Supporting the Policy Environment for Economic Development
SPEED+

Competitiveness in light of Mozambique's resource boom

Based on studies undertaken into the resource boom in the labor, agriculture, manufacturing and tourism sectors SPEED commissioned a Note about Dutch disease, its impact on other economies and possible ways of managing it. The Note provides a discussion of Dutch disease as a concept and then analyzes its impacts in Indonesia, Nigeria, Angola and Chile, as well as providing suggestions for policy options for managing Dutch disease in the Mozambican context

Some of the expected impacts of Mozambique natural resources’ boom are:  (a) labor prices rise; (b) skills becoming scarcer, and (c) exchange rate appreciates.  To assess the likely impact of Mozambique’s resource revenue boom SPEED looked at competitiveness issues in selected industries in Mozambique and prepared terms of reference for detailed studies. The report analyses of the potential impacts of the emerging resource boom on agriculture, tourism and manufacturing sectors.  Analyzing the difference between comparative and competitive advantage, it highlights the sectors at potential risk due resource boom impacts and negative pressures which could potentially hamper sustainability and competitiveness. This work led on to sector-specific studies in agriculture, manufacturing, tourism and labor which can be found elsewhere on this web site.

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