United Nations

A/51/560


General Assembly

Distr. GENERAL  

25 October 1996

ORIGINAL:
ENGLISH


                                                        A/51/560
                                                              

General Assembly
Fifty-first session
Agenda item 21 (b) 


        STRENGTHENING OF THE COORDINATION OF HUMANITARIAN AND DISASTER
        RELIEF ASSISTANCE OF THE UNITED NATIONS, INCLUDING SPECIAL    
        ECONOMIC ASSISTANCE:  SPECIAL ECONOMIC ASSISTANCE TO          
                        INDIVIDUAL COUNTRIES OR REGIONS

                      Emergency assistance to Mozambique

                        Report of the Secretary-General

                           ASSISTANCE TO MOZAMBIQUE


                                 INTRODUCTION

1.   Peace has radically improved Mozambique's prospects for economic
recovery and development.  In 1993, just one year after the General
Peace Agreement, economic activity rebounded strongly with GDP
recording an impressive growth of 19.3 per cent as a result of the
vigorous recovery experienced by agricultural production, transport
and trade services.  In 1994 GDP grew at an estimated rate of
5 per cent.

2.   Humanitarian aid is still being delivered, however, although in a
much reduced form.  The emphasis has meanwhile clearly shifted from
emergency aid to the areas mainly for returning refugees and other
vulnerable groups, for rehabilitation, reconstruction and
reintegration and development.

3.   With a GDP per capita of about US$ 90, a life expectancy at birth
of 45.5 years, an adult literacy rate of 36.9 per cent and widespread
absolute poverty, Mozambique is a least developed country (LDC),
ranking 167 out of 174 countries in terms of the Human Development
Index compiled by the United Nations Development Programme (UNDP) in
its 1996 Human Development Report.  The under-five mortality rate is
282 per thousand live births, but fertility is high (6.4), so that it
is unlikely that the rate of population growth will fall below 2.5 to
3 per cent a year in the near future.  The country sorely lacks
skilled  human resources and entrepreneurial capacity.  Mozambique is also a
severely indebted low income country (SILIC):  in 1994, external debt
reached the unsustainable level of US$ 5.4 billion or 3.7 times GDP
and debt service before debt relief represented 117 per cent of
exports of goods and services.

4.   These difficulties are exacerbated by a situation of deep-rooted
structural problems that can only be overcome in the long run.  In
particular, there is an acute shortage of technological and management
skills in all sectors and at all levels, which constrains the ability
to apply knowledge and innovate.  The thin human resource base may
well represent the major bottleneck to sustained growth, development
and capacity-building.  Tied to this factor, the modern domestic
private sector is still embryonic and indigenous entrepreneurial
capacity is scarce, lacking capital and managerial expertise and
experience.


                UPDATE ON EMERGENCY AND HUMANITARIAN ASSISTANCE

5.   Coordination of emergency and humanitarian assistance.  Since 1987
the United Nations has played a prominent role in the coordination of
donor assistance to the Government's Emergency Programme, first with
the appointment of a United Nations Special Coordinator for Emergency
Relief Operations (UNSCERO) in the person of the UNDP resident
representative.

6.   Following the General Peace Agreement and the establishment of the
United Nations Operation in Mozambique (ONUMOZ) by the Security
Council, the responsibility for coordinating humanitarian assistance
was entrusted in January 1993 to the newly created United Nations
Office for Humanitarian Assistance Coordination (UNOHAC), and the
UNSCERO office was subsequently abolished.  UNDP contributed to
UNOHAC's activities through secondment of Professional staff and in
particular through the management of multi-donor funded demobilization
and reintegration support schemes.  With the dismantling of ONUMOZ and
UNOHAC in the end of 1994 UNDP reassumed the responsibility for
coordinating humanitarian assistance activities, including support to
reintegration and demining.

