EU’s external aid effectiveness, in the light of the Evaluation of the
EU funded project Limpopo Railway Line – Rehabilitation of
Facilities in Mozambique
Supervisor: Per Lunde
Submitted by: Florentina Gabriela Anton
Submitted on: 16th of January 2012
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Table of Contents
1.
Introduction ........................................................................................................................ 4
1.1.
Problem presentation ............................................................................................................. 4
1.2.
Key concepts .......................................................................................................................... 5
1.2.1.
Aid Effectiveness ........................................................................................................... 5
1.2.2.
Development ................................................................................................................... 8
1.3.
Mozambique............................................................................................................................ 9
1.4.
EU’s aid support to SubSaharan Africa and Mozambique ................................................ 10
1.5.
Limitations ............................................................................................................................ 12
2.
Methodology ..................................................................................................................... 14
2.1.
Project design ...................................................................................................................... 14
2.2.
Case study ............................................................................................................................ 15
2.3.
Data and sources ................................................................................................................. 15
2.4.
Analysis structure ................................................................................................................ 16
3.
Theories ............................................................................................................................. 17
3.1.
Development Theories ........................................................................................................ 17
3.2.
Modernization Theory ......................................................................................................... 18
4.
Analysis ............................................................................................................................. 21
4.1.
Limpopo Railway line – Rehabilitation of Facilities Evaluation ......................................... 21
4.2.
EU aid to SSA ....................................................................................................................... 23
4.3.
Mozambique’s progress ....................................................................................................... 25
4.4.
EU’s Aid effectiveness ........................................................................................................ 27
5.
Conclusions ....................................................................................................................... 32
6.
Bibliography ..................................................................................................................... 34
6.1.
Books and reports ................................................................................................................ 34
6.2.
On-line resources ................................................................................................................ 34
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Abbreviation list
AAA
Accra Agenda for Action
ACFID
Australian Council for International Development
AfBD
African Bank for Development
EC
European Commission
EDF
European Development Fund
EU
European Union
IMF
International Monetary Fund
LRL-RF
Limpopo Railway Line- Rehabilitation of Facilities
MDGs
Millenium Development Goals
ODA
Official Development Assistance
ODAmoz
Official Development Assistance to Mozambique Database
PDAF
Paris Declaration on Aid Effectiveness
PNoWB
The Parliamentary Network on the World Bank & International Monetary Fund
SSA
SubSaharan Africa
UN
United Nations
WB
World Bank
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1. Introduction
For many years, the SubSaharan African countries’ economies have been targeted in developing
programmes by the EU aid instruments, USAID, World Bank, UN and many other donors, with
the main purpose of ensuring development and poverty reduction.
Although the amounts allocated for development programmes implemented in the SSA countries
have been substantial: around 315 billion USD over the past ten years1; according to ‘The 2010
European Report on Development’, there have been registered slight grow rates of only 5% in
the SSA countries' economies between 2000 and 2008. Moreover, these rates have dropped at
half of their value in 2009: 2.5%growth rate.2
Indeed, even if considerable amounts of money have been allocated to development programs for
the SSA countries or transferred as budget support to the different Governments in Africa, there
is still a high rate of poverty and things are hardly evolving for the African population.
While there are some countries that could be given as examples in lines of progress, such as
Ghana, Kenya or Gambia, many of the SSA countries are not included in this category and some
of them, as for instance Mozambique, are among the poorest in the World.
This paper is academically relevant as it presents the recent development of Mozambique from
the EU’s aid effectiveness perspective, connecting the factual findings through the modernization
theory, which is mainly concerned with the relation between developed and developing
countries; and even more specific is addressing the aid chanelled from developed to developing
countries subject.
1.1.
Problem presentation
As stated above, many international bodies have been concerned with the development of the
SSA countries, among which EU has been very active in financing these types of programmes.
Having directed billions of Euros to external aid programs and foreseeing other billions to be
allocated in the near future, one question becomes legitimate: To what extent is the EU external
Aid efficient?
Clearly, this is a very wide question, which can generate numerous discussions. Therefore, this
paper will approach it in the light of the Evaluation of the ‘Limpopo Railway Line –
One: The Data Report 2011
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1
2
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Rehabilitation of Facilities’; an EU funded 5.178 million EUR (aprox. 6.68 mil USD) project
implemented in Mozambique.
This particular project has been chosen, as it is part of the process of rehabilitation of the
Limpopo Railway Line, that has become extremely difficult and very expensive. It has been
extending over the last 20 years, receiving considerable funds from many donors; 5.5 million
USD being spent by USAID only for its rehabilitation after the floods from 2000. Apart from
that, the EU and other national and international donors have been constantly funding
rehabilitation works of this railwayline and its facilities.
Therefore, considering all the above leads to the problem formulation of this paper: "To what
extent is EU’s external aid to Mozambique effective seen in the light of the Evaluation of
Limpopo Railway Line – Rehabilitation of Facilities?"
Subquestions:
1. Has the project been implemented successfully in lines of effectiveness?
2. Has there been a notable progress in the general development of Mozambique since the
setting up of the MDGs ( in 2000)?
While the answer to the first sub-question is straight-forward and can be easily drawn from the
Evaluation Report that will be explained in this paper; the answer to the second sub-question is
wider and will imply ample discussions and research regarding Mozambique’s level of
development, as well as the funds allocated for its support.
As the major objective of the EU external assistance is to reduce poverty, in order to answer at
the problem formulated above, it will be necessary to take a look, as well, to the statistics and
indicators of poverty in Mozambique, in particular and in SSA, in general.
1.2.
Key concepts
This section is relevant for understanding the context of the project, as here will be presented two
central concepts to this paper, namely ‘Aid effectiveness’ and ‘Development’.
1.2.1. Aid Effectiveness
Aid effectiveness is regarded as a tool for enhancing the elaboration of ‘joint EU country
strategy papers and multiannual programmes’3. In this respect, the European Commission
coordinates status at two different levels: internal, with EU member states and external, between
EU and other internal donors, seen as partners, such as AfDB, WB and bilateral donors.
3
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The issue of donors’ aid effectiveness, in general and EU’s aid effectiveness, in particular has
been investigated in many papers and have been made many recommendations its improvement,
since the beginning of aid programmes in the ‘60s (Doucouligos & Paldam, 2007, p.4). Beside
the scholars’ and researchers’ articles and papers, the issue of aid effectiveness has also been
analysed in official reports of international donors, such as the EC, the WB, the USAID.
Following the reports that indicated the necessity of increasing the effectiveness of externally
directed funds, it has been elaborated the Paris Declaration and, afterwards, the Accra Agenda,
which will be described in this sub-section.
In the Paris Declaration on Aid Effectiveness (PDAF) are stated the five principles help
improving aid effectiveness; organized into a pyramid comprising also the associated actions4:
Managing for Results
4
5
1
Ownership
Partner countries
Partners set
2
Aligning with
partners'
agenda
Alignment
Donors-partners
Using partners'
systems
3
Harmonization
Donors-donors
Establishing
Simplifying
Sharing
common
procedures
information
arrangements
Source: Aid Effectiveness 2005-2010: Progress in Implementing the Paris Declaration
4
Aid Effectiveness 2005-2010: Progress in Implementing the Paris Declaration, OECD, 2011
Mutual accountability
the agenda
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 The first pillar, ‘Ownership’ refers to the developing countries governments’ capacity to
lead the development of strategies and to coordinate the planned actions.
 The second principle, ‘Alignment’ refers to the capacity of donors to prove aid according
to the receipient’s needs and priorities
 The third principle, ‘Harmonization’ is stating the need for diminishing aid division, as
the distinctive modalities of donors to provide aid have become a burden for the partner
countries and acknowledges the need for transparency in aid rapports.
 Finally, the forth and fifth principles stated in the PDAF claim for ‘stronger management
for development results alongside efforts to strengthen mutual accountability’5.
Following the provisions of the PDAF, during an EU-US summit in November 2010, has been
elaborated ‘The Joint Statement’6, according to which the EU and the US are developing a joint
work plan, based on the division of labour in each country, transparency and accountability.
The Accra Agenda for Action (AAA)
The AAA is a global agreement which aims to improve aid effectiveness, while stressing the
necessity of particular reforms in the aid sector. Being considered complementary part of the
implementation of the PDAF, the AAA has been issued following the Accra Third High Level
Forum on Aid Effectiveness, which took place in Ghana in September 2008.7
Further to the principles layed down in the PDAF, the AAA comprise four other principles, as
follows8:
 Predictability – According to which donors must present a 3 to 5 years plan regarding
their aid to partner countries
 Country system – the first resort in providing aid will be partner country system,
considered above the donor system
 Conditionality – the base of donor’s aid will be the partner countries’ development
objectives
 Untying aid – the donors must loosen up the restrictions concerning the providers of good
5
Aid Effectiveness 2005-2010: Progress in Implementing the Paris Declaration, OECD, 2001, p. 85
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7
ACFID website
8
PNoWB website
6
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and services for the developing countries
1.2.2. Development
According to an universal dictionary, the notion ‘development’ has multiple meanings9:
o ‘the act or process of developing, growth; progress
o a significant consequence or event
o a developed state or form
o Music: the part of a movement or composition in which a theme or themes are developed
o A large group of private houses or of apartment houses, often of similar design,
constructed as a unified community, especially by a real-state developer or government
organization.’
