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Mid-Term Review of the AGIR Programme - Sida

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2 findings<br />

2 Findings<br />

2.1 RELEVANCE TO N ATIONAL PRIORITIES A ND<br />

THE POLITICAL CONTEX T<br />

Mozambique is among <strong>the</strong> fastest growing economies <strong>of</strong> <strong>the</strong> region. However, despite<br />

<strong>the</strong> continuous implementation <strong>of</strong> poverty reduction strategies over <strong>the</strong> last two decades,<br />

poverty remains <strong>the</strong> reality for many Mozambicans. A growing allocation <strong>of</strong><br />

budget resources is currently aimed at poverty reduction priority areas (health, education,<br />

agriculture, infrastructure, employment, social assistance, and good governance)<br />

- an increase from an average <strong>of</strong> 63% between 2007 to 2008 to more than 80% between<br />

2009 and 2011. 15 The current Poverty Reduction Action Plan (PARP) 2011-<br />

2014 aims at reducing <strong>the</strong> poverty rate to 42% in 2014. 16<br />

A considerable part <strong>of</strong> this funding has been formally channeled through General<br />

Budget Support (GBS) since 2000, accounting for 38% <strong>of</strong> <strong>the</strong> overall ODA (Overseas<br />

Development Agency) in 2010. 17 GBS has been one <strong>of</strong> <strong>the</strong> drivers for <strong>the</strong> implementation<br />

<strong>of</strong> <strong>the</strong> Paris Declaration on Aid Effectiveness and <strong>the</strong> Accra Agenda for Action,<br />

stimulating alignment with country programmes, public management systems and<br />

instruments, and donors´ coordination. In this regard, nineteen donors (<strong>the</strong> so-called<br />

<strong>Programme</strong> Aid Partners (PAPs)), <strong>of</strong> whom Sweden is one, have been providing general<br />

budget support in combination with a process <strong>of</strong> mutual accountability via Annual<br />

<strong>Review</strong>s and Planning meetings. 18<br />

Within Mozambique, accountability in key areas such as budget overview have increased<br />

due to public financial management reforms, however domestic accountability<br />

has generally continued to be weak. While civil society participation is both increasing<br />

and improving its capacity to stimulate or lead social change, it is still not at<br />

<strong>the</strong> necessary level to ensure strong demand-side accountability pressure. In an environment<br />

where donors provide around 39% <strong>of</strong> Mozambique’s budget, <strong>the</strong>re is <strong>of</strong>ten a<br />

15 Ministério das Finanças (2009). Relatório de Execução do Orçamento de Estado de 2008. Maputo,<br />

Ministry <strong>of</strong> Finance; Ministério das Finanças (2011). Conta Geral do Estado de 2010. Maputo,<br />

Ministério das Finanças, page 47; Ministério das Finanças (2012). Relatório de Execução do<br />

Orçamento do Estado de 2011 Janeiro-Dezembro. Maputo, Ministry <strong>of</strong> Finance. page 24.<br />

16 Republic <strong>of</strong> Mozambique Poverty Reduction Action Plan (PARP) 2011-2014. Approved at <strong>the</strong> 15th<br />

Regular Session <strong>of</strong> <strong>the</strong> Council <strong>of</strong> Ministers, Maputo, May 3 2011.<br />

17 See http://www.pap.org.mz/downloads/annual_review_2012/QAD_PAPS_2011_Eng.pdf.<br />

18 See http://www.pap.org.mz/downloads/annual_review_2012/TdR_RA2012.pdf.<br />

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