7.   War and drought, the principal factors of the emergency situation,
were overcome by early 1993 and the Government officially declared the
end of the emergency situation in the country.  Nonetheless,
humanitarian assistance continued due to the need to help returning
refugees, internally displaced persons and demobilized soldiers and
their dependents.  In addition, given the natural cycles of drought
and floods in the region, weaknesses of rural and urban
infrastructure, shortage of food stocks and seeds, generalized
poverty, and vulnerability of the majority of the economic agents, the
country will inevitably continue to face future emergency situations,
at the local level or nationwide, arising from natural calamities.

8.   In 1994, Mozambique received $131.8 million in food aid and
$13.6 million for other emergency non-food aid.  Although emergency
food aid continued high at $135 million in 1995, other emergency
non-food assistance saw a sharp drop for the same period to $10
million.  The largest part of the emergency food aid, $100.2 million
was channelled through the World Food Programme (WFP), followed by
bilateral cooperation programmes and individual country programmes,
such as USAID, and those of Canada, Australia and the Netherlands, in
that order.  Emergency food aid pledges for 1996 thus far are just
over $40 million.

9.   To move along the relief-to-development continuum, Governments and
donors have recognized the need for making the transition from a war
and emergency footing to peacetime reconstruction and development
planning.  Government efforts, therefore, are focusing more on the
management of rehabilitation and reintegration as well as on a medium-
term development strategy centred on sustainable human development. 
The Ministry of Planning and Finance has assumed a leading role in
this process.


                ASSISTANCE FOR RECONSTRUCTION AND DEVELOPMENT:
                        POLITICAL AND ECONOMIC CONTEXT

Political developments

10.  Today, Mozambique is a multi-party democracy.  In December 1994,
some two years after the signing in Rome in October 1992 of the
General Peace Agreement, the first democratically elected President
and Members of Parliament took office, and a new government,
constituted by the winning party, Frelimo, was designated by the
President of the Republic.

Microeconomic trends

11.  Starting in 1995, political and economic transition in Mozambique
has shown promising signs of a return to stability and normality: 
peace, national reconciliation and the vitality of the young democracy
have taken root; parliamentary performance improved noticeably; one
has witnessed an open, free and lively interface between government,
legislature and media; overall the social climate remained calm;
resettlement of internally displaced people and returning refugees was
consolidated; reintegration of demobilized soldiers has been
relatively free of major disruption; the mine-clearance programme
proceeded at a reasonable pace; reconstruction and economic reform
made further progress; the re-emerging domestic private sector has
become increasingly dynamic.

Economic and social situation

12.  In order to reverse the process of economic decline experienced
during the 1980s, the Government introduced in 1987 a comprehensive
stabilization and structural adjustment programme agreed with the
World Bank and the International Monetary Fund (IMF), and supported by
the donor community.  The primary aims of this ongoing programme are
to restore macroeconomic and external balances and to move the
economic system towards a market-based economy.

13.  The adoption of stabilization and adjustment policies coupled with
the associated inflow of aid brought about a significant improvement
of Mozambique's economic performance, with reduction of financial
imbalances and a positive change in relative prices laying down the
foundations of a market economy.  Nevertheless, it will take time
before the beneficial effects expected from adjustment via increases
in production and employment ameliorate the generalized poverty
situation in the country.  In fact, from 1987 to 1989 real GDP growth
averaged 9.8 per cent annually, but in 1990-1992 economic performance
deteriorated again, due largely to the continuing war, compounded by
the most severe drought in decades:  GDP rose only by 1.7 per cent
annually during this period.

14.  In post-war Mozambique, the peace dividends are yet to materialize
in any tangible way.  After the strong, but exceptional, recovery
experienced in 1993, in which GDP bounced by an impressive
19.2 per cent, GDP growth slowed considerably to 5 per cent in 1994
and an estimated 3 per cent in 1995.  In 1996 growth is projected at
4 per cent.  Given that Mozambique takes off from an extremely low
economic base and after factoring in population increases, the
prevalence of the recent trend of lacklustre growth performance would
translate into GDP per capita increases too modest to make a visible
contribution to, and to sustain, the goals of poverty reduction,
social sector development, reconstruction and restoration of external
viability.


