Deepening Integration in SADC - Fes-botswana.org

9 Special Issues and Future Research
9.1 Special Issues
Some of the specific issues regarding Mozambique include:
The need to deepen knowledge on the determinants of poverty.
The role of the natural resources in the future of the economy -
forestry, energy, oil projects, mining and tourism.
The role of mega-projects on growth and poverty reduction.
The strategies aimed at increasing the productivity of agriculture -
the high rates of growth of the last years can only be sustained if
reforms introducing technology improvements take place.
Modernisation and expansion of the financial sector, by expanding
the level of monetary deepening and introduction of new services
Mozambique's effort should focus on domestic policy reform, aimed
at improving the enabling environment for investment and promoting
international competitiveness of production in Mozambique. There
might be many things wrong with the global trading environment
and the policies of some of the world's most important trading
countries. Mozambique can do little about that. Mozambicans,
however, are better equipped than outsiders to understand and deal
with the domestic policy environment. International experience
confirms that the benefits from these reforms will provide the largest
benefits at the lowest cost to Mozambique (Flatters Frank, 2002).
Deepening integration in SADC is likely to be a long process. There
are some objectives that can be achieved immediately and without
the necessity of an accompanying macroeconomic and political process.
Other objectives such as liberalisation, trade flows, labour and capital
flows in the region, will require more time and negotiation.
The large size of the South African economy in comparison to those
of other SADC countries could result in, for example, polarisation of
trade, labour and capital flows. These issues need to be addressed
before agreements can be reached. As with the free trade area,
common market and monetary union areas, some asymmetry of
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