Through the process of putting together data and insights about Mozambique, I have compiled several thoughts as to clear issues in the country, yet come against the giant roadblock of suggesting solutions, of which there are, of course, many. The challenge is not as simple as coming up with an answer to the problem, but rather finding the best right answer to fit the nation's specific need.
Perhaps an example will cary my point across with more ambiance. Mozambique is unlike Singapore or Silicon Valley, where the location has no natural resources to boast. In fact, the nation is home to a massive amount of natural resources, like agriculture, coal, and petroleum - so much petroleum, in fact, that it may end up competing with areas like Saudi Arabia for the largest reserves in the world (International Trade Administration, 2021). The reserve has the potential to create over $30 billion in exports in the years to come, which would more than double the national GDP, and increase total exports by nearly 600% (Observatory of Economic Complexity, 2019).
Many significant challenges present themselves, however, both in high taxation and poor data on government expenditure (PWC, 2021). The main challenge, however, lies in the civil unrest in the country, and the instability, which is causing global organizations to restrict free trade until those issues are fixed. Government stakeholders own the majority of the wealth, and an increase in exports, while it may slightly benefit low-income citizens, may simply make the rich richer.
The question now presents itself in full force: what is the "first" solution which creates the domino effect for all the rest of the solutions to take place? Is it a restructuring of government which produces the ability for more trade to enter the country? If so, how long will that feasibly take, and are the potential threats, such as a violent revolution (a very real possibility considering the current instability), going to outweigh the potential benefits of increased trade in the future? If the solution takes years, what are the solutions that should be put in place for people immediately?
References:
International Trade Administration. (2021, March 10). Mozambique—Oil & Gas. Mozambique - Country Commercail Guide. https://www.trade.gov/country-commercial-guides/mozambique-oil-gas-0
Observatory of Economic Complexity. (2019). Mozambique (MOZ) Exports, Imports, and Trade Partners. OEC - The Observatory of Economic Complexity. https://app-ant.oec.world/en/profile/country/moz
PWC. (2021, July 24). Mozambique—Individual—Taxes on personal income. Worldwide Tax Summaries. https://taxsummaries.pwc.com/mozambique/individual/taxes-on-personal-income
Daniel,
I enjoyed reading your post. It was concise, well developed, and you stated some interesting insights about Mozambique. You mentioned that much of the nation’s challenges lies in its issues of civil unrest which deserves attention since many of the world's poorest countries are experiencing, or have just experienced, large-scale violent conflict. In 2019, civil disturbance increased in 47 states (Reid, 2020). Moreover, Civil unrest in developing nations entail high human, economic, and social costs, and they are a key contributor to poverty and underdevelopment. Paraphs you can assess the issue of civil unrest and its causes in Mozambique in comparison to other poorer countries. This will help you determine and provide areas of improvement for Mozambique which it can utilize to be more competitive than its competitors.
Finally, based on what economics have observed, in order to possibly minimize the likelihood of civil disturbance, it is critical to promote inclusive development, eliminate disparities between groups, address unemployment, and diminish private incentives to combat terrorism through national and international regulation of illicit commerce. The Bible denotes civil unrest by stating “ No longer will violence be heard in your land, nor ruin or destruction within your borders, but you will call your walls Salvation and your gates Praise” (New International Version Bible, 2011, Isaiah 60:18).
References
New International Version Bible. (2011). Zondervan. https://www.kobo.com/us/en/ebook/niv-holy-bible-ebook.
Reid, D. (2020, January 16). Almost 40% of the world’s countries will witness civil unrest in 2020, research claims. Retrieved from CNBC website: https://www.cnbc.com/2020/01/16/40percent-of-countries-will-witness-civil-unrest-in-2020-report-claims.html.