Peace without profit

About this book

"Where is the boom which should have followed the end of Mozambique's war? Post-war reconstruction is slow. The economic crisis continues. Peasants returned to the countryside; nobody came to buy their crops. Workers went back to their factories; there was no money to buy their products." "History demonstrates that deflation is the opposite of what is needed. Mozambique has followed the IMF/World Bank prescription of structural adjustment: free market and deflation; deregulation and demand reduction. Wages, credit and government spending have been cut. This stops Mozambique rebuilding. It even prevents an active role by the private sector." "The donors have launched an attack on the excesses of stabilization. In 1995 the representative of the donors launched an unprecedented attack on the Bretton Woods institutions. This book explains the donor case. There was even an unexpected fight between the IMF and the World Bank." "Can aid ameliorate the distortions imposed by the IMF? Mozambique is one of the first African countries to try to rebuild after the war under the burdens of structural adjustment. What lessons are there for other African countries which must follow: Liberia, Rwanda, Zaire, Somalia, Sudan and Angola?"--Jacket.