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Abstract
Strenuous efforts by donors and lenders over four decades turned Mozambique from a socialist success story into a neoliberal capitalist one. The private sector dominates; a domestic elite dependent on foreign companies has been created. But a secret US$2.2 billion arms and fishing boat deal involving Swiss and Russian banks and Mozambican purchases from France, Germany, and Israel, with large profits on all sides, was a step too far down the donor’s capitalist road. The International Monetary Fund cut off its programme and western donors ended budget support.
Notes
1. Mozambique News Reports & Clippings, 316, 24 April 2016 and 318, 5 May 2016.
2. Eagleton-Pierce, Neoliberalism, 18.
3. Trader-Leigh, “Case Study.” There is a huge change management literature, but on resistance to change, see, for example, Bringseliu, “Resistance to Change,” 138.
4. Mozambique News Reports & Clippings, 319, 11 May 2016.
5. Hanlon, “Do Donors Promote Corruption?”
6. Mak, “Colonial Discourse in the Cold War.”
7. “Ten years without Samora,” Mozambiquefile (Maputo: AIM), September 1996, 3.
8. The United Nations General Assembly in 1974 adopted the Declaration for the Establishment of a New International Economic Order, and over the next five years there was substantial debate about how to shift the global economy to benefit the south, but the elections of Ronald Reagan in the United States in 1980 and Margaret Thatcher in the UK in 1979 brought the dominance of conservative and neoliberal economics and restored northern dominance.
9. Hanlon, Peace without Profit, 15.
10. Stiglitz, “Future of the Eurozone.”
11. Williamson, “What Should the World Bank Think,” 255–257, 262.
12. Stiglitz, “Future of the Eurozone.”
13. Speaking at a press conference in Washington DC, 12 April 2014, https://www.imf.org/en/News/Articles/2015/09/28/04/54/tr041214b, accessed 31 August 2016.
14. Kentikelenis, Stubbs and King, “IMF Conditionality,” 1, 24.
15. IMF, Republic of Mozambique: Staff Report.
16. World Bank, Mozambique Economic Update.
17. Fauvet and Mosse, Carlos Cardoso, 159; briefing to journalists 11 October 1986. He was killed in a still-unexplained plane crash in South Africa on 19 October 1986. Joaquim Chissano became president.
18. Landau, Rebuilding the Mozambique Economy, 11.
19. Landau, Rebuilding the Mozambique Economy, 63.
20. Castel-Branco and Cramer, “Privatization and Economic Strategy,” 160.
21. Hanlon, Mozambique: Who Calls the Shots?, chapters 1 and 10.
22. Hanlon, “Do Donors Promote Corruption?”
23. IMF, Republic of Mozambique: Third Review, 7.
24. World Bank, Mozambique Country Assistance Strategy 1995, 17.
25. Details of the banking crisis and scandal were published in Hanlon, “Bank Corruption Becomes Site of Struggle”; and Hanlon, “Matando a galinha dos ovos de ouro.”
26. Swarns, “Mozambique Pays for Capitalism.”
27. Domingo, Maputo, 2 Dec 2001.
28. Hanlon and Smart, Do Bicycles Equal Development, 121. On Norway, see NORAD's Good Governance.
29. Mozambique News Reports and Clippings, 160, 17 April 2010.
30. Smart and Hanlon, Galinhas e Cerveja, 162–163.
31. Orlando Macuáca, “Chefe de Estado deve liderara diálogo público-privado,” O Pais Economico, Maputo, 22 July 2016.
32. Centre for Research on Governance and Development, “Afrobarometer Round 5,” 36.
33. Transparency International, “Daily Lives and Corruption”.
34. Hanlon and Smart, Do Bicycles Equal Development, 103.
35. Hanlon, Peace without Profit, 49–50.
36. Noticias, Maputo, 19 February 1996.
37. This can also be interpreted as an incentive for privatisation. The cap is on the total wage bill, and it was pointed out that nurses working for private clinics and teachers at private schools are no longer government employees and thus were not covered by the cap.
38. Hanlon, “IMF Praise, but Salary Cap Remains,” Mozambique News Reports & Clippings 105, 9 Feb 2007.
39. Smart and Hanlon, Galinhas e Cerveja, 35–36, 82.
40. Hanlon, “Drugs now Biggest Business,” Metical (Maputo) 28 June 2001.
41. US Embassy, Maputo, “Management Notice 522,010,” 6 February 2010.
42. UNODC, World Drug Report 2015, xiv, 44.
43. World Bank, Mozambique Country Assistance Strategy 1995, 17.
44. Hanlon, Peace without Profit, 34.
45. Hanlon and Smart, Do Bicycles Equal Development, 42.
46. Hanlon and Smart, Do Bicycles Equal Development, 124, 178 note 7.
47. Hanlon and Smart, Do Bicycles Equal Development, 83–84.
48. Selemane, “Alguns Desafios na Indústria Extractiva em Moçambique.”
49. Quoted in Hanlon and Smart, Do Bicycles Equal Development, 180.
50. Hanlon and Mosse, “Is Mozambique’s Elite Moving.”
51. Ibrahim, “Africa’s Fish Are Being Plundered.”
52. ”Secret Security Debts Devastate Economy,” Africa Confidential, 13 May 2016.
53. “Retour en images sur la visite de François Hollande à Cherbourg,” La Manche Libre (Agneaux), 30 September 2013, http://www.lamanchelibre.fr/actualite-46146-retour-en-images-sur-la-visite-de-francois-hollande-a-cherbourg.html, accessed 1 September 2016.
54. “Secret Security Debts Devastate Economy,” Africa Confidential, 13 May 2016, http://www.africa-confidential.com/article/id/11658/Secret_security_debts_devastate_economy, accessed 1 September 2016.
55. Mozambique News Reports & Clippings. 235, 11 November 2013.
56. Mozambique News Reports & Clippings. 318, 5 May 2016.
57. For example, “Secret Security Debts Devastate Economy,” Africa Confidential, 13 May 2016.
58. Quoted in Mozambique News Reports & Clippings, 323, 25 May 2016. The interview was on BBC radio Woman's House (18 May), 20 minutes into the programme, http://www.bbc.co.uk/programmes/b07b9r10#play, accessed 1 September 2016.