CEEG Seminar Series: Presentation of IGM conference posters on natural resources exploitation and the evolution of poverty in Mozambique

The 11 December CEEG seminar session consists of two recent conference posters produced under the Inclusive growth in Mozambique (IGM) programme. The first poster, titled ‘The anatomy of the presource curse’, is presented by Marcelo Mucocana, UNU-WIDER Research Assistant, and Vasco Vilanculo, Research Assistant at the Center for Economic and Management Studies (CEEG). The second, focusing on the evolution of poverty in Mozambique, is presented by Hilário Muchabel and Telça Massingue, both Research Assistants at UNU-WIDER.

The seminar is part of the CEEG Seminar Series, organized under the IGM programme. The seminars offer a forum to share and discuss ongoing research on topics related to the work of the IGM programme and to foster a culture of research at the faculty and at UEM in general.

The seminars take place at the Faculty of Economics of the University of Eduardo Mondlane (UEM). They are public and open to all. The presentation is in Portuguese.

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About the studies

‘The anatomy of the presource curse’ investigates the initial conditions and factors that can trigger the transition to the resource curse in nations rich in natural resources. This poster focuses on Mozambique, analysing the early signs and underlying dynamics that precede the economic and social challenges often associated with resource abundance. To this end, it examines the cases of coal and gas in Tete and Cabo Delgado Provinces, respectively. The poster highlights the importance of strategic interventions, such as economic diversification, institutional strengthening, and effective management of expectations, to prevent the full manifestation of the resource curse. It offers a detailed analysis of preventive measures that can be implemented to ensure that resource wealth translates into sustainable development and economic prosperity.

‘The evolution of poverty in Mozambique’ summarizes IGM programme research on multidimensional and consumption poverty, using IAF/IOF data from 1996/97 to 2019/20. The cost of basic needs and the Alkire-Foster approach are used to assess consumption and multidimensional poverties, respectively. This poster identifies that while consumption poverty is based only on real consumption, multidimensional poverty considers multiple indicators: health, education, housing quality, ownership of durable goods. For both types of poverty, a cutoff is established to distinguish between poor and non-poor households. Data shows that consumption poverty (CP) decreased from 70% in 1996/97 to 46% in 2014/15, but then increased sharply to 68% in 2019/20. Simultaneously, multidimensional poverty (MP) steadily improved 33p.p. in 2019/20 (about half of its 1996/97 level). Rapid economic growth is associated with consumption poverty reduction until 2014/15, and socioeconomic and climate shocks are associated with consumption poverty increase after 2014/15.