Economic reform and armed conflict in Mozambique

Abstract

This paper discusses the evolution of the Mozambican economy in the 1980s. Particular emphasis is placed on the effects of the policy reform package implemented by the government beginning in 1987. This reform, centered around the restoration of economic incentives to the agricultural sector, is an example of a structural adjustment package pursued under extremely adverse conditions. The new strategy has yielded some favorable results, but also illustrates some of the limits of price policy in sub-Saharan Africa.