02.12.2012 Views

Strengthening the Creative Industries for Development in ... - unctad

Strengthening the Creative Industries for Development in ... - unctad

Strengthening the Creative Industries for Development in ... - unctad

SHOW MORE
SHOW LESS

Create successful ePaper yourself

Turn your PDF publications into a flip-book with our unique Google optimized e-Paper software.

4 PART 1. GENERAL INTRODUCTION<br />

President and a 250-member National Assembly was voted. The second general elections were held <strong>in</strong><br />

December 1999, and President Chissano was re-elected. The second local elections, with about 2.4<br />

million registered voters, took place <strong>in</strong> November 2003. The third general elections were <strong>in</strong> December<br />

2004. Armando Guebuza won and became President of Mozambique on 2 February 2005. The<br />

government scheduled municipal elections <strong>in</strong> 2008 and presidential and parliamentary elections took<br />

place <strong>in</strong> October 2009. Armando Guebuza became Mozambique's President <strong>for</strong> a second five-year<br />

term.<br />

1.3 ECONOMIC BACKGROUND<br />

Mozambique is one of <strong>the</strong> 49 least developed countries (LDCs) <strong>in</strong> <strong>the</strong> world. Most of its population is<br />

poor but with <strong>in</strong>creas<strong>in</strong>g purchas<strong>in</strong>g power, because s<strong>in</strong>ce 1995 <strong>the</strong> country has been enjoy<strong>in</strong>g a steady<br />

economic growth of more than 7 per cent per year. It managed to ma<strong>in</strong>ta<strong>in</strong> a high economic growth<br />

rate, with an average of 8.7 per cent dur<strong>in</strong>g 2000–2007. 10 This growth is driven ma<strong>in</strong>ly by <strong>for</strong>eign<br />

direct <strong>in</strong>vestment and public spend<strong>in</strong>g largely f<strong>in</strong>anced by <strong>for</strong>eign aid to undertake mega-projects.<br />

Mozambique’s gross domestic product (GDP) is estimated at around $9.8 billion <strong>in</strong> 2008, and GDP<br />

per capita has <strong>in</strong>creased to $900 <strong>in</strong> 2008. Today, Mozambique is considered a successful example of a<br />

post-conflict transition economy.<br />

S<strong>in</strong>ce its <strong>in</strong>itial re<strong>for</strong>m, macro-economic policies have been geared to reduce <strong>in</strong>flation and achiev<strong>in</strong>g<br />

exchange rate stability. The government has placed tight controls on spend<strong>in</strong>g and money supply,<br />

comb<strong>in</strong>ed with f<strong>in</strong>ancial sector re<strong>for</strong>ms, all of which have contributed to reduc<strong>in</strong>g <strong>in</strong>flation from 70<br />

per cent <strong>in</strong> 1994 to 16.7 per cent <strong>in</strong> 2002 and 10.3 per cent <strong>in</strong> 2008, helped by a major re<strong>for</strong>m that<br />

<strong>in</strong>troduced <strong>the</strong> new metical as <strong>the</strong> national currency. In recent years, trade has become more important<br />

to its economy. The ratio of trade <strong>in</strong> goods and services to GDP <strong>in</strong>creased <strong>for</strong>m 54 per cent <strong>in</strong> 2001 to<br />

64 per cent <strong>in</strong> 2007.<br />

Figure 4: Economic and social <strong>in</strong>dicators<br />

ECONOMIC AND SOCIAL INDICATORS 2008<br />

Population, mid-year (millions) 22.4<br />

GNI per capita (Atlas method, US$) 380<br />

Poverty (% of population below national poverty l<strong>in</strong>e) 54<br />

Urban population (% of total population) 35<br />

Life expectancy at birth (years) 48<br />

Literacy (% of population age 15+) 44<br />

STRUCTURE OF THE ECONOMY<br />

(% of GDP) 1988 1998 2007 2008<br />

Agriculture 42. 30.8 28.1 28.6<br />

Industry 25.4 22.0 25.9<br />

24.3<br />

Manufactur<strong>in</strong>g 11.1 14.9 13.9<br />

Services 31.7 47.2 46.0 47.1<br />

Source: Mozambique at a glance (http://devdata.worldbank.org/AAG/moz_aag.pdf)<br />

The country has an abundant endowment of renewable energy and unexploited m<strong>in</strong>eral wealth. Its<br />

market-oriented policies have attracted a number of large-scale manufactur<strong>in</strong>g and m<strong>in</strong>eral exploration<br />

projects to Mozambique. Economic development has been quite uneven <strong>in</strong> Mozambique, with <strong>the</strong><br />

capital city of Maputo enjoy<strong>in</strong>g a GDP per capita that is about six times higher than <strong>the</strong> national<br />

average. 11 The traditional Mozambican role of provid<strong>in</strong>g its eastern and sou<strong>the</strong>rn neighbours with<br />

10 AfDB/OECD (2008): 461.<br />

11 UNCTAD/ICC (2001). An Investment Guide to Mozambique, Opportunities and Conditions.

Hooray! Your file is uploaded and ready to be published.

Saved successfully!

Ooh no, something went wrong!