From: wsargeant@igc.apc.org (Winslow L. Sargeant)
Newsgroups: soc.culture.african
Subject: IPS:Mozambique, people living under unb'
Date: 28 Jul 92 17:18:21 GMT

/* Written 12:04 am  Jul 28, 1992 by newsdesk in cdp:ips.englibrary */
/* ---------- "MOZAMBIQUE: PEOPLE LIVING UNDER UNB" ---------- */
Copyright Inter Press Service 1992, all rights reserved.  Permission to re-
print within 7 days of original date only with permission from 'newsdesk'.

Reference: Trade & Finance
Title: MOZAMBIQUE: PEOPLE LIVING UNDER UNBEARABLE COST OF LIVING


maputo, jul 25 (ips/basilio langa) -- a delegation from the
international monetary fund (imf) is in mozambique for yet
another routine mission to negotiate agreements with the
government.

the delegation arrives at a time when mozambicans are openly
accusing the imf of being responsible for the southern african
nation's current economic crisis.

mozambique's economic performance over the last two years has
been ''very poor'', says the national director for wages in the
labour ministry, joao loforte. in 1990, for example, growth was
just one percent compared with five percent in 1989.

the cost of living rose sharply after the government
introduced an imf-inspired structural adjustment programme in
1987. after five years of structural adjustment, the minimum
industrial wage is only sufficient to buy half of a worker's
basic needs.

''the wage rises implemented over this period have not
compensated for the rise in the cost of living, and the minimum
wage is far below satisfying the basic minimum needs of
workers'', says loforte.

generally, mozambican companies are facing ''serious
problems'' adapting to a market economy, says laforte. this,
with the drought ravaging the economies of 11 southern african
nations, and a desperate shortage of foreign financing this
year, threatens a situation of ''total tragedy''.

last year the government's total debt service burden amounted
to 534.7 million dollars. interest alone amounted to 180.6
million dollars, while the country's total commodity exports did
not exceed 162 million dollars.

loforte criticises the government's agreements with the imf,
arguing that the restrictive monetary policy they impose is
ruining companies, which cannot support the high interest rates
involved.

the visit by the imf team preceded the approval of a
supplementary budget which will increase the amounts fixed for
income and expenditure at the beginning of the year.

the limits then fixed were for maximum public expenditure of
477 million dollars, and a deficit of 283 million dollars, to be
financed by foreign aid. (more/ips)


mozambique: people (2)

for some months the government has been expected to announce
a new wage rise. according to the independent daily newsheet
'mediafax', published here, the delay in the announcement is
linked to the discussions with the imf.

critics here say the buying power in mozambique has reached
its lowest level since independence from portugal in 1975, and
it is impossible for any low-paid worker to survive exclusively
on a wage.

the critics point out that the way the minimum wage is
calculated does not include rent, transport, water and
electricity bills, or health and education costs. taken together
these could amount to 50 dollars a month.

the minimum wage was last increased december, when it was
fixed at 40,000 meticais a month. at current exchange rates this
is less than 15 dollars, which covers less than a third of the
basic diet for a family of five.

according to the nutrition bulletin issued by the ministry of
health, the basic diet should consist of a minimum of 66,000
kilocalories per month, consisting of basic grains, some fish,
fruit and vegetables.

the rate of inflation has speeded up and is now thought to be
at 50 percent against 37 percent in december. the value of the
mozambican currency, the metical, has slid sharply against the
dollar. devaluation has amounted to 35 percent over the past six
months.

it is now almost the end of the mozambican winter. due to the
drought, food production has been poor, and the prices of
vegetables such as cabbage, tomatoes, lettuce and onions
(normally abundant at this time of year) have continued to rise
in the markets here.

for the majority of mozambique's 15 million people, this only
means more suffering and the government-imf talks only aggravate
the suffering, the critics say. (end/ips/bl/rw/apc/oa/92)


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