Central Banking in Africa: The Case of the Bank of Mozambique. 1975-2010 (original) (raw)
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African Historical Review, 2019
The history of financial institutions in decolonising countries and newly independent states, especially in Africa, shows the politically contentious nature of control over financial institutions, especially the central bank. This article investigates the particular circumstances surrounding the emergence of a central bank in Mozambique: how local conditions influenced the shaping of new financial institutions in Mozambique. The central question is: How did an independent central bank emerge in Mozambique after independence? The article addresses the impact of the metropolitan identity of Portuguese financial institutions in Mozambique, the political economy of the new political leadership, and finally the formation of a central bank.
The Bank of Mozambique : historical review from 1975 to 2010
2016
The Banco de Moçambique (Bank) was established in May 17, 1975. The 1920 Brussels Conference recommended that in countries without a central bank, it should be created. The 'Bank' followed the new model of emerging countries' central banks (mid-1950s), where those central banks regulated and controlled an existing financial system and promoted the emergence of a money and capital market. From 1975 the Bank performed commercial functions until 1992, when the functions of commercial banking and central banking were separated. Mozambique tried to establish a socialist society. The prevailing financial system, primarily consisting of of expatriate banks, was reorganised under the state bank. This was a restructuring and integration process. In 1980 the Metical, the new currency of Mozambique, was introduced. In the 1980s weakening economic conditions in Mozambique mandated the reconsideration of post-independence economic policies. In 1984 Mozambique accepted assistance from the Bretton Woods institutions and from 1987 the country embraced the Economic Rehabilitation Program. The Bank embarked on monetary, credit, supervisory and regulatory policies reforms, to consolidate conventional central bank functions.
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This chpater analyzes the changes in the bank system in Angola and Mozambique from 2000 to 2016. The author explains the changes before the global crisis in 2008 and after it. It is worth remembering that according to specialists, this was one of the most significant crises; thus the compelling need for changes in the global bank system. Angola and Mozambique were not the exception, which makes this contribution essential to understand the development of this event in Africa.
Central Banking and Neoliberalism in Africa
AfronomicsLaw, 2021
To tackle questions surrounding central banking, neoliberalism, and development, this booklet has assembled a stellar cast, representing a cross-section of legal professionals from academia, the bar, the private sector, and the regulatory state. The contributors to this booklet, which derives from a symposium originally published AfronomicsLaw, demonstrate that neoliberalism still reigns over African central banking, but it displays different complexions.
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The Law and Political Economy of Mozambique's Odious Debts
Keynote delivered at a conference hosted by CIP Mozambique, 2019
The thesis of this paper is a very simple one. Mozambique should not repay the loans which three of its state-owned enterprises took out in 2013-2014 in the context of a gigantic scheme of corruption. I will provide two types of reasons for this conclusion. The first type is rather legal and straightforward. Debts incurred due to corruption and in violation of the constitution do not need to be repaid. The second type is of a more contextual character. While the loans in question are void as a matter of law, they reveal certain characteristic traits of our current worldwide financial system, which I believe must be changed. An oversupply of liquidity in capital-rich countries may have devastating effects for capital-importing, developing countries. Not the interest of creditors, but the needs of borrowers should determine sovereign lending. The current legal order governing sovereign debts needs to be adjusted to this end.
Bank of Zambia’s Autonomy Amidst Political Turnovers in Zambia*
SSRN Electronic Journal, 2020
This working paper analyses the role of Zambia's central bank, the Bank of Zambia (BOZ), in delivering on its mandate, following banking reforms in the early 1990s. Despite occasional political pressures arising out of the competitive clientelist democracy, especially with regards to banking supervision and appointments of governors, BOZ has been able to deliver on its mandate and is regarded as a 'pocket of effectiveness'. Its relatively independent position has been attributed to the conscious efforts of its top echelon to entrench BOZ's autonomous position and work towards legislative independence in 2016. Besides changes in the legislative framework, BOZ's countervailing powers were strengthened by the acknowledgement on the part of political leaders that the central bank acts as an important 'signaller' to international financial markets; a strong tradition of self-assessment; and an emphasis on public accountability. Historically, the BOZ governor plays an important role in defending BOZ's mandate vis-à-vis the Executive, with the ability to stress the necessity for BOZ to abide by international and regional central banking standards. BOZ's autonomy was briefly under threat in 2011. This transition coincided with a major political and ideological shift, which saw Patriotic Front (PF)'s short-lived attempt to confront conventional central banking policies. In this paper, BOZ's effectiveness is measured in terms of price and financial stability and organisational and leadership capacities, traced in the context of Zambia's changing political settlements.
The Political Economy of Mozambique Twenty Years On
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Orientações superiores: time and bureaucratic authority in Mozambique
This article examines the production, circulation, and interpretation of regulatory documents in contemporary Mozambique in order to highlight their central importance to processes of governance. The empirical focus is on orientações superioreswritten and oral documents issued by figures and institutions of authority with the intention of advising on procedures for policy formulation and implementation. By producing orientações superiores in a way that leaves their intent ambiguous and their status provisional, party and state officials shift the focus of policy making from substance to process. In this way, bureaucratic authority is produced and reinforced through the manipulation of the timing of policy implementation. This perspective expands current understandings of African governance that on the whole have been limited to the analysis of the effectiveness of African institutions and policies, leaving the tactical effects of ambiguity, timing, and provisionality in policy implementation undertheorized.
Independence of the Central Bank of West African States: An Expected Reform?
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