Mozambique Capacity Building Study - World Bank Document

Report No. 10001 MOZ

MozambiqueCapacity Building StudyJune 30, 1993

Population and Human Resources DivisionSouthern Africa DepartmentAfrica Regional Office MICROGR ICS

FOR OFFICIAL USE ONLY Report Nio: 10001MOZType: SEC

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CURENCY EQUI VALENTS(May, 1991)

Currency Unit = Metical (pl. Meticais)1000 Meticais = One ContoUSD 1.00 = MZM 1,904 (Secondary Market Exchange Rate)

FISCAL YEAR

Govemment Fiscal Year: January 1 - December 31School Year: February 1 - December 31University Year: August 1 - June 30

ABBREVIATIONS AND ACRONIYMS

CFA Centro de Formacao Agraria (Agricultural Training Center)CFI Centro de Formacao Industrial (Industrial Training Center)CNP Commisao Nacional do PlanoCSP Country Strategy PaperDANIDA Danish International Development AgencyEEC European E-onomic CommunityEPU Pre-University EducationESG General Secor.dary EducationESRP Economic and Social Rehabilitation ProgramGPA General Plan of AccountsICM Commercial Institute of MaputoINAJ Instituto Nacional de Assistencia JuridicaMAE Ministry of State AdministrationMDIs Management Development InstitutesMULEIDE Women's Association for Law and DevelopmentNatCAP National Technical Cooperation Assessment and ProgrammesNGO Non-Govermnental OrganizationNORAD Norwegian Agency for International DevelopmentPNCT National Technical Cooperation ProgramQTSD Quadros dos Tecnico Superiores e de DireccaoSIDA Swedish International Development AuthoritySOAS School of Oriental and African Studies, University of LondonTCPFP Policy Paper on Technical CooperationUEM Eduardo Mondlane UniversityUNDP United Nations Development ProjectUNICEF United Nations Children's FundUNIDO United Nations Industrial Development Organization

This report is based on a sector mission in May 1991 and a follow-up visit to Mozambique inSeptember 1991. The team that prepared the report consisted of, Mr. R. Hecht (Leader),Ms. R. Deutsch (Economist), Mr. W. Saint (Higher Education Specialist), Ms. J. Huddart (Consultant-Training), Mr. J. Negrao (Consultant-Higher Education), Mr. A. Pessoa (Consultant-Management),Mr. T. Davis (Consultant-Public Sector), Mr. C. da Cunlha (Consultant-Secondary Education), Mr. Q.Junqueira (Consultant-Public Sector), Mr. G. Linde (SIDA Education Advisor), Mr. M. Mungaumbe(SIDA Consultant-Legal Training), and Ms. M. dos Santos (SIDA Consultant-Training). Furthercontributions were provided by A.Disch (Consultant) and Ms. R. Deutsch updated the report inNovember, 1992. Secretarial support was provided by Ms. R. Mendoza and Mr. C. Bostic.

FOR OFFICUIL USE ONLY

MQZAYML

Table Conti

EXECUTIVE SUNW Y ........................................... i

1. 'STUDY BACKGROUND, OBJECTIVES, AND MAIN ISSUES ..... ........ 1A. Introducdon .......................................... 1B. Background ................... 1....................... C. Study Objectives, Scope, and Methodology ............. . 4D. Issues to be Addressed ................... 7

II. PUBLIC SECTOR INCENTIV................................ 14A. Introduction ........... .................... 14B. The Civil Service in Mozambique ............. .............. 14C. The Senior Civil Service ................................. 25D. Summary of Capacity Constraining Issues ........ .............. 31E. Recommendations ....................... ..... i ..... 33

11I. EDUARDO MONDLANE UNIVERSY .......................... 42A. Introduction ............................ 42B. Effectiveness ............................ 45C. Efficiency ............................ 55D. Structural Flexibility ................................ 65

IV. GENERAL SECONDARY AND PRE-UNIVERSITY EDUCATION ........ 69A. Introduction .......................................... 69B. Secondary Education in Mozmbique ......................... 69C. Problems and Constraints ........... ...................... 73D. Major Issues in Secondary Education ......................... 78E. Recommendations ............ ......................... 80

V. TRAINING .............................................. 83A. Introduction ......................................... 83B. Overview of the Training Situation ........................... 83C. Economics Training .......... .......................... 93D. Accountancy Training .......... ......................... 95E Legal Training ............. .......................... 98F. Training in Management and Administration ..................... 105

VI. MANAGEMENT OF TECHNICAL ASSISTANCE ........ ... ........ 112A. Introduction ......................................... 112B. Profile of Technical Assistance in Mozanbique .................... 113C. Government Policy for Better TA Management ................... 116D. TA Management Practices in Mozambique ...................... 120E. Conclusions and Recommendations ........................... 123

This document has a restricted distribution and may be used by recipients only in the performanceof their offlcial duties. Its contents may not otherwise be disclosed without World Bank authorization.

VU. GOVERNMENT-DONOR WORKING GROUPS ...... ............. 125A. btroduction ......................................... 125B. Agenda/WorkProgrammeforthe WorkingGroups ................. 126C. StructureofWorkingGroups .. ............................ 127D. CoordinationofWorkingGroups . . . ..... 128E. Conclusions ......................................... 129

Ann Eagg No.

Annex 2-1 Salary Increments for Education and Health Sector ........ 130

Annex 2-2 Geographic Distribution of Senior Civil Serviceby Level of Educational Achievement ........ ............... 131

Annex 2-3 Geographic Distribution of Total Higher Level Staff ..... ......... 132

Annex 2-4 Senior Civil Service: Age and Sex Structure ...... ............ 136

Annex 2-5 Senior Civil Service by Length of Service .................... 137

Annex 2.6 Higher Level Staff by Level of Educational Achievement .... ....... 138

Annex s-7 Qualifications for Senior Civil Service Posts ...... ............. 139

Annex 2-8 Estimated Budgetary Impact of Staff Retrenchment ..... ......... 140

Annex 2-9 Performance Evaluation Format CurrendyBeing Introduced in Ghana ............................. 141

Annex 2-10 Note on Selection Strategy for Housing Scheme .... 147

Annex 4-1 Ministry of Education: Directorate of PlanningEnrollments, by Province, Level and Sex .150

Annex 4-2 General Secondary Education: Breakdown ofStudents by Province, Grade and Sex .151

Annex 4-3 Enrollments and Vocational Educationby Grade and Specialty .......... .............. 154

Annex 4-4 Teacher Training Subsystem ....................... . 157

Annex 4-5 Public Education Expenditure ....................... . 158

Annex 4-6 Recruitment Budget: Education Sector ...................... 159

Annex 4-7 Distribution of Recurrent Expenditures byLevel and Type of Education .................. 160

Annex 4-8 Teacher Training .................. 161

Annex 5-1 Total Numbers of Graduates from Basic and MediumProfessional and Technical Schools .165

Annex 5-2 Studetit Drop-Out and Failure Rates fromTechnical and Professional Training ....... ................. 166

Annex 5-3 Vocational Training Centers in Mozambique ..... ............. 167

Annex 5-4 Course Outlines: Economics and Management Degrees at UEM ...... 169

MOZAMBIQUECAPACITY BULDING STUY

Basic h4dicators(most recent year available)

Sub-SaharanM_giambhm _A0dca_

A. CixiSrvii

1. Civil Servants per1000 Inhabitants 6 14.4

2. Wage Compression Ratio 20:1 12:1

B. ecnayEducationl

3. Gross Enrollment Ratio 7% 23%

4. Share of RecurrentEducation Budget 6.6% 29.1%

5. Percent Female Students 33.7% 37.0%

6. Repeaters as % of TotalEnrollment, 1986 26% 17%

7. Student-Teacher Ratio, 1986 33 30

8. Unit Recurrent Costs $113 $365

C. Wz Eduatimon

9. Enrollment as Shareof 20-24 year Age Group 0.2% 2.4%

10. Share of RecurrentEducation Budget 19.3% 17.6%

11. Unit Recunrent Costs $1,423 $1,233

12. Percent Women Students 25% 24.1%

13. Faculty/Student Ratio 1:8.4 1:14.4

14. Percent Foreign Faculty 16% 19.4%

15. Percent StudyingSciences/Engineering 38% 25.7%

Sources: UNESCO, World Bank, Association of African Universities Data

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intreduetlon

i. Mozambique's myriad problems of underdevelopment (extreme poverty,human suffering caused by internal civil strife, malnutrltion, disease, inadequate shelter, etc.)are compounded by the severe lack of local capacity to formulate development policies and toplan and manage development activities. Indeed, lack of capacity is not only a symptom ofunderdevelopment, but is also a fundamental constraint to Mozambique's current and futureefforts to solve the basic problems of underdevelopment.

ii. Mozambique's major development objectives are to: (a) achieve rapidsustained economic growth by making an effective and smooth transition from a commandeconomy to a market economy, and (b) put in place as quickly as possible effective povertyreduction measures supported by this economic growth. To achieve these objectives, one ofMozambique's priority needs is medium and high-level manpower which Is well-trained,motivated, and skilled in planning and managing programs and projects that stimulateeconomic growth and alleviate poverty. Mozambique's severe capacity deficiencies present acritical barrier to the successful implementation of post-war national reconstruction and of theGovernment's economic and social recovery program. Both demand and supply aspectscontribute to the current scareity of administrative, technical, and managerial skills andinstitutional capabilities. Changes on the idmaW side are essential in the short run,particularly reforms in public setor pay and employment conditions and changes in publicinstitutions. On the sp& side, capacity building will require new initiatives in educationand training, including secondary and post-secondary education and technical, vocational andprofessional training. By focusing simultaneously on both demand and supply factors,capacity-building can help to increase the number of skilled administrators, managers, andtechnicians, and also ensure that the public and private institutions employing these peoplerecognize their importance, provide adequate incentives to attract and retain them, and createa work environment that taps their energies and talents.

iii. The report which follows attempts to analyze the current crisis of capacity inMozambique, as well as its origins and causes; to document recent and ongoing efforts tobuild capacity; and to consider a wide range of options and make recommendations forincreasing capacity in both the short-term and over the coming decades. The report grows outof a Government request to the World Bank in December 1990 to assess the prevailing lack ofcapacity and propose solutions. In response, the Bank and SIDA have worked closely withthe Government and the rest of the donor community in preparing this report and a shorter"Capacity Building Policy Framework Paper", presented at the 1991 MozambiqueConsultative Group. It is also hoped that this report and any follow-up actions will dovetailwith the emerging program of the newly-created African Capacity Building Foundation.

The Crisis of Cnacity

iv. Among the world's developing countries, Mozambique suffers from the effectsof having one of the weakest human resource bases. The shortage of trained manpower at alllevels, from the most basic workers to senior technicians and managers, is extremely acute.Out of a total estimated population of 16 million, Mozambique has fewer than 3,000

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university-trained people. Less than 15% of senior civil service personnel have universitytraining, and a sutprising one-third of senior clvil servants have completed only primaryeducation. Substantial gains in management and technical capacities will be required ifMozambique Is to steer a successful traz.- 'tion from war to peace and a productivedevelopment course In the years ahead.

v. The colonial legacy of severely underdeveloped human resources lies at theorigln of Mozambique's current capacity problems. At the time of independence in 1975, theoverall literacy rate was only about 8%, a result of the Portuguese colonial policy of makingformal education inaccessible to the bulk of the local population. Even though a universitycampus was established in the capital of Lorenco Marques (now Maputo), most of the studentswere Portuguese nationals, not native-born Mozambicans. At the time of independence, thevast majority of experienced administrators, technicians, small businessmen, professionals,skilled workers, and artisans abandoned the country as part of the Portuguese exodus. Froma management staadpoint, the country was decapitated.

vi. Since that time, the Mozambican Government has made important strides inrebuilding its human resource base, by improving access to education at all levels andpromoting adult literacy. Between 1975 and 1986, primary enrollments more than tripled,and secondary enrollments increased four-fold. The literacy rate of the 15-24 age cohort grewto over 40%. Despite this significant progress, Mozambique's population remains one of theleast educated in the world, according to the standard indicators. The decline in primary andsecondary enrollments in the last few years (combined with a likely deterioration in thequality of learning), due to war-related insecurity and insufficient budgetary resources for theeducation sector, have clearly exacerbated the situation.

vii. The number and quality of secondary and university graduates is seriouslyinsufficient to meet Mozambique's needs for high-level manpower. The gross enrollmentratios for tertiary and secondary education (0.2% and 7%) are only a fraction of thecorresponding average enrollment ratios for the rest of Africa (see Basic Indicators Table atthe front of this report). Low output at these levels of the education system is also apparentin the educational profiles of public and private sector employees. According to a 1990survey of the top levels of the civil service, only slightly more than half of the 247 CentralGovernment department heads surveyed had completed secondary school. For localgovernments, the situation was worse: of the 206 district directors surveyed, only 74 hadgone beyond primary level, and none had attended the University. These shortages of skilledstaff thus hamper the Government at all levels in responding to the needs of its citizens. Theprivate sector is similarly afflicted. Ministry of Labor data for 1987 indicate that within theprivate sector, about 40% of Mozambicans in technical and management positions had lessthan a 9th grade education. Less than 1% of the private sector work force, or 355 personsout of 168,800 surveyed, were University graduates.

viii. The severe shortage of trained Mozambicans is compounded by the problemof inadequate pay and other incentives offered to civil servants, especially in the higherechelons of Government. Within Government, while the ratio of pay for senior staff ascompared to workers in the lowest grades has been somewhat de-compressed in recent years,wage differentials between the public and private sector remain quite wide, and Increasingcompetition for scarce resources continv@s to bid up the price of skilled Mozambicans in theprivate sector. In addition, low salaries for mid-level managerial and technical staff andbarriers to promotion are a serious disincentive to these civil servants. As a result, there is

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sigifct staff dmoraliation ad absenteeism, and numbers of key senior officials arloving public ervice for the expanding local privae sector, employment with an Intationalagency, or for employment abroad.

ix. Another symptom of the current crisis of local capacity, especially inGovemment, is that Mozambique has turned to increasing numbers of foregn asistancepersonnel to help make the public sector, and indeed the entire economy, function. A UNDPNATCAP study estimates that in 1987, a total of 3,000 technical assistants CrA) wereworking in the country at a cost of about llS$168 million, equivalent to about 10% ofMozambique's GDP. This technical assistance is not well managed. In some cases,expatriates are being employed to do work Which could be performed by trainedMozambicans. In many other cases, the expatriates canry out needed technical or managerialtasks but do not transfer their skills or knowleage to local Mozambican counterparts. Thiscostly dependence on foreip technical assistance is not declining, and in fact bas actuallyincreased in recent yeas.

x. While the donor community is fully committed to assisting Mozambique'sdevelopment and, in particular, to building up local capacity to do so, many past actions bydonors have actually had the paradoxical effect of weakening capacity, especially of publicsector institzitions. lhe widespread practice of "topping-up" project managers' salaries; therecruitment of Mozambican to work directly for the do*r"s at slary levels far above thoseprevailing in the local market; the casual hiring of donor-funded TA, without consideringcareflly the associated trainig of local counterparts; the establishment of autonomous projectunits within Government ministries, staffed largely by local "consultants"; the creation ofproject-specific training courses that bypass local training institutions - while intended toacceerate project implementation, have in a number of cases undermined the capacity ofimportant institutions. Since the donors have thus in a sense contributed to the current crisisof local capacity, it should be incumbent upon them to be actively involved in the search forsolutions.

xl. While many factors acting simultaneously help to explain Mozambique'scapacity wealmesses, constraints in five main areas appear to account for much of the presentimasse. These constraints include:

(a) the lack of adequate pal d ot incentives to middle and senior-level civil servants,inorder to recruit, retain, and motivae these cadres;

(b) the insufficient output of qualified graduates of thelrs:it

(c) the low numbers and poor quality of =er soda school gduates;

(d) the ineffectiveness - and in some cases, absence - of high-quality local trainingzMg= in key professional areas (e.g., accountancy, law, economics) and in public

management and administration; and

(e) poor Use of sh Ai in building local institutions and transferring skills toMozambicaus.

xii. The first of the above factors is critical in creati 'demand" for skilledindividuals and strong institutions, while the other four factors are vitally important in

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enhancing the "supply" of middle and upper-level policy analysts, technicians, and managers.Ibe Govanmeet, with support from the donor community, Is committed to addressing all fiveof these facto tbrough an Integrated Capacity Building Strategy (presented August, 1992), inits goal to build up local capaoity in Mozambique over the coming decade. Strengthening thepipeline of skilled entrants into the civil service, parastatals, and private sector by investingmore in secondary and tertiary education and special management training programs is afundamental step, but Is clearly not enough. If adequate incentives are not provided and thework environment Is not conducive, senior staff will continue to flee Government agencies forprivate employment or even for professional opportunities outside of Mozambique.

xiii. While measures to Improve capacity in the private sector throughImprovements in secondary and tertiary education and in many technical and professionalskllls areas (e.g., accountancy, law, etc.) are vitally needed, an effective use of capacity inthe private sector also depends on a series of changes in the macroeconomic sphere and in thelegal/institutIonal framework of Mozambique. Some of these changes which are currentlybeing pursued include: reforms of the enterprise, banking, and land ownership laws, creationof viable financial markets, and the ongoing privatization of state enterprises.

xiv. In Its broadest sense, the challenge of capacity building in Mozambiqueextends to both the public and private sectors, and to all skill levels of the labor market.Since the present report focuses mainly on building capacity to plan and manage economicdevelopment, it concentrates on skilled workers in the upper and middle-levels of Governmentand private institutions. At the same time, however, the importance of improving the generalliteracy of the population and the skills of lower-level workers (artisans,administrative/clerical staff, extension workers) is fully recognized. The Government, withsupport from the donor community, is currently engaged in efforts to build capacity at theselevels, through programs for adult literacy, primary education, extension worker training, etc.These efforts will prove a key element of National Reconstruction, and need to be intensifiedin a post-war Mozambique.

xv. The Government and donors are acutely aware of the crisis of capacitybesetting Mozambique, and have begun over the past few years to take steps to resolve thecrisis. In the area of civil service reform, for example, the Government in late 1990, withrevisions in April, 1991 adopted a new salary scale which: (a) reduces dramatically thenumber of job classifications in the civil service from about 6,000 to fewer than 1,000; (b)creates a common salary scale for employees of all Government departnents, who previouslyhad been paid according to a number of disparate scales; (c) increases in absolute terms totalcompensation paid to most civil servants, especially those in the middle and upper cadres; and(d) decompresses the ratio of wages for the highest to lowest categories of Government worksfrom 8:1 to about 17:1. Subsequendy, in May, 1991, additional technical subsidies wereprovided for university professors, teachers and nurses, together with bonuses for the holdersof advanced academic qualifications, ranging from 20% to 50% of basic salary. Morerecentdy, a joint Government-donor task force was formed in October, 1991 to explore arange of options for improving incentives for senior Government officials. Their effortsresulted in a government approved proposal for a Salary Incentive Fund for top-level civilservants, for which support has already been pledged by several members of the donorcommunity.