                       RECENT DEVELOPMENTS IN MOZAMBIQUE

Macroeconomic trends

15.  Mozambique's macroeconomic performance in 1995 was modest.  Final
estimates indicate that real GDP growth was a mere 1.5 per cent (down
from 5 per cent in 1994), owing largely to a sharp contraction of
government services (down 38 per cent relative to 1994).  Such low
growth meant virtually no growth in GDP per capita, which stagnated at
the extremely meagre level of about US$ 90 per person.  Despite
dropping from a rate of 70 per cent in 1994 to 55 per cent in 1995,
inflation measured by the CPI for Maputo remained high, far exceeding
the original and revised targets for the year agreed with IMF under
the structural adjustment programme (respectively, 24 per cent and
34 per cent).

16.  In spite of the sizeable cuts in current and investment
expenditures to keep the budget indicators within agreed targets and
in line with shortfalls in foreign aid and tax revenues, the
Government managed to boost allocations to education and health as
part of the policy to shift resources from defence spending to inter
alia, the social sectors.  Current expenditure in education increased
by 20.8 per cent in real terms from 1994 to 1995 and its share in
total recurrent spending grew from 9.6 per cent in 1994 to
15.8 per cent in 1995.  Donor contributions to the sector amounted to
US$ 47 million, of which US$ 30.6 million were grants and the
remaining US$ 16.3 million were in the form of loans for investment. 
Similarly for the health sector, in which current expenditure rose by
14.5 per cent in real terms and its share in total current spending
increased from 4.8 per cent in 1994 to 7.5 per cent in 1995.  Here
donor contributions totalled US$ 81.1 million ($72.2 million as grants
and $8.9 million for investment).

17.  The external sector accounts displayed positive behaviour in 1995. 
Exports of shellfish, cashew nuts and other commodities increased by
13 per cent (to US$ 169 million) and imports fell by 23 per cent (to
US$ 784 million).  As a result, the current account deficit before
grants improved significantly, shrinking by 21 per cent to about $684
million.

18.  However, the debt situation did not improve.  Mozambique is
confronted with a huge and unsustainable debt overhang, which amounted
to US$ 5.5 billion at the end of 1995 or nearly 4 times GDP.  On
average, since 1992 debt service (before debt relief) has represented
125 per cent of exports in goods and services.  Clearly, to achieve a
sustainable debt position and regain external viability, Mozambique
will require exceptional debt relief and forgiveness.  As a result,
Mozambique will be one of the first countries with unsustainable debt
to be considered for support under the World Bank/IMF Debt Initiative
for Highly Indebted Poor Countries, the HIPC.

19.  The outlook for 1996 is equally modest.  Projected GDP growth for
the year is 4 per cent.  According to preliminary information for the
first semester, monetary and fiscal indicators are by and large in
compliance with the targets of the stabilization programme for the
year or have even been surpassed.


                              STRUCTURAL REFORMS

20.  Manifold and wide-ranging structural reforms are under way. 
Progress, however, has been constrained by the Government's weak and
overstretched management and implementation capacity.  Recent
developments concerning the most salient reform measures are
highlighted below.

21.  Agriculture policy.  Apart from the phased elimination of minimum
producer prices for food and cash crops and of the export tax on raw
cashew nuts, agriculture policy prioritizes the revitalization of the
smallholder (family) farm sector, the provision of seeds and tools,
restoration of rural marketing networks, rehabilitation of feeder
roads, and reform of land tenure arrangements.  An integrated sectoral
programme for the development of agriculture is under preparation and
should be completed by end-1996.  A new draft Land Law is currently
under thorough review in consultation with Mozambican society.  The
new law, to be enacted in 1997, is expected to recognize and ensure
security of customary (traditional) rights of tenure, permit trade in
land titles, and protect ecosystems through land-use planning.  Donors
provided $70.5 million grants and US$ 13.3 million as loans for a
total contribution of $83.8 million.