On the other hand, in a business dictionary, this notion has also many different meanings,
however slighty different from the ones mentioned above, namely10:
o ‘the systematic use of scientific and technical knowledge to meet specific objectives or
requirements
o an extension of the theoretical or practical aspects of a concept, design, discovery or
invention
o the process of economic and social transformation that is based on complex cultural and
environmental factors and their interactions
o the process of adding improvements to a parcel of land, such as grading, subdivision,
drainage, access, roads, utilities’
In this paper, the notion of development will be approached in the light of social science,
addressing the issues of interest to developing countries, emphasizing on the aspects of
international development, economic development and social development.
9
www. dictionary.com
www.businessdictionary.com
10
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1.3.
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Mozambique
Mozambique is a country in South-East Africa, with an area of 801,590 km2 and a population of
aproximately 23 million.11
Former Protuguese colony for almost 500 years, Mozambique has proclaimed its independency
in 1975, becoming the People’s Republic of Mozambique. But after gaining its independency, the
country has been the scene of an intense civil war for approximately 15 years, which has
prevented the healthy development of the country, leading Mozambique to be the poorest country
in the world in 1995 and 1996.( Tarp, Finn; 2002)
Following the end of the civil war in 1992 and the democratic elections in 1994, the
Mozambican economy has registered an average growth of aproximately 9%12 in the decade up
to 2007, representing one of the strongest performances in Africa; but the economic growth rate
has decreased during the global economic crisis, when the drop of the aluminum prices has
affected the Mozambican economy, heavily reliant on aluminium, accounting about 1/3 of all
exports.
Although the economic growth has been strong and sustained, even during the economic crisis –
4.5% growth in 200913; Mozambique it is still among the poorest countries in the world, with a
poverty rate of 54%14 and 31% of the population having access to improved sanitation facilities.
The same poor statistics are measured as well in lines of Human Development, where despite the
economic growth and the external aid, the numbers put Mozambique within the lowest 5%15.
Furthermore, Mozambique remains extremely reliant on foreign assistance and even if this
assistance has helped the country in improving the trade balance, it did not have a significant
contribution in increasing employment rates or tax-income in the country, preserving of the main
imbalances of the Mozambican economy, as population’s income, economic competitiveness and
flexibility of labour markets put Mozambique among the last countries on these criteria.
At country level, the high rates of poverty have been addressed by strategies of the Government
of Mozambique, which in 1999 has prepared an Absolute Poverty Reduction Strategy (PARPA)
and after being revised, it has been presented as a basis for donor support between 2000-2005.
This became known as PARPA I and following it, PARPA II has been issued for the period
11
in 2010, World Bank
Intelligence Agency website
13USAID website
14USAID website
12Central
15
Clifton, John et al, 2007, p. 2
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2006-2010. The agendas of both PARPA targeted the enhancement of human development and
extensive economic growth and the strategies became very useful in international donors
coordination and in the harmonization of donors programmes with gonvernment’s objectives.
(Louise Fox et al., 2008, p. 2& 240)
Regarding the main economic indicators, according to an Evaluation of EU support to
Mozambique issued 2007, these have known a notably progress, as follows16:
If before 1994 the commerce of Mozambique was very poor, since that year it has
registered a remarkable growth, both in lines of exports and imports levels and in lines of
enhancing trade relations, especially within the SADC region; reducing the trade balance
deficit from 13.1% in 2003 to 6.9% in 2006.
The external debt of Mozambique, which was at the level of 170% of GDP in 1997 has
also known a decrease of approximately 50% over a period of 15 years. Although this
reduction is remarkable, the budgetary deficit remains at unsustainably high levels,
mainly due to the improbability of expanding domestic saving. However, this significant
reduction occurred partly due a debt release of approximately 4 million USD between
1999 and 200117 as part of the ‘Heavily Indebted Poor Countries Initiative’ of the IMF
and the World Bank.
Mozambique has experienced in the recent years macro-economic stability, mainly due to
the external financial assistance which accounts for around 50% of the budgetary needs
Another indicator that has known a dramatic improvement is the inflation rate, which has
dropped from 47% between 1988 and 1996 to below 11% in 2004. Although its value
was situated at 12% in the year 2006, it is expected to reach the value of 5% in 2014.
However, this positive aspect of the economy comes with a price, in this case high real
interest rates.
1.4.
EU’s aid support to SubSaharan Africa and Mozambique
The primary source for EU assistance to SSA region (excluding South Africa) and to the
countries in Carribean and Pacific region is the European Development Fund (EDF). This fund,
which is separate from EU budget, is targeting the ACP countries, namely, the 79 countries in
16
Clifton, John et al, 2007, p. 10
IMF, 2007; p.45
17
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SSA, Carribean and Pacific and for over 50 years is providing support these signatories of the
Cotonou Agreement18 (also known as the ACP-EU Partership Agreement).
Apart from the EDF, there are also other sources of funding, such as EU’s budget support to
South Africa, sugar and banana producing countries and Greenland; as well as funding for
international thematic programmes.
In 2010 the funds for the above mentioned countries or group of countries where divided as
follows: (a) 3.32 billion EUR for 39 annual action programmes for the ACP countries;(b) 152
million EUR for 11 annual action programmes for support measures to Sugar Protocol countries;
(c) 143.7 million EUR for South Africa and (d) 27.9 million EUR for Greenland.19
The European Commission is continuously taking measures to enhance aid effectiveness in
Africa, but the level of donor coordination depends on each country and on the number of donors
in it. In countries where the number of donor is restricted, the EC is playing a leading role, i.e. in
the Central Republic of Africa, the EC is the leader in many sectors at the same time and in
Ethiopia, Mali, Mozambique and Tanzania, the EC is the primary facilitator concerning the
division of labour.
In Mozambique, the number of bilateral and multilateral donors which provide budget support is
of nineteen, also known as G19. Some of these donors started to assist the Mozambican economy
through budget support programmes since the late ‘90s and following the PDAF, they have
established a coordinated approach for budget support that had as finality the formalization of a
‘Common Framework Agreement for Joint Donor Program for Macro-Financial Support
between the government and bilateral donors’ in 2000. Later, in 2004, this Agreement has been
substituted by the ‘Program Aid Partners’, an agreement between the Mozambican Government
and the donors, in the light of direct budget support. (Clément & Peiris, p.252)
It should be noted that the Government has to comply with a ‘performance matrix’ and with
underlying principles in order to receive the support without interruptions. In this light, an
evaluation on the performance of the governmental actions is carried every year for the activity
developed in the previous one; in the eventuality in which the government does not achieve a
satisfactory implementation of the funds, the support would be put on hold for the year to follow,
in which the Government must implement remedial measures. Furthermore, if any of the
18
Agreement signed in 2000 and entered into force in 2003, has been made for the period until 2020 and is subject to
revision every 5 years.
19
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principles of governance is breached, aid allocations are subject to interruption. (Clément &
Peiris, p. 254)
In 2007, the hard years of work of the Government of Mozambique and its partners in improving
the economic performances of the country, have had as result the upgrading of Mozambique,
from a program sustained by IMF’s Poverty Reduction and Growth Facility to a program
supported by IMF’s Policy Support Instrument, mainly based on its past performance of
macroeconomic stability and policy performance. (Clément & Peiris, p. 255 - 256)
Apart from this, in 2005 Mozambique has been given as example by the World Bank with
respect to the development of a Poverty Reduction Strategy, through which the role of the
Government in leading the process of highlighting priority measures for the poverty reduction
has been increasing, facilitating at the same time the allocation of budget support sharing and the
performance assessment.( Clément & Peiris, p. 257)
1.5.
Limitations
In this section the focus will be on the difficulties encountered in realizing the project and on
explaining the selection of the subject, theory and sources.
The choice of the subject for this project, the EU’s aid effectiveness in the light of an EU funded
project in Mozambique, has been made under the influence of my internship experience.