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xvi. The University has begun to take the lead in confronting Its own problems andmanaging its relations with the donors. It has organized two consultative meatinigs-n May1991 and November 1992-for donors, representatives from other African Institutions ofhigher learning, and Mozambicans drawn from a wide range of Govermnent, academic, andprivate sector organizations. During the first meeting UEM presented a we'll-conceivedinstitutional stabilization plan for the coming decade, and asked for greater donor flexibility Inassisting the plan's implementation. Specific proposals Included small un-tied donorcontributions to general university funds for purposes of staff development, technicalassistance and library acquisitions. The need to earmark a limited portion of project funds formaintenance of UEM's Institutional infrastructure was highlighted. At the second meetingthe University presented its first annual report, a yearly work plan based on a programbudgeting approach, a proposal to establish a representative University Council, theUniversity's first independent audit, and a set of Indicators for monitoring institutionalperformance.

xvii. In secondary education, modest but encouraging initiatives include a project toenrich school libraries and provide individual schools with small flexible funds, the revisionof the 11th and 12th grade curriculum, and the start-up of the first private secondaryinstitution since independence. Similarly, In the area of vocational training, there are severalpromising programs which have been launched in recent years In the areas of businessmanagement, accountancy, and local government administration. A comprehensive vocationaltraining strategy Is expected by Government during the first half of 1993. Among theprofessional education programs, the faculties of economics and law are currently striving toput in place sensible medium-term plans for stabilization and expansion, includingrationalization of their use of foreign assistance from a multiplicity of sources.

xviii. Finally, over the past three years, the Government has taken some importantsteps to contain the numbers -and cost of TA and Improve its effectiveness. In conjunctionwith the UNDP's NATCAP, it approved in May I .nO a national policy on technicalcooperation which established a series of guidelines on TA management, covering (a) training,(b) rationalization of TA and reorientation toward priority sectors, (c) donor coordination, and(d) more systematic evaluation of the costs and benefits of technical aissistance. In December,1990 the Government Issued a new regulation stipulating that foreigners working inMozambique and Mozambicans employed by international agencies would be subject to a taxof 30% of their incomes earned in Mozambique. The imposition of this tax was intended notonly to yield increased revenues for the Government, but also to provide a financial incentiveto donors funding TA an Mo.-Ambican agencies receiving TA, to ensure that the technicalassistance is vitally required and is being effectively utilized. Current efforts by both donorsand Government are being directed towards increasing the transparency and reducing donor-driven distortions in the market for local consultants. Also being discussed is thedevelopment of clear guidelines for compensating civil servants who provide a form of "localTA" through their work on project-related activities.

xix. While the measures listed above are encouraging, the Government and donorcommunity must do much more if significant capacity is to be built in Mozambique over thenext few years. This report contains a number of recommended actions in each of thechapters which follows. Some of the most important recommendations which, ifimplemented, would have a profound positive impact on Mozambique's development capacity,are given below.

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xX. lhes recommendations together contituto a conservative "core" program tobuild capacity, under Mozambique's cureent conditions of transition to peace and its weakpublic fiscal position. If ceain key parameters change sigflcantly over the next few years,however, offorts to bufld capacity along the lines recommended in this report would need tobe gready Intenified. These potential changes include:

A fidl return to peace and security throughout Mozambique, given the signing of apeace accord ora October 4, 1992, leading to the reinstatement of clvil administrationat all levels, rehabilitation of physical and social infrastructure, aed rapid expansion ofrural and aricultural production. Implementation of demobilize- resettlement,and the planned national reconstruction would result in a dramatic w..-.ase In thedemand for technical and managerial skills;

- A related improvement in the Government's overall flscal position (resulting fromaccelerated economic growth) that, in the long-run, would more than off-set the costsof demobilization and repatriation, and would allow the Government to invest more ineducation and training;

A major increase in HIV infection and AIDS, which has tended in many other Africacountries to take a major toll on the educated and skilled segments of the population;and

- An opening of the post-apartheid South African labor market which could drainskilled labor from Mozambique.

>.ecnunended AWg

xxi. t=nge PubHi Sector Incentyves

Tems and conditions of service should be improved by ensuring that taxation ofpersonal incomes is applied uniformly across all sectors of the economy, and thecurrent advantage of foreign exchange payments by private and parastal entities iseliminated (para 2.49);

Career structures shoule. be reformed, de-emphasizing formal academic qualificationsin career progressions for the technical cadre, and providing alternatives to formaleducational qualification for specific positions and emoluments (para. 2.63);

Capacity must be built urgently at district and provincial levels, by upgrading theseniority of posts and emoluments payable to officers serving outside of the capital,and by launching a multi-year program of facilities and housing construction (para.2.67);

To enhance further incentives for the senior civil service, the highest priority forsalary increments should be attached to the entry levels for top managerial andtechnical cadres and to the Tecnico C and Tecnico D categories, who are badlyunderpaid. In addition, other non-salary incentives are required, including anenriched pension for long-serving officers, and programs that facilitate the purchase of

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housing (including Government-owned housing for which privatization began inOctober, 1992) through special loan schemes (para 2.78).

Restructring of the civil service may need to be cartied out, based on job inspectionsand functional reviews. If there urns out to be excessive staffing (and it appears thatthis may be the case for unskilled workers in pay grades V-Z at least), and the wagesavings more than off-set the political costs associated with retrenchment, staffreductions may be justified. If so, related programs to facilitate the transition ofretrenched staff to alternative employment would need to be put in place. Anotherapproach to civil service restructuring which should be p,rsued would be to privatizecivil service activities which are essentially commercial in orientation (e.g., foodservices, civil constwuction, building cleaning and maintenance, etc.; para. 2.57-2.62);

xxii. The Univmht

To maintain the quality and relevance of UEM trWaining, a number of measures shouldbe adopted, including (a) moving to a degree-granting system based on academiccourse credits, (b) administering distance education courses in selected areas of highdemand, (c) carrying out a thorough curriculum review before 1995, and (d)establishing informal advisory committees to UEM faculties, composed ofrepresentatives of public and private employers. At the same time, UEM shouldcontinue its policy of refraining from initiating new academic programs until existingones have been consolidated (para. 3.23-3.28);

UEM programs for research and contractual services need to be strengthened in waysthat reinforce the University's teaching mandate and do not detract from it(para. 3.34);

To maintain regional diversity within the student body, the pre-universitj secondaryschools in the provinces need to be improved (see Chapter 4, too). Simultaneously,UEM should assess the possible need for means-ested financial assistance (bolsaa) forsome provincial students, and should embark on a vigorous program to increase thenumber of dormitory beds at the University. UEM should avoid setting explicitregional quotas, but should establish 3-5 year diversity goals and monitor theseactively (para. 3.43-3.45);

To enhance efficiency at the University, higher student:faculty and supportstaff:faculty ratios need to be vigorously pursued, and ways of better managingstudent residences and cafeterias (including sub-contracting with private firms) shouldbe explored. At the same time, the UEM staff development prograam to increase thenumber of Mozambican faculty should be accelerated, and a package of greaterincentives (including salary and benefits, and especially faculty housing) should bedeveloped and implemented (para. 3.65-3.68);

To reduce the current high rates of drop-out and repetition and to improve theeffectiveness of classroom teaching, the supply of textbooks, teaching materials, etc.,must be expanded, and student living and study facilities should be significantlyupgraded (para. 3.78-3.79);

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The University's review of its overall management and governance structure andfollow-up actions are strongly supported. Further efforts should be made to ensurethat levels of decision-making and accountability coincide, especially at faculty level.The University should also begin to plan for the transfer of central administration,including personnel and student affairs, to the main campus (para. 3.91);

The University's present degree of autonomy needs to be maintained. In this regard,the feasibility of establishing the University as a more autonomous public institutionshould be seriously explored. Finally, the donor community should respond positivelyto the University's proposal for greater flexibility in the structuring and managementof donor-funded projects (para. 3.101).

xxiii. Secondary Education

The Government should give serious consideration to increasing the share of theeducation budget going to general secondary education from its 1991 level of just6.7% to at least 12-15%. Implementation of many other recommendations forsecondary schools depend on this increase, which would bring Mozambique into linewith, other develcing countries (para. 4.34);

The existing physical infrastructure needs to be significantly upgraded, includingrenovation of the five EPUs and their attached dormitories, cafeterias, study halls, etc.(para. 4.43);

The pedagogical infrastructure is also gravely inadequate and requires urgentrehabilitation. This means re-equipping science laboratories, modernizing schoollibraries, and increasing the availability of basic textbooks (para. 4.44);

To strengthen the effectiveness of teaching and learning, a series of organizational andmanagement reforms should be carried out, covering enhanced teacher participation incurriculum design and setting of examinations, delegation of financial authority toindividual schools, and promotion of Parents Councils and other forms of communityinvolvement in school activities (para. 4.454.46); and

Basic education policies for the secondary system should be re-evaluated, includingthose affecting teachers' incentives and career opportunities, use of distance education,and procedures for accreditation of private secondary schools (para. 4.47).

xxiv. Technical. Vocational, and Professional Training

An in-depth analysis of vocational courses currently offered should be conducted,linked to an assessment of the labor market. Based on this analysis, it is likely thatthe number of vocational institutions can be reduced and efficiency greatly enhanced.This should be accompanied by the establishment of a mechanism for continuing linksbetween the training institutions and employers, for example by the establishment ofadvisory boards (para. 5.40);

Instead of trying to provide full in-house capacity for practical training at vocationaltraining centers, with all the corresponding equipment and material requirements,

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apprenticeship schemes with local employers should be developed wherever possible(para. 5.43);

Increasing operational autonomy of the professional training institutions should beaccompanied by the establishment of professional certification standards for definedprofessions such as accounting, computing, paralegal studies, administration anidmanagement, secretarial, etc. (para. 5.44);

To strengthen accountancy training, the Technical Commission on Accounting shouldbe supported in its efforts to define the levels of professional qualification andpractice. Once this is done, the accountancy training set-up will need to be revised,including the structure of training institutions, curricula and learning materials, andteacher training (para. 5.67);

To develop the required legal skills, the UEM Law Faculty must be stabilized tlhrougha program to retain existing staff and employ more teachers, furnish adequate teachingmaterials to students, and make faculty administration more efficient. Once the LawFaculty is stabilized, steps should be taken to increase enrollment, with a target ofdoubling the current student intake in the next five years. Short courses or seminarsto upgrade the skills of practicing lawyers should also be a priority (paras. 5.93-5.96);ad

The feasibility of developing a national college of administration and managementshould be explored. Both Government and donors should continue to encourage thepractice of having lead ministries (MAE, Ministry of Finance, NPC, etc.) developimproved management systems and related training for the entire civil service.However, attention should be given to institutionalizing these efforts, both at centraland provincial/ district levels, for example, by involving the School of LocalGovernment Training (para. 5.119).

xxv. Management of Technical Assistanc

The National Program of Technical Cooperation should continue its efforts to developa comprehensive data base on technical assistance that would facilitate monitoring oftrends and formulation of related policies on TA. Sectoral Government-DonorWorking Groups can also aid in the collection of this information. (para. 6.43);

Government and donors should strive to develop mechanisms for expandedGrovernment control over and direct involvement in the recruitment, supervision, andpayment of TA. At the same time, they should develop standard recruitment andcontracting procedures that include well-defined terms of reference and detailedtraining and institutional strengthening plans (paras. 6.37-6.39); and

Donors should consider increasing their financial support to the Personnel Fund,concomitant with Government measures to improve its administration, reporting, andaudit functions (para. 6.44).

Sequtenng and FeBlbltl of RecommenMe Act3Qns

xxvi. AlI of the recommendations listed above, as well as others which arecontained in the various chapters of the report, can be expected to make an importantcontribution to building capacity in Mozambique. However, in view of the serious financialconstraints facing the country, and - paradoxically - the limited capacity to implementreforms, it will be necessary to set priorities rigorously and thus develop a realistic,implementable program for capacity building.

xxvii. On the financial side, it is essential that the education sector's share of thtota Gonme recurrent budget increase from 12-14% in the late 1980s to a level of 18-22%. This appears to be happening already: preliminary figures suggest that educationreceived over 16% of the recurrent budget in 1990 and is slated to receive about 17% in1991. Even under these circumstances, however, the intra-sectoral trade-offs will be difficultones. While primary education needs to continue to receive 40% of recurrent financingavailable to the sector, the University must at least maintain its current share of 20% andsecondary education must obtain a significantly larger budget slice if capacity building is to becarried out effectively.

xxviii. Regarding the investment budget, the capacity building actions proposed in thereport appear to be ones that can be accommodated within the limits of planned Govermentspending for the next three years - especially when projected salaries for foreign teachers atUEM are correctly reclassified as a recurrent expense and not a capital item. However, as amore detailed capacity building program gets underway, the Government and donors will needto analyze its affordability carefully, both in terms of investment resources required andImplied incremental recurrent expenditues. If the program's affordability seemsquestionable, it may be necessary to consider reallocating resources from other sectors to thisimportant capacity-building endeavor, or scaling back or deferring some capacity buildingactions until a later stage.

xxix. In formulating an "action plan" for capacity building in Mozambique, oneapproach for the Government would be to select those actions that can be implementedimmediately or in the near term, are teckh ally feasible, and can have a major impact inbuilding capacity. Using this approach, thw main elements of the "action plan" should be:

Reform of civil service career structures and improved working/living conditions atprovincial and district levels, and a major enhancement in salaries and other incentivesfor senior public officials;

Stabilization and expansion of UEM through staff incentive and staff developmentschemes, and enhanced quality of learning at the University through targetedimprovements (e.g., textbooks, library resources, and student housing);

Crash programs to rebuild the UEM economics faculty, expand the law faculty, andfirmly establish the accountancy profession and related training institutions, and createa solid program of public administration or civil service training; and

A major overhaul of the current system of technical assistance to Mozambique,including the untying of donor funds for TA, widespread adoption of improved

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practices for recruitment, selection, and supervision of TA, and standardization ofdonor policies on hiring and payment of local employees.

xxx. To implement an action plan for capacity building, a glose partrhbetween Government and the dinor community is u;gently required. Several encouragingsteps in this direction have already been taken, including the formation of the jointGovernment-donor task force on public sector incentives and the formation of an inter-ministerial Government committee on capacity building, chaired by the Ministry of StateAdministration. In view of the pivotal role that MAE can be expected to play in capacity-building, a Planning Unit was created within the Ministry in October, 1992, which wUlprovide technical support in the design of key policies and strategies undertaken in as part ofan overall Capacity Building Program, and act as a secretariat for the Inter-MinisterialCommittee.

xxxi. On a sectoral level, Government-Donor-r-. orking groups can play a crucialrole in implementing capacity building activities. Providing an effective forum forinformation exchange, policy discussion, and cooperative problem-solving, these workinggroups represent an extremely efficient means of donor coordination. They can aid in makingthe most of existing capacity at the sectoral level through substantially reducing theadministrative burden on government.

xxxii. In its efforts to build capacity over the next few years, MQanbinue shouldalso take full advanta?e of a number of imnortant reeional initiatives currently under way.Among the more promising of these are the African Capacity Building Foundation, which isexpected to provide both analytical and financial resources for capacity-building activities; theUNEDIL program for strengthening managemeAt training institutions in Africa; the PALOPprogram to coordinate training activities in the Portuguese-speaking countries of Africa; andthe SADCC human resources development program, led by its Regional Training Centerbased in Swaziland. All of these regional initiatives present Mozambique with opportunitiesto benefit from the experience and expertise of other African countries in the area of capacitybuilding.

I. SIUDY BACKGROUND. OBJECTIS AMD MM ISE

A. introduction

1.1 Mozambican Government officials, the World Bank, and donor representativesagreed during the December 1990 Consultative Group meeting in Paris that a major newinitiative to build capacity was essential to ensure the successful implementation of theEconomic and Social Recovery Program (ESRP), the realization of the Priority DistrictsProgram and the fight against poverty. To this end, it was agreed that the Bank, working inpartnership with the Swedish International Development Authority (SIDA), would assist theGovernment in developing a framework for analyzing the existing capacity problems inMozambique and proposing measures to expand capacity in both the short and long term.This resulted in the 'Capacity Building Policy Framework Paper" which was presented at theCG Meeting in December 1991.

1.2 In addition, it was agreed that the Bank and SIDA would collaborate with theGovernment in a Capacity Building Sector Study that would go beyond the Framework Paperby examining in greater depth the current lack of capacity, especially in Government;pinpointing the major constraints to increasing such capacity; and identifying a series ofpriority actions to overcome these constraints. The study would look at systemic factorsaffecting the public sector and the Mozambican economy as a whole, rather than focusing onthe shortage of skllled manpower and weak organizational structures in any one sector. Thestudy would aim to combine 'supply' side issues, i.e., barriers to the increased supply ofskilled labor (in higher education, secondary schools, and local training programs) with'demand' issues, i.e., lack of incentives and other factors impeding the Government's abilityto attract and retain high-level manpower. The study would also assess options for improvingthe use of foreign technical assistance in building capacity, the potential role of regionaltraining and research institutions, and ways in which donor policies and actions in this fieldcan be better coordinated.

B. BaXonmd

1.3 Among the world's developing countries, Mozambique suffers from the effectsof having one of the weakest human resource bases. The shortage of trained manpower isextremely acute at all levels, from the most basic workers to senior technicians and managers.Out of a total estimated population of 16 million, Mozambique has less than 3,000 university-trained people, and only 25 of these have doctoral degrees. Less than 15% of senior civilservice personnel have university training, and a surprising one-third of senior civil servantshave only completed primary education. Substantial gains in management and technicalcapacities will be required if Mozambique is to steer a productive development course in theyears ahead.

1.4 The colonial legacy of severely underdeveloped human resources lies at theorigin of Mozambique's current capacity problems. At the time of Independence In 1975, theoverall literacy rate was only about 8%, a result of the Portuguese colonial policy of makingformal education inaccessible to the bulk of the local population. Even though a universitycampus was established in the capital of Lorenco Marques (now Maputo), most of the students

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were Portuguese nationals, not native Mozambicans. At the time of independence, the vastmajority of experienced administrators, technicians, small businessmen, professionals, skllledworkers, and artisans abandoned the country as part of the Portuguese exodus. From apolicy-analysis and management standpoint, the country was decapitated.

1.5 Since that time, the Mozambican G;overnment has made important strides Inrebuilding Its human resource base, by improving access to education at all levels andpromoting adult literacy. Between 1975 and 1986, primary enrollments more than tripled,and secondary enrollments Increased four-fold. The literacy rate of the 15-24 age cohort grewto over 40%1/. Despite thisi significant progress, Mozambique's population remains one ofthe least educated in the world, according to the standard indicators. The decline in primaryand secondary enrollments in the last few years (combined with a likely deterioration in thequality of learning), because of war-related Insecurity and insufficient budgetary resources forthe education sector, has clearly exacerbated the situation.

1.6 The number and quality of secondary and university graduates is gravelyinsufficient to meet Mozambique's needs for high-level manpower. The country's grossenrollment ratios for tertiary and secondary education (0.2% and 7%) lag far behind theregional averages for Africa (2.4% and 23%). Low output at these levels of the educationsystem is also apparent in the educational profiles of public and private sector employees.According to a 1991 survey of the top levels of the civil service, only slightly more than halfof the 247 Central Government department heads surveyed had completed secondary school.For local governments, the situation is worse: of the 206 district directors surveyed, only 74had gone beyond primary level, and none had attended the university. Ministry of Labor datafor 1987 indicate that within the private sector, about 40% of Mozambicans in technical andmanagement positions had less than a 9th grade education. Less than 1% of the private sectorwork force, or 355 persons out of 168,800 surveyed, were university graduates.

1.7 For the Government, the severe shortage of trained Mozambicans iscompounded by the problem of inadequate pay and other incentives offered to civil servants,especially in the higher echelons of Government. While the ratio of pay for senior staff ascompared to workers in the lowest grades has been somewhat de-compressed In recent years,wage differentials between the public and private sector remain quite wide. In addition, lowsalaries for mid-level managerial and technical staff and barriers to promotion are a seriousdisincentive to these civil servants. As a result, there is significant staff demoralization andabsenteeism, and a numbers of key senior officials are leaving public service for the localprivate sector or for employment abroad.

1.8 Another symptom of the current crisis of local capacity, especially inGovernment, is that Mozambique has turned to increasing numbers of foreign assistancepersonnel to help make the public sector, and indeed the entire economy, function. A UNDPNational Technical Cooperation Assessment and Programmes (NATCAP) study estimates thatin 1987, a total of 3,000 technical assistants were working in the country at a cost of aboutUS$168 million, equivalent to about 10% of Mozambique's GDP. This technical assistance isnot well managed. In some cases, expatriates are being employed to do work which could beperformed by trained Mozambicans. In many other cases, the expatriates carry out needed

If Information in this section is drawn from Mozambique: Education and owerDgWgament EMI , Staff Appraisal Report No. 7084-MOZ, April 1988.

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technical or managerial tasks but do not transfer their skills or knowledge to localMozambican counterparts. It is widely recognized that this costly dependence on foreigntechnical assistance is not declining, and in fact has actually increased in recent years(Informal estimates reach as high as 5000 technical assistants working at mid- and high-leveljobs in 1992).

