Foreign Aid, Structural Adjustment, and Public Management: The Mozambican Experience

In looking at the case of Mozambique under structural adjustment, this article argues that the particular combination of fiscal restraints imposed by financial programming, and the proliferation of decentralized project-based management, together proved to be a potent mixture which failed to reconstruct a coherent pattern of state action. The problem lies in the increasing dominance of foreign aid and in the uneasy interplay between programme aid on the one hand and project aid on the other, as competition from projects wins resources away from regular state programmes, with very little prospect of such projects becoming self-sustainable in the absence of the continued infusion of foreign aid.