22.  Human development and poverty alleviation.  Key elements of the
Government strategy are to raise budgetary allocations to the social
sectors (see above) - notably to basic education and primary health
care - and to formulate and implement integrated sector programmes for
education and health.  An education sector programme is being prepared
with implementation due to start in 1997.  In 1995 the Government
adopted a health sector programme, based on a previously developed
National Health Strategy.  The Poverty Alleviation Unit in the
Directorate of Planning, whose aim is to ensure that poverty issues
and policies are consistently prioritized and taken into account by
the development planning process, formulated in 1995 a Poverty
Alleviation Strategy.  It is at present developing rural and urban
poverty profiles, and will conduct a national poverty assessment and
complete a Poverty Action Plan by mid-1997.

23.  Environmental policy.  The Government began implementing the
National Environmental Management Programme (NEMP), approved in 1995. 
Under development or in the planning stage are specific programmes for
managing natural resources (e.g., wildlife, fisheries and forests), a
water resource management strategy (including sanitation), and
environmental impact assessment legislation.  Grant aid to the sector,
a relatively new one for targeted assistance, was $1.4 million in
1995.

24.  Tax system and customs reform.  With a view to increasing budget
revenues and curbing corruption, the Government is in the process of
restructuring tax and customs administrations, streamlining the tax
structure and rates and preparing the introduction of a value-added
tax, planned for 1998.  In the context of the decentralization
programme, the Government is also finalizing draft legislation on
local finances aimed at the future municipalities.  The customs tariff
structure has been recently revised and simplified, as part of a
consultative process involving the private sectors and came into
effect at the end of June 1996.  A new pre-shipment inspection (PSI)
contract was signed in 1995 on private management of customs for a
period of three years.

25.  Banking sector reform.  Ongoing restructuring of the banking
system is dominated by the privatization of the two State-owned banks: 
the Banco Comercial de Moc'ambique, BCM (Commercial Bank of
Mozambique), which took place in July 1996; and of the Banco Popular
de Moc'ambique, BPD (People's Development Bank), which is scheduled
for end-1996.

26.  Private sector development.  In order to create an enabling
environment for private sector development and to reduce excessive red
tape, the Government's strategy centres on the simplification of
licensing and investment procedures as well on the removal of legal
and bureaucratic impediments to business.  In this context a Second
Private Sector Seminar was held in mid-June 1996 to review progress
since the first conference in 1995.

27.  Public enterprise sector restructuring.  The privatization of
State-owned enterprises has proceeded at a satisfactory pace, although
it has also led to a marked increase in unemployment, particularly in
the manufacturing sector.  By the end of 1995 the majority of State
farms had been privatized or closed down, 45 new private enterprises
had been established as a result of privatizing large State-owned
firms and 502 small- and medium-sized firms had also been fully
privatized or placed under private management.

28.  Transport sector.  Important deregulation and restructuring and/or
privatization plans are being considered, especially with regard to
the national airline company (LAM), the ports and railroads company
(CFM) and the petroleum distribution company (PETROMOC).  The physical
and operational rehabilitation of the transport corridors to the
hinterland countries has been in progress for some years.  These
transport links are key to the economic growth and integration of
Mozambique and the Southern Africa region.  In this respect, a major
initiative, the envisaged Maputo Development Corridor, was the subject
of a large and broadly representative international investors'
conference, held in Maputo in early May 1996 and opened by Presidents
Chissano and Mandela.

29.  Energy sector.  Two ongoing large projects will contribute to
substantially increase Mozambique's exports from 1997 onwards:  among
these the reconstruction of the power lines from the Cahora Bassa Dam
to South Africa and the development of the Pande gas field.