1.9 Government has expressed a strong interest in building developmentmanagement capacity in Mozambique, through the formal adoption in August, 1992 of aCapacity Building Strategy, targeted support to the education sector, design of more effectivepublic sector incentives, and improved use of technical assistance. Consistent with thisemerging policy for capacity building, the Government is now taking a number of actions,including:

(a) implementation of two IDA-funded education projects that aim to improveboth the quality and quantity of instruction in primary schools and at theEduardo Mondlane University (UEM);

(b) completed with the World Bank a study of "Public Pay and Employment"Z/.In this area, the Government published a new salary scale, effective April 1,1991, which unifies salaries across the civil service, and decompresses theratio of the highest to lowest salaries from 8:1 to 17:1;

(c) with the support of the NatCAP program, the implementation of a nationalpolicy on technical cooperation adopted by the Council of Ministers in May1991;

(d) as its own initiative, UEM in May, 1991, presented to the donor community aproposal for meeting the University's "basic minimum needs", designed tofirst halt and then reverse the institutional deterioration that has occurred inthe last few years. Progress made on these fronts and a continuing workprogram were presented in a second donors' meeting in November, 1992;

(e) approval of two IDA-funded capacity building projects the first of which aimsto support and stabilize university and upper secondary education, while thesecond, and linked, project, builds MAE's capacity to improve publicadministration and development management and strengthens legal institutions;and

(f) endorsement of the Government-Donor Working Group process at the sectorallevel as a means of improving donor coordination, reducing the administrativeburden on Government, lowering information costs, and providing commonsolutions to implementation problems faced by a variety of external agencies.

1.10 The World Bank's overall strategy for Mozambique, as expressed in the 1990Country Strategy Paper (CSP), identifies capacity building as a major focus of economic and

Z/ World Bank, Mozambique: Public Sector Pay and Employment Review, Report No.9815-MOZ, December, 1991.

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sector work, as well as policy reform and project investment. The CSP proposes that specificattention be paid to public sector incentives, local skills development, Improved use oftechnical assistance, and increased donor coordination - all areas examined in this study.Some of this study's recommendations have been incorporated in the design of several IDA-funded proJects, including the Capacity Building Projects and Roads and Coastal ShippingProject and in the Economic Recovery Credit, as well as in other donor-ffnanced projects inMozambique.

1.11 The sector study is also consistent with SIDA's increasing emphasis oneducation and public sector management in Mozambique. Sweden's long-standing support foreducation covers primary education, textbook development, adult education, and technical-vocational training. The three-year program, which started on July 1, 1991 and has qualityimprovement as ita overall objective, includes SIDA assistance to higher education andsupport for research and evaluation and development of other didactic materials. At the sametime, Sweden continued its broad-based support to public sector management, includingassistance to budgeting and financial management (mainly through the Ministry of Finance)and to manpower development and personnel management (through the Ministry of StateAdministration).

C. Study Objectives, Scope, and Methodology

1.12 QIbivtes The overall objective of the study is to formulate practicaloptions/recommendations for improving Mozambique's capacity to plan and managedevelopment activities, with an emphasis on increasing the number of local skilled personnelin the civil service. To that end, the study attempts to:

(a) Review existing incentive mechanisms for the civil service, inordir to identify ways of improving the recruitment andretention of qualified senior personnel;

(b) Assess the pipeline of skilled personnel and related trainingprograms at UEM, the pre-university secondary schools, andlocal in-service courses, and propose related improvements inthis local system of education and training, and inMozambique's use of external training institutions, especiallythose located in East and Southem Africa;

(c) Analyze the effectiveness of technical assistance in increasing local capacity,and recommend measures to improve such effectiveness; and

(d) Evaluate critically past donor performance in buildingcapacity, in order to pinpoint ways of better harmonizingdonor policies (e.g., on recruitment of technical assistance,topping-up project staff salaries, etc.) and investments (e.g., ineducation and training projects) that affect capacity building.

1.13 Scp. The study chapters that follow are organized to deal with six majortopics in capacity building:

I .-5-

(a) :: profiles of the seniorcivil service (age, educational level, tenure, turnover rates, rate of promotion,in-service training); the current structure of incentives (pay, fringe benefits,promotion) and disincentives; key issues in the organizational environmentthat impede capacity-building (degree of centralization/delegation of authority,administratlve procedures and information systems, office technology andsupport services, work culture); and potential measures to improve therecruitment and retention of senior staff;

(b) Ie Universit: examination of its current and future mandate in promotingnational reconstruction and development; UEM's overall accomplishments andshortcomings (financial, staff, research, conditions for study, access,management systems) in seeking to fulfill that mandate; immediate andpressing constraints to expansion of and improver ant in the quality oflearning, with special emphasis on selected priority disciplines (e.g.,economics, law, and engineering); and preparation of a strategic institutionaldevelopment plan for UEM;

(;) Secondary Education: status and trends in pre-university secondary education(enrollments, teaching staff, expenditures, maintenance of physical assets,curricula); critical bottlenecks to expanding enrollments and improving thequality of learning (shortages of teaching materials and equipment, lack ofmanagerial autonomy at school level, etc.); the relationship between pre-university secondary schools and other medium-level education programs(technical training, teacher training, adult education); and strategies forinstitutional development to bring secondary education into line with therequirements of University and the needs of the economy;

(d) LocJcal ining: the extent of shortages of trained Mozambicans in key skillareas for planning and managing economic development: (i) accounting andauditing, (ii) management and public administration, (iii) economics, and (iv)law; the availability and effectiveness of ongoing local training programs inthese areas, including innovative approaches (part-time, link institutions,distance learning); and the organization and management of technical-professional training in Mozambique;

(e) Technical Assistance: the magnitude of technical assistance throughoutGovernment and its performance in transferring skills and developing localinstitutions; typologies of TA by types of contract and function; and options(including guidelines recently proposed by the Government, expanded use ofuntied TA, etc.) for improving the utilization of technical assistance; and

(f) Dlnor Coordination: the abundance of donor-funded projects in Mozambique;experiences with flexible funding, untied assistance, and Government-DonorWorking Groups; external assistance as cause of existing lack of capacitylabor market effects, strain on government personnel) and solution

(investment in education and training, more effective management of technicalassistance, program rather than project support, support to public sectorincentives).

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1.14 While measures to Improve capacity in the private sector throughimprovements in secondary and tertiary educaton and In many technical and profesionalskills areas (e.g., accountancy, law, etc.) are vitally needed, capacity creation in the privatesector also depends on a series of ongoing changes in the macroeconomic sphere and in thelegal/institutional framework of Mozambique. Some of these changes which are currentlybeing pursued include: reforms of the corporate, banking, and land ownership laws, creationof viable financial markets, and the privatization of state enterprises. These changes, whileessential for capacity building, are not analyzed in this report, since they have already beencovered in other Government, World Bank, and donor reports. For the same reason, ongoingdonor-supported initiatives to strengthen the private consulting industry in Mozambique arenot discussed further in the present report.

1.15 In its broadest sense, the challenge of capacity building in Mozambiqueextends to both the public and private sectors, and to all skill levels of the labor market.Since the present report focuses mainly on building capacity to plan and manage economicdevelopment, it concentrates on skilled workers in the upper and middle-levels of Governmentand private institutions. At the same time, however, the importance of improving the generalliteracy of the population and the skills of lower-level workers (artisans,administrative/clerical staff, extension workers) is fWlly recognized. The Government, withsupport from the donor community, is currently engaged In efforts to build capacity at theselevels, through programs for adult literacy, primary education, extension worker baidning, etc.These efforts need to be maintained in the coming years, and as part of the NationalReconstruction process, further intensified.

1.16 Conltual F tagmerk and MethodolgE There is at present no agreedmethodology for analyzing a country's capacity strengths and weaknesses. The analyticalframework employed in this study defines 'capacity' as: the high-level skills, systems, andinstitutional structures required for a government to act effectively in policy formulation,planning, and management. The analysis concentrates on the linkages between the "supply"and "demand" factors that increase or inhibit the building of such capacity. The linkageamong these factors can be expressed through a simple paradigm:

In order to build the capacity of the civil service in Mozambique, strengthening thepipeline of skilled entrants by investing in secondary and university education is afundamental step. However, it is clearly not enough. AdeqWe incentives must beprovided to attract and retain skilled employees. The appropriate organizationalstructures and institutional environment for policy formulation, planning, andimplementation need to be established. Technical assistance, where necessary, mustbe encouraged to contribute to local training and skills development. Local in-serviceand on-the-job training efforts should be supported. And where local education andtraining is not cost-effective, Mozambique should exploit regional trainingopporunities.

An underlying assumption is that in the future, Government programs as well as donor-fundedoperations must address a number of these factors simultaneously for a capacity buildinginitiative and the planned post-war reconstruction to be successful. Otherwise, a situation willarise where, for example, Government officials will complete costly training programs, onlyto leave the civil service shortly thereafter because of poor incentives.

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D. Issues to be Addresed

Public -ervice Inrentlyes (Chapter 2)

1.17 Chapter 2 addresses one of the most serious constraints to building capacityin the public sector: lagk of inlcentives fr public sector employees. While Government hasbegun to address this problem with the publication of a new salary scale in April, 1991, andthe provision of technical subsidies the following month, much work remains to be done. Thegap between public sector pay levels and those offered by the private sector and byinternational donors is large. In the absence of public pay reform and improved coordinationamong donors on direct hirlng or topping-up of Mozambican officials' salaries, skilled laborwill continue to be bid away from the public sector.

1.18 The Government has improved public sector incentives somewhat, bydecompressing wage differentials and increasing pay levels across the board. The ratio of thehighest to the lowest salary was increased to about 17:1, effective April 1, 1991, as comparedto a previous ratio of 8:1. This revision of the salary scale was followed the subsequentmonth by additional salary improvements for teachers, nurses, and university staff. In thesecond half of 1992, the Government formally approved an incentives program for seniorstaff, and is now raising funding from the donor community, with implementation intendedprior to the close of 1993. The Government has made important progress in pay reform andthe design of an incentive program for senior staff, but more needs to be done to implementand monitor these incentive programs targeted to senior staff, and to develop a long-termbudgetary program which would incorporate further pay increases into the regularGovernment budget. More work must also be done on changes in the composition of fringebenefit packages, the implementation of career development programs and rewards toexperience, and other possible measures such as a Government subsidized housing financescheme which would enable civil servants who are tenants to purchase Government ownedhousing.

1.19 Weaknesses in the organizational structure and work environment of manyGovernment institutions also act as a disincentive to senior staff. Much of the analysis ofthese institutional shortcomings has been carried out in the context of sector-by-sector studies(e.g., of the Ministries of Agriculture, Education, Health, Bank of Mozambique, CNP, and ofcertain state enterprises). While many shortcomings are institution-specific, others are moregeneric: poor delegation of authority, weak personnel management practices, inadequate officetechnology, poorly-trained support staff, etc.

1.20 For each of the Government institutions that is expected to play a major rolein national reconstruction and development over the coming decade, it will be essential toelaborate and implement a strategic institutional development plan. Most of this institutionaldevelopment effort can best be supported through focused sector-specific projects, many ofwhich are already receiving substantial donor support. The intention of this study will besimply to illustrate common constraints to institutional development, and to focus particularlyon the salary and non-salary benefits and career development incentives that need urgently tobe enhanced, if the senior civil service is to grow and operate effectively during t.e 1990sand beyond.

1.21 In light of the above, in Chapter 2 of the sector study we address thefollowing issues:

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(a) What is the magnitude of the problem of exodus of senior civil servants?Attrition and vacancy rates? Age and educational profile? How has thecomposition of the civil service changed over the decade? What is therelevant opportunity wage for senior civil servants, and what are recent trendsin public/private wage differentials? How will this situation evolve in theabsence of major reforms in the next few years?

(b) What are the main options open to the Government to improve suchincentives? What do the senior officials themselves see as the main areas thatneed improvement? What level of pay increase would be required to have asigniflcant impact? What about career development programs, "high flier"schemes? Deferred pay schemes? How should fringe benefits berestructured, and how can the intended privatization of the Government-ownedhousing stock fit into an incentive program for senior staff? Are such optionsfor improving incentives politically acceptable, financially affordable? Howcan Mozambique learn from other countries' experience (e.g., Ghana,Uganda, Bolivia) in the design of incentives schemes?

(c) What is the appropriate role of various Government agencies,especially MAE, in planning, implementing, and monitoring aprogram of improved incentives for senior civil servants?Which personnel management functions should be centralizedwithin MAE, and which left to the individual ministries? Howcan MAE's own capacity best be strengthened?

HigIwk..EduiQtinn (Chapter 3)

1.22 Chapter 3 describes UEM's dual problems of low graduate output, in relationto the country's need for university graduates, and inadequate educational quality. Studentintake at Eduardo Mondlane University (UEM) has increased to over 700 per year in 1991,but because of poor student performance, the University has been graduating only 150students annually. The most serious constraints to increasing the output of graduates includethe shortage of qualified secondary school candidates to enter UEM, an insufficient number ofqualified national teaching staff, scarcity of textbooks, library resources, and laboratoryequipment, and limited physical facilities (especially dormitory space for students from outsideMaputo). As a result, a number of faculties have in the past been forced to operate at areduced level of output: in an extreme case, the Law Faculty was forced to close for morethan four years.

1.23 While the cost of university education is relatively high when technicalassistance is included, the quality of learning remains low. Only half of the students whoenroll at UEM actually graduate, and most of these take 20-40% longer to do so than isnormally necessary. The poor learning environment is the product of a number of factors,including the shortage of qualified Mozambican teachers, deterioration of the UEM physicalplant, lack of basic learning materials, and persistence of rigid academic regulations thatimpede student progress through the system.

1.24 The University's own capacity is currently being eroded by the same problemsof staff recruitment and retention that are affecting the rest of the civil service. In recentyears, opportunities in the private sector have begun to draw academics away from UEM,

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especially in economics and engineering. Faculty salaries are significantly less than whatcomparable professionals can earn in the prlvate sector. In addition, lack of staffaccommodation and poor research facilities act as important disincentives. As a result, theFaculty of Economics now has just nominal full-time Mozambican staff, and as of 1991, 16faculty posts in economics remained unfilled.

1.25 To attack these problems, the University has prepared a long-term plan forinstitutional stabilization and expansion which was presented May of 1991. This plan Includesstaff development for teaching and non-teaching personnel; upgrading and expansion offacilities, housing, and transport; provision of basic teaching equipment and materials; andimprovements in internal management and governance. UEM and donors have also exploredthe idea of a flexible institutional support fund to supplement the University's currentlyinadequate recurrent budget, with external financing pooled (rather than earmarked, as hadbeen past practice) and allocated under a commonly-agreed budget program. In 1991 SIDAand Norway contributed via this funding mechanism, and the Netherlands will also begincontributing in 1993.

1.26 In analyzing the constraints to capacity-building at UEM in Chapter 3, weexamine the following issues:

(a) How can UEM best contribute to Mozambique's future needs for skilledmanpower? How can research outplt be increased? What are the prevailingaccess and equity issues, and how might they be addressed? How can theUniversity interface effecthvely with other parts of the higher education systemand with local training initiatives?

(b) What is the magnitude of the understaffing problem (key departments affected,attrition rates, impact of salaries/incentives, work environment, exodus of EastEuropeans)? What sort of a staff development program needs to be launched?How can staff retention be improved?

(c) What are UEM's financial needs, including short and long-term capitalinvestment requirements, and how serious is the immediatte problem ofinsufficient recurrent budget? How successful has been the donor-supportedflexible fund in solving this problem? Does the University have themanagement capacity necessary to Implement such a scheme effectively, and,if not, how can this capacity be developed?

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S- ' Educat (Chapter 4)

1.27 At present, there are only five specifically designated pro-university secondaryschools in Mozambique (EPtJs).2/ These schools, located in urban centex have places foronly about 3,500 students (excluding night classes), and are ill-equipped to teach theestablished curricula. Physical plants are in disrepair, and textbooks, libraries, equipment,and laboratories are virtually nonexistent. In addition, these schools teach curricula which areexcessively theoretical and force students to memorize large amounts of material for exams,with little emphasis on conceptual lnowledge and analytical skills.

1.28 Despite this unsatisfactory situation, there have bean few studies of secondaryeducation or projects benefitting the sub-sector. The tendency has been to focus on primaryeducation, and, to a lesser extent, the University, which is viewed as the direct supplier ofhigh-level manpower. (Exceptions to this rule include the Ford Foundation, which hasfinanced a project to improve library facilities at the pre-university institutions and provide asmall flexible fund to each school for its own locally-identified needs, and IDA CapacityBuilding I project, approved in November 1992, which supports quality improvements in pre-university education). As a result of the previous neglect of secondary education, UEM isreceiving large numbers of secondary school graduates who are not adequately prepared toenter the University. To deal with this problem, UEM must allocate scarce resources to aremedial course known as BUSCEP (Netherlands and EC-financed). Similarly, in the trainingprogram at Electricidade Mozambique (one of the most effective providers of in-servicetraining in the country), the first two months are devoted to a review of secondary schoolcurricula. In short, deficiencies in secondary education have to be made up by otherinstitutions in the country at significant expense.

1.29 Accordingly, in Chapter 4 we examine the nature and causes of the currentfailure of the secondary education system to provide adequate preparation for UEM orspecialized training, and address the following issues:

(a) What are the main factors affecting the quality of secondary education?Shortages of qualified teachers, learning materials? Inadequate facilities andequipment? Inappropriate curricula? What needs to be done to enhance thequality of learning in these institutions?

(b) Should the nuimber of pre-university schools and their total enrollments beincreased? How can girls and students from rural areas have access to theseschools? What would be the cost of such an initiative?

(c) What is the share of the budget allocated to secondary education, and is thisadequate and/or appropriate? What can be done to improve the managementof these scarce resources, e.g., greater financial and administrativedecentralization? Is there scope for the creation of private secondaryinstitutions, and what is Government policy in this regard?

]/ There also exists a technical training track within the Ministry of Education, from whichgraduates sometimes proceed on to University, e.g., Instituto Commercial and InstitutoIndustrial.

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lalnl Prograins (Chapter 5)

1.30 Ihe UEM, the Commercial Institute of Maputo, and several professionaltraining centers (centros de formacao profissional) offer basic and in-service training ineconomics, management, law, and accounting. In addition, local training centers and specialcourses operating in Mozambique provide short-term and/or in-service training in key areasfor capacity building (accounting/audit, aspects of public administration, judicial process).Some of the most successful of these training activities have been organized by Governmentministries for their own employees, using tailor-made curricula developed and taught by staffof an overseas "link institution". The Ministry of Finance has had notable successes withthese arrangements.

1.31 Both World Bank lending and SIDA education projects in Mozambique havesupported local training. The Bank's Economic and Financial Technical Assistance Creditcontains a local training component for staff of the Bank of Mozambique and for public sectorand parastatal financial officers. The First and Second Education projects support localmanagement training for personnel of the Ministry of Education, as well as improved trainingin accounting and customs management at the Commercial Institute of Maputo. SIDA hasprovided major assistance to the Industrial Institutes of Maputo and Beira and the Centro deFormacao Industrial (CFI), and has sponsored the masters level distance learning program ineconomics for Government officials.

1.32 Despite these and other efforts to promote local training, they have yet tomeet the current and projected future demand for skills or to provide the needed quality oftraining. With a few notable exceptions, the ingredients of successful training - goodteachers, curricula, teaching materials, and facilities - are lackdng. Many courses are notcertified to establish equivalence and ensure quality. t '1 of the technical and many of thevocational schools provide a combination of formal aca4emic and professional training, withthe result that the quality of both technical and academic instruction is seriously diluted.Despite the recent emphasis on expanding locally-based training, Mozambique continues todepend heavily on costly and often inappropriate training o-utside the country and the SouthernAfrica region.

1.33 In Chapter 5, we review critically the issues related to loc&il training,including the following:

(a) Which areas of local training require the most urgent expansion andupgrading? How can existing courses in these fields be improved and mademore cost-effective? What is the scope for expansion of private trainingactivities, and does Govermnent have a role to play in monitoring/regulatingthese? What have been the most successful training initiatives inMozambique, and what lessons can be leaned from these experiences?

