Poverty in Mozambique: unraveling changes and determinants

34248 Africa Region Working Paper Series No. 87 Poverty in Mozambique: Unraveling Changes and Determinants Louise Fox Elena Bardasi Katleen Van den Broeck August 2005  Poverty in Mozambique: Unraveling Changes and Determinants Africa Region Working Paper Series No. 87 August 2005 Abstract The paper analyzes progress in poverty reduction in Mozambique between 1996/7 and 2002/3 using two cross-sectional national household surveys. The analysis shows that strong growth in household income has caused poverty to decline rapidly most broad groups - the agricultural and non-agricultural sectors and in urban as well as in rural areas. Improvements were recorded in both monetary and non-monetary poverty measures. One key factor in ensuring broad-based growth was that inequality did not change significantly so poverty reduction could be broad-based. But despite good progress, more than 50 percent of the population still lives in poverty. Lifting this group out of poverty will require continued broad-based growth and further expansion of social services. The Africa Region Working Paper Series expedites dissemination of applied research and policy studies with potential for improving economic performance and social conditions in Sub-Saharan Africa. The series publishes papers at preliminary stages to stimulate timely discussions within the Region and among client countries, donors, and the policy research community. The editorial board for the series consists of representatives from professional families appointed by the Region's Sector Directors. For additional information, please contact Momar Gueye, (82220), Email: mgueye@worldbank.org or visit the Web Site: http://www.worldbank.org/afr/wps/index.htm.  Authors'Affiliation and Sponsorship Louise Fox (lfox@worldbank.org) Lead Economist, World Bank Elena Bardasi (ebardasi@worldbank.org) Lead Economist, World Bank Katleen Van den Broeck (kvandenbroeck@worldbank.org) Economist, World Bank  Introduction and summary This background paper for the 2005 Country Economic Memorandum surveys Mozambique's progress in poverty reduction over the last six years. Using two cross