Working mainly with EU funded projects and learning more on the modalities of EU’s external
aid allocantion, as well as the amounts transferred under various aid instruments has awaken the
interest in investigating on their effectiveness. Furthermore, a research on previous projects
implemented on behalf of the EU has drawn my attention on a particular evaluation of a project
implemented in Mozambique, which outcome turned out not to be effective: The Limpopo
Railway Line- Rehabilitation of Facilities (LRL-RF). Even if this project is part of a high
percentage of EU funded projects that have encountered problems or major difficulties in lines of
effectiveness, I consider it relevant in investigating the matter of aid effectiveness in
Mozambique, which is a poor country that receives a large share of the EU’s financial aid: it
ranks 4 in the SSA countries in lines of amounts received through EU’s aid instruments.
Further on I consider that the theory chosen for analyzing this issue, namely the modernization
theory, is relevant to the extent to which its main assumptions are connected to the idea of
development of the third world countries under the assistance and influence of the western
societies.
Ideally the investigation of aid effectiveness would have been extended to many countries and
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regions, as well as to many donors, this way realizing also a comparison in lines of aid
effectiveness between different countries and regions, with similar and different backgrounds, as
well as between different donors, the influence of their practices on aid effectiveness and their
progress related to the PDAF. However, due to the lack of space, this could not be resalized.
Instead, this project is analyzing EU’s aid effectiveness in the general lines of the SSA region,
but more specifically in the case of one country: Mozambique and in the light of a specific
project implemented there: LRL-RF. In doing so, the timeline chosen is between 2005 and 2010,
this choice being determined by the fact that at the time of writing (2011-2012) the official
statistics were provided for 2010 as last year. Additionally, in order to avoid overloading
regarding the statistics described, but also due to space limitations, the period has been limited
by going back only to 2005; the year 2000 being also presented as year of reference, because
represents a milestone in the development of Third World countries.20
Furthermore, concerning the sources used, these are only official sources, such as EU official
website, EU official reports and statistics and other donors’ official websites, reports and
statistics. It should be noted here that the Evaluation Report referred to as a main source for this
paper should also be considered an EU official report, as it has been approved by the EC.
20
the MDGs were issued with the aim to eradicate poverty
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2. Methodology
This chapter is intended to describe the methodological framework that represents the foundation
for the project and the gathering of data. In order to do this, the chapter starts by explaining the
overall structure of the project, synthetised in the project design, which represents its backbone.
Afterwards, the case study will be explained.
Furthermore, this chapter will enclose the description of datas and sources used, as well as the
analysis strategy, due to explain in methodological lines the construction and structure of the
analysis.
2.1.
Project design
This paper is divided into 5 chapters, intended to investigate the matter of efficiency of the EU
external aid, seen in the light of one EU funded project developed in a SSA country, which is
among the poorest in the world - more precisely Mozambique ranks 74 out of 78 countries in a
UN report21 - and which implementation has been evaluated in 2010.
The first chapter is an introduction to the issues to be discussed further on and comprises an
explanation of the problem to be addressed, a description of the present situation in Mozambique
and a resume of the progress registered by the country during the last 10 years, when the
Millenium Development Goals (MDGs) where issued, as well as more ‘technical’ facts, such us
the limitations of the project.
The second chapter comprises the methodology in which is highlighted the overall structure of
the project, as well as datas and sources and it will serve for the setting of a framework for the
project, being helpful for an overall view of the paper’s structure.
Afterwards, the third chapter will describe the chosen theory and its main assumptions, setting up
the basis of the analysis of the presented facts. Nevertheless, the analysis will not be based only
on general informations like the ones presented in the Introduction chapter; therefore the
Analysis chapter will begin with a more in-depth presentation of the situation and status of EU
external aid and Mozambican economy and development rates.
The second part of the 4th chapter will comprise of the proper analysis, incorporating the
presented data and the theory’s assumptions.
This analysis will eventually lead to conclusions, which will be synthetised in the 5 th and last
chapter, generically named ‘Conclusions’.
21UN
website
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2.2.
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Case study
A case study is an element of the qualitative descriptive research, involving the collection and
presentation of thorough information with reference to a certain participant, group or event, as
well as drawing conclusions on the specific topic. (Hakan, 2005; p.2)
Baxter (2008, p.547–548) illustrates the three different types of case studies that have been prior
identified by Robert Yin: Explanatory: when the research is conducted with the specific purspose
of answering to some causal questions; Exploratory: explores the situations that have various
results; and Descriptive: used in describing an noticeable reality in the realistic context in which
it occurred.
Furthermore, case studies are also differentiated by their nature of being single or multiple. A
multiple case-design must be employed in the situation in which there exist other cases available
for duplication; this forming basically several single case studies within a general framework.
While this type of case study is used for ‘pattern-matching’, the single case study is used in order
to ‘confirm or challenge a theory’. (Hakan, 2005; p.3)
In this paper, Mozambique and more precisely the ‘Final Evaluation for LRL-RF (Buildings,
Water and Power)”’ has been chosen as single case study and it is being used in supporting the
discussion and analysis implied by the problem formulation.
The choice of this particular case study is justified mainly by the status of the mentioned project:
LRL-RF, which has been classified by the Beneficiary as being satisfactory, but which
Evaluation Report, approved by the EC, has shown that during its implementation has
experienced numerous and significant problems and even the outcome might not have been fully
satisfactory. Therefore, it becomes legitimate the need to investigate on this issue, mostly
because such decisions and classifications have a great impact on reports on aid effectiveness.
2.3.
Data and sources
Datas are needed in this project in order to outline the current situation of the SSA developing
countries, and especially of Mozambique. Furthermore, datas are also useful in getting an idea on
the effectiveness of EU external aid.
Even though datas are presented throughout the project, the main body of data will be outlined in
the second section of the analysis chapter, which deems to present and explain the situation that
characterize the development of Mozambique, of SSA region, as well as the EU’s external aid.
In this paper, the quantitative data, represented by statistics, assures its internal reliability
through its stability and similarity. (Lee Xing, 2011) Furthermore, the reliability of the
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quantitative research, which is given by the accuracy of the gathered data, is assured by using
official sources, such as: EU reports, IMF, WB, OECD, etc.
In lines of external reliability, this is assured by using qualitative data, which is characterized by
a high grade of subjectivity and which can not be reproduced in the same way by two scientists.
In this case, the qualitative data is the ‘Evaluation Report of the LRL-RF project’, which is
subjective, but at the same time accurate and reliable, having been approved by the EC.
All the datas in this project are secondary, being gathered from secondary sources. However, the
used sources assure the reliability and validity if the data, all of them being official. The sources
used in this paper are: the EU website, Eurostat, EC reports, World Bank reports, OECD website
and reports, IMF statistics.
2.4.
Analysis structure
This section is meant to create an overview of the structure of the analysis chapter, which will be
divided into 3 sections: the first two will comprise a descriptive approach of the Evaluation
Report of the LRL-RF project, respectively of the progress of Mozambique, while the third
section will connect the presented data through the Modernization Theory, leading to an analysis
on the subject of EU’s aid effectiveness in Mozambique.
Evaluation Report of the
Presentation of
LRL – RF project
Mozambique’s progress
Modernization Theory
EU’s aid effectiveness in the
case of Mozambique
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3. Theories
This chapter encloses an overview of the theory chosen to analyze the problem. This theory is
one of the Development Theories, namely the Modernization Theory and it will be engaged in
analyzing whether there has been a notable progress in lines of development in Mozambique in
the recent years; more precisely since the year 2000 when the MDGs were issued. Furthermore,
this will be used, also, in setting an overview on the EU aid effectiveness, with a focus on
Mozambique and on the mentioned project: ‘Evaluation of the LRL-RF’.
3.1.
Development Theories
Development theory is defined as an assembly of theories on the subject of how the needed
transformation in a society can be best achieved.22
Development theories are divided into two types, each having many other theories as
subdivision:
a) Hystorical development theories
b) Development economics theories
The first category includes: the Modernization Theory, the Dependency Theory, the World
Systems Theory, the State Theory and the Theory of Uneven and Combined Development; while
part of the second category are: the Comparative Advantage, the Rostovian take-off model, the
Harrod-Domar model and the Dual Sector model.
While the first category is analyzing development as international development, namely the
progress at national level and the relations between countries situated at different levels of
development, the second category analysis development strictly from an economical point of
view.
However, as it will be seen below, under the Modernization Theory section, it is plausible to
argue that the two categories intersect to a certain extent: for instance the Rostovian take-off
model is also encountered amog the assumptions of the Modernization Theory.
In this paper, I have chosen the Modernization theory, part of the Development Theories, with
the purpose of analyzing the present situation of Mozambique and the progress made by this
country in the light of the EU’s aid effectiveness. More precisely, the Modernization Theory is
based on the idea of progress, understood as the transformation from a traditional society to a
modern one, under the influence of the West, which is highly relevant for this paper that aims to
22
wikipedia
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investigate on the efficiency of the West influence and involvement in Mozambique’s
development and, more generally, in the development of other developing countries from SSA
region.
3.2.
Modernization Theory
“Modernization is an evolutionary change, not a revolutionary one.”
