The objective of this policy note is to inform policy discussions around the management of natural resources in Mozambique and reforms needed to translate natural capital into other forms of capital. Experience shows that the quality of governance and institutional capability are a key for countries to be able to translate natural capital into other forms of capital in an effective way. According to a variety of governance indicators, Mozambique's institutions are relatively weak, raising concerns about the country's ability to manage natural resources well. But Mozambique can also build on significant progress in some areas. Democratic elections, free press and a vocal civil society suggest of a gradual strengthening of institutions.


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