The discovery of large naturalresource reserves in Mozambique has raised expectations ofincreased economic growth, improved public services andpoverty reduction. However, the majority of the populationhas benefited little from growth in recent years, and may beskeptical that the potential for increased governmentrevenues will translate into improved services.Thedevelopment potential of future natural resource revenueswill partially depend on stronger PFM systems, as well aspolitical commitment to broad based social and economicdevelopment. A gap between political rhetoric andimprovements in the everyday lives of the population mayfuel potential for social unrest. Similarly, changingdevelopment partner circumstances (both funding constraintsand changing modalities) and perceptions of Mozambique sdevelopment trajectory may lead to a drop in the levels ofassistance, in advance of actual increases in revenue (it isstill some years before natural resources will reachmarket). The Government needs to respond to both popularexpectations and a changing partner environment. Thiscreates a window of opportunity to increase government focuson the effective management of public resources and improvedservice delivery.
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