         PUBLIC ADMINISTRATION REFORM, DECENTRALIZATION AND GOVERNANCE

30.  The Government launched an extensive and ambitious public
administration reform and decentralization process aimed at improving
governance, increasing public sector efficiency, devolving powers to
local government, and generally strengthening democratic participation
in public sector management.  Key components of administrative
modernization and local government reform programmes are:  the
reorganization of civil service personnel administration and the
delegation of authority for human resources management to the
provincial governments; the revision of civil service pay, career and
incentive structures to enable the Government to recruit and retain
qualified staff; the design and implementation of an integrated public
administration training system; the rationalization and streamlining
of administrative systems, rules and procedures; the creation of urban
and rural municipalities endowed with political, administrative and
financial autonomy; the holding of democratic elections for the new
municipal bodies; the reorganization of central and provincial
governments; and the enforcement of rules and measures to combat
corruption in the public sector, which comprise a Code of Ethics for
Public Officials (including conflict-of-interest provisions) and the
establishment of a Higher Authority Against Corruption.  Two other
elements feature prominently in the efforts to improve governance: 
strengthening of the judicial system and reform of the civil police.

31.  However, in spite of donor support and encouragement, progress has
been slow in most of these areas for two main reasons:  lack of human
and financial capacity to manage such complex reforms; and political
sensitivity, which call for broad consultations and negotiations
involving Parliament and civil society, thereby further contributing
to the complexity of the reform process.


                                 EXTERNAL AID

32.  Mozambique's extreme dependence on foreign aid makes coordination
among donors critical.  Mozambique has selected the Consultative Group
Meeting (CG) arrangement, led by the World Bank, as the major overall
coordinating mechanism to enhance policy dialogue between the
Government and the donor community.  The CG meetings allow donors and
the Government to make joint reviews of the Government's development
policies and strategies, with special emphasis on economic reform. 
These meetings devote particular attention to the assessment of the
overall financial support required by Mozambique to implement and
sustain its structural adjustment, reconstruction and development
strategies, thereby helping to identify the targets of external
resource flows.  In this context, progress has been made in untying
aid.

33.  Foreign aid to Mozambique in 1994 corresponded to about
72 per cent of GDP, a high US$ 63 of aid per capita (that is, more
than twice the average for sub-Saharan Africa) and 2.7 times the value
of exports of goods and services.  External aid in the form of grants
and concessional loans financed 65 per cent of total government
expenditure and 78 per cent of public investment.  Free-standing and
investment-related technical cooperation amounted to 26 per cent of
total official development assistance (ODA).

34.  External financing requirements dropped over recent years and on
the whole they have been met by donor pledges made at the CG meetings. 
A total of US$ 1,043 million, excluding debt relief, was pledged for
1994 at the 1993 CG.  In fact, Mozambique received only US$ 825
million in the form of grants and credits to finance investment
projects and services (46 per cent of total), import support
(20 per cent), food aid (8 per cent), non-food emergency (3 per cent)
and special programmes associated with the implementation of the
General Peace Agreement (23 per cent).  These special programmes were
targeted at demobilization and reintegration of soldiers, resettlement
of returning refugees and internally displaced persons, mine clearance
and multiparty elections.  There was no CG meeting in 1994.  In 1995,
the full amount of external financing, again excluding debt relief,
committed at the CG for the year was US$ 780 million in grants and
loans, but actual disbursements were only US$ 574 million, broken down
as follows:  investment and services (54 per cent), import support
(31 per cent), food aid (12 per cent), non-food emergency (1 per cent)
and special programmes (3 per cent).  In the 1996 CG the non-debt
relief component of pledged financing amounted to US$ 567 million, of
which 52 per cent was allocated to investment and services,
32 per cent to import support, 10 per cent to food aid, and 6 per cent
to other programmes.  The declining shares of food aid and non-food
emergency in total external financing, reflect the recovery
experienced by the food crops sector as well as normal weather
conditions.