(b) To what extent could Mozambique take advantage of the experience andresources of other training institutions within the region? What lessons havebeen learned on how such institutional linkages, including twinningarrangements, can be made most effective? Under what circumstances isexternal training still justified? Could better use be made of overseasscholarships?

. 12

(c) Within the civil service, how can more effective use be made of tranigopportunities? How can access to local training be tied to civil serviceincentive schemes?

(Chapter 6)

1.34 The current system of technical assistance exhibits a number of seriousweakesses. The Government has little control over the declsion to hire foreign technicalassistance and limited ability to monitor services received. As a result, there are reported tobe cases where foreigners are displacing qualified Mozambicans. All too frequently, littletransfer of knowledge from technical assistants to local counterparts takes place: Mozambiqueobtains the immediate services of the technical assistant but no long-term gain in localcapacity. External firms providing technical assistance have little incentive to "trainthemselves out of a job" by improving the skills of their local counterparts. At the sametime, the Government finds it administratively difficult to cope with so many TA contractsand to identify qualified local counterparts.

1.35 The Government, with support from UNDP through the NatCAP program, isattempting to improve the management of technical assistance. To date, an overall policy ontechnical assistance has been formulated, and each ministry is preparing a sectoral strategyand a human resource development plan which Is supposed to integrate TA needs into thelarger manpower needs of the Mozambique Government. Other donors are discussing withthe Government options for Improving procedures for recruiting, contracting with, andsupervising TA, and ways of expanding the use of "untied' TA which could prove to be morecost-effective than existing arrangements. The Government has also imposed a tax on theincome of TA personnel, which is intended to contain and rationalize its use.

1.36 In Chapter 6, we analyze a series of issues related to the management oftechnical assistance, including the following:

(a) What is the weight of TA in total external assistance? What are the variousmechanisms for contracting TA in Mozambique? What are the functionaltypes of TA? How effective is its use? Are there "best practice" examples ofcertain types of TA that have been effectively utilized to transfer skills andimprove local institutions? What factors account for the extreme cases ofsuccess and failure?

(b) What policy measures would help to improve the effectiveness of TA? Cancounterpart training be enhanced? How feasible and effective would untying ofdonor funds be? How can Mozambique develop the capacity to manage TAbetter? How can a greater consensus be reached among donors on therecruitment of TA?

1.37 The Role of the Donor Community The lack of coordination amongexternal donors has been a major factor contributing to Mozambique's capacity buildingdifficulties. Competition among donors for scarce managerial talent in the Government, forexample, has resulted in an escalation of salary supplements for Mozambicans managingdonor-funded projects. If steps are to be taken to remedy this situation and make a concertedeffort to build capacity, the donors must start to work together. Donors have been asked tohelp fund an improved program of Incentives for senior civil servants, for example, at least

-13 -

during a transitional period aftr which the Govarment can finee the entire program;donors woud also need to agree not to undermine such a program by outbidding theGovernment in the local labor market. Badly-needed investments in secondary and highereducation and in local in-service training wih also require close coordination of externalfunding. The concept of a flexible funding to help meet recurrent spending needs, in theUniversity or in other sectors, depends on donors reaching agreement with Governmentcounterparts on overall programs of support as opposed to project-specific activities.

1.38 One of the proposed study's objectives is to Increase awareness and forge aconsensus among donors about the nature of the capacity problem and the range of possibleactions to resolve them. In the concluding Chapter 7, we will explore options for increasingdonor coordination in capacity-building.

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II. U 1C SECT INCE E

A. batrmducli

2.1 It is extremely difficult for the Government to attract and retain highly skilledpersonnel in the current very tight labor market conditions for such individuals in Mozambique.On the supply side, fewer than 3,000 in a labor force of some 6.2 million have a university levelqualification. On the demand side, other parts of the formal economy, including the parastatalsector, compete with the civil service for the relatively small number of newly qualified entrantsto the labor force. In the near future, it can be expected that an expanding private sector wIlloffer strong attractions to recently qualifled high level manpower and for mid-career professionalsand managers. The Public Sector pay and Employment Review4l also suggests that theescalation of remuneration for workers possessing specific, higher-order technical, professional ormanagerial skills has been drlven in signiflcant part by increasing net inflows of foreignassistance. The aid agencies are becoming Increasingly conscious of the extent to which they are"part of the problem", and it is likely that coordinated efforts among them could result in a betterbalance between supply and demand in this segment of the labor market. Even so, the generalcontext will continue to be one of intense competition for the available pool of skilled labor andfor new entrants.

2.2 For the foreseeable future, therefore, the ability of Government to compete withother sectors for the services of qualified personnel will be critical to economic recovery andnational development. To do this, significant measures must be adopted to attract and retainsenior staff in the civil service. In addition, a concerted effort is required to enhance theproductivity of this senior level staff through measures to improve the motivation and workplaceenvironment, if sustainable improvements in capacity are to be realized.

2.3 In addition to the overall conditions of labor supply and demand alluded to above,analysis of public sector incentives and their relationship to capacity building must also take intoaccount the existing structure of the civil service, the ongoing process of civil service reform inMozambique, and the continuing tight fiscal constraints on the public sector wage bill under theEconomic Recovery Program. ITese factors are discussed in Parts B and C below, and thevarious constraints to building capacity are laid out in Part D. The main elements of anincentives policy and a number of major recommendations for addressing capacity constraints arepresented in Section E.

B. The Civil Service in Mozambique

2.4 Civil Service Reform to Date The process of creating a national civil service inMozambique has been ongoing since Independence in 1975. The most recent phase of civilservice reform (since 1987) is taking place within a larger policy environment, in which the roleof Government is shifting away from direct operation and control of the economy to themonitoring and regulation of economic activities. Concomitant with the shift, the Government is

A/ World Bank, Mozambigue: Public Sector Pay and Employment Revie, Report No.9815-MOZ, December 1991, page 5.

- 1S -

increasingly concentrating its investment resources on rehabilitation of basic infrastructure and thedevelopment of human resources, especially in the rural areas.

2.5 The main objective of the April 1991 civil service reform Is to create a moreintegrated system for public sector management, a system in which existing differences amongministries In structure and management systems are rationalized and simplified. The basicguidelines for this reform are provided by the Esatto Geral dos Funcionarios do Estado (EGFE),approved in May 1987 but not yet fully implemented. In this statute, a system of commoncareers and functions applicable is defined across all ministries and from central to district levelsof Government.

2.6 Among the principal accomplishments of the civil service reform to date are:

(a) a sharp reduction in the number of different job and position classifications, frommore than 6,000 to fewer than 1,000. As of November 1992, the process ofreclassifying management and technical staff of the ministries in terms of thesimplified structure was still in progress. Ministries may also define their ownnon-common technical careers using the same qualification standards as apply tothe common technical careers;

(b) the definition of several service-wide common or general career structures fortechnical, professional and management personnel; and

(c) the consolidation of a number of different pay and grading classifications into asingle table applicable across the civil service (the tabela salarial unica , to whichall new job classifications are related. This structure comprises 23 pay levels(ktras), each divided into three steps corresponding to classification distinctions.

2.7 Structure and Distribution The civil service in Mozambique is not large relativeto that of other African countries, numbering 105,000 according to a 1990 estimate. Of this total,more than half are attached to the Ministry of Education and Ministry of Health. Twoconfigurations of civil service size and distribution, derived from the 1990 survey, are shown inTables 2.1 (all civil servants) and 2.2 (civil service excluding teaching and nursing staff). Table2.1 is organized by Ministry, and Table 2.2 by pay level. This second table is based on adetailed survey of over 83,000 civil servants; when the estimated numbers of Governmentteachers and nurses are removed, a residual of 52,332 persons emerges for the civil service.J/

I/ lhe actual number of civil servants in Mozambique is still to be determined. Thenumber of 105,000 civil servants is based on two parallel estimates: the preliminaryresults of a 1990 census of the civil service carried out by MAE and a reconciliationof this census with the payroll carried out by the Ministry of Finance. The ongoingprocess of job reclassification and integration into the revised salary scale has furtherrefined these original estimates. Initial results at the end of September 1991 suggestthat about 90,000 civil servants (instead of 105,000) are in the Goverment's payroll.As of November 1992, the three-stage process of integration into the revised salaryscale had been completed for some 77,000 civil servants.

awCeAACITY WIWDO sl)eTils~~~~~,'s S.wmL Srit-tro owl .'sn .Est,r p.* Pr.v..090I Co. C nrl Tot t Cebo I C... I n th.abs t Ic et.tO tut*ot ls I4"Gsse I5 ofs I | .. l." i.. I l .mI " oCivil pCsrI ro. C allpdo I P.0 ,. CI,Servants G Cow O 02 03 04 05 06 0o 1 0 1 og _

I reaidazc. 307 30? 0 0 0 0 0 0 a _ 0 0 0 02 rwic,uIture 3.- 1003 ISO 900 107 30 327 12 443 365 410 323 Srllfdr.ar;icuit. 0 SO 60 00 0 0 0 0 0 0 0 0 0 04 Cotte 46 44 0 0 0 0 00 0 0 0 0 0 06Coww_ 0 - O _ _°0 0 0 0 0 0 0 0 0 0 06Edusatiom 1602 , US S61.144 4 . t 3 4,171 2.ffl 2.305 ,5411j 2,732 3.952 3.5361 5S* on*. fdecotin 4 32 a 0 0 0 0 0 0 0 0 0 0* tuc", 56S I44 81 20 64 22 2 0 64 37 So 20 *a ?!°10 3 a sm 14L. 1 2z 1 1u 22 20 17 4 20 a7 16 2611t Fi.keries 0 a 0 0 a 0 0 0 0 0 0 012 CAN~4 MU S 20 42 35 43 St Sl 24 so St 42 12914 Tr o tatA. 1.6" a2 706 _ t3 8 124 134 is 22 101 62 142 34to Publie W-A. a Son 2.261 MD 1..11 _ soJ2 125 102Q_ 02 W- 301 02 t1 20117 ietic.* 074 lag S" 224 63 0 35 21 126 55 l 16gIs pIanaim 2S" in7 26 25 46 36 as 22 64 46 26 26is CaoomtLie 74 74 0 a 0 a 0 0 0 a 0 0 0 020 F.mmc, 2 $07 1 * 2 71 6 6 46 1s 61 136 0 4 4721 State Adaig.. 71 OS 817 7 219 111 400 4" "5 310 .04 012 023 55 616 20122 Labor B7 170 S 16 30 43 47 34 46 67 24 64 31 56 6723 ;iseral 64amutmeo g1a 5" 420 6 0 0 35 0 97 St 21 106 46 024 34.55b 1.612 . . 1. 62 js 1.46 1004 2.7 1. 425 31 03 2.3 3AS132 For.;i Afft . 3 2i1 0 0 0 0 0 0 0 0 026taC,amti.a 269 145 124 a 0 0 o0 0 25 22 0 20 S3 031P rMa N;i-;- 41 41 0 0 0 0 0 0 0 0 0 0 0 033 &2eww Cit 0 26 0 66 1,02 43 46 126 46 12? St 204aUShiworoiz 1.63 1 443 O O 0 0 0 0 0 0 0 0 0 O3_______ol ___I_* In 0 0 0 0 0 0 a 0 0 0 0040 National Assemb, 212 OI ad1 17 a 10 13 10 1t 12 16 20 21 941 Touriee 41 41 0-

42 Ph,.. Pl annin 112 112 0 _

Total 106.00 12.011 92.060 9.54 6.0141. 7.303 6.697 4.401 13.434 4.001 0.t1 1.111 10.040 10.633

Sour,c.. Waa.*i;ue - tHini.rp of State A4 irn tr-tioan *bliahd a. 7abia J1 22. 0ari I ba,h. ?-blic Sec&or Pay and Emlopnt 1 .. 17

-17 -

MozAMbigue CaDacity Build ng StgdyTable 2.2i Structure of Civil Servyce. 1990

Eg¢ludina Teachers and NusesU

Numbers WagesIn post Adjusted Cumulative Cumulative

Letras Total Teachers Nurses Total Percent Percent Percent........ . .. ............................ ................................ w_............................. .

A 9 9 0.022 0.02Z 0.13B 253 2S3 0.48 0.5soz 3.44:C 113 113 0.222 0.72? 4.74:0 143 143 0.271 0.99? 6.19:E 1,030 89 941 1.802 2.79: 14.562F 2 2 0.002 2.79: 14.582G 704 181 523 1.00? 3.792 18.1S2H 0 0 O.OO 3.79? 18.18:S 345 345 0.66? 4.45Z 20.02ZJ 683 683 1.31? 5.76? 23.22?L 61 61 0.12Z 5.87? 23.47?M 4,086 4,054 32 0.062 5.93? 23.59ZN 6.199 6,199 11.85? 17.78Z 43.37z0 1,404 1,404 2.68? 20.461 47.31?p 17.138 4,618 12,520 23.92? 44.39? 78.22Zq 169 169 0.32? 44.712 78.59:R 84 64 0.16? 44.87? 78.75Zs 179 179 0.34Z 45.212 79.05?T 43,889 23,826 20,000 63 0.12? 45.33? 79.14:u 2.038 2.038 3.89? 49.23? 81.79?V 2.537 2,537 4.85? 54.07? 84.70ZX 2.466 2,466 4.712 58.79? 87.182Z 14,483 14.483 27.68? 86.46? 100.002

Unknown 7,085 7,085 13.54? 100.002

Totals 105,100 32,768 20,000 52,332 100.00?

Sources: Estimated from data provided by Ministries of StateAdministration and Education

2.8 Table 2.1 shows that the total of 105,000 civil servants is fairly well dispersedgeographically: 12 % in Central Government, the balance spread across the provinces. Even thisbroad picture clearly indicates, however, that some functions are highly centralized. Whenteachers and nures are excluded (Fable 2.2), the civil service appears to be much moreconcentrated geographically, with some 35% in Maputo City alone. Ihis concentration isparticularly evident for certain functions, such as specialized and 'other" administration (60% and75% of personnel, respectively). It is surprising that ministries with mainly service deliveryfunctions are highly centralized: Transport, Public Works and Sanitation (47.7%), Industry,Fisheries and Commerce (40.9%), and Agriculture and Irrigation (25.4%). Tbis is partly areflection of the unstable and dangerous conditions created by prolonged insurgency in thecountryside; however, with a return to political stability, a high priority for development will beto build service delivery capacity in the rural areas.'

2.9 Following the recent job classification exercise, the hierarchical structure of theMozambique civil service bas become much clearer than before. In terms of grade/pay level, thedistribution of the civil service resembles a very flat pyramid, in which a disproportionately small

- 18 -

cadre of upper level staff sits atop a large lower-level staff that is predominantly made up ofindividuals with minimal levels of educational achievement or skills.

2.10 Table 2.2 shows the cumulative percentage of total civil servants from the highestpay level (A) to the lowest (Z). Only 7% of the total is at pay level M (corresponding to thetiga C worker) or higher, with another 5% at level N (corresponding to the chefo ddo=m= pro1iMild), the bottom end of the grade range for senior civil servants with majoradministrative, management or technical responsibilities. The largest numbers of civil servantsare at level T (40%), covering technical helpers iU ei , teachers, and nurses; level P(16%), comprising mainly basic technical and teaching staff; and level Z (14%), incorporating anumber of unskilled laborer positions: fuel pump attendants, gardeners, manual workers, etc.

2.11 When teachers and nurses are excluded, pay level Z, comprising mainly unskilledmanuel labor, represents some 28% of the adjusted total. Pay level P, covering basic leveltechnical staff once teach.ers are removed, constitutes an additional 24%. This suggests significantoverstaffine at these pay grades, levels at which staff reduction measures should be targeted.With less than 6% of the adjusted total in pay levels A-M, it is also apparent that seniormanagement and technical skills are seriously under-represented in the overall structure.

2.12 firal Tm Mm and Condditons of Civil SedgIe Emplonment The mainconditignsofsenir aS defined in the EGFE, which are analyzed in detal in the Pbic S=rBa aEd.WglIolt IReview, include:

(a) approval in competitive entrance exams is to be a basic requirement for admissionin the civil service;

(b) new entrants in a career are to be subject to a supervised probationary period;

(*) all government agencies are required to offer their employees opportunities forfiuther education and training;

(d) promotion from one category of positions to a higher one is to depend on theresults of annual performance evaluations and competitive exams;

(e) civil servants are guaranteed tenure after two years of service;

(f) disciplinary action is regulated in detail, as is the appeal process;

(g) public servants are to be entitled to a number of paid leaves (annual, sick,maternity, etc.);

(h) dte right to retirement Is guaranteed after 35 years of service or upon reaching acertain age (60 years for males and 55 for females); and

(i) retirement is compulsory at 65 or 60 years of age, for males and females,respectively.

2.13 The beknflu defined as entidements by the EGPE include:

-19-

(a) payment of bonuses for years of service or after the employee has reached thehighest level of his career, as well as for productivity, efflciency and quality ofwork or in recognition of exceptional services rendered to the State;

(b) post allowances, according to level and nature of work or place of assignment;

(c) supplemental pay for employees assigned to take training courses, whether insideor outside the country, and special payment for night work;

(d) provision of housing (government housing or rent subsidy), and vehicles and fuelallowance for individual use to officials of a sufficiently senior level;

(e) payment to dependents upon the death of an active or retired servant, over andabove the regular survivor's pension; and

(f) medical assistance.

2.14 Enolum t& The emoluments structure for civil servants as of November 1990(i.e., prior to the reforms announced in early 1991) is described in detail in the blic SectorPaanEmDloy nRview. Their findings are summarized in Table 2.3 and compared with the1991 post-revision emoluments for equivalent positions in Table 2.4.

2.15 In the old salary structure, total emoluments ranged from MZM 35,000/month forunskilled manual workers to MZM 493,500/month for a national director, including the technicalsubsidy (sbsidio tegnicgo paid in foreign exchange for senior officials, which approximated 50%of total emoluments. For lower-level staff, an important fringe benefit has been a subsidized foodbasket provided through entitlements (cartam a): as of late 1990, the value of this entitlement wasestimated to be MZM 9,000/month. For higher-level staff, the Government has in some casesextended housing allowances of MZM 40/50,000 a month and gasoline and car allowances worthabout MZM 100,000 a month. A broad range of other monetary and non-monetary benefits orentitlements are defined in the EGFE, covering payment of a length of service bonus, annual (30calendar days) and other leave, training, and pensions. Broadly speaking, the scope of these otherbenefits compares favorably with those in other African countries. A further unusual feature ofcivil service emoluments in Mozambique is that Government salary and other remuneration iscurrently not subject to income tax.

2.16 In the new pay structure, the subsidio tecniX has been consolidated into basicsalary. Even when the subsiio is converted to local currency at the parallel rate of exchange, itappears that the new salary levels are considerably higher than under the old pay scale, with themean monthly salary of civil servants rising from MZM 46,622 to MZM 71,361 (US$22 to $34).In addition, with salaries raised proportionately more for senior officials, the overall wagecompression ratio (highest to lowest) has also grown from 14:1 to 20:1. This move is part of aconscious decision to provide minimal increases at the lowest level of the scale as a measure toencourage voluntary separation where overstaffing is most evident.

2.17 An estimate of the financl impact of the new salary scales has been made by theMinistry of State Administration. Overall, the wage bill is expected to increase by 54%, fromMZM 4.9 billion to MZM 7.5 billion per month. The estimated wage bill for 1991 is MZM 90.0billion as compared to the ceiling of MZM 92.0 billion agreed with the IMF in April 1991.

- 20

Itab 2.3s Camaa4s f3ebu,sdSa

Totel Ramralo. Ova1l Ccp., RAo Publc

Fxmnl,_ Public Sectot Pve Mo Secto

MGHER LEVEL STAFF , ,

Perm. Secreta Pime Minister 642,396 18.29

Natoei_ Ditor 498.500 - 14.20

HL Tecicin 'Specilht' 54S.335 15.62

Technicin 'A' (e.g. eoguwt) 408.206 11.63

Technicia W (e.g. economist) 310.342 _ , . 8.84

Dirco of Ptu41 (Na l 442.000 12.59

Coop Advae to Nationl DLecr 6.810.000Pnvate conmltant 2.790.000

Profesaioal Stff (Iter't'l On.) _ . -_.