Giovanni Reyes, nd
Having its roots in antiquity, in the concept of evolution utilized with reference to the human
society, the modernization theory has as one of its central idea the progress (Harrison, 1988:
p.13), seen as the evolution from a traditional society to a modern one, based on the model and
influence of the West. (Knobl, p.96)
From a historical point of view, the modernization theory has known three different stages of
evolution:
The First stage occured during the ‘50s and ‘60s, when attempts were made in explaining the
Western lifestyle and the technological innovations (internet: University of Twente). During this
period, David Lerner has been one of the pioneers in establishing the notion of ‘modernization’
as a central point in examining the non-industrialized societies. In his book ‘The passing of
traditional society: Modernizing the Middle East’ (1965, p.50), he introduces the concept of
‘empathy’ in analyzing the fundamental differences in mentality between people from traditional
societies and those from modern socities. In his view, ‘empathy’ is seen as the ability of people to
think beyond the specific communities in which they live, to see themselves ‘as active members
of a modern and mobile society’. (Knobl, p.100) Continuing on this line, Bauer (1976) wrote:
“Economic development requires modernization of the mind”, in this way stressing the
importance of intellectual progress in acquiring economic progress and, implicitly the
importance of human resources and their education. (Cole, Ken, 1999; p.157)
The second stage ocurred during the ‘70s and the first half of the ‘80s, when an increasing
number of theorists implied the idea that tradition and modernity are not opposite and that the
meaning of modernization differs from country to country. Among the critics of the previous
approach on modernization, could be reminded Whitaker (1967) and Lauer (1971), who
highlighted the fact that ‘traditional’ is not equal to ‘stable, homogeneous or inflexible’ (Knobl,
p.105)
The third stage, after the ‘80s, is characterized by an impartial approach towards Western
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modernization.
After the WWII, the modernization theory has known a rise that was made possible by to 3 main
elements: (a) the rise of the U.S. after the war and its plan for Western Europe’s reconstruction;
(b) the extension of the communist ideology to Eastern Europe and some Asian countries (e.g.
Korea, China); and (c) the rise of Third World nation-states from the former European colonies,
which needed a ‘model of development’. (Giovanni Reyes, nd; p.1).
Furthermore, Inglehart (2000) highlights as characteristic of the modernization theory: its quality
of being a ‘homogenizing process’, which basically describes the tendency of modern socities to
look alike. It can be said that this continues on the idea sustained by Inglehart that the world is
evolving, is tranforming in such ways that weaken traditional values, which are eventually
trigerred down by the economic development. (Reyes,nd)
Moreover, Reyes stresses the importance of differentiating between the classical approach and
the modern approach of the modernization theory. While the first one is seeing traditions as an
impediment for development, the second approach sees them as an additional element. In
addition, the two approaches are also differentiated in lines of their view with respect to
delevopment direction, more precisely, the classical approach considers that development can
only be unidirectional, while the modern approach accepts that development is multidirectional.
(Reyes, nd).
At the basis of the modernization theory is the idea that highly developed industrial technology
generates ‘structural and cultural changes’ in developing societies, apart from the economic
growth.
Furthermore, the modernization theory underlines the idea that developed countries are supposed
to aid the developing countries by learning from their progress, which is in fact a phased process.
(Wikipedia)
In line with this assumption of development being a phased process comes the work of Rostow
(1960): “The Stages of Economic Growth: an anti-communist manifesto”, where he exposes 5
stages of development, through which any society that is evolving has to pass:
“Traditional society”, which is characterized by the impossibility of benefitting from the ‘modern
science and technology’ (Rostow, 1960; p.4);
“Preconditions for take-off”: represents the phase when the above mentioned benefits reach a
society, which enters a process of transition, becoming more and more industrialized;
The “take-off” is characterized by a self sustained growth within the society, and by a relatively
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long duration, taking from 50 to 100 years for a society to achieve the next step;
The “drive to maturity” is mainly characterized by the monopoly of modern technology, which is
desired to cover the entire economic activity; as well as by an improvement of living standards,
accompanied by the poverty rate diminuation;
The “Age of High mass consumption”, which is present in the contemporary Western nations,
with high GDP per-capita, very low poverty rates and extensive economies.
However, the idea of the 5 development stages launched by Rostow has been amply criticized,
being described as ‘an ideal-typical approach’ (Harrison, 1988; p.27) that ‘in all its variations
ignores the historical and structural reality of under-developed countries’ (Gunder Frank, 1969)
Harrison (1988) highlights that one of the effects of modernization is to generate comparisons;
people from Third World becoming more conscious of their poverty when they enter in contact
with the West, developed societies; this leading to an increasing degree of dissatisfaction, which
will evsentually target the developed societies, their own leaders or both. (Harrison, 1988; p. 53)
On the other hand, critics of the modernization theory claim that the attempt of the western
societies
to
modernize
the
less
developed
countries
has
been
supporting
their
‘underdevelopment’ rather than their development, to the extent to which the low developed
countries will become even more dependent on the help of the already developed ones, instead of
becoming self-sustaining economies. Furthermore, as stressed in the article “Modernization and
the Third World”, modernization is actually obstructing the progress of the underdeveloped
countries, which will come to be affected by unfair trade, losing their natural resources to the
developed countries. (Linda Sorensen, 2001)
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4. Analysis
Following this descriptive approach, this chapter will incorporate the datas, linking them with the
theoretical assumptions of the Modernization theory, leading to a debate that will constitute the
analysis.
4.1.
Limpopo Railway line – Rehabilitation of Facilities Evaluation
The Limpopo railway is situated in the South part of Mozambique, connecting the port of
Maputo and the cross border with Zimbabwe, in the city of Chicualacuala.
The Mozambican railway has a total of 4.787 kilometres, out of which 534 kilometres are
represented by the Limpopo railway which has been built in the ‘50s, but due to the state of war
in Mozambique during the ‘70s and ‘80s, it was not extensively used. However, in the ‘80s the
rehabilitation of the railway line started, but it could not be completed due to devastating floods
in 2000.
The first tentatives made for the rehabilitation of Limpopo Line date back to the year 1986, when
UK has financed the first 'emergency repair project' that has been developped during three years,
from 1986 to 1989. But the main incentive for its rehabilitation appeared in July 1988. Starting
from that period, regular donor meetings took place and every six months is issued a detailed
progress report, which creates a framework for donor information.
Due to the flooding that occurred in February 2000, the railway has been seriously affected and it
took 9 months and more that 5 million USD to be re-opened to traffic.
Moreover, between the years 2006 and 2010, the EC has allocated almost 2.8 million EUR for
the Rehabilitation of Limpopo Railway Line, this being part of a project scheduled to end in
December 2015.23
Furthermore, it is showed in the Terms of Reference(ToR) for the ‘Final Evaluation for “LRLRF(Buildings, Water and Power)”’ that the freight traffic on the railway decreased with 5%
between 2007-2008 and the passenger traffic with 32.3%. However, during the same period the
CFM revenues increased with 2% and the expenditure decreased by 5%.
The discussed evaluation has been realised in the year 2010 and has targeted the rehabilitation of
eight railway stations, meant to be done through an EU funded project.
According to the ToR issued by the EU for this evaluation project, the main results to be
23
ODAmoz website
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achieved by the rehabilitation of the eight railway stations were to provide access to water and
electricity supplies for the population living in the targeted areas and using the respective
facilities and to promote the conditions necessary for the railway transport.
The evaluation was foreseen to be carried out for the assessment of the accomplishment of the
project's objectives, the assessment of results and the assessment of effects. Furthermore, it was
also aimed to draw up lessons learned and to make recommendations for potential activities to
receive funding from the EU and EDF. Last, but not least there was anticipated, as well, the
appraisal of the executing agency’s role and performance.
As part of the first MDG: Eradicate extreme poverty and hunger, the overall objective of this
project has been ‘to reduce poverty and promote integrated transport development of the
communities’24, while the purpose of the projects was ‘to rehabilitate 8 railway stations and
provide access to water and electricity supplies for the surrounding populations’.
Clifton notes in its evaluation report on the LRL-RF that the project has only partially achieved
its goals regarding the access to the improved facilities, as only the travelers have gained access
to them, not also the surrounding population, as foreseen; highlighting that even if through the
project have been provided ‘adequate quantities of energy and potable water’, these remain
inaccessible to the ‘majority of intended beneficiaries’, namely the surrounding population.
(p.14)
Furthermore, the project has also experienced problems regarding its implementation; giving
serious management problems. As described in the evaluation report, there have been
inaccuracies in dividing the works: the project has been implemented by a consortium of two
firms, one internationally, disposing of greater resources than the second one, which was
nationally and yet, the works were initially divided approximately equal between these two.
