOPMENT INEQUALITY INVESTING POOR HOUSEHOLDS
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Washington, DC
Africa | Mozambique
2015-11-03T14:38:00Z | 2015-11-03T14:38:00Z | 2015-06

Mozambique has enjoyed strong economic growth but poverty levels are still unacceptably high. Mozambique is now in a transition period with an opportunity to plan for how resource revenues can contribute to poverty reduction and inclusive growth. Any policy to scale-up a cash transfer program will operate with a limited budget, meaning that decisions will need to be made on the optimal design choice in Mozambique. The objective of this policy note is to generate debate on implementing a scaled-up cash transfer in Mozambique’s future resource-rich environment, as part of a broader strategy to reduce poverty. The scope of this note is focused on distributing resource revenues through a scaled-up cash transfer program, and not the broader management of resource revenues. Section one discusses growth and poverty dynamics. Section two presents the existing social protection system. Section three discusses policy options for implementing a scaled-up cash transfer program using a simulation exercise to estimate poverty and welfare effects for a given fiscal envelope. Section four discusses how to address the risks of financing a scaled-up cash transfer program from resource revenues. Section five focuses on the practicalities of how the social protection system should be strengthened to implement scaled-up cash transfer program and the final section concludes.

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