§ Mr. HunterTo ask the Secretary of State for Foreign and Commonwealth Affairs what assessment he has made of the extent to which the economic policies of Mozambique have responded to the World Bank's report of June 1985 on the Mozambican economy.
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§ Mr. Chris PattenIn the aftermath of the World Bank's. report of June 1985 the Mozambican Government held extensive consultations with the bank and the International Monetary Fund on economic policy. They then embarked on a radical programme of liberalisation and economic reform. This covered, inter alia, agricultural prices, controls on the prices of other goods and services, freedom to trade, the exchange rate and monetary and fiscal restraint. There have now been further steps to adjust the exchange rate, increase producer prices, reduce the bureaucracy, improve financial management in government and put enterprises and the banks on a more commercial footing. Foreign investment is welcomed.
The economy of Mozambique has, within the limits imposed by constant guerrilla warfare, dislocation of communications and drought, responded positively to these measures. GNP growth in 1987 is estimated at 3 to 4 per cent., after years of stagnant or falling income.
§ Mr. HunterTo ask the Secretary of State for Foreign and Commonwealth Affairs what is his assessment of the extent to which Mozambique has benefited from joining the third Lomè convention (1984) and her improved access to European Community markets.
§ Mr. Chris PattenOver the five years to 1990 Mozambique will get 145 million ecu (about £100 million) in planned aid from the European development fund, in addition to benefiting from SADCC and other regional projects. Mozambique is also eligible for lending by the European Investment Bank, finance under the STABEX scheme, aid to heavily indebted poor ACP countries and emergency aid. Last year Mozambique received EDF emergency aid worth about £4 million.
Mozambique has not so far benefited significantly from the trade arrangements of the Lomè convention, but under it her industrial products and the great majority of her agricultural products can enter the Community free of tariff or other restrictions.
§ Mr. HunterTo ask the Secretary of State for Foreign and Commonwealth Affairs if he will make a statement, on the role of the Southern Africa development co-ordination conference as an agency for diminishing Mozambique's economic dependence on the Republic of South Africa.
§ Mr. Chris PattenThe Southern African Development Co-ordination Conference aims to enhance the economic prospects of its member states, and to give them greater freedom of choice in their economic relationships, by developing sectors of mutual economic benefit. The rehabilitation of transport routes through Mozambique under the auspices of SADCC will contribute to the country's development both through the foreign exchange they generate and indirectly through the establishment of ancillary economic activity. SADCC also aims to diversity the sources of goods and services in the region, to provide common research services in the natural resources sector and to encourage co-operation in attracting investment and tourism from outside the region. Mozambique should benefit from these activities as they develop.
§ Mr. HunterTo ask the Secretary of State for Foreign and Commonwealth Affairs if he will list United Kingdom contributions to Mozambican development through national, Commonwealth and European Community action since 1983.
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§ Mr. Chris PattenGross bilateral aid and the estimated British share of European Community aid to Mozambique since 1983 have been as follows :
£'000 1983 1984 1985 1986 Gross bilateral aid 1,805 4,182 8,366 7,424 Estimated UK share of EC aid 2,280 3,690 4,560 5,090 Figures for 1987 are not yet available In addition, the United Kingdom's share of expenditure from the Commonwealth special fund for Mozambique set up in 1976 was £17,637 in the year ending 30 June 1983, and £2,619 in the year ending 30 June 1984.