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Abstract
This paper uses a 1997 Computable General Equilibrium (CGE) model to analyse three strategies which Mozambique can pursue in furthering a sustainable development process. They include (i) agriculture-first, (ii) agricultural-development-led-industrialisation (ADLI) and (iii) a primary-sector export-oriented strategy. ADLI dominates the two other approaches and the distributional implications of ADLI are attractive. We also find that there are important synergy effects to be reaped from balanced agricultural and agro-industrial development, and the primarysector export-oriented strategy represents a potentially significant set of complementary policies. Finally, the importance of taking structural differences among household groupings into account when formulating comprehensive pro-equity and anti-poverty development strategies is prominent.

Improvements in agricultural productivity and reductions in marketing costs in Mozambique are analysed using a computable general equilibrium (CGE) model. The model incorporates detailed marketing margins and separates household demand for marketed and home-produced goods. Individual simulations of improved agricultural technology and lower marketing margins yield welfare gains across the economy. In addition, a combined scenario reveals significant synergy effects, as gains exceed the sum of gains from the individual scenarios. Relative welfare improvements are higher for poor rural households, while factor returns increase in roughly equal proportions, an attractive feature when assessing the political feasibility of policy initiatives." -- Authors' Astract ; ISI; IFPRI3 ; TMD ; PR