Abstract

n a case that has become a cause celebre for the antiglobalization move- ment, the World Bank prevailed on Mozambique's government in the early 1990s to liberalize the cashew sector and remove restrictions on exports of raw cashews. The World Bank hoped that resources would be allocated more efficiently and cashew farmers' incomes would be boosted. The policy was met with fierce opposition from the domestic cashew- processing industry, which ironically had just been privatized. After a decade of political strife, international controversy, and ongoing (if hesitant) reform, the consequences remain hotly contested. Each side in the debate has its favorite statistics. The World Bank points to the rise in farmgate prices, while opponents point to the processing plants in urban areas that have been shut down and thousands of workers that remain unemployed. Historically the cashew sector has been a significant part of Mozam- bique's economy, providing income to several million individuals across the country. In the 1960s Mozambique produced as much as half of the world's total. The sector went into a long decline thereafter, as a combination of adverse policies and civil war (1982-92) halted new tree plantings. Follow-

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