During the project’s implementation the relations between the two firms have progressively
deteriorated, leading to serious problems between them to the point of communicating through
legal advisors. As a result, at the end of the implementation, many of the works assigned to the
second firm turned out to be conducted by the first one. Beside these management issues, the
project has not been spared from other problems: as highlighted in the evaluation report
‘mobilization was slow, progress of the works erratic and […] delays occurred’.(p.15)
24
Terms of Reference: Final Evaluation for “Limpopo Railway Line – Rehabilitation of
Facilities (Buildings, Water and Power)”
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With regard to the outputs achievement, this project has been officially classified as being
satisfactory. However, in the evaluation report there are serious problems mentioned, as for
instance the fact that the works have been found to be compliant with the technical stipulations
of the contract and with the ‘national and international norms and standards’, although M.
Clifton highlights that: ‘in most locations the timber used in carpentry work is ‘green’
(insufficiently cured) such that cracks are opening as the wood dries out (including the panels of
large workshop and storehouse doors) and some warping is already apparent. This is a perennial
problem in Mozambique and it is considered impractical to instruct removal of all such
woodwork. Also, site clearance is incomplete and […] the evaluator is concerned that debris of
roof sheets removed during rehabilitation, at least some of which are believed to contain
asbestos, remains on site in public areas’.(p.19)
Regarding the effectiveness of the project, the conclusion of the evaluation report is nothing but
clear: ‘The project has not been effective. The number of actual beneficiaries gaining access to
water and energy is tiny and opportunities to increase this number were missed.’: the
rehabilitation of the facilities has been satisfactory, but the expected results in lines of
population’s benefits and increasing access to water and energy were far from being achieved the actual number of the beneficiaries represents a small part of the foreseen number of 100,000
persons. Furthermore, there has been made an ‘economy’ of 1 million EUR in the final budget of
the project, sum that could have been used in improving the project’s impact on the surrounding
populations.
The evaluations report presets also a straight-forward conclusion regarding the efficiency of the
project: ‘Poor efficiency of implementation has been a continuing feature of this project’, as well
as in lines of impact: ‘No project impacts other than improvement of CFM facilities have been
delivered. Large water and energy supplies are now available and in sight, but tantalizingly out
of reach of the intended beneficiaries in the populations surrounding the stations. Potential
impacts to these surrounding areas can now be delivered only by further investment.’
4.2.
EU aid to SSA
The rate of poverty has decreased gradually in SubSaharan Africa since 1999. However, the
extremely high rate of poverty before 1999 and the recent financial, than economic and food
crisis lead to the situation in which more than 50% of the population is yet struggling below the
poverty line.
Given the situation, in 2000, almost 200 of the world’s leaders have made an important step
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forward in their struggle to eradicate poverty across the Globe, by making an international
partnership. This led to the adoption of eight Millennium Development Goals25 and setting the
target for their accomplishment to 2015.
As part of the mentioned MDGs, the EU has been supporting SubSaharan African countries
through around 400 national and regional programmes that requested funds of 2.4 billion EUR.
Furthemore, 542 million EUR have been allocated to the monitoring of 65 implemented projects,
which led to the following results: 61% of the projects were classified as very good or good, 27%
of them presented problems and 12% of the projects were experiencing major difficulties. (see
Annex 1)
As with regard to the EC’s specific criteria of evaluation, the situation presented itself as
follows26:
 In lines of relevance and design, 75% of the projects were very good and good
 In lines of efficiency, 43% of the evaluated projects were having difficulties and 6%
encountered serious difficulties
 In lines of aid effectiveness, 47% were very good or good, while 45% were encountering
difficulties and 8% were having major difficulties
 Finally, regarding the sustainability, 41% of the evaluated projects encountered
difficulties.
Concerning the sectors mainly targeted by the external assistance, on the first two places were
social infrastructure and services and economic infrastructure. In 2010, 975 million EUR were
allocated for monitoring 182 projects under the social infrastructure and services framework and
739 million EUR were spent on monitoring 49 projects under the economic infrastructure
framework. Overall, these evaluations revealed for the first domain that 60% of the monitored
projects were very good and good and for the second domain: 65% of the projects were doing
very good and good, 29% of them were facing problems and 6% were having serious
difficulties.27
External fundings to Mozambique
25
The MDGs are: (1) to eradicate extreme poverty and hunger; (2) to achieve universal primary education; (3) to
promote genderequality and empower women; (4) to reduce child mortality; (5) to improve maternal health; (6) to
combat HIV/AIDS, Malariaand other diseases; (7) to ensure environmental sustainability; (8) to develop a global
partnership for development
26
See Annexes 2-5
27
See Annex 6
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According to OECD statistics, Mozambique has received between 2008-2009 aproximately 1%
of DAC Countries’ Official Development Assistance (ODA), being the forth country of
SubSaharan Africa in ranks of this value; the SubSaharan region as a whole has received 27% of
all DAC countries’ financial assistance.
Furthermore, EU Institutions have directed 1.4% of ODA to Mozambique and the financial aid to
SubSaharan Africa has accounted for 37.6% of EU Institutions’ funding for external aid; making
SubSaharan Africa the top recipient of funds from both donors28.
4.3.
Mozambique’s progress
In general lines, the Mozambican economy has known a considerable progress concerning the
GDP value, which in 2011 has reached the level of almost 280% of its 2000’s value; that is an
increase with 7.481 billions USD. Having an average of 7.7% between 2000 and 2010, the real
GDP’s growth rate decreased during 2008 and even more during 2009, but in 2010 has shown a
recovery by reaching the level of 8.1%29. Furthermore, the GDP per capita has also increased
tremendously, in 2011 being more than double than in 2000: if in 2000 it was 236.998 USD, in
2011 has reached the level of 529.753 USD. This indicator has registered a gradual improvement
during the recent years, exception making in 2009 and 2010, when it decreased with 0.82%,
respectively 3.56%. Between 2000 and 2011, the average growth rate of GDP per capita has
been 13.01%30.
But despite this general positive trend of the economy, the employment rates in Mozambique,
have not registered notable changes: there has been an increase of 1% from 1998 until 2008 and
in 2009 the rate has been constant at the value of 65%31.
In lines of Human Development Index, Mozambique ranks 184 out of 187 and as the statistics
show, the HDI level of this country is well below under the SSA HDI average and less than half
of the world HDI average. During the recent years, there has been a gradual improvement of this
indicator, being with 31.42% higher in 2011 than in 2000. However, its value represents less
than 70% of the SSA region HDI and approximately 42% of the world HDI average in 201132.
Further to this evolution, another indicator which is strongly related to it, i.e. the poverty rate ahs
28
See Annex 7
See Annex 8
30
See Annex 8
31
See Annex 10
32
See Annex 11
29
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also improved over the years, decreasing with almost 20% from 2000 to 2007, from 70% to
50.6% of the population living under the poverty line33.
On the other hand, regardless of the progress noted above, the situation Mozambican population
with access to improved sanitation facilities has not improved notably: during 18 years, from
1990 to 2008, there has been an increase with 3 procentual points in the percentage of population
with access to improved facilities34.
As for the percentages of the enrollement in primary school, an extremely important indicator for
the MDGs progrees, it can be noted an improvement with 18 procentual points between 1999 and
2008; that is 31% more persons enrolled in primary school in 2008 than in 199935.
Shifting the attention to the financial aid status, the amounts transferred by the EU Institutions
and the UN agencies under the external aid instrument, in the time framework 2003-2009 have
expanded significantly. At a first glance on the datas, it is very clear that the budget allocated by
the EU Institution as external financial support have had a much greater growth rate than the
sums allocated by the UN agencies: while in the first case has been registered an increase of
almost 200% (more precisely 198%) in 6 years, in the second case the increase has been of only
127%. Furthermore, the difference between the amounts allocated by the 2 donors is striking: 7
586.96 million USD, that is over 222 procentual points36.
After seeing the total amount of money that is allocated by the EU Institutions and other sources
to aid instruments, now the area is being restrained and the focus is shifted to Mozambique and
the financial aid received in the time framework 2007 – 2010. Here the statistics show that the
EC’s financial aid allocated through EDF, which represented around 90% of the total ODA to
Mozambique in 2009 (most recent data for both sources), has increased over the years, in 2010
being with 15% higher than in 2007. Overall, the average annual growth rate of the EDF funding
to Mozambique has been 4.91%, while the one of the total ODA 5.36%37.
As specified previously, the main source of EU funding for the SSA region is the EDF
instrument, therefore it is important to have an overview of the EDF evolution within the recent
33
See Annex 12
See Annex 13
35
See Annex 14
36
See Annex 15
37
See Annex 16
34
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years (from 1998 onwards), that is under the latest 3 EDF programmes, as they are developed on
a 5-years basis. It should be noted that the amounts allocated through this instrument have
increased considerably, especially for the ACP countries, which constitute almost 98.77% of the
10th EDF. The average growth rate of the amounts allocated through this instrument has been
around 28%, while the average weight of the funds allocated for the ACP countries has been
98.54%38.
