Includes bibliographical references.

Introduction and overview / Jean A.P. Clément -- Sustaining growth takeoffs : lessons from Mozambique / Jean A.P. Clément and Shanaka J. Peiris -- Halving the poverty rate by 2015 / Louise Fox, Rui Benfica, and Melissa Sekkel -- Sustaining growth in the long term / Sam Jones -- Monetary and financial sector policies : the road to price and financial stability / Shanaka J. Peiris and Victor Lledó -- Monetary policy in Sub-Saharan Africa : lessons from a dynamic stochastic general equilibrium model applied to Mozambique / Shanaka J. Peiris and Magnus Saxegaard -- Macroeconomic management of scaled-up foreign aid / Shanaka J. Peiris -- Government-donor partnerships : Mozambique as a model of donor coordination / Felix Fischer, Emmy Bosten, and Victor Lledó -- Managing mineral resources : from curse to blessing / Julien Hartley and James Otto -- Strengthening Mozambique's business environment : diagnostics, strategies, and outcomes / Victor Lledó -- Export performance and competitiveness in Mozambique / Magnus Saxegaard.

Mozambique is an economic success story in Sub-Saharan Africa (SSA). Its remarkable achievements offer valuable lessons to other low-income countries in a post-stabilization economic phase, including how they can efficiently manage a scaling up of foreign aid aimed at poverty reduction. Of special interest to other Sub-Saharan countries are the book's discussions of Mozambique's progress toward consolidating macroeconomic and financial stability, and the challenges it faces in ensuring long-term sustainability, creating a virtuous cycle of natural resource use, and implementing second-generation structural reforms to sustain its growth. This book also provides a summary of the most recent research on issues related to post-stabilization economics in SSA.