Millennium Challenge Corporation returns to Mozambique - AIM
Photo: O País
The 2001 Nobel laureate in Economics Joseph Stiglitz was the second participant to speak at the opening ceremony of the third MOZEFO [Economic and Social Forum of Mozambique] conference in the 3D Arena in Katembe, Maputo city.
Stiglitz addressed the theme “Mozambique and the future: Paths for sustainable development”. For the finance and economics professor, Mozambique, in the context of its discovery of significant natural resources in Cabo Delgado, should opt for the strategic, inclusive and sustainable management of these resources, in order to achieve prosperity.
According to Stiglitz, Mozambique should think about quality, inclusive growth, heeding lessons from reference countries in the exploitation of natural resources such as gas. This way, the 2001 Nobel Laureate in Economics said, it would be possible for Mozambicans to make a blessing of the natural resources that they have, by improving the well-being of the whole population.
Professor Stiglitz also suggested that, for Mozambique, this is the time to think about how to get what Asia has achieved with manufacturing in the past. From these lessons, and considering its promising future, the Nobel laureate predicted success for the country if it can increase the productivity of the agriculture sector, because this sector is capable of achieving better living standards and well-being for its population.
Later, in discussion with economist and former Finance Minister Abdul Magid Osman, Stiglitz argued that the market and the government should work together, as the state financial sector cannot perform optimally for everyone. So, there was a need to create a regulatory framework for banks to make financial allocations to less privileged sectors, he suggested.
In addition, Stiglitz believes that Mozambique should rethink its education system in rural areas, for example, so that farmers can be more knowledgeable. And Stiglitz said that, because the country has such strong agricultural potential, it should only shop abroad for goods which cannot be produced locally.
On this topic, Abdul Magid Osman said that the country seldom gave the impression that it could develop if a Mozambican rural family was better off with what it does, going on to stress the importance of investing in agriculture and the people who practice it.
Osman added that Mozambican SMEs could hardly consecrate themselves, because they cannot compete with foreign firms. To counteract this, he suggested that SMEs should be the focus of increased attention, with government programmes for growth. “Many SMEs will fail, but success depends on that too,” Osman said, noting that risk is a factor in investing to boost development.
Nobel prize winning economist Joseph Steiglitz made it clear at #MOZEFO today that the sustainable development is about inclusion, quality vs quantity, new models vs old recipes. #SDGs are the road map for all. pic.twitter.com/RWEnNHuAZR
— Andrea M. Wojnar (@DiagneAndrea) November 20, 2019
— Finn Tarp (@FinnsAngle) November 20, 2019
Thank you, @JosephEStiglitz for sharing this scathing analysis of ongoing attempts to stifle economic thought. Look forward to catching up at MOZEFO in #Mozambique soon. The End of Neoliberalism and the Rebirth of History by Joseph E. Stiglitz @ProSyn https://t.co/jU0yn7l56o
— Dmitry Pozhidaev (@DDPozhidaev) November 7, 2019
Joseph Stiglitz’s pessimistic take on impact of new hydrocarbon wealth in Ghana, Mozambique, Tanzania, Uganda (Slate): http://t.co/lcWvfHIq
— Howard French (@hofrench) August 12, 2012
Source: O País
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