Mozambique Institutional Diagnostic: Chapter 2

Mozambique Institutional Diagnostic

Chapter 2. Historical, political and economic background

Few countries have experienced as many extreme political and economic changes as Mozambique both before and after independence in 1975. ‘The combined legacies of colonialism, idealism, socialism, war fueled by racism, economic collapse and structural adjustment (inspired by stout liberalism) have made a lasting impact on the structure of the economy’ (Tarp et al. 2002: 1). The purpose of this chapter is to provide essential historical and socio-economic background and summarize the key characteristics of the society and economy of modern Mozambique as a first step towards developing an institutional diagnostic. The aim is to offer overall framing and draw attention to the big picture story of Mozambique, including its challenging history, both pre- and post-independence; post-conflict progress in the 1990s; the increasing complexity and gradual institutional weakening to the present; and the small externally dependent economy character and
interlinked set of challenges Mozambique is facing.

Authors:

• Antonio S. Cruz, Independent contractor
• Ines A. Ferreira, Development Economics Research Group, University of Copenhagen
• Johnny Flentø, Development Economics Research Group, University of Copenhagen
• Sam Jones, UNU-WIDER; Development Economics Research Group, University of Copenhagen
• Finn Tarp, Development Economics Research Group, University of Copenhagen