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Posted on November 23, 2010

Mozambique Combats Poverty

Pristine beaches and rampant poverty are two characteristics that accurately describe Mozambique. The country, located in southeastern Africa, boasts 1,400 miles of Indian Ocean coastline, but Mozambique, and its 23 million people, is still trying to find a place in the world economy.

Not until the 1990s, after decades of civil war, did Mozambique begin to experience peace and stability. The economy has increased by eight percent over the last 15 years.

"We have an economy that is growing fast, has been growing fast for the last two decades. And, yet, poverty hasn't reduced at all in the last seven years," says Carlos Castel-Branco, an economist with the Institute for Social and Economic Studies.

It's an interesting phenomenon. How does a country with a fast growing economy still have an average income per person of less than $500 a year? It's because much of that growth comes from mega-projects like aluminum mining, which are owned by foreign investors. These profits leave Mozambique and do little to help the country's poor.

Many of the country's citizens--nearly 8 out of 10--earn a living through an "informal" economy, which consists of brute physical labor and street peddling. Open-air markets and street corners in the country's capital of Maputo are filled with vendors trying to make enough money to feed their family for a day.

Tourism is one sector Mozambique is trying to develop to retain some economic profitability within its own borders. The country features over 1,000 miles of beautiful beaches filled with white sand and crystal clear waters.

"Tourists will be the first industry in Mozambique. It has impact in roads, railways and ports. So, for me, it's the key industry in Mozambique," said Luisa Dias Diago, the former prime minister of Mozambique.

This video is the first of three reports that the NewHour's global health unit will file from Mozambique.

"There are people in this country that queue an entire day to be able to work, to get enough money to make a meal per day for their entire family. That's the level at which they live." --Carlos Castle-Branco, economist with the Institute for Social and Economic Studies in Maputo.

"If I don't sell any shoes, I will have to borrow money from my friends, then pay them back the following day, in the hopes that I will sell shoes." --Sarangue Macassi, citizen of Maputo

"You have whale sharks and mantas that are very prolific now. So, that's one of our really big draw cards. We have some of the best sightings of big game fish and marine fish anywhere in the world." --citizen of Mozambique

1. Where is Mozambique?

2. What is poverty? What are some harmful effects of poverty?

3. How can a country have beautiful beaches and natural resources, but still be poor?

1. What are some things that come to mind when you think of Africa?

2. What are some challenges Mozambique faces in trying to market its beautiful beaches as tourism destinations?

3. How could Mozambique's 1,400 miles of coastline be beneficial to the country's poor?

4. What do you think Mozambique could do to help ease the harmful effects of poverty?

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