Having now presented all the datas collected on the subject, the next section will focus on
answering to the problem formulated in the begging of this project, by analyzing them from the
perspective of Modernization Theory and aid effectiveness.
4.4.
EU’s Aid effectiveness
The matter of EU’s aid effectiveness in the light of the PDAF’s principles has been analyzed
more than once in papers and official reports, in which has been clearly indicated the need for its
improvement and has been highlighted the poor achievement of the MDGs especially in the SSA
region39. Therefore in this subsection this topic is being analyzed from the Mozambique’s
economic indicators’ evolution perspective, taking into consideration also the evolution of
disbursement to Mozambique and the official EU statistics on EU project’s effectiveness.
Even though the amounts for EU’s external financial aid are constantly increasing, not the same
can be affirmed on the effectiveness of EU funded projects. It is very clear from the statistics on
the projects’ evaluation between 2008 and 2010 that in lines of effectiveness the EU funded
projects show a negative evolution, the percentage of good or very good projects decreasing with
15% in just 2 years, representing less than half of all projects.
Remaining on the line of EU funded projects’ aid effectiveness, but shifting the focus towards
the LRL-RF project, it becomes also clear from the Evaluation report that this is part of the over
50% of projects that have encountered problems or major difficulties. Therefore, the answer to
the first subquestion of the problem formulation (cf p.4) is straightforward: no, the LRL-RF
project has not been implemented successfully in lines of effectiveness, being also explicitly
stated and explained in the Evaluation Report realized by John Clifton:
38
39
See Annex 17
“Sub-Saharan Africa in particular has fallen behind on all MDGs” (‘Annual Report on EU
development and external assistance’, 2010, p.7)
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‘The project has not been effective. The number of actual beneficiaries gaining access to
water and energy is tiny and opportunities to increase this number were missed.’
Clifton, 2010
Having a clear answer to the first subquestion of the problem presentation, the focus is now
shifted to the second subquestion (cf p.4).
This question implies an extensive discussion on the statistics explained in the previous section,
from the modernization theory and aid effectiveness approach.
By looking at the statistics on Mozambique’s progress, one could easily place Mozambique on
the Rostovian scale on the second step: ‘preconditions for take-off’. This positioning can be
argued by the fact that now the country is receiving modern technology through the programs
financed by major international donors, as well as modern science, in the form the updated
knowledge gained through capacity-building programmes provided by the ‘western socities’.
Besides, even though it is cleary seen that the Mozambican economy has known a strong and
sustained growth during the recent years, it is too early to classify it as being on the third stage,
namely the ‘take-off’. Indeed, the economic growth achieved by this country has been significant
and constant, but this has been done due to massive allocations of financial aid from various
international donors; and still its economy is extremely reliant on foreign funding, facing major
problems when it comes to essential economic indicators, such as labour market’s flexibility,
economic competitiveness and population’s income, which have known a very poor
improvement over the recent years.
Furthermore, the persistence of the main imbalancies of the Mozambican economy is supporting
the conception of modernization’s critics that the western societies aren’t actually helping the
underdeveloped ones to advance, nor they intend to do this; instead they are taking advantage of
their situation and their resources in achieving a greater development for themselves or helping
to preserve the existing welfare of the state; at the same time promoting in fact the
underdevelopment of the third world countries, which become extremely reliant of the developed
countries’ support. Likewise, the fact that the Mozambican economy remains extremely reliant
on foreign assistance, which accounts around 50% of the budgetary needs is nothing but
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supporting this criticism. It is shown in an official report on EU’s support to Mozambique40 that
the country has registered important steps in lines of economic development, giving as example
the improvement of several economic indicators; among which the substantial decrease of
Mozambique’s external debt from 170% of GDP41 to approximately 85% of the GDP. However,
it is not specified in this report that part of this decrease is due to a considerable debt release of 4
million USD in 2001. Therefore, it becomes even clearer that the country is far from becoming
self-sustained, remaining heavily based on external aid in achieving economical progress.
Still, despite any criticism, the modernization theory emphasises that developed countries are
supposed to aid the developing countries by learning from their progress, providing them with a
model to follow. As it can be seen in the case of Mozambique and more generally of the SSA
region, the EU and various other international donors are providing these developing countries
also with resources, apart from a simple pattern to follow. What is more, these resources are not
only financial, but they also help at enhancing human and institutional capacities, mainly through
capacity building programmes; reflecting yet another main caractheristic of modernization that
has been highlighted by Bauer (1976) and which suggests that for achieving economic
development is necessary a certain intellectual progress. Emphasising even further on the
importance of human resources and their education in attaining economic progress, the
developed societies have set as one of their main goals for helping underdeveloped countries, the
improvement of the education levels in these last countries: this can easily be noticed by a glance
at the MDGs set in 2000, where the second MDG is ‘to achieve universal primary education’.
For an assessment on the effectiveness of the external aid directed to the low developed or the
developing countries, is very useful to take a look on the above explained statistics. It is shown
there that, for instance, the enrollement ratio in primary school has known a growth of 18
procentual point on a period of ten years, from 1999 to 2008, which represents an important step;
but it should also be taken into account that these statistics and, implicitly, the second MDG is
only reffering to the enrollements, not graduations and only to the primary education.
Another extremely important indicator in assessing EU’s aid effectiveness is the poverty rate of
Mozambique, as eradicating the extreme poverty and hunger is the first MDG. It is ascertained
here a considerable improvement in the percentage of population living under the poverty line,
40
41
Issued in 2007
In 1997
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after the launch of the MDGs in 2000: this percentage has decreased with 20% in 7 years, from
70% in 2000 to around 50% in 2007. However, despite this significant decrease, the poverty rate
of Mozambique is still at too high values, over 50% of the population living under the poverty
line.
Aid effectiveness is an essential tool in achieving the MDGs set in 2000, therefore looking at the
progress of Mozambique over the recent years is usefull in assessing the effectiveness of aid.
From this perspective, it is noted that EU’s aid to SSA, in general and to Mozambique, in
particular, has been effective to the extent to which has helped improving several major
development indicators, as for instance the GDP, the GDP per capita, the HDI and the poverty
rate. However, this aid has not been effective in improving population’s access to improved
sanitation facilities, in increasing the employment rate or the economic competitiveness of the
country; but mainly the trade balance. And here, again, it can apply the vision of modernization
critics that the western societies do not help the poor countries to develop, but they are taking
advantage of them and their resources.
Indeed, EU’s aid has been effective in reducing the povery rate, this being also the first MDG,
but its effectiveness has been limited as the targets set for the SSA region and Mozambique for
2010 in lines of this MDG were not met. If in a first phase, from 2000 to 2003, the poverty rate
in the country has been reduced considerably: with almost 20%; since then it remained around
the value of 50%. However, even though the porverty rate is still very high, the good progress of
the country related to this indicator, the external aid and the Government of Mozambique are
supporting the possibility of achieving the goals set through the first MDG, namely reduce the
poverty rate to 45% in 2010.
What is more, as stated above, the Government of Mozambique is working together with the
various donors in the light of PDAF principles, enhancing aid effectiveness; this being seen
through the improvement of poverty rate due to the Government’s strategies, namely PARPA I
and PARPA II.
As an answer to the second subquestion of the problem presentation (cf p.4), it can be stated that,
indeed, there has been registered a certain progress in Mozambique, as some of the economic
indicators have known a spectacular growth and other development indicators have known a
more or less considerable improvement; but the results expected through the MDGs were not
achieved and the country remains among the poorest in the World, ranking within the last in
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lines of human development, poverty level, employment rates, population with access to
improved sanitation and others more.
Having the answers to both subquestions of the problem formulation, the discussion can now be
directed to answering the main question (cf p.4).
As it can be seen, Mozambique has registered a certain progress within the recent years, mainly
characterized by economic growth in lines of GDP increase, decrease of the inflation rate and of
the trade balance deficit. But even though these indicators and others, as for instance the HDI
and the poverty rate have known a certain improvement, the Mozambican economy is far from
becoming self-sustained, still being extremely reliant on external aid.
On the other hand, the EU and other international donors are continuously making attempts to
assure the effectiveness of aid, even if sometimes the results are not the ones targeted, i.e. the
percentage of good and very good EU funded projects in lines of effectiveness has decreased in
2010, going below half of all projects; the SSA is far from track in achieving the results set by
the MDGs.
However, in Mozambique’s case there is evidence that things are going in the right direction and
here we can take the example of the PDAF’s principles for enhancing aid effectiveness. The
elaboration PARPA I and PARPA II the Government of Mozambique, in lines with both the
modernization (the enhancement of human development being set as one of the main goals) and
the first 2 principles set by the PDAF: Ownership and Allignment has contributed to aid
effectiveness improvement, helping the poverty rate in the country to decrease considerably and
bringing it close to the achievement of the first MDG.
