Poverty, Developing Entrepreneurship and Aid Economics in Mozambique: A Review of Empirical Research

Located in South-eastern Africa, between South Africa and Tanzania, Mozambique (population 19,000,000) is currently one of the poorest countries in the world with only a $1,300 gross domestic product per capita (purchasing power parity, CIA World Factbook, 2005 ). In spite of its rich natural resources, because of the chronic history of violence, dire poverty, HIV/AIDS (12.2% adult infection rate) and diseases related to pollution and natural disasters, Mozambique also has one of the lowest life expectancies in the world at 40.32 years ( CIA World Factbook, 2005 ). The recent 2000 Mozambican floods alone displaced a quarter million residents into emergency camps, with the affected population reaching 1 million residents. In overall human and social development, Mozambique currently ranks 168th out of 177 countries in the U.N.'s Human Development Index (2003 HPI, U.N. Human Development Reports), and 96th among 103 developing countries in the U.N.'s human poverty index (2003 HDI-1, U.N. Human Development Reports).