Mozambique: Peace, democratisation and conflict (1995-2004)

Updated February 2008

The conclusion of the peace process and the successful conduct of democratic elections did not bring the high level of conflict between the ruling Mozambique Liberation Front (FRELIMO) and the opposition Mozambique National Resistance (RENAMO) to an end. The government formed by newly-elected President Joaquim Chissano was constituted exclusively of FRELIMO members, primarily southerners, though it was more technocratic in character than previous governments (Accord 1997). RENAMO demands that it be given the governorships of the provinces were disregarded by the government and no policy of reconciliation and inclusion was followed to heal the bitterness generated by the civil war so that the climate of mutual mistrust continued (See Towards the 1999 elections; Accord 1997). Indeed, as ISS (Undated) puts it: "The headlines were frequently dominated by the bitterness that surfaced from time to time between Frelimo and Renamo in public exchanges characterized by extreme language and inflammatory accusations". Nevertheless, demobilisation was successfully executed, and despite grievances amongst veterans as a result of the lack of opportunities available to them, the prospect of a return to civil war diminished over time (Accord 1997).

The post-war reconstruction programme, begun in 1993, enabled the economy to grow rapidly, albeit from an extremely low base (Cravinho & George 2007, 810; Accord 1997; Fauvet 2000, 12). Restorations of the Beira harbour and railway line to Harare were complete by the early 1990s while the restoration upgrade of the line from Nacala to Malawi was begun (Fauvet 2000, 12). In 1996 the Maputo Development Corridor was launched in partnership with South Africa to increase usage of Maputo as a port by South African industries and encourage tourism though upgrading of the harbour and road infrastructure (Fauvet 2000, 12). The restoration of the power lines from Cahora Bassa to South Africa facilitated the export of electricity (Fauvet 2000, 12). GDP growth averaged just under 10% a year between 1996 and 1999, while inflation fell between 1993-1996, averaging 26.5% per year in this period as opposed to 160% in 1987 and 35% in 1991 (Fauvet 2000, 12; Cravinho & George 2007, 802). By 1997 inflation had fallen to 5.5% and registered -1.3 in 1898 and 4.8% in 1999 and, moreover, price stabilization was led by food prices, which was of greatest significance to the poor (Fauvet 2000, 12). Economic growth was the result of the recovery of the depressed manufacturing industry (output rose by almost 50% in 1997) and of rises in mining production (30% in 1997 and 1998; mainly marble, bauxite and graphite), though the dramatic fall in graphite prices in 1999 led to a collapse of graphite production in 1999 (Fauvet 2000, 12).

The high growth rates experienced in the 1990s, however, did not translate into an improvement in living conditions for the bulk of the population; unemployment remained high and incomes low, inflation fell steadily but nevertheless translated into high living costs (IIASA 2001). Armed bandit gangs that had sprung up during the civil war continued to operate, persistent poverty fuelled high crime rates while the opening up of the economy, poor administrative controls and endemic corruption enabled the transit drug trade to South Africa to flourish (IIASA 2001). The tourism sector was slow to recover and foreign exchange earnings long remained dependent on the export of sea-foods while high foreign debt and donor dependence constrained the government's room to maneuver; foreign aid constituted some 60% of the State's budget (IIASA 2001; Accord 1997). The country benefited from substantial debt relief. In 1998 total foreign debt was US$5.5 billion; in April the World Bank and IMF declared that Mozambique was eligible for debt relief under the Heavily Indebted Poor Countries (HIPC) initiative and in June 1999 US$1.7 billion (30%) was written off (Africa Recovery 2000).

Poverty remained endemic, with 69% of Mozambicans living below the poverty line; with 80% of Mozambicans living in the countryside, the underdeveloped character of agriculture was closely linked to the scale of poverty in the country (Fauvet 2000, 12). Rudimentary agricultural techniques, lack of capital, a dearth of mechanical or even animal traction, an absence of fertilizer and pesticides and poor marketing infrastructure, agriculture remained locked largely in labour intensive, small scale, with output increases the result of extensive rather than intensive expansions (Fauvet 2000, 12). With low incomes and food reserves the rural population remained highly vulnerable to the natural disasters such as droughts and floods that wracked the country episodically (Fauvet 2000, 12). The economic reforms impacted on the urban population as well, for services were no longer provided free and food subsidies were withdrawn (Fauvet 2000, 12). An estimated 100 000 jobs were lost between 1990 and 2000 due to privatization and rationalisation, fueling unemployment, while real wages fell (Fauvet 2000, 12).

References

ACCORD 1997 "Mozambique: Chronology", [www] http://www.c-r.org/our-work/accord/mozambique/chronology.php [opens new window] (accessed 11 Mar 2010).

AFRICA RECOVERY 2000,14(3), October, 17, [www] http://www.un.org/ecosocdev/geninfo/afrec/subjindx/143debmz.htm [opens new window] (accessed 11 Mar 2010).

CRAVINHO, JG & GEORGE, E 2007 "Mozambique: Economy" IN Frame, I (ed) Africa South of the Sahara 2008, Europa Publications, 802-811.

FAUVET, P 2000 "Mozambique: growth with poverty", Africa Recovery, 14(3), October, 12, [www] http://www.un.org/ecosocdev/geninfo/afrec/subjindx/143moz1.htm [opens new window] (accessed 11 Mar 2010).

INTERNATIONAL INSTITUTE FOR APPLIED SYSTEMS ANALYSIS (IIASA) 2001 "Country Briefs: Mozambique - Chronology of History" IN Botswana's future, Mozambique's Future, Namibia's Future: Modeling Population and Sustainable development Challenges in the Era of HIV/AIDS [www] http://www.iiasa.ac.at/Research/POP/pde/briefs/mz-history.html [opens new window] (accessed 11 Mar 2010).

INSTITUTE FOR SECURITY STUDIES (ISS) UNDATED "Mozambique: History and Politics", [www] http://www.iss.co.za/af/profiles/Mozambique/Politics.html (offline 11 Mar 2010).