Lowest Salary 1.681.7S3

Highet salary 3.590.095

High Lovel Saft in PuWl pid t g ecAor I

Dlrectot of Bncb (expezz) i 9.060.000

a, Miawgak Carer_________ ________

Povicial Director 356.310 10.15

D Director Cerl Gov. 353.386 10.06

Div. Chief Ceaual Gov. 131.428 3.74

b. Tech l Carer .r .. ..

Technici *C- 86.177 _ 2.45

Technicin ID 58.419 1.66

c. PrivateSector . . ._._._._._.,,

Accouintg Am. (w 9 gni.) (gmit) 130.529 . -

Employee (Cteg. X4) 83.813 _

d. t_rateinal Orgmn .

Geneal Servie Smft _ __._. .

Lowea Sulay 592.S600

HighetSy 1.993.834 . ....

LOWER LEVEL STA . _ . . .

a. Civi Service _ _

Nuns (LL Tech. Min. Pub. RH ) 59.5U_ 1.70

Teacher (Pr Sdcoo) 51.808 . . 1.48

Driver 45.3S9 _ 1.29

UR*AW Woreb 35.114 _ 1.00

b. Private Sector .

Marn Umkill Worker (?.. . 41.421

Mmml UkWed Wodw 450,296

Soure: World Bk. PubUi Seor Pay MA E _ lem m eview. 1991

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ogAbiqueu Caeaciti Buildin StudyTable 2.4: Pa, Structure in tbe Civil Service. 1990 and 1991

MZM 1000 par month

1990 | Tabla Solaria Unica, 1991lose TechnicaL Total Wage B ase Bonus or Total Wage

Category of Staff Salary Subsidy MZM Ratio | Salary Premium MZH T Ratiov,,..Z................................... ....................................

Managerial Careoe I

National Director 213 225 43a 12.5 I 529 159 68a 20.2

Dopartment Hoad 163 130 313 8.9 1 360 72 432 12.7

Division Chief 131 0 131 3.7 | 216 43 239 75

Technical Career

SpecilAist 18 300 486 13.9 I 443 177 621 18.2

Tech*aican A 123 225 348 9.9 1 343 137 480 14.1

Technician C 86 0 86 2.3 I 140 28 168 .9

Secretarial Career

Clerk 58 0 so 1.7

Support Staff I

Oriver 4$ 0 45 1.3 1 50 0 50 1.5

Unskilled manual 35 0 35 1.0 | 34 0 34 1.0

Sourcess 1990 valuos ftwo Table 11.7. Public SectorPay and Raploymnt Review. 1991, 261951 valuoe cmputed from data supplied by Ministry of ?inance

2.18 In May 1991, additional salary improvements for university professors, teachersand nurses and bonuses to the holders of advanced academic qualifications were announced.These improvements take the form of a bonus payable monthly, in addition to the basic salary forthe post. Four groups are identified as the beneficiaries of this bonus entitlement:

(a) Prfessors of the UEM and the Instituto Superior Pedagogico, and Llnciada inmedicine and surgery: 50% of basic salary;

(b) Specialists and other holders of the lli.g=iadn: 40% of basic salary;

(c) Holders of bachelors degree (balar.lD: 30% of basic salary; and

(d) Middle level technical cadre, nurses, technical staff with a medical specialization:20% of basic salary.

- 22 -

2.19 The impact of this bonus for the educadon and health sectora is illustrated inAnnex 2-1. With the application of the bonus, the highest civil service remuneration, for a senioruniversity profesor rises to MZM 818,509 a month, 36% above the maximum basic salaryshown in the new consolidated salary table. This in effect constitutes a super-scae salary.Similarly for other beneficiaries of this bonus, its effect is to remunerate them at a levelsubstantially higher than that associated with their position classification.

2.20 Compeition wlth the Pialae and rstatbl S5gr Among the most seriousconstraints to building capacity in Mozambique's public sector is the intense competition for arelatively small number of people with high-r level managerial and technical qualifications. Interms of pay and conditions of service, the public sector appears to be at a considerabledisadvantage to the private sector, but not to the parastatals. In late 1990, the wages, salaries andbenefits offered by competing employers of highly skilled manpower in the private sector weremarkedly superior to those of the civil service and the state enterprises.

2.21 A sample of the emoluments packages offered outside the main civil service isgiven in Table 2.5. This shows that, for a given range of university level academic qualifications,total gross adywsco remuneration (when foreigp exchange bonuses are converted at theparallel) is currently at least double that available In the civU service following the salary reformof May 1991. Net-of-tax remuneration is only about MZM 150,000 per month more, because ofthe tax-exempt status accorded to the various bonuses that make up more than half of civil servicesalaries. Following the May 1991 pay revisions for the senior civil service, teachers, nurses andprofessors, these comparisons look somewhat less stark.

2.22 For the technical cadre surveyed in three DazAaI, the overall level ofemoluments differs only slightly from the civil service. For senior personnel, civil service pay isactually slightly higher (by about 5%) than in the parastatals, while at the lower level technicalgrades the parastatals provide higher emoluments than the civil serice. Any recentimprovements in civil service pay relative to the parastals are likely to be epheLeral, however,as the parastatal bodies are currentdy revising their salary schedules in response to match the civilservice.

*23-

TAMl 2.:Etlae RMnuneation in Privatand PaStAt Sector. 129

(values in MZM '000/month)

University EstimatedQualification Remuneration.. a.a -ft ..... a .a ... .... *.a. ... .. a..a

University Professor 819

Civil Engineer 1,579Electrical Engineer 1,888Mechanical Engineer 2,907Economist 1,990Lawyer 1,692Agronomist 1,644Doctor 2,156

Average 1,979

*auree: data provided by Mission

Parastatal sectors Technical Cadre

Values in MZM per month

a a a. n aaa a. BPD -----------Salary Less Civ. Serv. Implied

Category Point Taxs* Net Net Basis Difference premiumt-f-----------a_." - -------------a----a ------------ ._. .... aa . aS_....... . ..

Especialista 404,700 58,005 346,695 465,305 118,610 34.2ZTecnico A 348,900 49,635 299,265 360,226 60,961 20.4ZTecnico 5 231,600 32,040 199.560 276,745 79,185 39.7ZTecnico C 259,200 36,180 223,020 146,820 (76,200) -34.22Tecnico D 184,500 24,975 159,525 99,939 (59,586) -37.4?

ftw__-------------------------------_a--*___-a--------- ----------

Average 285,780 40,167 245,613 270,207 24,594 4.5Z*-mrn i _ _ _ s mae mus sws

Source: informtion provided by BPD

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2.23 Even though senior civil servant earn considerably less than their counterpartsworking In the private sector and for donor agencies, it is not clear whether this bas resulted in anactual loss of staff or a capacity weakening decline in commitment to the public service. Theevidence is parti and mixed. However, the available evidence suggests that there may be aserious problem of premature loss of senior civil servants at the national level. The Public SeEU &W EM pI aReview argued that while a substantial loss of management or technical staffto the private and parastatal sectors had not been measured precisely, it appeared that keyindividual Govenmuent managers were leaving public service to work in the private, parastataland foreign/donor sectors. Additional data collected for the present study supports this argument:

- Government-wide data compiled by the Ministry of State Administration showsthat during 1990, the numbers of gosts flld Al the level, of national directo national denartment head fell by 33% and 38%. respectivfly. At the same time,the provincial directors and department chiefs in post remained virtuallyunchanged.

- During 1988-91, losses of senior staff (quadros dos tecicos suDeriores e dedIrrcca, QTSD) from the Ministry of Commerce and amounted to 40 of 137staff, or 29%. Comparable figures for the Ministry of Education were 28 of 257,or 11%;

-At UEM, which has the largest concentration of highly trained people in thecountry, professional staff losses over the past three years total some 27 people orabout 5% annual attrition. In addition, about 70% of tJ.e university teaching staffappear to be engaged in a second remunerative activity to supplement their UEMincomes.

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C. The Senior Civil Sa3vie

2.24 efinition of the -Slor Civil Sg e For purposes of this study, the seniorcivil service is defined to include the upper level technical (UMizaiNnJca) and management(fimcoes de direccao e efla) cadres, corresponding to the following job descriptions andpay grades in the new salary structe:

Caffe=a twig Ea LO AN Salary

Especialista C 1,2,3 465,505Tecnico A (icenciatura) E 1,2,3 360,226Tecnico B (bacharelato) 0 1,2,3 278,745Tecnico C (medio) M 1,2,3 146,820Tecnico D (secundario) P 1,2,3 99,939Auxiliar Tecnico (primario) T 1,2,3 59,841

Funcoes de direccao e chefia communs no estado

(a) Central LevelDirector nacional B 1 529,209Director nacional adjunto B 2 504,009Chefe de departemento E 1 360,226Chefe de reparticao I 1 215,694Chefe de seccao/de secretaria N 3 129,152

(b) Provinclal LevelDirector provincial B 1 360,226Director provincial adjunto I 1 215,694Chefe de departemento N 1 129,152Chefe de reparticao N 3 117,145Chefe de seccao.de secretaria Q 1 87,912

(c) District LevelDirector distrital P 1 113,611Chefe de seccao/de secretaria S 1 68,027

2.25 This definition of the civil service covers somewhat more than the QTSD,which includes all of the management cadre but just the upper three levels of the techniciancadre (epecialista and tcnico A and B). As of April 1991, there were some 2,557individuals in the QTSD, comprising 1,084 in the management cadre and 1,473 in the upperlevels of the technical cadre. This estimate is a composite based on different configurations ofthe QTSD data bank in the Ministry of State Administration, and is summarized by ministryin Table 2.7. In the context of capacity building, the two lower classes of the commontechnical cadre (tecnico medio and bico) are also important, as they include large numbersof relatively skilled workers. Significant losses from the lower-level technical classes wouldseriously undermine the service delivery capacity of Government.fiJ

f/ Subsequent to the drafting of this report, MAE has incorporated the teenico mediosinto the QTSD, expanding the data base to some 5,000 civil servants and.lcknowledging the importance of this cadre within the context of capacity building.

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Mzxambiue CapacIty Building StudtTabl 2.7: DiatrIbutioa of Core Civil Services and Ouadros Suoeriores. by Ministry

(Excludins Teachers and Nurse.

Total Civil Service a/o April 1991 I Concen-S of I Quadrao Superiores I tration

Sector Total Central Prov. Total | Total 2 by Min.? in Min. I Sndex.............. I.......................................... - ,._Presidency 307 307 0 0.61Z I 25 0.962 8.14S I 161Agriculture 3,833 1,077 2,756 7.582 I 170 6.65? 4.44? 88Irrigation 50 S0 0 0.10Z I 5 0.20? 10.002 I 198Cotton 46 46 0 0.09? I 12 0.47? 26.09Z 516Cashew 52 52 0 0.10? I 7 0.27Z 13.46Z I 266Education 6.685 358 6,327 13.222 I 491 19.20? 7.341 I 145Phys. Educ. 92 92 0 0.15? 1 11 0.43? 11.96? 1 236Culture 444 144 300 0.886 I 20 0.76? 4.50? 89Industry Energy 225 a3 142 0.44? I 39 1.53? 17.33Z I 343Fisheries 167 167 0 0.33? I 39 1.53? 23.35? I 462Conmerce 741 288 453 1.47? I 137 5.36? 16.49? I 366Trsnsport & Comm. 1,432 892 540 2.83? | 344 13.45? 24.02? I 475Pub. Works & Water 1,953 950 1,003 3.866 | 75 2.93S 3.84? 1 76Justice 772 115 657 1.53? I 10 0.39? 1.30? I 26Planning 441 15S 286 0.87? 52 2.03? 11.79? 233Cooperation 74 74 0 0.15? I 17 0.66? 22.97? I 454Finance 2,376 1,625 751 4.70? I 63 2.46? 2.65? I 52State Admin. 5,840 317 5,523 11.55? I 547 21.39? 9.371 18SLabor 563 170 395 1.122 ! 65 2.54? 11.50? I 227Mineral Resources 715 367 326 1.412 I 30 1.17? 4.20? I 83Health 20,220 2,965 17,233 39.99? I 110 4.30? 0.54? I 11Foreign Affairs 323 323 0 0.64? | 46 1.60? 14.24? | 282Information 240 . 145 95 0.472 I 19 0.74? 7.92? 2 157Prime Minister 41 41 0 0.06? | 13 0.51S 31.711 627Supreme Court 76J 26 742 1.52? 2 3 0.12? 0.39? t 8University 1,643 1,643 0 3.251 I 196 7.67? 11.93? I 236Heteorology 166 165 0 0.37? | 0.00? 0.00? I 0Popular Assembly 176 5J 116 0.35? | 11 0.43? 6.25? | 124TourLsm 41 41 0 0.06? 0.00? 0.00?S 0Phys. Planning 112 112 0 0.22? 0.001 0.00? I 0Others I ____I….................... ___ _.__ ......................... -I ......

Totals/Averages 0,562 12,911 37,651 100.00? I 2,557 100.00? 5.06? I 100UUUUUUUUUUUUU uuininuu.a ... u.u-

Sources' Computed tr= data prowlded by Ministry of State Administration

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2.26 Moreover, the tenico C (medi) class b composed of individuals whoseacademic qualifications correspond with lower-ranked management posts In the provinces anddistricts that belong to the QTSD. In thc current situaton where the supply of highly-trainedmanpower is aetremely tight, these lower levels of the technical cadre should be viewed as apotential source of supply and systematically canvassed to Identify individuals who mi3ht,with additional training, perform well at higher levels of responsibility. As the privat sectorgrows and the parastatals are reformed, many of the ten1cobsmados will seek alternativeemployment outside of Government, if civil service pay and other conditions of service arenot improved.

2.27 While it is not easy to estimate the actual numbes of workesn at the 1snIs Cand D levels, it seems that most of the 6,181 persons at pay le l N belong to the tenir Cgroup. Similarly, when the total number of persons at pay level P is adjusted by removing anestimated 4,618 teachers and about the same number of nurses, there remains a residual ofsome 8,000 persons in the teenico D cadre.

2.28 GgrApbjgnderI&Ubu Data on the QTSD (Annex 2-2)suggests that 35% of them are employed at the central level of government, 30% at provincialand 35% at the district level. For four of eight ministries examined in geater depth (Annex2-3), higher-level staff appear to be heavily concentrated in the capital: these includeAgriculture, Commerce, State Administration, and Transport and Communication. Somedegree of de-concentration would seem to be desirable for these ministries, if they are tofulfill their respective mandates.

2.29 As shown in Table 2.7, more than half of the QTSD is employed by just threeministries: Ministry of State Administration (21%), Ministry of Education (19%), andMinistry of Transport and Communications (14%). A fiarher one-quarter of the QTSD isemployed by UEM the Ministries of Agriculture, Health, and Commerce. When theproportion of total ministry employment represented by higher-levd managers and techniciansis considered, however, a somewhat different picture emerges: the QTSD make up more than20% of the staff in five smaller agencies, including the Office of the Prime Minister, theCotton Secretariat, and the Ministries of Cooperation, Transport ad Communications, andFisheries.

2.30 Denogmgbl Cbeteritl Data on tie age, sex and length-of-service ofthe senior civil service is based on a December 1989 survey of a subset of 1,638 individualsin the QTSD (Annex 2-4 and Annex 2-5). One striking feature of this data is the very smallfraction of women represented, about 8% of the tr"

2.31 lhe median age of the senior civil service is about 40, with two-tirds of staff30-45 and only 12% in the 26-30 age cohort. lbis relatively small fraction of staff under 30poses a marked problem for capacity building: in five years time, there will be only 211QTSD to replace the 451 currently in the 31-35 age cohort. It is urgent to intensifyrecruitment at entry level positions; this may be even more critical than efforts to retain older,more senior individuals. In addition, while few of the manWerial and technical cadres willreach mandatory retirement over the next few years, 14% will retire during 1994-2009. Toimprove retention of experienced QTSD, the Government might consider raising themandatory retirement age of females from 60 to 6S years and taking other steps to discourageearly retirement.

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2.32 The median length-of-service falls between 11 and 15 yea. Assuming anaveage age at aity of 25 years, the length-of-servics structure corresponds reasonably wellwith the age coposition of the senior civil service. There is a high concentration of QTSD(35%) at 11-15 years of service. These individuals presumably entered the public serviceover the fr flve years of independence, in large part to fill the void created by departingPortuguese naionals. Many of these QTSD have relatively low levels of education butextensive practical experience: If promotion to the top of the civil service continues to bebased mainly on academic qualiflcations, they may not have opportmities for careerprogression. At the same time, it may be advisable to accelerate career advancement foryounger, better-trained cohorts who are currently held back by the emphasis on seniority asthe basis for promodon.

2.33 Eduational A,hievmAnt The level of educational achievement for a largesample of the QTSD is summarized Table 2.8. While its partial coverage and high fraction of

not known" responses makes the data less reliable, it nevertheless provides some insightsinto the problems of low academic achievement for the senior civil service. Somewhat betterand more recent information available for nine ministries and the University is given in Annex2-6.

2.34 The main conclusion to be drawn from the available data is that about twothirds of the OTSD have gnly a secondar education or less This has several importantimplications for capacity-building. First, many of the QTSD probably require additionaltaining, either formally or in an informal program. Second, since so few individuals possesspost-secondUy qualifications, this should not be a pre-requisite for promotion to seniorGovernment posts. It does not appear that the need for a post-secondary degree has beendemonstrated through an analysis of the functional requirements of these top jobs. Instead,insistence on formal educational qualifications is being used as convenient screening devicefor the Government, with two important capacity-weakening consequences:

(a) the demand pressures for higher-level formal qualifications in the labor marketare unnecessarily intensified, and salaries for those with post-secondarydegrees are unnecessarily bid up;

(b) the value of experience in service is seriously underestimated as a qualificationfor higher-level responsibilities, and the skills of lower-level managers andtechnicians are not adequately utilized and nurtured in promotion decisions.

2.35 Carme StrueL T,he qualifications and experience requirements for eachlevel in the M men career structure, comprising both academic background andexperience critda, are defined in the EGFE. These are summarized in Annex 2-7. Theimplicit struure contains some anomalies that could be detrimental to capacity-building andneed to be sorted out. In some cases, for example, eligible prior positions are rated at a paylevel superior to that of the post for which they are a pre-qualification. Experience in alower-level management position is not required as a qualification for more senior posts.

2.36 A far more serious problem, however, is that, as currently structured,upwards mobility or cross-mobility among central, provincial, and district-level managementjobs is virully impossible. For individuals qualified to hold a central government post, thereis no provincial or district post, except for provincial director, for which they are not over-qualified. Conversely, for individuals holding the minimum academic qualification required

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for a drict or pmvincial management post, tero is w possibility for promotion to a moresnior level except by acquirng an additional formal academic qudificadon. In other words,tho managUm caeer as presently consttuted comprieS a nested ut of short, deatdeadcareer progtsions.

HgaMamigue Cannaity Buildin StudvTable 2.5 U fducational Achiievemen in Cuda uemriorem

HotKnoun < Primary Primary Secondary Middle 8ach. Licen. Specialist T%tal

..... ....... ... .... ... ... ..... .... ^........ ................ .. ....................................................

Chefe sececo IP) 0 4 1 1 1 0 0- 03irector nacional 1 1 9 3 :6 25 29 3 07Dir. nac. adj. 1 0 0 2 3 7 6 0 19Chefe repurticao (Cl 2 2 3 5 1 2 0 0 '0Chefe depar (cl 9 8 21 67 64 24 20 5 218Director provincial 14 2 '3 44 28 10 13 0 134Dir. prou. adj. 0 0 6 5 3 0 0 0 14Chefe depart. (P) a 1 33 111 40 3 3 1 200Chefe repat. (P) 0 0 2 1 0 1 0 0 4Chefe secao (C) 1 1 10 4 2 0 0 0 I1Chefe de posto admln. 59 63 70 4 1 0 0 0 197Administrator dist. 13 11 76 26 0 0 0 0 126, .......................................... ................... .......................................... ........................

