Table 1. Mozambique: Summary and Time Frame for Implementation
of
Macroeconomic and Structural Adjustment Policies, April 1999-March
2002
|
Sectors and Areas
of Action |
Policy Objectives |
Strategies and Measures |
Timing of Measures |
1. Fiscal
policy
|
| 1.1 Public Accounts
|
Improve coverage and transparency of public
accounts.
|
Include in the budget previously off-budget
expenditures that pass through the banking system.
|
Throughout
|
| 1.2
|
Record in the budget all foreign aid flows passing
through the banking system at the time of disbursement.
|
Throughout
|
| 1.3
|
Progressively remove institutional and legal
impediments to inclusion of off-budget revenue and expenditure flows in the budget.
|
Throughout
|
| 1.4
|
|
Make public a quarterly disaggregated budget
execution statement.
|
Throughout
|
| 1.5
|
Draft new system of public accounting and approve
the respective implementation schedule.
|
Draft system by July 1999; approve schedule by
September 1999
|
| 1.6
|
|
Formally close budget accounts (conta geral de
estado) and submit to legal auditing and approval procedures.
|
Annually, from December 1999 for previous
year
|
| 1.7 Fiscal management
|
Improve
expenditure prioritization.
|
Develop and approve (Economic Council) annually in
June medium-term expenditure framework for all significant sectors as part of the annual budget
preparation process; make public thereafter.
|
Throughout
|
| 1.8
|
Improve government cash management.
|
Prepare short-term forecasts of treasury cash flows and
communicate to Bank of Mozambique.
|
Throughout from
July 1999
|
| 1.9 Revenue generation
|
Rationalize tax system and broaden revenue
base.
|
Create recording system for exemptions on domestic
taxes.
|
September 1999
|
| 1.10
|
|
Examine options for the creation of a central revenue
authority.
|
March 2000
|
| 1.11
|
|
Complete computerization of at least 10 custom
clearance points.
|
September 1999
|
| 1.12
|
|
Review tax and tariff system and adopt position
towards rationalizing exemptions regimes.
|
March 2000
|
| 1.13
|
Strengthen tax and customs administration.
|
Extend usage of unique taxpayer identification number
from value-added tax (VAT) and domestic excises to personal and corporate income taxes and
customs duties.
|
March 2000
|
| 1.14
|
|
Strengthen auditing procedures, expand tax audit staff
by ten additional auditors, and conduct at least two training courses.
|
March 2000
|
1.15 Public enterprise
and assets
administration
|
Improve administration and mobilize
revenue.
|
Submit to the Council of Ministers a policy statement
regarding public enterprises and companies with majority public ownership.
|
March 2000
|
| 1.16
|
|
Prepare annual listing of the government's ownership
interest in companies and dividends received.
|
Throughout
|
| 1.17
|
|
Develop strategy on government shares in privatized
enterprises, including formulation of criteria for divestment.
|
June 2000
|
| 1.18
|
|
Develop plan to distribute shares held on behalf of
labor.
|
June 2000
|
| 1.19
|
|
Review performance contracts of all public enterprises
and revise them as needed to ensure improved services delivery and to rationalize flow of funds
with government.
|
CFM and EDM, December 1999; others, December
2000
|
|
2. Governance and public administration
|
|
| 2.1
|
Achieve greater accountability within
government.
|
Implement the action plans (Administrative Tribunal
and Inspectorate General of Finance) to strengthen the auditing function of the
government.
|
1999-2001
|
| 2.2
|
Raise the effectiveness of public service.
|
Complete evaluation of the impact of career streams
and salaries reform on retention and recruitment in the civil service.
|
December 2001
|
| 2.3
|
|
Prepare civil service regulations that include
performance standards and incentive mechanisms.
|
December 1999
|
| 2.4
|
|
Establish a code of administrative procedures in the
civil service.
|
December 2000
|
| 2.5
|
|
Formulate operational plan for Public Administration
Training System (SIFAP).
|
March 2000
|
| 2.6
|
|
Submit to Council of Ministers a strategic plan for
public sector reform, including a functional review of ministries.
