Announcement of Mozambique Well Placed To Achieve The Key MDGs Indicators By 2015, Says World Bank Report on December 19, 2006

Mozambique Well Placed To Achieve The Key MDGs Indicators By 2015, Says World Bank Report Contacts In Washington: John Donaldson (202) 473 1367 jdonaldson@worldbank.org In Maputo: Gregor Binkert (258 1)21-482335 gbinkert@worldbank.org Rafael Saúte (258 1)21-482324 rsaute@worldbank.org WASHINGTON, December 19, 2006 – The World Bank Board of Directors today discussed an IMF -World Bank advisory report on the Government of Mozambique’s Poverty Reduction Strategy Paper (PRSP) following discussion by the International Monetary Fund yesterday. The Government of Mozambique formally approved its revised Action Plan for Reducing Absolute Poverty (Portuguese Acronym PARPA; the Mozambican PRSP) in September 2006. The PARPA, a joint effort by the government, donors and civil society, is the operational plan for the government’s five year program (2005-09) and includes a strategic matrix of key indicators. These indicators will be fully integrated and monitored throughout the year. “This planning and monitoring process, a good practice innovation, will be a key issue for implementation,” Says Gregor Binkert, World Bank Country Economist for Mozambique. The Government PRSP, also known as PARPA II, has been prepared through broad-based consultations throughout the country with major stakeholders, including civil society. It is built on the experience of PARPA I, including several annual progress reports presented to the Boards of Directors of the International Development Association (IDA) and the International Monetary Fund (IMF). The advisory report welcomes that PARPA II objectives are consistent with the MGD targets. The PARPA II aims at reducing the incidence of poverty further to 45 percent by 2009. The report concludes that Mozambique appears well placed to achieve the key goal of halving the poverty rate by 2015 as long as growth remains roughly above 5 percent. Staff shares PARPA II’s view that sustained high, broad-based growth embedded in an environment of good governance is needed to reduce poverty incidence and improve service delivery in a sustained manner. The Report also points out that the quality of poverty diagnosis in PARPA II has improved considerably since PARPA I. PARPA II draws on the most recent households survey results and analysis, which allow comparison of trends over a five-year period. IDA, IFC and MIGA activities in Mozambique are all consistent with and supportive of the policy and investment goals of the PARPA, and the broad objectives, programs and processes of other donors. Apart from the 23 ongoing IDA credits or grants with a value of US$1009 million of committed funds in all major sectors, including Infrastructure Development, Education and Health, Public Sector Modernization, and Rural, Agriculture and Tourism Development, the World Bank uses the Poverty Reduction Support Credit (PRSC) to support the implementation of the PARPA, by annually channeling resources directly to the state budget that supports the PARPA implementation. ### For more information on the World Bank’s work in sub-Saharan Africa visit: http://www.worldbank.org/afr For more information about World Bank’s activities in the Mozambique country Website