Sub Total Management 108 93 259 273 169 72 71 9 1,054t of Management cadre 10.22 8.8B 24.62 25.92 16.0* 6.9* 6.7* 0.9J 100.0*

Total in OTSO 162 123 432 429 261 174 192 20 1,7929.02 6.92 24.1* 23.92 14.62 9.72 10.72 1.12 100.02

Sub Total Technical 54 30 173 155 92 102 121 11 7387.32 4.12 23.42 21.0S 12.52 13.6S 16.42 1.5* 100.02

Tecnico Category lux. .0 C 8 a ESp

Source, estimates based on data Provided by Ministry of State Administration

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2.37 Ihis problem can be seen schematically In Figure 2.1. Positions are arrangedhorizontally by level of government and vertically by pay level , making the correlationbetween pay sd career progression more explicit. It can be clearly seen that the managementcareer is compartmentalized into separate and distinct subsets, corresponding to the differentlevels of government. For example, the lowest-ranked manager at the central level (N3)would not progress in his career by accepting a posting to province or district level.Similarly, the head of a provincial section (Ql) has no significant incentive to consider adistrict level posting.

Ficure 2.1 ManeralTfd OrAarrm! Nnsaament Cadr. 991

Presidecy

Prfme Ninister

Ninister

_ _...____t!er _.IS -' ------------ -------------- °-------------

3 1 | Director

I Dir. necional9 3 ' adjunto

E51 I Chefs de D1rectordepartmento Provincialcentrat

II ~~~~~~Chefsede

Ml ~~~~~~~~~~~~Chefe dei departmento

provincial

M 3 Chofo de Chef des*ccao reperticsocentral provincial

P I Directordistritel

Q01 , Chafe dea eea so

provincial

S1 a Chefe de seccao* distritel…-- £ e s e~~~~~ n i n i n e---------e-- --------

2.33 An Important objective of the 1990-91 pay and grading reforms was to relatepay to level of responsibility, an objective that has yet to be realized fidly. By and large,career progreiou and pay levels continue to be determined by formal qualifications. Thishas serious drawbacks for capacity building. Most new entrants to the civil service, appointedto a post consistent with their highest acdemic degree, have limited career advancementpotential unles they obtain an additional academic qualification. Since the value of jobexperience is so heavily discounted in grading and promotion decisions, long-servingmanagers may also see a recent university graduate posted over them. In both cases, long-term commitment to the civil service is discouraged.

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2.39 Ihe present preoccupation of many of the top civil servants with theinadequacy of their emoluments may also reflect the absence of a semse of progressiontbrough the ran. Starting near the top at a relatively youthful age, their points ofcomparison tend to be external to the senior civil service. The development of civil servicetradition and culture is thus impaired.

2.40 To encourage commitment and sustain individual motivation, the Governmentmust create and match reasonable expectations for promotion over a career spanning 30-40yeaus. It might be considered appropriate that the notion of a career progression "through theranks" be broadened to require that each manager undertake a provincial or district level.posting at some point in his career. This would require that Government upgrade the paylevels attached to these provincial/district positions.

2.41 The career ladder for the technical stream has five levels, each comprisingthree classes (principal, 1st, and 2nd). Normal promotion to the next higher class follows thecompletion of three years of work, success in a competitive examination, and possession ofthe academic qualifications required for the next post. Thus, an individual entering Tecnico), 2nd class might enter the Tecnico C, 2nd class after nine years and be ready for promotionfrom Tecuico C to B after another nine years - if he possesses a university degree, which ishighly unlikely. The time required for this progression is excessively overly-long, in view ofthe specific content of the various jobs and types of responsibilities. It might be desirable, forexample, to shorten the minimum time required in each class, e.g., from three to two years,while retainig the examination system. The Government could also consider adopting aformula for treating job experience as equivalent to academic training, e.g., two years of civilservice experience could be made equivalent to one year of formal schooling.

D. Summarv of Canady Constaning Iue.

2.42 Overview The capacity of Mozambique's civil service to plan and manage thedelivery of public services is severely constrained along several dimensions, each of whichrequires special corrective measures:

(a) a Auctural dimension, which includes overstaffing at some levels andunderstaffing at others, and the relative and absolute wealness of provincialand district government. There is a need to consciously restructre the civilservice, progressively reducing the numbers of staff with lower-level orinappropriate skills and increasing the proportion of those with higher-leveltechnical, professional and managerial competences;

(O) a suooIx dimension, with concern focused on difficulties in attracting andretaining highly-skilled personnel in the civil service. To overcome thesedifficulties, the Government must find ways to increase the attractiveness of acivil service career relative to alternative opporuities. There is also abalance to be struck between adopting measures to attract qualified people toentry-level positions and measures to retain more senior staff. TheGovernment needs to assess more systematically the potential for skillupgrading of officers at lower levels of the technical and professional cadres;

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(c) a gualitative dimension, in which the productivity of the operational systemsof government is low. In this area, it is important that training to upgrademanagerial or technical skills is integrated with the implementation ofimproved operating systems; and

(d) a motivational dimension, which covers current disincentives (limitedpromotion opportunities and flnancial rewards, inefficient working conditions,etc.). Efforts to upgrade individual skills will only be fully productive whenthe necessary supporting facilities and staff are simultaneously made available,and where the general terms and conditions of service are enhanced.

2.43 Structure of the Clvil Service In hierarchical terms, the civil servicecurrently has a very low pyramid profile, in which a wide base of staff occupying low-levelpositions contributes a disproportionately sniall amount of output. One of the key measuresfor enhancing the capacity of the civil service would be a workforce restructuring to reducethe proportion of lower-level staff and increase the proportion of QTSD and of other cadresthat directly support their work. Over time, the Government would develop a structure withstaffing complements more appropriate for the various positions and grades. Such staffrationalization could be a source of wage bill savings to be used to finance selected incentivemeasures.

2.44 Recruitment and Retention Distortions in salary and emoluments indifferent segments of Mozambique's economy are a major obstacles to the recruitment andretention of skilled professional in the civil service. This situation is likely to continue for theforeseeable future, because of severe supply constraints and intensifying competition from theprivate and parastatal sectors. To ease this supply constrain, the Government should considerrelaxing the current formal qualifications for middle and senior level, and making maximumuse of promising lower-level staff. Even if just 5% of those currently in the Basic andMedium technical cadres have the potential to advance to the next higher level, this wouldhelp significantly to expand the supply of skilled manpower.

2.45 Workplace Ouality and Productivity In the current circumstances whereskilled personnel are in extremely tight supply, the Government needs to focus on ways toincrease the productivity of public sector institutions. These might include, e.g., developmentof work output schedules, design and introduction of computer-based management informationsystems, etc. The value of such measures lies in their incentive effects, as well as their directcontribution to productivity: many professionals evaluate highly the opportunity to work in amodern, state-of-the-art Government facility, in comparing this with altematives in the privateor parastatal sectors.

2.46 Motivational Factors As mentioned above, the present structure ofmanagement and technical careers offers limited chances for individual advancement. In themanagement stream, the specified academic and experience qualifications effectively createthree career compartments corresponding to the central, provincial and district levels ofgovernment. For the technical cadre, there is a career block between Tecnico B and Ccategories, and the time required for normal career progression is too long. Following theApril 1991 revisions to the salary structure, there may be little scope in the near term forfiurther improving the monetary package. It should be possible, however, to introduce moresubstantial salary increments and starting salaries at the critical entry and junior-levelpositions, to make the civil service more competitive with the rest of the economy.

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2.47 There may also be ways in which current working conditions might bemodified to enhance the relative attractiveness of a civil service career. They range frompossible changes in the working day and week, to the provision of transportation benefits.Since the effectiveness of these measures will depend on the extent to which they address civilservants' practical concerns, they should be formulated and implemented in close consultationwith public sector workers themselves.

E. Recommendations

2.48 Gan-era In April 1991, the Government reached agreement with the IMF ona wage bill ceiling of MZM 92 billion for 1991. With the subsequent salary reforms and theadditional bonuses for holders of higher-level degrees, it seems that the 1991 budgetary capon wage and salary expenditures has been reached. In the near term, the Government haslittlz scope for financing additional emoluments. When formulating an inuentives policy,therefore, the emphasis must be on non-monetary Incentives, monetary incentives that can befinanced through savings, and measures such as the proposed Incentives Fund for senior civilservants that can be supported by donor agencies over the medium term.

2.49 In view of prevailing conditions (e.g. scarcity and intense competition forhighly skilled human resources, severe constraints on Government's fiscal position, thechanging role of the public sector in the country's economic life, etc.), the Governmentneeds to formulate a policy on civil service incentives that includes the following keyelements:

(a) Efforts should be made to ensure that the welfare of the civil service, andespecially the senior civil service, is not eroded as a result of policies underthe Economic and Social Rehabilitation Program;

(b) Measures should be adopted that link incentives to individual performance andwhich, over time, break down the perception that entitlements are attached toa position or qualification rather than to the performance of individualsoccupying that position or possessing that qualification;

(c) Steps should be taken to improve the terms and conditions of civil serviceemployment in a way that strengthens the long-term commitment ofindividuals to a civil service career; and

(d) Actions should be aimed at reducing, but not fully eliminating, the competitiveadvantage enjoyed by private and, to a lesser degree, parastatal employers.

2.50 Faced with stiff competition from the private sector, it is tempting for thegovernment to engage in a head-to-head contest in which bonuses and premiums proliferate toa point where the salary component of the remuneration package comes to occupy a secondaryposition. The Government has already made the difficult and unpopular decision ofconsolidating the technical subsidy payable in foreign exchange into a basic salary paid inlocal currency; as a matter of both principle and policy, this was a bold move that should beencouraged. Conversely, the May 1991 decision to pay bonuses to holders of higheracademic qualifications is a regressive step. These bonuses fail completely to relate pay towork content and responsibility and satisfactory performance in both areas, and also operate

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swere disincenive for officr of similar rank and responsibility who lack a formalqualification. In general, It would be better to offer incentives mainly In the form ofadjustments to saary and job classification structures, rather than bonuses payable outside thatstructure.

2.51 Improvlng TerMs and Conditions of Serice There are a number of stepsthe Government could take to improve the general terms and conditiors of employment forcivil servants, at little or no extra cost. One such step would be to ensure that taxation nerponal incomes be apIlied uniformly aross all setr of thge eomy., so that differencesin the tax treaUtMnt of income do not continue to be pt of the gompetition for higly slilledspfneXl More specifically, it is suggested that:

(a) all civil service salaries be subjected to income tax, combined with an upwardadjustment in basic salaries equal to the tax liability to be imposed, so that netafter-tax remuneration is unaffected;

(b) all bonuses currently paid by private and parastatal employers on a tax-exemptbasis be included in the taxable personal income of the beneficiary; and

(c) the present practice of private and parastatal sector employers paying all orpart of the income tax liability on behalf of their employees be discontinuedby: (i) refusing the employer a tax deduction on such payments and (Hi)requiring that such tax allowances be included in the employee's taxableincome.

2.52 If the measures recommended above are adopted, there would be twoimportant incentive-related benefits. First, individuals tend to compare gross salaries, not netafter-tax remuneration. Once civil service salaries are adjusted upwards and paid on a taxablebasis, differences in gross pay would be much reduced. Ihe Government would also be in aposition to include in its emoluments package a judicious selection of tax-exempt benefits thatthe private and parastatal sectors would not be able to match. Second, the new measureswould eliminate the perception that the civil service is a privileged group exempted from thetax obligations borne by other segments of society.

2.53 Another recommendation would be to seek to elimat the advanta=e=fforeign exchange payments by private and narastatal entities by reducing and phasing out anyexisting differences among foreign currency exchange rates, and ensuring that employees ofall sectors of the economy have access to imported goods.

2.54 At present, the payment by private and parastatal employers of an allowancein foreign exchange is frequently cited as a major competitive advantage over the publicsector. One of the Government's main policy objectives is to narrow progressivelydifferential foreign exchange rates - official, secondary and shadow. With the liberalizaionof foreign exchange markets, the advantages of payments in foreign exchange will be reduced.In the meantime, the Government should consider adjusting its pay scale to incorporate theformer technical subsidy at the prevailing shadow rate of exchange, in conjunction with otheradjustments to the salary structure.

2.55 A third step to improving general terms and conditions in the civil sericewould be to extend the mandatory retirement age at 65 vears for both males and females.

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The provision for further annual extensions 'in the Interests of the service" should also beretained in the Estatuto Geral.

2.56 A final step in this area would be to shor£en the working week by reducingthe daily lunch break from twohours to one, thus allowing offices to close earlier.l/ Middleand junior-level officers are only able to take advantage of the two-hour lunch break if theyare provided transport to go home, a very costly benefit that most government officesprovide.

2.57 Restructuring the Civil Service As mentioned earlier, it is clear that thevery flat pyramid profile of the civil service needs to be adjusted through a process ofworkforce rationalization, comprising staffing reductions among the less skilled workers andincreases in the numbers of skilled workers. To plan such a process, it is recommended thatthe nment carry out job ingnections and functional reviews, to identify surplus orredundant posts in the civil service the Government. Such a functional review entailsdetermining normative standard workloads for various staff (typists, secretaries, messengers,cleaners, drivers, etc) and applying these to the functional requirements of operational units.

2.58 Priority should be given to a functional review of the job classifications inletr_ P-Z (which employ more than half of the civil service net of teachers and nurses), withspecial emphasis on the unskilled 1ga V-Z. Following the functional review, theGovernment may need to make difficult decisions on the retrenchment of some workers.Assuming, for example, that excess staffing of a quarter to a third is indicated for staff inJ-r. V-Z, a total of 4,900-6,400 persons might be retrenched in these lower grades. Beforeany retrenchment takes place, however, the Government would need to weigh carefully thesavings that would result against the potential costs, both political and financial, of such amove. Since salaries for unskilled workers are low, a large number of workers would need tobe removed from the payroll to achieve meaningful savings on the Government wage bill.

2.59 If retrenchment makes sense, and given the low absorptive capacity of theeconomy for lower-skilled workers, it is suggested that the Government make the maximumpossible use of attrition at this level, and demonstrate clearly that workforce rationalization isbased strictly on the results of systematic functional assessments and not arbitrary staff cuts.While this would mean a longer period of implementation than in the case of a more arbitrarymethod of identifying redundant staff, it would also be less disruptive of morale and lesscostly in providing transitional support to retrenched personnel.

2.60 Associated with such a program of involuntary separations, it might beappropriate for the Government to carry out a program to facilitate the transition ofretrenched staff to alternative mployment. perhaps linked with public works to be carried outunder the planned national reconstruction. Started on a small scale, the budgetary costs of anadjustment support program could be contained. Donor support for such a program mightalso be solicited, to cover occupational training activities. Donor support may be more

7/ As of March 1992 Government closed offices on Saturdays, shortened the lunch break to 11/2 hours, and extended the work-day to 5:30 p.m., continuing to provide transportationfor employees during lunch hour. The impact of this measure should be evaluated.Transportation costs have not diminished, shorter breaks do not allow female staff toprepare lunch, and the longer work-day combined with reduced commercial hours hasactually made life more difficult for female staff. Individual flexible scheduling, the ideal,is more difficult to introduce in the absence of a reliable public transportation system.

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forthcoming if the Government is also seen to be making a contribution, e.g. in the form of atermination bonus.

2.61 A major difficulty for Government in implementing workforce rationalizationis that there appears to be no provision in the Estatuto Geral to cover involuntary separationsfrom the civil service. On the contrary, the statute provides for tenure in the civil servicefollowing a short probationary period. For retrenchment to be consistent with the civilservice code, an amendment of the Estatuto would be required.

2.62 One flnal area of restructuring would be to privatize civil service activitiesthat are resentially commercial In orientationand more appropriate to the private than pulicseto . Examples include food services, radio and television, civil construction, security,building cleaning and maintenance. With the transfer of such functions to the private sector,a significant part of the managerial load of the civil service could be removed and the demandfor certain categories of technical skills shifted to the private sector. Total wage bill savingsthat might be realized are illustrated in Annex 2-8: these suggest potential savings of aboutMZM 814 million a month or 13% of the current wage bill.

2.63 Reformine Career Structures In order to reform the highlycompartmentalized structure of the management and technical careers, it is essential thatbarriers to advancement such as the requirement of a formal qualification be relaxed and thatthe personnel management system be organized to identify those individuals, particularly inthe lower levels of the technical cadre, who have the potential for skill upgrading. The firststep in this direction would be to de-emphasize formal academic qualificatign in careerprogressions for the tlchical cadre, and to provide alternatives to a formal educationalqualification for specific positions and emoluments. Even without the existing barriers topromotion, career progression from the lowest to highest technical grai on the basis ofconsistently good performance takes 21 years. There need to be opportunities for acceleratedprogression through the ranks, perhaps through an open competitive annual examination toselect a defined quota of individuals for faster promotion.

2.64 Related to the above recommendations, the existing performance evaluationsystem needs to be changed, so that performance objectives and tasks are clearly set at thebeginning of the evaluation period, and actual performance is fully appraised and linked toremedial action or promotion as warranted. (Annex 2-9 contains a sample format forperformance appraisal currently being introduced in Ghana). The essential objective of a newsystem for Mozambique would be to reinforce the Government's commitment to developingcivil servants' careers on basis of merit. In the early stages of its implementation, theperformance appraisal system should be targeted at the Tecnico C and D cadres, so that theirpotential for career growth is assessed and promising candidates for career advancement canbe directed into special training programs.

2.65 Building Capaci at Provincial and District Levels To ensure thatGovernment managers serve at provincial and district levels, the Government should integrathese provincial and district positions fully into overall management career. The illustrativestructure shown in Figure 2-2 narrows substantially the present salary differentials between,say, directors or heads of department at different levels of Government and requires priordistrict and provincial-level experience as a condition for promotion. Linked to this, theGovernment should organize short workshops that bring together national and provincialdirectors, department and section chiefs from the different levels of government, etc. A key

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objecdve of such workshops would be to create a sense of communality and solidarity amongthe different levels of government service, thus facilitating individual moves from central toprovincialldistrict postings and vice versa.

2.66 As is the case in other countries, junior and inexperienced personnel tend tobe posted to the less attractive locations outside of the main towns. To improve the deliveryof services to these rural areas, the Government must upgrade the seniority gf poSts a_ndemolum"ns payable to officers serving in such QrM. A program of special incentives mightbe needed, including e.g., accelerated accumulation of credited years of service towardsretirement and pension.1/

A/ GOM has agreed, as a covenant of the Capacity Buildirg: Public Sector and LegalInstitutions Development Project, to prepare a plan for the restructuring of the civil servicecareer system, no later than December 31, 1994. This plan would incorporate therecommendations made above regarding the reforming of career structures, and the integrationof local government positions into the overall management career.

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MOziq Caoaitv Eul dini StjFigure 2.2 Gealzed OranonL ram Manageent Cdr. 1991

Presidency

First Minister

Minister

__……… ------------------------------------------------------- Secretay of State

581 t DirectorI ~~~~~~~nacionat

Dir. nacional DilrectorB 3 1cadjLmto Provincial

E I Chaf deidepartmento

E 3 central Chife dedepairtamentoprovincial

1I 1 Chefe dereparticao

1 3 central Chefe de* rejarticao

provincial

N I DirectorI distrital

N 3 I Chefe deseccao

central

P1 Chefe deSeccao

p 3 provincial Chefe desIecco

distrital

2.67 The supporting infrastructwre for delivering public services in rural areas is asdeficient as the related institutional capacity. A sust_ed mulfi r 2ro m of faciitiesdevelopment is urgently required. Lack of housing for senior civil servants outside the towns

constitutes a major disincentive. In the case of service ministries such as Health, Educationand Agriculture, inadequate housing is the most serious obstacle to attracting staff to work inthe districts. The implementation of a housing and facility construction program will need to

be coordinated with plans for the decentralization of functional authority and the anticipatedreduction in insecurity in the rural areas.