35.  During the 1996 CG meeting donors' interventions were
characterized by three "leitmotifs" or central themes:  need for
greater government accountability (as opposed to mere statements of
good intentions) and improved governance, most importantly to combat
corruption; need for more rapid economic growth to reduce poverty,
through boosting supply response; and need for deepening the
democratization process, through in particular multi-party local
elections.  The World Bank has initiated the appraisal phase for a
Third Economic Recovery Credit (TERM) to become effective in 1997.

36.  For 1995, according to government data, total estimated aid
disbursement by donors amounted to US$ 879 million, of which
16 per cent (US$ 145 million) went for emergency food aid and non-food
aid.  The bulk of the assistance (84 per cent or US$ 733 million) is
for reconstruction and development programmes, including areas in the
relief-to-development continuum such as reintegration and resettlement
of demobilized soldiers; refugees, internally displaced persons;
demining; commercial food aid, investments and support for the
balance-of-payment programme.


                        INITIATIVES IN AID COORDINATION

37.  Apart from CGs and ad hoc forums, the Government also promotes
in-country sectoral and thematic consultations involving line
ministries and leading donors in a particular sector or thematic area,
in the form of government-donor working groups.  This mechanism for
government-donor coordination, which has functioned with varying
degrees of success in a few sectors, 1/ provides a potentially
effective local forum for information exchange; joint review of issues
of policy, programming, monitoring and evaluation of projects and
programmes; overlapping activities; and allocation and mobilization of
financial and technical cooperation resources.  Within the CG process
three joint monitoring mechanisms were set in late 1994:  the
government-donor working groups on the budget and governance, and
bi-monthly government-donor meetings chaired by the Minister of
Planning and Finance.

38.  Coordination and cooperation within the local donor community has
moved significantly forward.  Donors met regularly to collaborate on
issues of common interest such as emergency relief and humanitarian
assistance, resettlement and infrastructure rehabilitation,
demobilization and reintegration, demining, support to the electoral
process, consolidation of the democratic process, and so forth.  In
the aftermath of the implementation of the Peace Agreement and as 
the country progressively makes the transition from a humanitarian
assistance and resettlement footing to reconstruction and development,
donors' collaborative efforts have been extended to encompass other
areas of mutual concern, concentrating more on support to economic and
social development strategies.


                    MAIN UNITED NATIONS SYSTEM INITIATIVES

39.  With respect to the United Nations system, the UNDP resident
representative in his capacity as resident coordinator (RC) chairs
regular inter-agency meetings to examine, coordinate and make
collective decisions on matters of policy, programming and management. 
To strengthen the role of the RC and coordination between agencies,
agreement was reached in February 1995 to establish a Field-Level
Committee, comprising of all resident heads of United Nations
agencies, in compliance with the coordinating mechanism foreseen in
General Assembly resolution 47/199 of 22 December 1992.  A Country
strategy note for Mozambique (CSN) was approved by the Government in
August 1995.  It is expected that the CSN will increase the
effectiveness of agency cooperation and the impact of interventions by
gradually putting into practice a concerted team approach in
responding to national priorities and programmes, especially through
harmonization of planning cycles and joint programming.

40.  During recent years, positive steps towards greater inter-agency
coordination of programming and operational activities have been
taken.  The members of the Joint Consultative Group on Policy (JCGP) -
UNDP, UNFPA, UNICEF and WFP - have worked closely with the World Bank,
other United Nations agencies and the donor community in the
programming and implementation of various activities.  Areas of
relatively effective cooperation include:  agriculture, forestry and
fisheries; food security; post-war reconstruction planning; road
rehabilitation, particularly with regard to feeder roads; rural water
supply and basic sanitation; population policy, survey and planning;
formulation of the UNICEF-sponsored National Plan of Action for
Children (NPAC); primary education; health sector, including maternal
and child health care, family planning, malaria control and AIDS
programmes; Agenda 21 and environmental management; emergency and
humanitarian assistance; capacity-building and technical cooperation
policy issues; and harmonization of terms for local recruitment
contracts.

