Mozmbique-Economic Info. essays

Mozmbique-Economic Info. essays Despite of the economic progress experienced in the late 1990s, Mozambique remains one of the poorest countries in the world, with 60 per cent of the population living below the poverty line. The problems facing Mozambique include: Economic benefits barely reach 80 per cent of the population living in rural areas The devastating consequences of the civil war The national emergency of HIV/AIDS is over stretching the pressure on already overstretched resources The ever growing external debt which diverts funds away from healthcare and education Continual dependence on foreign finance for development projects Natural hazards such as the year 2000 floods Immediately after independence in 1975 considerable progress was made, but these gains were mostly lost in the sixteen years of civil war and decades of disastrous natural hazards. As a result the Republic Of Mozambique is a severely underdeveloped country. Landmines still render travel outside the capital hazardous, while food shortages costly international flights, and poor infrastructure are added obstacles. Whilst it was destroyed by the civil war, it is slowly rebuilding and given political stability, Mozambique could yet exploit its excellent beaches and game reserves, which include the Gorongosa Game Park. There are plans afoot to incorporate reserves into South Africas much-visited Kruger Park, just across the boarder. Some foreign hotel groups are once more targeting Maputo as a luxury tourist and conference venue. In the 1970s the tourist industry drew some 300,000 South Africans and Rhodesians as visitors to the country. Another advantage was that its inflation has been low and foreign exchange rates relatively stable. Mozambiques economy grew at an annual 10% rate in 1997-99, one of the highest growth rates in the world. But this strength turned, growth slowed and inflation grew in 2000 d...