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The Trails of Mozambique Mozambique which has in the past few months suffered extensive flooding is a southeastern African country that is bordered by the Indian Ocean on the east Encyclopedia The capital of this coastal country Mozambique is Maputo Encyclopedia There is about 1600 miles of Indian Ocean coastline to this African country Encyclopedia They also have over 60 rivers and lakes which are located throughout the country Potential Which is one of the reasons that they have Africas largest hydroelectric dams Encyclopedia With this large amount of water it helps their economic standing due to the fact that much of their revenue is generated by agriculture such as cotton sugarcane and tobacco to name a few of the major cash crops that they produce Potential They have over 36 million acres of fertile land that can be used to produce these crops yet only 10 of this land is in use at the this time with the other 90 they could increase their total revenue tremendously P otential In 1987 Mozambiques government started the Economic and Social Rehabilitation Program which reformed their economic system and started their Market Economy Policy A Market Economy is an economy that only private decisions of consumers resource suppliers and firms determine how resources are allocated Their basic goal is to gain financial stability on a national and international level Policy Some of the ways that they are trying to help their economy is by implementing a Monetary Policy Policy Monetary Policy is the use of a central bank to change the money supply to influence interest rates and assist the economy in achieving a full employment non-inflationary level of total output This has made an improvement in their economy Their economic growth rose from an average of 67 during 1987-95 to an average of 10 in 1996-98 while their inflation dropped an amazing 50 in 1995 to less than 1 Development They
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