Mozambique: Economic Rehabilitation and the Poor

Paulo Lopes and Emilio Sacerdoti

No 1991/101, IMF Working Papers from International Monetary Fund

Abstract: Poverty has remained widespread in Mozambique, mostly on account of the prevalent war situation. This paper provides a profile of the lowest income groups in Mozambique and examines how they were affected by the economic recovery program of 1986–90. The results, indicate that despite large price adjustments, in real terms minimum and low wages improved over the 1986–90 period. Agricultural production increased in response to better incentives, and small farmers in safe areas improved their relative income position. However, in the presence of a large refugee population and war-related destruction, there continues to be a pressing need for extended emergency aid.

Keywords: WP; producer price index; absolute poverty; purchasing power; minimum wage; consumer goods; weighted index; U.S. dollar; supplementation scheme; Income; Personal income; Wages; Agricultural commodities; Africa (search for similar items in EconPapers)
Pages: 25
Date: 1991-09-01
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