World Bank Chief Economist for Africa Discusses Development Challenges and Solutions for Mozambique

MAPUTO, October 22, 2008 – In addition to meeting with government officials, World Bank Chief Economist for Africa Shanta Devarajan devoted a significant portion of his two-day visit to Mozambique on October 20 to 22 to meetings with representatives of Mozambican civil society, including think tanks, academia, media, and members of the private sector.

Devarajan launched the two days of dialogue with a public lecture attended by more than 100 people and organized by Mozambican think tank AMECON, the Mozambique Association of Economists.

“Overcoming Government and Market Failures” was the theme of the lecture. It encompassed commentary on education and health and drew from World Bank data as well as from Bank funded projects in Africa, India, and elsewhere.

The lecture also offered solutions on government and market failures in developing economies. For example, Devarajan highlighted the importance of scaling up access to information at the community level in order to stimulate demand for accountability, a key factor in promoting better service delivery.

During his visit, Devarajan also attended a Development Dialogue workshop organized by the World Bank office in Maputo. The workshop, an informal outdoor gathering at World Bank office in Maputo, brought together Bank experts and members of civil society for a lively two-hour debate on country specific and wider development issues.

Devarajan discussed the role of civil society in development and why civil society was instrumental to the work of governments, communities, the World Bank, and the development community as a whole. “Pro-poor reforms will only come about if there is a domestic political consensus for it. This consensus will emerge only if there is an evidence-based debate. Civil society can help nurture that debate by contributing to the evidence-base, as well as participating in it”, said Shanta.

                                               
Over the course of Devarajan’s visit, participants at both the Development Dialogue and the lecture asked questions about the work of the World Bank in Mozambique. Some questions focused on the current financial crisis and its implication for both development aid and foreign direct investments in Africa, and role of agriculture as the engine of growth in Africa. Also discussed were topics including: harmonization and the Paris declaration; environment; population versus economic growth; effects of floods, droughts, and erosion on development efforts in Mozambique; and many others.

The World Bank in Mozambique meets monthly with members of civil society to discuss themes of interest on both sides. Topics range from macroeconomics, to the food and fuel crisis, budget support, water resources management and HIV/AIDS, among many others.