Since the cessation of conflict, Mozambique has achieved impressive economic growth and has become an example of successful post conflict reconstruction and development, moving from a one-party state to a multiparty democracy and from a socialist, command economy to a market-based economy. Mozambique’s development has been strongly supported by foreign aid, and since 2001 average annual disbursements of official development assistance (ODA) have amounted to over 1 billion dollar, or 12 percent of gross domestic product (GDP). Strong economic growth has contributed to a decline in income poverty, but the level of overall poverty remains high. This country program evaluation (CPE) focuses on the Bank’s program for FY2001-08, examining the following questions: did the Bank correctly assess the problems Mozambique faced?; was the Bank’s strategy appropriate for meeting the country’s development needs?; how effective was Bank assistance in implementing those strategies?; what were the outcomes of the assistance?; and to what extent did the Bank, other development partners, the government, or exogenous forces contribute to outcomes? The CPE is organized as follows: Chapter one assesses Mozambique’s economic and social development and identifies major development priorities and constraints facing the country. Chapter two is an overview of the Bank’s program of lending and analytic and advisory activities (AAA). Chapters three, four, and five cover thematic aspects: stabilization and growth (including infrastructure and agriculture development), poverty reduction and human development, and governance. Chapter six covers International Finance Corporation (IFC) activities in Mozambique, and chapter seven assesses partnership and harmonization. The last chapter contains conclusions, lessons, and recommendations.
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