Since the cessation of conflict,Mozambique has achieved impressive economic growth and hasbecome an example of successful post conflict reconstructionand development, moving from a one-party state to amultiparty democracy and from a socialist, command economyto a market-based economy. Mozambique’s development has beenstrongly supported by foreign aid, and since 2001 averageannual disbursements of official development assistance(ODA) have amounted to over 1 billion dollar, or 12 percentof gross domestic product (GDP). Strong economic growth hascontributed to a decline in income poverty, but the level ofoverall poverty remains high. This country programevaluation (CPE) focuses on the Bank’s program forFY2001-08, examining the following questions: did the Bankcorrectly assess the problems Mozambique faced?; was theBank’s strategy appropriate for meeting the country’sdevelopment needs?; how effective was Bank assistance inimplementing those strategies?; what were the outcomes ofthe assistance?; and to what extent did the Bank, otherdevelopment partners, the government, or exogenous forcescontribute to outcomes? The CPE is organized as follows:Chapter one assesses Mozambique’s economic and socialdevelopment and identifies major development priorities andconstraints facing the country. Chapter two is an overviewof the Bank’s program of lending and analytic and advisoryactivities (AAA). Chapters three, four, and five coverthematic aspects: stabilization and growth (includinginfrastructure and agriculture development), povertyreduction and human development, and governance. Chapter sixcovers International Finance Corporation (IFC) activities inMozambique, and chapter seven assesses partnership andharmonization. The last chapter contains conclusions,lessons, and recommendations.