|
June 2000
|
| 2.7
|
Ensure viability of social security system.
|
Develop regulations governing private pension
schemes.
|
April 2000
|
| 2.8
|
|
Complete actuarial analyses of the pension scheme of
the public sector and of the National Social Security Institute.
|
December 1999
|
| 3. Financial
sector
|
|
|
3.1 Financial market
development
|
Raise central bank's capacity for indirect monetary
management.
|
Authorize the Bank of Mozambique to hold regular
auctions of treasury bills, as needed for monetary control purposes.
|
December 1999
|
| 3.2
|
Strengthen clearance system.
|
Prepare payments system and infrastructure to switch
to electronic check clearing.
|
April 2000
|
3.3 Banking
supervision
|
|
Charge bank supervision with enforcing higher
standards for the quality and timeliness of banks' statistical reports.
|
September 1999
|
| 3.4
|
|
Raise the minimum standards for internal control of
commercial banks.
|
December 1999
|
| 3.5
|
|
Adopt new chart of accounts for commercial
banks.
|
December 1999
|
|
4. External sector
|
|
|
| 4.1 External debt
|
Strengthen debt management.
|
Strictly limit public sector foreign borrowing on
nonconcessional terms.
|
Throughout
|
| 4.2
|
|
Develop strategy for strengthening debt recording and
management.
|
June 2000
|
| 4.3 Trade policy
|
Reduce level and dispersion of import
tariffs.
|
Lower the top import tariff rate to 25
percent.
|
January 2002
|
| 4.4
|
|
Submit revised customs legislation to the National
Assembly (basic customs act; Customs Code; and law on customs tribunals).
|
December 1999
|
| 4.5
|
Complete an assessment of the remaining import
surcharges.
|
September 1999
|
| 5. Private sector
development
|
|
|
| 5.1
|
Improve regulatory environment.
|
Complete draft of new Commercial Code, covering
company and contract law.
|
August 2000
|
| 5.2
|
|
Submit to Parliament Commercial Code, Commercial
Register, and Incorporation Act.
|
July 2001
|
| 5.3
|
|
Publish annual report of Interministerial Commission
for Removal of Administrative Barriers in order to strengthen accountability.
|
From December 1999
|
| 5.4
|
Improve land-use rights.
|
Finalize and adopt regulations for urban land use.
|
December 1999
|
| 6. Judicial
reform
|
|
|
| 6.1
|
Increase capacity and effectiveness of legal
system.
|
Adopt strategic plan for justice system.
|
October 2000
|
| 6.2
|
|
Start effective operation of Center for Judicial Studies
and Training.
|
March 2000
|
| 6.3
|
|
Ensure dissemination of legal texts to legal
professionals.
|
From January 2000
|
| 7. Poverty
|
|
|
|
| 7.1
|
Raise focus on poverty in adopted policies.
|
Establish systematic technical review process,
reporting to the Council of Ministers, to consider the impact of major policy changes on
poverty.
|
March 2000
|
| 7.2
|
Improve targeting of expenditure programs.
|
Commence implementation of poverty action plan
(Linhas de Acção para a Erradicação da Pobreza) based on
operational matrix.
|
January 2000
|
| 7.3
|
|
Complete provincial poverty profiles.
|
June 2000
|
| 8.
Health
|
| 8.1
|
Improve coverage and quality of health
services.
|
Implement and monitor Health Sector Recovery
Program so as to increase provision of health service units per inhabitant. In particular, (i) raise
DPT coverage of population to 80 percent;
(ii) reduce index of geographic inequality in the provision of health care
services to below 2.8;
(iii) increase proportion of health posts/centers stocked with Essential Drugs
Program kits to 90 percent; and (iv) increase the proportion of health posts/centers staffed
with trained personnel to 90 percent.
|
Throughout
|
| 8.2
|
|
Increase (annually) current expenditures both in real
terms and as a share of total current expenditure in line with medium-term expenditure
framework.
|
1999-2001
|
| 8.3
|
|
Develop and approve new Health Sector Strategic
Plan.