41.  Finally, the role of the Office of the United Nations High
Commissioner for Refugees (UNHCR) has been paramount.  Notably with
cooperation from WFP and the International Organization for Migration
(IOM), UNHCR successfully conducted one of the largest refugee
repatriation and resettlement operations on record, covering about 1.7
million returnees, mostly from Malawi, Zimbabwe, Swaziland and South
Africa.

42.  UNDP.  The Mid-Term Review of UNDP's Fourth Country Programme held
in mid-1995 confirmed the continued relevance of UNDP's emphasis on
the building of national capacity to support reconstruction and
development, the transition to a full market economy and decentralized
State, and the consolidation of peace and democracy in Mozambique. 
The country programme's three original areas of concentration are: 
poverty alleviation and post-war rehabilitation; economic and
financial management, including decentralization; and environment and
natural resources management.  The implementation of the peace process
since the end of 1992 led UNDP to get actively involved in a fourth
area:  democratization and governance.

43.  In cooperation with other United Nations and donor agencies, UNDP
throughout 1995 pursued its management and coordination efforts
targeted at multi-donor funded programmes for poverty alleviation and
national reconstruction, particularly through assistance to:  the
formulation of a National Agriculture Development Programme (PROAGRI)
with emphasis on the family-farm sector (with FAO and World Bank); the
feeder-road programme (through UNCDF and with World Bank); basic
education (with World Bank); a donor pooling arrangement for the
health sector; basic sanitation; HIV/AIDS (with WHO); demining; and
the reintegration support scheme (RSS) for demobilized soldiers.

44.  Major initiatives in the economic management, public sector reform
and decentralization area included the assistance to the completion of
a comprehensive national Economic Management Capacity-Building
Programme (EMP), adopted by the Government in mid-1995, one component
of which is targeted at aid policy and coordination; the associated
Programme Support Document (PSD), which also contemplates the
formulation of a sustainable human development (SHD) strategy (with
UNICEF); and the continued support to reconstruction and development
planning at the provincial and district levels.  In the area of
environment and natural resource management, UNDP engaged especially
in:  the formulation of a PSD for the implementation of the National
Environmental Management Programme, NEMP (funded by the World Bank and
other donors); the introduction of a training programme under Capacity
21; and the support to the development of national policies and
programmes for the water, forestry and fisheries sectors.

45.  Within the democratization and governance area, UNDP assumed a
prominent role in the coordination and management of the donor
technical and financial support to the organization of the multi-party
elections in October 1994.  The principal coordination mechanism has
been the Aid-For-Democracy Group (ADG) of donors, chaired by UNDP,
which is the most representative and highest-level donor forum in
Mozambique, regularly attended by practically all ambassadors and
heads of resident missions of donor agencies.  After the general
elections the ADG decided to focus on post-electoral support to
democratic institution-building and good governance and requested UNDP
to coordinate in particular the formulation of concerted frameworks of
donor assistance to the new Parliament, police reform, organization of
local elections, independent media, the judiciary, and political
parties (to these through existing United Nations trust funds). 
During 1995 and early 1996 draft projects/programmes were developed
for the Parliament, civil police and media (with UNESCO), and
preparatory work has been done with respect to local elections and the
judicial system.  At a more operational level the ADG has currently
several sub-groups, chaired also by UNDP - the Parliament and Police,
Media, and Demining Donor Working Groups - and another sub-group for
the Media is envisaged.  A related grouping, the Government/Donor
Working Group on Governance, led by UNDP on the donor side,
concentrates on public sector and civil service reform,
decentralization, municipalization, local elections and combating
corruption.  UNDP reports to the ADG plenary on the work of the
sub-groups and governance working group.

46.  The trend in the use of UNDP resources has been to expand the use
of the programme or sector-based approach as illustrated by the cases
already mentioned above:  the Agriculture Development Programme
(PROAGRI), in its final formulation stage; the feeder-road programme;
the basic education programme; the Economic Management Programme
(EMP); and the support to the National Environmental Management
Programme (NEMP).  Similarly, government execution of projects and
programmes has increased in recent years to about 60 per cent of the
total in 1995.

