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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.

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  1. Explain what is meant by liberalization.
  2. Would liberalization be considered a market oriented or an interventionist strategy? Explain your answer.
  3. Identify from the article the liberalization policies required of Mozambique by the World Bank as a condition for borrowing.
  4. Examine the effect of this liberalization policy.
  5. Outline other liberalization policies included in structural adjustment programmes by multilateral agencies such as the World Bank and the International Monetary Fund.