Therefore, it can be argued that the EU’s aid to SSA and particularly to Mozambique is effective
in the light of the Modernization Theory, to the extent to which provides the country with a
model to follow, but also with resources in achieving development gradually. However, seen in
the light of the LRL-RF, the aid has not been effective and even though the project was
concluded as satisfactory, the Evaluation Report has shown that the targets were not achieved
and the surrounding population has not gained access to improved facilities, as initially foreseen.
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5. Conclusions
The belief of Reyes that modernization is a ‘homogenizing process’, which basically describes
the tendency of modern socities to look alike is supported by our times’ world, where the socalled Western societies are often described using the generic notion of ‘developed’,
generalization that is in fact ‘homogenizing’ the societies, which become characterized by the
same elements and ideas. Nowadays, when talking about the Western socities we understand a
model of development, a pattern to be followed, one that is mainly the same for everyone,
converting the ‘modern society’ into an ideal to be achieved by any other societies and leading in
the end to the creation of similar societies, in their quest to reach to the given ideal.
Furthermore, the Modernization theory assumes that the path to a developed society should be
gradual, phased, incorporating new technologies and practices, progressing in time and not a
revolutionary one. Regarding these aspects, there is an obvious correspondent in Mozambique’s
situation: for instance the almost 15 years of revolution have not brought anything good to the
country; all the contrary: this was transformed into the porrest country in the world; while the aid
came from the developed countries, the model and support from the western socities have helped
Mozambique’s development. But this is only one connotation of the word ‘revolutionary’; on the
other hand one could argue that revolution could in fact benefit the development of a country, if
would be to think in lines of ‘technological revolution’ that has helped the western societies to
become the developed and modern societies that they are today and denying this ‘type’ of
revolution as modality of modernization is not a proper and constructive thought.
Although the LRL-RF project has not achieved the desired results, highlighting the inefficiency
of EU external aid, this is far from allowing a generalization regarding the overall efficiency of
the development aid. Futhermore, as seen above, despite the failure of some of the projects in
achieving their targets, there has been an obvious progress in Mozambique, in lines of
development – as stated in the report on HDI, issued by UNDP, Mozambique can be placed in
top 5 countries if they are to be classified in lines of progress between 2000 and 2011. It is true
that this merit is not all of EU external aid, but it is certain that is had a great influence on the
country’s progress.
Moreover, after seeing the statistics and analyzing them it can be stated that in the light of
modernization theory, the EU external aid has been effective in helping Mozambique’s
development, although not all the projects were successfully implemented: it cannot be said that
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9thsemester European Studies
EU aid has been 100% effective, but this is an well-known fact, as well as the fact that the EC is
countinously searching ways to improve the effectiveness of its aid.
To conclude, seen in the light of the LRL-RF project, EU external aid is not effective. However,
as stated above, this is a solely example and it should not be generalized to the overall EU
external aid.
9thsemester European Studies
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6. Bibliography
6.1.
Books and reports
 Doucouliagos, Hristos & Paldam, Martin (2007) ‘The Aid Effectiveness Literature: The Sad
Results of 40 Years of Research’, paper presented at the conference on "Institutions, Public
Policy and Economic Outcomes" held in August 2007 and sponsored by the Economic and
Social Research Council
 Clément, Jean & Peiris, Shanaka; Post-Stabilization Economics in Sub-Saharan Africa:
Lessons from Mozambique, International Monetary Fund, Washington, D.C. 2007
 Fox, Louise et al.; ‘Beating the Odds. Sustaining Inclusion in Mozambique’s Growing
Economy’,The International Bank for Reconstruction and Development/ The World Bank,
Washington D.C.,2008
 Knobl, Wolfgang: ‘Theories that won’t pass away: the never-ending story of Modernization
Theory’; 2003
In: Gerard Delanty and Engin F. Isin. (eds.) Handbook of historical
sociology, London ; Thousand Oaks, Calif. : SAGE
 Rostow, W.: “The Stages of Economic Growth: an anti-communist manifesto”, Cambridge
University Press, London, 1960
 Baxter, Pamela and Jack, Susan (2008) ‘Qualitative Case Study Methodology: Study Design
and Implementation for Novice Researchers’ in ‘The Qualitative Report’, Volume 13, No. 4,
McMaster University, Ontario, Canada
 Harrison (1988) ‘The Sociology of Modernization and Development’, Routledge, USA
 Lerner, David (1965) ‘The passing of traditional society: Modernizing the Middle East’
 Cole, Ken (1999) ‘Economy-Environment-Development-Knowledge’, Routledge, USA
 EUD Mozambique (2010) Terms of Reference: Final Evaluation for “Limpopo Railway Line
– Rehabilitation of Facilities (Buildings, Water and Power)”
 Clifton, John (2010) Final Evaluation for “Limpopo Railway Line – Rehabilitation of
Facilities (Buildings, Water and Power)”
6.2.
On-line resources
 Xing, Lee (2011) Methodology class, Aalborg University
<https://cgs.moodle.aau.dk/file.php/208/Slides_noter_mm._vedr._kursusgang_1/Methodolog
y_1.pdf>
9thsemester European Studies
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 One website: The Data Report 2011 [Accessed: 04.12.2011]
<http://www.one.org/data/en/data/oda-ssa-usd/#2010>
 Aid effectiveness 2005-2010: Progress in implementing the Paris Declaration (2011), OECD
Publishing [Accessed: 04.12.2011]
<http://www.oecd.org/dataoecd/25/30/48742718.pdf>
 Australian Council for International Development website [Accessed: 15.10.2011]
<http://www.acfid.asn.au/resources/information-sheets/accra-agenda>
 PNoWB Parliamentarians & Development Series , (2009) ‘Paris Declaration on Aid
Effectiveness and Accra Agenda for Action’
<http://www.pnowb.org/admindb/docs/Paris%20Declaration%20and%20Accra%20Agenda
%20for%20Action%20-%20P&D%20series%20-%2021NOV09.pdf>
 www.dictionary.com [Accessed: 05.11.2011]
<http://dictionary.reference.com/browse/development>
 Businessdictionary.com [Accessed: 05.11.2011]
<http://www.businessdictionary.com/definition/development.html>
 Annual Report 2011 on the European Union's development and external assistance policies
and their implementation in 2010: {COM(2011) 414 final}, Brussels [consulted: 19.11.2011]
 Tarp, Finn (2002) ‘Facing the Development Challenge in Mozambique. An Economywide
Perspective’, International Food Policy Research Institute, Washington, USA

Central Intelligence Agency website [Accessed:
05.11.2011]
<https://www.cia.gov/library/publications/the-world-factbook/geos/mz.html>
 USAID website [Accessed: 05.11.2011]
<www.usaid.gov>
 Clifton, John et al (2007) ‘Evaluation of the European Commission’s Support to the Republic
of Mozambique. Final Report’, the European Commission [Accessed: 05.11.2011]
<http://ec.europa.eu/europeaid/how/evaluation/evaluation_reports/reports/2007/1096_vol2_e
n.pdf>
 IMF (2007) ‘Enhanced Heavily Indebted Poor Countries (HIPC) Initiative- Decision Point
Document’, Washington, USA [consulted: 19.11.2011]
<http://www.imf.org/external/pubs/ft/scr/2007/cr07253.pdf>
 UN website [consulted: 19.11.2011]
<http://hdrstats.undp.org/en/countries/profiles/MOZ.html>
Aalborg University
9thsemester European Studies
 Reyes, Giovanni ‘Four Main Theories of Development: Modernization, Dependency, WordSystem and Globalization’ [consulted: 26.11.2011]
<http://www.ucm.es/info/nomadas/4/gereyes1.htm>
 Linda Sorensen (2001) ‘Modernization and the Third World’
 ODAmoz website
<http://41.220.166.65/projects/494253>
9thsemester European Studies
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ANNEXES
Annex 1. Results of the monitoring of the 65 monitored projects
Annex 2. Results of the monitoring of the 65 monitored projects in lines of relevance and design
Annex 3. Results of the monitoring of the 65 monitored project in lines of efficiency
Annex 4. Results of the monitoring of the 65 monitored projects in lines of aid effectiveness