2.68 Icentives for the Senior Civil Service Mozombique's present situationillustrates a common condition in developing countries: distortions in wages and salaries areamong the most costly obstacles to institutional performance.2b Highly-skilled manpower isan internationally tradable commodity, and to achieve performance levels that are consistentwith international standards, those who hold those skills must be remunerated at close tointernational levels.

2/ Arturo Israel, Institutional Development: incentives to performance, Baltimore: lohnsHopkins University Press, for the World Bank, 1989, 126.

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2.69 While the May 1991 salary increases and the policy reform measuresrecommended above can make a significant contribution to enhancing the capacity of the civilservice, they wi not be sufficient to attract and retain strong performers at senior levels.Additional monetary incentives will be required. This is not to suggest that the civil serviceshould attempt to match fully the remuneration packages offered in the private and parastatalsectors: a civil service career in Mozambique, as elsewhere, should be able to offer terms andconditions that offset the disadvantage of slighty lower monetary remuneration. However,the gap between public and private salaries will still have to be narrowed, and externalresources may be required to finance increases in senior staff salaries.

2.70 It appears that the highest Driority for salary increments should be attached tothe entry levels for to; managerial and technical cadres and to the Tenica C nd T.enico Dcateories who are badly underpaid. The magnitude of the current emoluments gap can onlybe estimated in very general terms while the current salary revision exercise is still ongoingthe parastatal sector. However, it is reasonable to estimate that a 30% average salary increasefor these staff might be required for the roughly 9,100 individuals in the target group (paylevel M and above). The additional wage bill cost would be about MZM 6.2 billion or aboutUS$3 million annually Crable 2.9).

Iozambiqus Caoacitv Buildina StudyTable 2.9t Budaetarvyo-st of Salary Suc2lement

BUDGETARY COST OF SIZE OF STEPINTRODUC%NG STEP OF 10% 20% 30%

A. at Letra HiCost on a.,rnual basts (MZM)2,097,903,188 4,195,806,377 6,293,709,565US$ equivalent $999,002 $1,998,003 $2,997,005Incroment to total budget 4.4% 8.8% 13.3%Numbers in classes A-M 9,105 9,105 9,105Resulting wage ratio at M 4.5 4.9 5.3

B. at Letra PCost on annual basis (MZM)3,739,555,746 7,479,111,492 11,218,667,238US$ equivalent $1,780,741 $3,561,482 $5,342,222Increment to total budget 7.9% 15.8% 23.6%Numbers in classes A-P 23,228 23,228 23,228Resulting wags ratL.o at P 3.1 3.3 3.6

2.71 In May 1992, the GOM proposed an alternative scheme for salary incentives,covering approximately 2200 civil servants, based on the QTSD, but expanded to includetecnicos-medios with a base level of work experience and within certain technical-professionalspecialties which were defined as most "at risk". Salary incentives are calculated based on apoints system, with weights being given to academic qualification, length of service, and levelof responsibility. Additional points are given for posts outside of Maputo. Costs for thescheme are estimated to be approximately US$10 million per year.

2.72 Salary incentives for the "at-risk" grouip of some 1600 university trained staffand some 400 middle level technicians would amount to maximum US$6.8 million; incentives

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to the strategic group (maximum some 30 staff) whose presence in government has to besecured to enable the government to continue with economic and social policy developmentamount to about US$1 million, and access to housing through construction of 50 to 100houses in the provinces as well as some contingencies would make up the remainder. lhesectors with a high concentration of staff who would benefit are, in descending order:education, health, agriculture, water, and construction. Their staff make up about two-thirdsof the staff 'at risk' and their salaries would be doubled or in some categories tripled.

2.73 As of November 1992, despite interest of several donors and pledges of up toUS$3 million towards the first year of implementation, the Incentives Fund has not becomeoperational due to lack of external support. The proposal of GOM is that once externalsupport is arranged, the salary incentive would be retroactive to June 1992, paid in meticais,and adjusted automatically when government salary scales are adjusted.

2.74 While the overall approach of a bonus scheme for senior civil servants, basedon transparent and objective criteria is to be commended, there are several aspects of theIncentive Fund which perhaps require modification: (i) the relative weight given toexperience versus academic qualifications; (ii) the small value given to experience outside thecapital; (iii) the lack of discrimination between provincial and district capitals; (iv) the lack ofcumulative points for time spent in local government posts; and (v) lack of variation betweenlevels of responsibility. And, perhaps the most glaring inadequacy of the proposal is thatthere are no performance-based criteria. As the funding is still being raised for the incentivesfund, it would be possible to revisit the proposal and to incorporate changes as agreed by thefinanciers and Government. It is recommended that the Commission on Salaries and Pricesconvene a symposium with the interested donors in which the Incentives Fund proposal isdiscussed in detail and modified as agreed during the working sessions.

2.75 Another measure would be to reform the current Government pension systin grder to discouragg early_rlrement and treat men and women aguall. At present, thecivil service pension entidement is defined in the Estatuto Geral as: Pension = (R x A)/35,where R = remuneration at time of retirement, and A = completed years of service to amaximum of 35. According to this formula, a woman has to enter the civil servant by age 25and a man by age 30, in order to qualify for full pension at the mandatory retirement ages of60 and 65, respectively. Since many technical staff leave school at age 20, they qualify forfull pension by age 55, well short of the current mandatory retirement ages of 60 and 65 forwomen and men, respectively. The Government risks losing their final 10 years ofproductivity, since they have no pension-related incentive to continue.

2.76 In a pension-enrichment scheme for the senior civil servants, say those at paylevels N and above, the currently-defined pension could be increased by 10% for eachcompleted year of service beyond 35, up to a maximum of an extra 10 years. This wouldmake it possible for a senior civil servant to retire at age 65 with twice the pension income towhich he is currently entitled. Given the age and length-of-service structure of theGovernment, this would not impose a major cost over the next decade.

2.77 One effect of the May 1991 salary revisions has been to place the Universityfaculty on a "superscale". While a decision to separate the University from the main civilservice can be argued on numerous grounds, the fact that its present salary structure is sodisparate from the rest of the civil service suggests that separation would be good for moraleboth at UEM and in the rest of the civil service.

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2.78 Senior civil servants who are allocated government housing during their termof service are normally required to vacate on retirement or termination. Given current levelsof emoluments and the real market value of housing units, it is unlikely that most senior civilservants could finance the purchase of a house on conventional terms. In this regard, one ofthe most powerful incentives to be offered to sen'or civil servants would be a progrm thatfacilitated the purchase or acquisition of their own housing units. An example of how such aprogram might operate, including suggestions on the selection of participants, is given inAnnex 2-10.

2.79 Another related approach for providing a house ownership benefit to senio-civil servants would be to enable staff at e.g.. pay grades G and above to acguire the

ovgeranent housing unit they currently occupy on subsidized terms. This would require, forexample, that the housing unit be priced at fair market value, as determined by a methodapplied to all Government housing units to be privatized. The purchaser would then have topay the fair market value in equal nmonthly installments calculated to include principal andinterest amortized over a period of 30 or 40 years, but with interest payments forgiven aslong as the officer remains in the Govermnent service. If the officer leaves the Governmentbefore he has paid off the mortgage loan, the unpaid principal balance plus all waived Interestwould become due.l.Q/

1Q0 During November 1992 the Government introduced measures for current occupants ofGovernment-owned housing to purchase their homes at higlhly subsidized interest rates and atsubstantially "reduced" levels of assessed market value. Ihese subsidized loans were madeavailable to both civil servants and private sector workers currently residing In Governmenthousing, thus reducing their effectiveness as an incentive measure for civil servants.Government could now consider introduction of a mortgage scheme for purchase of publicand private housing stock as a possible incentive.

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IffI EDUAR)O M L UNIRINY

A. Introduetionr

3.1 Possibilities for future economic growth and social development in Mozambique areheavily conditioned by its presently limited capacity to produce technically qualified andprofessionally capable individuals, and to harness their talents effectively within public and privateinstitutions in all parts of the country. The future prospects of some 16 million largely illiteratecitizens rest heavily in the hands of Mozambique's 3,000 university graduates, and in the country'scapacity to increase these numbers while preparing them to manage effectively an uncertain future. Itis a huge responsibility.

3.2 The country's principal institution of higher learning, Eduardo Mondlane University(UEM), shoulders the bulk of this responsibility.L1/ In pursuit of its mission, UEM presentlyplays-and will continue to play for many years-a vital role in Mozambique's economic, social andpolitical development efforts. The graduates it produces in the 1990's will manage the country'saffairs through that decade and beyond. UEM trained economists, for example, will be called uponto develnD and implement national economic policy, analyze and negotiate trade and natural resourceexploitation agreements, and help manage indigenous economic enterprise. Its engineers willsupervise rural reconstruction, insure quality control in emerging industries, and contribute to miningdevelopment. Its doctors and community health workers will be charged with re-building a nationalsystem of basic health care. Its lawyers will help to insure that the nation's interests are safeguardedin international agreements, and that a rule of law becomes institutionalized within both the justicesystem and the country as a whole. Its agronomists and social scientists will guide the daunting tasksof refugee resettlement, rural development and agricultural modernization that await the country'sattention. At the same time, the university must continue to serve as an important cultural crucible inwhich future institutional leaders drawn from the country's diverse regional and ethnic backgroundscan share their respective heritages and learn to work together. To a large extent, this is the visionthat frames the university's institutional objectives of professional training, applied research andskilled service.

3.3 National and international investnent in Eduardo Mondlane University has thepotential to generate substantial savings for the country, and to produce greater effectiveness in its useof development resources. As the university increases its capacity to fulfill its institutional objectives,UEM graduates will progressively substitute the 3,000 or more foreign technical assistance personnelthat presently cost Mozambique over US$200 million a year. These expanded cohorts of universitytrained staff can be expected to contribute their technical and managerial skills to an institution-building process that will bolster and advance the current Economic and Social RehabilitationProgram. Also, the progressive upgrading of human resources in governmental and non-governmental institutions should enable a more effective use of foreign assistance through theexpansion of professional management, increased understanding of the problem context, and greatersensitivity to the operating environment in Mozambique.

Wl T'he other two institutions which complete Mozambique's higher education system are the HigherPedagogical Institute (ISP) with 1,118 students in 1992, and the Institute of InternationalRelations (ISRI) with 220 students in 1990.

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3.4 For this long term strategy to be successfil, urgent actions of both a short andmedium term nature must be taken. In spite of its considerable achievements, Eduardo MondlaneUniversity currently finds itself in a precarious situation. It faces severe problems of staff retention,particularly in some disciplines, which are undermining its ability to offer an acceptable educationwithin a predictable time period. An extreme example is its Department of Economics, which isclose to becoming non-functional. The university's considerable success in attracting donor fundinghas placed it in an unstable and unsustainable position: it is dependent on continuing foreignassistance for the bulk of its operating budget. UEM output efficiency is low, with a drop-out rate ofroughly 50%. Employers have begun to question the relevancy of its training in some disciplinaryareas, and its research output has fallen far short of national needs. Recent years have seen anincreasing tendency for a disproportionate number of students to be drawn from the southern part ofthe country. A continuation of this trend could contribute to unequal regional development andeventual political instability. These factors combine to erode university capacity to fulfill itsinstitutional mandate of providing the nation with trained professionals, applied research and skilledservice. Capacity preservation must therefore take precedence over capacity building.

3.5 The extent to which the university can successfilly carry out its institutional missionwill depend on its organizational effectiveness, its managerial efficiency, and its structural flexibilityin the face of uncertain and rapidly changing circumstances. The following discussion analyzescurrent UEM performance in each of these three areas, and suggests ways in which they might bestrengthened. A brief review of higher education financing in Mozambique sets the scene for thisdiscussion.

NHigher Education Finance

3.6 FRELIMO's Fifth Party Congress, held in 1989, devoted considerable time to analysisof the country's education sector and the need for more systematic attention to national capacity-building. In response, the Ministry of Education's 1990 document, Education in Mozambique:Problem and PErspetives, registers govermment intention to double higher education's share of theoverall education budget (comprising both recurrent and investment allocations) from 8.6% to 17.9%over the coming decade. In practice, however, this commitment has been honored in excess, withhigher education receiving around 21% of the education budget in 1990.1j/ The higher educationshare includes 19% of the total recurrent budget (internal plus external) and 28% of the investmentbudget (internal and external) for the education sector in that year.

3.7 Viewed from this perspective, it Is easy to question the appropriateness of thisallocation on the grounds of both equity and efficiency. Further analysis shows that the situation isnot so clear cut. In constant 1980 prices, per capita government expenditure on education and healthdropped nearly 60% between 1980 and 1989. In this context, it is not surprising that the fixedoperating costs of UEM as a sizeable and stable institution should absorb a growing portion of afalling education budget. Ihis problem has been further compounded by the government's decision tosignificantly expand Mozambique's second institution of higher learning, the Instituto SuperiorPedagogico.

1W/ Madagascar, which devotes 35% of its education budget to support a university system embracing37,000 students, is the most extreme case. A more typical proportion for Sub-Saharan Africa is18-22%.

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3.8 Eduardo Mondlane University presently receives just 29% of its operating budgetfrom the Mozambican government. This rates as a major anomaly on a continent where governmentsroutinely provide 90% or more of university funding. The remaining 719% of Its recurrent costs-much of It for expatriate teaching staff-is covered by donors. The university budget for 1992appears in Table 3.1.

3.9 In unit terms, the government's recurrent contribution was $1,423 per student In1990. In 1991, this amount declined to $1,106 as the result of enrollment growth. These unitrecurrent expenditures are at the low end of the scale for Sub-Saharan Africa and rank close to theunit costs at Addis Ababa University ($1,320) and the University of Science and Technology atKumasi, Ghana ($1,279). In contrast, percapita recurrent costs are consistently higher at theuniversities of Zambia ($3,298), Tanzania ($6,071), and Malawi ($3,798). This suggests that inMozambique the problem is not the over-funding of higher education, but the generalunder-fundingof education as a whole. Nevertheless, the university may be able to use its scarce resources moreeffectively and efficiently, and also expand its financial bpse.

aW~~~~~~~~~~$A~~~ 4

W. . '. . .. .. . N. ,lam.X.g. S

... E .., ;:.. :.i .:. h-

' ' .: : .' ' < ' ' 2n::g: ......... '' ''- ' ' ; ........... : ' .? .,,. -.::, .~~~~~~~~~~~~~. ... .... .. .

3.10 The university has established the precedent of charging tuition fees (prpias to itsstudents. 7hese fees, which had been unadjusted since 1987, were raised in February 1992. Thenew fee structure requires students to pay a registration fee of $48 (100,000 Mt.) when entering theuniversity and an additional S50 (105,000 Mt.) for each course talcen. Foreign students have beenasked to pay substantially more. While increased cost-sharing by students is a very much needed steptowards improving the university's difficult financial situation, the hundred-fold increase in coursecharges prompted considerable public discussion regarding its equity implications and students' abilityto pay. The university later modified this policy to allow partial or full exemption from fees forneedy students and for students with above-average academic performance. Eventually, as economic

- 45 -

conditions improve and labor markets become more stable, a loan program might also be consideredto insure that equity and access are maintained. Because the higher fees will be a burden to manystudents, the university and the government will need to demonstrate clearly that these new revenuesare being efficiently managed and effectively employed.

B. Effetiveness

3.11 Assessments of institutional effectiveness attempt to measure an organization'sprogress in achieving its defined objectives. For Eduardo Mondlane University, an overridingobjective since Mozambican independence in 1975 has been to transform itself from a colonialappendage of the Portuguese university system into an authentic national institution of higher learning.In addition, three other goals were explicitly defined for the university by the newly independentgovernment: (a) to provide skilled human resources for national development, (b) undertake researchthat contributes to the amelioration of problems affecting Mozambican society, and (c) disseminateuniversity knowledge and experience to the benefit of the national community. A final objective,explicit in UEM admission policies, has been to constitute a diverse and representative student bodythat reflects the regional, cultural and gender composition of the nation. Achievements with regard toeach of these five objectives are assessed in turn.

National Institution-Bulldinz

3.12 UEM has made remarkable progress in its efforts to become an authentic nationalinstitution of higher learning. Few other African universities faced the obstacles that it did atindependence. Following the mass exodus of the Portuguese faculty and students that comprised theuniversity during the colonial era, the number of Mozambican faculty has expanded from just five in1975 to 286 full-time and 167 part-time staff in 1992. Mozambican nationals now comprise 84% ofthe UEM teaching staff. This is a significant improvement from the 31% level that prevailed in1984. For similar reasons, a student body of 2,433 in 1975 plunged to only 777 in 1977. Through asustained national effort in the face of enormous challenges (only 8 percent of the population wasliterate at Independence), university enrollments have been progressively re-built to 3,466 in 1992.

3.13 Much of the recent growth in student enrollment-up 140% between 1985 and 1992-isdue to a sharp rise in the number of worker/students. These are employed students who are giventime off from work by their employers in order to attend classes. In 1990, one-third of incomingstudents were from this group. Of these, 68% were employed by public agencies; the rest weredrawn from parastatal organizations. Since governmental salary scales are ciosely linked to formaleducational achievement, support for university study is one way that government employers cancompensate for their general lack of competitive salary and benefit packages in their attempts to retainstaff.

3.14 Since 1975, the university has demonstrated creativity and discretion in managing itsown development. For example, university leadership initially chose to close a number of universityfaculties following the post-independence exodus of many Portuguese staff and students. Thesefaculties were later re-opened as expanding staff, student demand and budgetary resources permitted.Today the university has 22 academic departments organized under 9 faculties, a multidisciplinary

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research unit (the Center for African Studies) and a computer center.ia/ Together they address alarge portion of Mozambique's principal training needs. Tle important principle of student cost-sharing was introduced early and has been maintained. This includes matriculation fees (increasedsignificandy in 1992) and the limitation of government scholarships to roughly 35 percent of thestudent body. This policy has facilitated the financial management of expanding enrollments bydisassociating this process from the need to provide each new student with a full scholarship as iscommon in many other African countries. An extensive curriculum reform was undertaken in 1985that sought to define subject matter In relation to prevailing professional and occupational profiles foruniversity graduates. These and other achievements, such as impressive success in international fund-raising, the establishment of an admissions examination for selecting in-coming students, and a well-conceived UEM institutional needs assessment and development plan completed in 1991, arerepresentative of the innovation and commitment which characterizes UEM.

Training for National Nleeds

3.15 With only a handful of African students in the university at independence (reportedlyno more than 50), UEM has consistently given its highest priority to training. To date, it hasproduced 2,400 graduates. When added to those Portuguese who elected to remain in Mozambique atindependence and those who were trained abroad through subsequent international cooperationprograms (e.g. German Democratic Republic, USSR, Portugal), the total number of universitygraduates in Mozambique nears 3,000. However, as reflected by the presence of several thousandforeign technical assistance personnel In Mozambique the number of university graduates isinsufficient to meet the country's needs. The current average of 26 university students per 100,000citizens is much lower than in neighboring countries.JA/ This underscores the need for greateroutput.

3.16 In its 1991 institutional needs assessment, Eduardo Mondlane University: Present andPerspectives, the university indicates its intention to expand enrollments further to 5,500 students by1996 and then stabilize the student body at that level. Although this is a legitimate attempt to respondto the output needs noted above, it may prove difficult to achieve this goal. The number of graduatesfrom pre-university secondary schools is not likely to increase significantly In the next few years (seeChapter 4). In addition, Mozambique may not be able to afford greatly expanded enrollments. Thebest way of increasing graduate output will be, at least in the short run, through specificimprovements in the quality and efficiency of the existing system which will reduce the drop-out andrepetition rates.

Quality and Relevance of Graduate Output

3.17 At a time when many African universities are struggling with problems of graduateunemployment and are seeking to re-direct the output mix of their graduates away from the socialsciences and towards engineering and science, UEM faces a different set of challenges. Labor marketdemand for university graduates is strong in many areas-particularly in economics, law andengineering--and likely to remain so throughout the decade. With an October 1992 peace accord that

JW/ The university also manages the National Historical Archive, the National Museum of NaturalHistory, the Museum of Resistance to Colonial Occupation, and the Museum of the Mint.

JAI By way of comparison, the equivalent numbers in 1988 were 54 per 100,00 in Malawi, 316 inSwaziland, 133 in Zambia, and 396 in Zimbabwe.