|
December 2000
|
| 8.4
|
|
Develop and adopt National Multisectoral Strategic
Plan on HIV/AIDS.
|
June 2000
|
| 9. Education
|
|
|
|
| 9.1
|
Improve quality of, and access to, primary and
secondary education.
|
Implement and monitor the Education Sector Strategic
Program (ESSP). Attainment of its goals to be measured by improvement of 1-2 percentage
points annually in (i) gross enrollment rate; (ii) proportion of students in primary and
lower secondary schools passing key examinations; (iii) average repetition rate in primary
and lower secondary schools (reduction).
|
Throughout
|
| 9.2
|
|
Increase (annually) current expenditures on education
both in real terms and as a share of total current expenditure in line with medium-term
expenditure framework.
|
Throughout
|
| 9.3
|
Increase number of skilled professionals.
|
Develop strategy for tertiary education.
|
December 2000
|
| 9.4
|
|
Prepare a strategy for technical and vocational
education.
|
December 2000
|
| 10.
Agriculture
|
| 10.1
|
Improve allocation and effectiveness of public
expenditure.
|
Implement the agriculture sector expenditure program
(PROAGRI); maintain agricultural policy framework.
|
Throughout
|
| 10.2
|
Remove impediments to development of input
markets.
|
Complete study on constraints hindering
development of input markets (particularly seeds, fertilizers, and pesticides).
|
December 1999
|
| 10.3
|
Improve security of land tenure.
|
Identify outstanding valid land title applications in the
pipeline and adopt indicative timetable for their reduction.
|
January 2000
|
| 11.
Environment
|
| 11.1
|
Promote sustainable use of natural resources.
|
Prepare and adopt additional regulations that apply to
the environment law (including on waste management, environmental standards, marine
pollution, CFC emission, and protected areas).
|
December 2000
|
| 11.2
|
|
Establish environmental assessment review system
across ministries and initiate related capacity-building action plan.
|
June 2000
|
| 11.3
|
|
Develop integrated water sanitation and hygiene
strategy.
|
June 2001
|
| 12. Transport
and telecommunications
|
| 12.1
|
Improve sustainability and management of road
network.
|
Increase each year the government's share in financing
of periodic and routine road maintenance expenditures, and ensure a smooth flow of maintenance
financing.
|
Throughout
|
| 12.2
|
|
Reclassify road network, including previously
unclassified roads.
|
December 2000
|
| 12.3
|
|
Separate state construction units and plant pools from
road directorate and initiate privatization of the plant pools.
|
October 1999
|
| 12.4
|
Remove barriers to competition in transport and
telecommuni-cations.
|
Adopt regulations for coastal shipping associated with
the Maritime Law (Lei do Mar) to permit private sector entry.
|
December 1999
|
| 12.5
|
|
Submit to National Assembly telecommunications
legislation that would guarantee right of entry to private companies; complete implementing
regulations.
|
June 2000
|
| 13. Energy and
water
|
| 13.1
|
Improve access to electricity and water and reduce
costs.
|
Adopt regulations for implementation of electricity
law that clears the way for private sector involvement in generation and distribution of
electricity, and that establishes autonomous regulatory body.
|
December 1999
|
| 13.2
|
|
Commence implementation of plan for demand-based
water provision (Rural Water Transition Plan) in all provinces.
|
March 2002
|
| 14. Statistics
|
|
|
|
14.1 Compilation
of statistics
|
Improve quality, timeliness, and dissemination of
statistics.
|
Produce preliminary annual national accounts within 6
months of the end of the year. Produce final annual national accounts within 10 months of the
end of the year.
|
Throughout
|
| 14.2
|
|
Compile quarterly production indicators within 45
days of the end of the quarter.
|
Throughout
|
| 14.3
|
|
Adopt statistics master plan stating timetable of
priority data collection efforts (including redesign of INE's surveys), financing requirements, and
responsible executing agencies/INE departments.
|
December 1999 |
| 14.4
|
|
Adopt policy for public access to data and
dissemination of statistical information.
|
December 1999
|
|
|