Annex 5. Results of the monitoring of the 65 monitored project in lines of sustainability
Annex 6. Evaluation results for 2008-2010 under Results-Oriented Monitoring (ROM) criteria
Annex 7. The distribution of EC contribution to Mozambique, through EDF instrument
Annex 8. Gross Domestic Product (Current Prices) & Real GDP growth rate
Annex 9. GDP per capita (Current Prices)
Annex 10. Employment rates of Mozambique
Annex 11. Human Development Index
Annex 12. Poverty rates in Mozambique
Annex 13. Access to services in SSA (% of population)
Annex 14. Enrollement ratio in primary school
Annex 15. EU Institutions’ external aid between 2003 and 2009
Annex 16. Disbursements to Mozambique
Annex 17. EDF funding
9thsemester European Studies
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Annex 1. Results of the monitoring of the 65 monitored projects
Results of the 65 monitored projects
12%
61%
27%
good and very good
presenting problems
facing major difficulties
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Annex 2. Results of the monitoring of the 65 monitored projects in lines of relevance and
design
Relevace and design
25%
good and very good
presenting problems or serious
problems
75%
9thsemester European Studies
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Annex 3. Results of the monitoring of the 65 monitored project in lines of efficiency
Efficiency
6%
51%
43%
good and very good
presenting problems
facing serious problems
9thsemester European Studies
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Annex 4. Results of the monitoring of the 65 monitored projects in lines of aid effectiveness
Aid Effectiveness
8%
47%
good and very good
45%
presenting problems
facing serious problems
9thsemester European Studies
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Annex 5. Results of the monitoring of the 65 monitored project in lines of sustainability
Sustainability
41%
59%
good and very good
presenting problems or serious
difficulties
9thsemester European Studies
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Annex 6. Evaluation results for 2008-2010 under Results-Oriented Monitoring (ROM)
criteria
Year
Criteria
Relevance
Efficiency
Effectiveness
Impact
Sustainability
Results
2008
2009
2010
Very good/ good
76
80
75
Facing problems/ major difficulties
24
20
25
Very good/ good
50
56
51
Facing problems/ major difficulties
50
44
49
Very good/ good
61
50
46
Facing problems/ major difficulties
39
50
54
Very good/ good
73
69
71
Facing problems/ major difficulties
27
31
29
Very good/ good
68
59
57
Facing problems/ major difficulties
32
41
43
6.1 Relevance
100
90
80
70
60
50
40
30
20
10
0
2007
2008
Very good/ good
2009
2010
Facing problems/ major difficulties
2011
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6.2 Efficiency
100
90
80
70
60
50
40
30
20
10
0
2007
2008
Very good/ good
2009
2010
2011
Facing problems/ major difficulties
6.3 Effectiveness
100
90
80
70
60
50
40
30
20
10
0
2007
2008
Very good/ good
2009
2010
Facing problems/ major difficulties
2011
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6.4 Impact
100
90
80
70
60
50
40
30
20
10
0
2007
2008
Very good/ good
2009
2010
2011
Facing problems/ major difficulties
6.5 Sustainability
100
90
80
70
60
50
40
30
20
10
0
2007
2008
Very good/ good
2009
2010
Facing problems/ major difficulties
2011
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Annex 7. The distribution of EC contribution to Mozambique, through EDF
instrument
-% of budget –
Sector
6th, 7th, and 8th EDF
9th EDF
Macro-economic budget support
33
49.5
Transport infrastructure
34
34.8
Health
7
Good governance
7
Rural development
7
Water & sanitation
5
Other
6
Food security and agriculture
Budget line
Source: Evaluation of EC support to Mozambique, 2007
8.8
7
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Annex 8. Gross Domestic Product (Current Prices)
Year
Value (billions USD)
2000
4.183
2005
6.579
2006
7.215
2007
8.121
2008
9.943
2009
10.058
2010
9.893
2011
11.664
Source: International Monetary Fund
Value (billions USD)
14
12
10
8
6
4
2
0
1998
2000
2002
2004
2006
Value (billions USD)
2008
2010
2012
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Real GDP growth rate
Year
2002
2003
2004
2005
2006
2007
2008
2009
2010
Percentage
9.2
6.5
7.9
8.4
8.7
7.3
6.8
6.4
8.1
Source: AfDB Statistical Department
Real GDP growth rate (Percentage)
10
9
8
7
6
5
2001
2002
2003
2004
2005
2006
2007
2008
Real GDP growth rate (Percentage)
2009
2010
2011
9thsemester European Studies
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Annex 9. GDP per capita (Current Prices)
Year
Value (USD)
2000
236.998
2005
336.487
2006
361.798
2007
399.26
2008
479.232
2009
475.276
2010
458.327
2011
529.753
Source: IMF
GDP per capita (Current Prices - USD)
550
500
450
400
350
300
250
200
1998
2000
2002
2004
2006
2008
. GDP per capita (Current Prices - USD)
2010
2012
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Annex 10. Employment rates of Mozambique
Year
Employment rate (% of population)
1998
64
2008
65
2009
65
Employment rate (% of population)
70%
69%
68%
67%
66%
65%
64%
63%
62%
61%
60%
1996
1998
2000
2002
2004
2006
Employment-to-population ratio
2008
2010
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Annex 11. Human Development Index42
Year
Mozambique
SubSaharan Africa
World
2000
0.245
0.401
0.634
2005
0.285
0.431
0.660
2006
0.290
0.438
0.664
2007
0.299
0.445
0.670
2008
0.304
0.451
0.674
2009
0.312
0.456
0.676
2010
0.317
0.460
0.679
2011
0.322
0.463
0.682
Country
Source: UNDP – Human Development Reports
1
0.9
0.8
0.7
0.6
0.5
0.4
0.3
0.2
0.1
0
2000
2005
2006
Mozambique
2007
2008
SubSaharan Africa
2009
2010
2011
World
The HDI is a ‘composite index measuring average achievement in three basic dimensions of human
development—a long and healthy life, knowledge and a decent standard of living, expressed as a value between 0
and 1’
42
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Annex 12. Poverty rates in Mozambique
Year
Mozambique
2000
70
2003
54.1
2007
50.6
2008
54.7
Source: Index Mundi, UN
Poverty rate ( % of population living under the poverty line)
100
90
80
70
60
50
40
30
20
10
0
1999
2000
2001
2002
2003
2004
2005
2006
2007
Poverty rate ( % of population living under the poverty line)
2008
2009
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Annex 13. Access to services in SSA (% of population)
Year
Improved facilities
Shared facilities
Unimproved
Unsanitary
facilities
facilities
1990
28
16
20
36
2008
31
20
22
27
40
35
30
25
20
15
10
5
0
1990
Improved facilities
2008
Shared facilities
Unimproved facilities
Unsanitary facilities
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Annex 14. Enrollement ratio in primary school
Year
Ratio (%)
1999
58
2003/2004
64
2008
76
Enrollement ratio in primary school
80%
75%
70%
65%
60%
55%
50%
1999
2003/2004
Enrollement ratio in primary school
2008
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Annex 15. EU Institutions’ external aid between 2003 and 2009
-USD millions–
Year
EU Institutions
UN agencies
2003
6 950.53
4 852.83
2004
8 925.42
5 151.64
2005
9 262.62
5 507.45
2006
9 934
5 287.41
2007
11 714.25
5 871.9
2008
13 039.46
5870.44
2009
13 788.59
6 201.63
Source: OECD Statistics
15,000
14,000
13,000
12,000
11,000
10,000
9,000
8,000
7,000
6,000
5,000
4,000
3,000
2,000
1,000
0
2002
2003
2004
2005
Eu Institutions
2006
2007
UN agencies
2008
2009
2010
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Annex 16. Disbursements to Mozambique
-million USDYear
2007
2008
2009
2010
EDF programmes
1 656.944
1 665.245
1 878.946
1 905.747
UN Agencies
165.85
127.08
107.31
78.23
Total ODA
1 878
1 996
2 085
-
43
Source: Official Development Assistance to Mozambique Database; EU website
2400
2100
1800
1500
1200
900
600
300
0
2006
2007
2008
EDF programmes
43
2009
2010
UN Agencies
Total ODA
Source: www.europa.eu : Financial Programming and Budget
(http://ec.europa.eu/budget/biblio/documents/FED/fed_en.cfm#2009)
44
Currency exchange rate as per 31/12/2008: 1 EUR = 1.46 USD
45
Currency exchange rate as per 31/12/2008: 1 EUR = 1.39 USD
46
Currency exchange rate as per 31/12/2009: 1 EUR = 1.43 USD
47
Currency exchange rate as per 31/12/2010: 1 EUR = 1.34 USD
2011
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Annex 17. EDF funding48
-
mil USD –
Programme
8th EDF
9th EDF
10th EDF
Time
1995-2000
2000-2007
2008-2013
framework
ACP
Total
ACP
Countries
Ammount
17.246
Total
ACP
countries
17.465
21.510
countries
21.921
28.388
Source: EU website
30000
27000
24000
21000
18000
15000
8th EDF 1995-2000
9th EDF 2000-2007
Total
48
Total
10th EDF 2008-2013
ACP Countries
COM(2011) 471 final P.57-59
(http://ec.europa.eu/budget/library/biblio/documents/FED/com_2011_471_f_en.pdf)
28.739