Case study (3) Focus on Trade Liberalisation
How cashew production in Mozambique came to an end
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As part of a structural adjustment programme conditions for a World Bank loan, the Mozambique government was required to liberalize the trade arrangement for raw cashew nuts.
- Explain what is meant by liberalization.
- Would liberalization be considered a market oriented or an interventionist strategy? Explain your answer.
- Identify from the article the liberalization policies required of Mozambique by the World Bank as a condition for borrowing.
- Examine the effect of this liberalization policy.
- Outline other liberalization policies included in structural adjustment programmes by multilateral agencies such as the World Bank and the International Monetary Fund.