47.  UNFPA.  Aside from the activities carried out under its most
important thematic areas - maternal and child care and family
planning, gender issues, follow-up on the International Conference on
Population and Development (ICPD), and support to the preparation of
the 1997 population census - during 1995 the United Nations Population
Fund (UNFPA) launched a comprehensive multi-sectoral population
programme in Zambezia Province.  This programme contemplates
inter alia a module for coordinating development aid at the provincial
level as well as training for capacity-building.  Relying on a
programme approach, the programme was formulated by a
multi-disciplinary team in close collaboration with the provincial
government and central government ministries and is executed by the
provincial government, thereby enhancing both ownership and
decentralization.

48.  WFP.  During 1995 the World Food Programme (WFP) prepared its
Country Strategy Outline (CSO), which is now with its Executive Board
for approval.  The CSO considered the CSN closely and will be the
basis for WFP to apply the programme approach in Mozambique by late
1996.  Its future programming activities will be in the sectors of
education, health, rehabilitation and capacity-building of the
Government's response to emergency situation.  Currently, WFP supports
activities in education through primary school feeding programmes in
vulnerable areas; the Feeder Roads Construction and Rehabilitation
programmes, using food aid as incentives to labour-intensive
construction brigades; a programme for Urban Basic Services
implemented in the Maputo area, and Health, with support to
therapeutic feeding in hospitals and to other feeding programmes being
implemented by NGOs.

49.  WHO.  In 1995 greater attention was given by the World Health
Organization (WHO) to the quality of management and systems
development rather than relying on a simply supply-oriented approach
to increase access to services.  In particular, WHO and other donors
supported the implementation of the Health Manpower Development Plan
1992-2002, prepared by the Ministry of Health.  WHO programme
implementation rates were quite good.  In fact, most projects were
able to expand their activities through the availability of additional
financial resources as a result of successful fund-raising activities
by the Ministry of Health.  WHO collaborates with a wide range of
donors and NGOs, for whom the health sector constitutes a priority of
their development assistance programmes, in the rehabilitation and
development of the sector as well as in the prevention and cure of the
many diseases that afflict the population (including AIDS).

50.  UNHCR.  The UNHCR Mozambique repatriation and reintegration came
to a successful end in June 1996, after supporting of more than 1.7
million refugees and the implementation of 1,575 micro-projects.

51.  UNICEF.  In the current 1994-1998 programme cycle, UNICEF supports
health and nutrition; education; water and sanitation; community
development; children in especially difficult circumstance;
information and social communication; planning, monitoring and
evaluation; and emergency relief assistance.  These eight programmes
are implemented through 30 projects with 147 activities
(sub-projects).  Each of the programmes are planned and implemented in
close cooperation with the sectoral ministries.  Implementation occurs
throughout the country with Governments and NGOs as implementing
partners.  Expansion of the UNICEF programme accelerated particularly
after elections in 1994 when remote areas became more accessible.

52.  For the most part, United Nations system assistance has been for
emergency food aid, the largest allocation, a small contribution
towards emergency non-food items, a similarly limited allocation to
investment, with the second largest part going to development
activities.


                                     Notes

     1/  Operative government-donor working groups include: 
agriculture, education, health, import support, public investment,
budget, governance and public sector reform, and "Aid-For-Democracy". 
The last one is essentially a donor group with occasional
participation by national entities, which has focused on
democratization, assistance to the electoral process and democratic
institution-building.


                                     -----
 

This document has been posted online by the United Nations Department of Economic and Social Affairs (DESA). Reproduction and dissemination of the document - in electronic and/or printed format - is encouraged, provided acknowledgement is made of the role of the United Nations in making it available.

Date last posted: 28 December 1999 17:35:10
Comments and suggestions: esa@un.org