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has brought an end to rural violence, the demand for graduates in the agriculturally related sciencesshould also expand. Some 38% of students are currently enrolled in sciences and engineering-aproportion considerably above the level prevailing in most African countries. This phenomenon ispartly the result of the temporary closure of various UEM social science departments. But it was alsoreinforced by the country's previous practice-within the context of a centrally planned economy-ofchannelling students into specific courses of study in accordance with national human resourcedevelopment plans. Under this system, the number of UEM engineering students increased by 67%between 1987 and 1990. This practice was discontinued in 1991 and students are now permitted tochoose their field of study. Maintaining this impressive proportion in the years ahead will not beeasy, as students are already demonstrating a preference for other disciplines.

3.18 In 1991, the university introduced an admission examination as a means of managingenrollment growth and improving the selectivity of new entrants. Although the university had hopedto admit 806 new students in that year, only 675 of the 1,729 candidates scored well enough to gainadmittance to the disciplines of their choice. As a result, the university offered the option to studentswho scored acceptably - but fell below the cut-off point - in some of the competitive fields (e.g.law, economics, computer science) of choosing to enroll in a discipline of second choice. On thisbasis, an additional 61 students were admitted for a total 1991 in-take of 736 students. Thisrepresents a shortfall of 9 percent. This experience reinforces the notion that quality improvements insecondary education will be a necessary condition for increasing the university's output of graduates.

3.19 The admission examination also allows university candidates, for the first time innearly a decade, to choose the disciplinary area in which they wish to specialize. The exam cantherefore be viewed as a rough indicator of future employment possibilities as perceived by studentsand their families. As shown in Table 3.2, student demand is very strong in law, economics,engineering and computer science. It is notably weak in several of the science areas. Students arereportedly not attracted to the sciences because they offer few employment options other thanteaching-an unappreciated and poorly remunerated profession.

'ioog '";311

Law M10('.^ .;..S. .. -f. 18 1:3.9,

.,. . ,M , i...7 . aA's,, "m'0 305X

Cb~~m~c~~l24ineeru~~g 25 2s :.

m 3 ~ ~ ~~~~~~0 104 13

30 5

WTAL ~~~~~~~~806 1,72912

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3.20 As part of this study, informal interviews were conducted with a dozen managersof public institutions and private firms representing the principal sectors of the job market withrelevance to the university (e.g. engineering, agriculture, law, economics). These conversationsconfirmed a generally strong demand for university graduates in these areas, but also highlightedseveral perceived shortcomings in university preparation. Employers were strongly in agreementthat UEM graduates are currently deficient in practical skills, and in analytical problem-solvingcapacities. In addition, they noted shortcomings in professional abilities such as setting priorities,organizing time, maintaining standards of quality, and other management skills. In a number ofcases, they suggested that students would benefit from training in the basics of finance andadministration within their study programs. To the extent that these comments are indicative ofgeneral employer concerns, they suggest that consideration might usefully be given to anass'<ssment of the UEM curriculum for present and future relevance, with an eye to includingsome nossibility for inter-disciplinary study.

3.21 Based on the sketchy information available, it seems that while the overall outputof UEM graduates falls far short of present demand, the distribution of graduates across thevarious disciplinary areas is roughly consistent with national development needs in the long run,even If it is not fully responsive to current labor market demands. Use of the present job marketas a reference point for assessing the effectiveness of university output is a somewhat riskyexercise under prevailing circumstances. The nation's economy is undergoing substantial changeas the result of structural adjustment, and current sectoral policies may be modified by thepolitical dynamics associated with Mozambique's present transition to a multi-party politicalsystem. The job market for university graduates is also somewhat distorted by the aggressiverecruitment policies of donor agencies (Chapter 2), and can be expected to shift further given theOctober 4 accord in Rome. In the midst of such flux and uncertainty, it is essential that theuniversity preserve its existing capacity for training across the full range of its disciplinary areasin order to be able to respond to anticipated national development needs (e.g. miningdevelopment) at a later date. In this context, the UEM decision to consolidate and strengthenexisting courses rather than launch new ones is entirely appropriate.

3.22 More could be done, however, to improve the relevance of university training tosubsequent employment. The following recommendations address the needs for greater quantity,improved quality and increased relevance in the university's graduate output.

Recommendations

3.23 The university should explore the possibility of moving to a degree-grantingsystem based on successfully completing a given number of academic course credits rather thanthe current system based on the co,mpletion of successive academic years. This would allow forsystem expansion through continuing education, distance education, or intensive courses duringvacation periods, including in selected provincial capitals. It would also facilitate university re-entry and degree completion for students who might be forced to interrupt their studies forpersonal reasons. Moreover, if a system of academic course credit included a few electivecourses, a more professionally relevant combination of courses would be possible, e.g.engineering or agriculture with economics or public administration.

3.24 To increase output, it is recommended that UEM explore the possibility ofadministering distance education courses in selected areas of high demand (e.g. economics, law)in association with an established program based in another country. Under such an arrangement,

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UEM might act as that program's representative in Mozambique, translatng and possibly adaptingits existing materials as both parties agree. In exploring this possibility, however, it should beborne in mind that these high demand courses are also among the least well institutionalized atUEM, and that previous experience with distance education In Mozambique has not beenparticularly successful.

3.25 To enhance the relevance of UEM training to the country's present and futureemployment needs, it is suggested that the university, In the course of the curriculum adjustmentprocess presently underway, consider the possibility of introducing, removing or substitutingcourses and course content. This exercise should seek to strengthen applied aspects of thecurriculum and align course content with current and projected labor market needs. It might alsoexplore ways of increasing inter-disciplinary study, e.g. courses on management, finance andadministration.

3.26 Also, to improve the relevance of UEM teaching and research, it is recommendedthat UEM faculties consider establishing informal advisory committees comprised of severalindividuals representing key areas of graduate employment. These committees might meet onceor twice a year to comment on departmental work plans, course content, and research priorities.As committee relationships are established, they might also facilitate student work placements(estaaio ), and foster outside support for contracted research and departmental consultancies.

3.27 In its efforts to increase student enrollments, it is recommended that UEM explorefully the possibilities for improved utilization of existing space and infrastructure beforeembarking on the physical expansion of its campus or the establishment of branch campuses inother cities. For example, some academic departments currently function during just a portion ofthe day and offer the opporunity to schedule additional daily classes in these available spaces.

3.28 The UEM decision to refrain from initiating new academic programs in order toconsolidate existing ones is strongly supported. Since it is unclear whether enrollments can beexpanded as planned, priority should be given to efforts that increase the number of graduates byreducing drop-out and repetition rates through quality and efficiency improvements within thepresent system.W21

Research

3.29 The role of research, especially applied research, is fundamental to the process ofstrengthening management and policy-making capacity in Mozambique. Research generatesunderstanding that can guide policy formulation and national development project planning.Within the university, it can enrich teaching through the incorporation of local content and help toinsure the relevance of university training to societal needs. Research experience-even whengained in the course of "pure" research-can also give students the analytical and organizationalskills previously identified as lacking in the curriculum. Additionally, research producesknowledge and experience within the university that can be marketed through contracted research,

IW/ Because university graduates are a very scarce national resource in Mozambique, every effortshould be made to maximize their numbers and productivity. There are indications that theincidence of AIDS in the country could increase significantly in the years ahead. For thisreason, the university has wisely decided to establish a program on the education and preventionof sexually transmitted diseases for its students and staff.

-so-

consultancies and service contracts. Indeed, it is the combination of research with teaching (thegeneration and trammission of knowledge) that sets the university apart from other institutions inthe national educational system.

3.30 For these reasons, UEM has sought to institutionalize research activities within itswalls. Mozambican staff have been encouraged to initiate research activities following completionof their post-graduate degrees, and to involve younger faculty and students in these undertalings.Likewise, a research-based l iaflira thesis is required for undergraduate degree completion.At present, the university has 51 different research projects underway in which 124 staffparticipate. Notably, the use of research teams is beginning to emerge, particularly inengineering, agriculture and the Center for African Studies. In most cases, research topics arechosen at the departmental level within broad guidelines defined by the university's ScientificCouncil. Research capacity-building has benefitted from a ten-year support program provided bySAREC, and by specific project assistance from Italy, Portugal, Cuba, UNDP, WHO, IDRC, theCalouste Gulbekldan Foundation and the Dutch government. In 1992, SAREC and NORADjoined in establishing a flexible research fund intended to foster research activity throughout theuniversity.

3.31 In spite of these efforts, the university is not yet able to effectvely fulfill itsresearch mandate. Much research is the result of individual initiative linked to thesis ordissertation requirements for Mozambican staff pursuing graduate studies abroad, although notableresearch contributions have been made by the Department of Biology (marine ecology), theFaculty of Engineering (construction materials, solar energy), and the Faculty of Agronomy (foodcrops, farming systems). Institutionalized research capacity is limited largely to the quasi-autonomous Center for African Studies. During the 1980s, the Center gained a reputation forgood scholarship by producing a number of policy oriented studies based on political economymethodologies. Many of the Center's senior researchers, however, were expatriates who departedMozambique during the 1988-90 period for a variety of personal and political reasons.1/They left behind a cohort of younger, less experienced Mozambican researchers who are nowstruggling to re-structure the Center on the basis of indigenous staffing, and to chart aninstitutional course that will prove relevant to the country's future needs.

3.32 Elsewhere in the university, research output remains limited and poorlydisseminated. The Faculty of Economics, for example, has yet to develop research activities-even though the current process of economic rehabilitation might well benefit from research-basedguidance. Similarly, the Faculty of Medicine (with its largely part-time staff) and the newlyestablished Faculty of Law have not been able to contribute meaningfiu research results in theirrespective professional areas. Where research is produced, it often suffers from limitedrelevance to the country's development challenges. This shortcoming stems from poorarticulation with applied development or productive sector activities, the fledgling nature of UEMsocial science that might ground investigation in social realities, rigid disciplinary boundaries thatinhibit problem-focused multidisciplinary approaches, and a weak demand for such products.

3.33 The reasons for insufficient research performance are readily understood. TheMozambican teaching staff is largely young and inexperienced, with 45% possessing less than fiveyears of teaching experience. With just 10 Mozambican PhDs on campus, young staff have fewrole models to guide them. Contracted foreign staff rotate too quicldy (their average stay is two

lfi In addition, the Center's first two directors were assassinated during this decade.

years or less) to initiate meaningfl research, and their work contracts are normally restricted toteaching assignments.12/ Staff promotions are based more on length of service than onscientific output (this practice is currendy under review), and research provides few materialincentives which might compete with "moon-lighting" economic survival actiities. Moreover,the growing numbei of employed students, together with the absence of employer incentives forthesis completion, erodes undergraduate research activity linked to successful graduation.Additional constraints exist in the form of limited library holdings, outmoded or non-functioningscientific equipment, weak support facilities (e.g. photocopiers) and bureaucratic impediments toacquiring the foreign exchange necessary to obtain many consumable supplies.

RcoMmendalions

3.34 To improve UEM's research program, it is recommended that:

(a) To provide incentives for research, It is recommended that research output beused as an explicit criterion for staff promotion, and that the conduct of researchbe included as part of each staff member's job description.

(b) To provide opportunities for research, it is recommended that a 'small projects"research fund be created. The fund's management might be modelled after thesuccessful University of Zimbabwe Research Board, with flexible fundingcontributions sought from donors.

(c) Current efforts to make greater use of university linkage agreements are stronglysupported. At the same time, it is recommended that the terms of technicalassistance contracts for foreign teaching staff be reviewed in the effort toincorporate greater emphasis on tie conduct of research, the orientation ofMozambican researchers, and the teaching of methodological skills.

(d) The university is encouraged to explore the possibilities for undertaking "contractresearch" for public agencies and private fims as a means of expanding itsapplied research while providing monetary incentives to UEM researchers.

3.35 University service to its surrounding national community is currently concentratedin two activities: informal expert advice and contracted consultancies. Expert advice is offeredfreely by UBM staff to a range of government agencies, donors, non-governmental organizations,churches, private firms and professional consultants. Consultancies contracted through theUniversity represent a small but growing set of activities, especially for the departments ofeconomics and engineering, and for the Center of African Studies. Service contracts and relatedincome generation activities earned the equivalent of $511,703 in 1990, equal to 12% of the UEM

D/ Limited experience with institutional linkage agreements-where visiting staff must pursueresearch in order to compete for promotion at their home universities-has been more positive,and UEM is currently seeking to subsdtute bi-lateral technical assistance contracts withuniversity linkage arrangements.

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local currency operating budget. j/ Many service contracts come from the donor community,and a few private sector consultancies have also been conducted. Notably absent is anysignificant expression of demand from Government itself. Given the large number ofinternational consultancies contracted by public agencies, the limited government use of universitystaff for this purpose suggests that the country's expanding professional resources are under-utilized in this area.

Recommendations

3.36 Service contracts represent a growing source of income to both the university andits individual faculty members. It is recommended that the university recognize the increasingimportance of these activities and study appropriate means of insuring that such activities arecompatible with its primary mandates in teaching and research. Several university departmentsand the Center of African Studies have begun to think about appropriate norms and proceduresthat might offer such guarantees. What remains is to develop an institutional policy to governuniversity and individuals' activities in this area.

3.37 There is some inclination to establish university units that might promote andmanage UEM consultancy activities in various professional areas. Before making suchinstitutional decisions, which may place additional demands on currently scarce universityresources, it is recommended that the university study more flexible alternative arrangements.One possibility might be to form partnerships with existing consultancy firms on a profit-sharingbasis, or formalize linkages with them on a sub-contracting basis. Related to this, it isrecommended that university departments explore ways of systematically marketing their expertiseand fostering a demand for their services, particularly within the public sector. Possibilities mightinclude the publication of departmental brochures which summarize the experience andqualifications of staff, and the organization of periodic departmental or university seminars todiscuss specific policy issues with government and donor representatives.

Diversity and Regional Representation

3.38 Diversity among the individuals that comprise an institution like UEM, and thepluralism of perspectives that they bring to bear on its endeavors, enhance the quality of theUniversity. Diversity and social representation in the composition of UEM staff and studentscontribute to the quality and efficiency of teaching and research, and also impart importantprofessional values to students who will be the country's future leaders.

3.39 For historical reasons, adequate regional representation among the UEM studentbody will be important for the long run stability of the new political system established underMozambique's 1990 constitution. As shown in Table 3.3, students from the southern part of thecountry made up an increasing portion of UEM enrollments during the 1980s, as rural conflictand deteriorating economic conditions inhibited the tfXow of secondary school graduates from theprovinces. Commendably, government and the university have reserved one-third of UEM placesfor provincial students, and given them priority in awarding government scholarships.Nevertheless, the regional distribution of candidates for the 1991 admissions examination (see

I8/ Income was produced, for example, by UEM cafeterias, departmental consultancies, the sale andservicing of computer equipment, the maintenance and repair of electronic equipment, and theUEM veterinary hospital-the only one in the capital city of Maputo.

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Table 3.3) suggests that maintaining this policy in the face of gradual university expansion (to aplanned 5,500 students by 1996) will require creative solutions.

P~~at*~a diMzi 'b Winbyhpa

~~~~~~~~. v --

A ' . 6$". .:: 4.:: .6 4.. - 0 f

Manic. ~ ~ ~ ~ ~ ~ ~ f 17 ;

O~~~za 79 A2.4 102 9~~~~~~~~~ 2.710, ..T :: -. :S.5R. . 5,,'O'''' .O . 9,$* . 9SS ; f

Mou n'Wd :;:~pi- t i . ^X t! n::1,+cp/n4l " * ~+, tttm: E.Mt :tio4 j . .

3.40 The university's gender distribution is consistent with the prevailing (low) levels forAfrican universities, with women comprising just 25% of students.2l This proportion has variedlittle over the last six yoas. However, the preservation of women's share over this i)etiod must beseen as a notable accomplishment.ZQ/ The lack of dormitory space for women (currently about140 beds) poses a formidable constraint to the university's ability to receive female students from theprovinces.

3.41 About 20% of the present Mozambican faculty are women. This proportion isnotably above the prevailing average in Sub-Saharan Africa, which is roughly 13%.

3.42 A socio-economic analysis of student composition - based on the declared occupationof the head of the student's household - suggests that 60% of UEM students are drawn from theMozambican middle class, and about 25% come from peasant and working class backgrounds. Inaddition, 38% of UEM students are from rural areas, down from 48% in 1985. Thbis is probably as aconsequence of widespread rural conflict during this period.

.121 Women's participation ranges ftom 67% in Biology and 53% in Medicine, to 7% inengineering.

2W In 14 other African countries, women's participation in higher education declined during the1980's.

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3.43 In order to insure an adequate flow of univesity candidate from the provinces, it isstrongly recommended that the Government of Mozambique seek to Identify measures that willincrease the number of graduates from the provincial pre-university secondary schools. In addition topossible initiatives suggested in Chapter 4 of !his report, it may be usefiu to ievaluate the extent towhich family financial constraints inhibit greater output at the pre-university level, and assess thepossible need for means-tested financial assistance (&Wlsaa) for some provincial pre-universitysecondary students.

3.44 To insure that the present policy of reserving one-third of UEM places for provincialstudents is maintained, it is recommended that government, university and donors expand the presentnumber of dormitory beds for provincial students. It is estimated that an additional 800-1,000 bedswill be needed if UEM enrollments increase to 5,500 as planned.ZI It is understood that someencouraging prospects for foreign assistance currently exist in this area. At the same time, it isfurther recommended that the university continue to test the possibilities for accommodation in therental housing market as economic conditions evolve, and that other, more experimental alternativesbe encouraged as appropriate, e.g. community support for 'provincial houses", cooperative studenthouses, etc.

3.45 It is strongly recommended that the university avoid establishing a system of explicitregional quotas for admission as this could undermine its efforts to enhance quality and outputefficiency. The use of quotas could also create precedents that might be difficult to re-consider at alater date. Instead, it is suggested that the university establish clear goals for regional and genderrepresentation among incoming students over a three to five year period. A mechanism could then beestablished to monitor progress towards these gols, identify possible constraints, and proposeremedial action as may be necessary.

3.46 . Among the countries of the world, Mozambique is exceptional for the high degree ofconcentration of its economy, technological assets and educational resources in its capital city.Eventual expansion of its higher education system into other key regions of the country could help tobroaden the country's economic base and insure regional representation among its professional cadres.Although short term attention should concentrate on UEM's own institutional development, it issuggested that a feasibility study for the geographical expansion of Mozambique's higher educationsystem, including the role of pri . tn universities, could be usefully undertaken in the near future.

W1/ Total beds for one-third of S,300 students equals 1,832. Existing capacity of 650 beds minus250 beds lost through return of "8 do Marco' center to Catholic Church plus 576 new beds forwhich funding is already available sums to 976 beds. The shorull is therefbre 1,832 minus976, or 800-1,000 beds depending on rates of room occupancy.

C. mil

Unit Costa

3.47 As noted earlier, UEM has been highly successful in attracting donor support,including roughly 150 foreign academic staff each year who teach courses for which Mozambicanfaculty are not presently available.WI This substantial foreign contribution represents the bulk ofthe university's overall operating budget and makes any effort to calculate unit costs a complexprocess. As shown in Table 3.4, if the Mll costs of foreign faculty provided under various technicalassistance agreements are included in a unit cost calculation, the resulting figure ($4,564) is quitehigh. On the other hand, if one assumes that all faculty members were Mozambican nationals paid inaccordance with prevailing salary scales, the associated unit cost of $1,427 would be among thelowest for African universities.

1,i.;'i Eg.: ... : .g.. y: '; ;;. ;; : - , .E . .. .....

~~404 1340 $,204 ~.0 4,540~2

3.48 Table 3.4 also shows that the university has achievedsignificant efficiency gain over the past several years as the result of enrollment expansion. Unitcosts have fallen from US$5747 in 1988 to US$4564 in 1991. At the same time, the average costof both national and foreig staff has risen (Table 3.5). The former reflects governaent efforts tokeep public sector salaries competitive as the local labor market undergoes rapid change stemmingfrom siucturdl adjustment. It includes a special 100% salary supplement for doctors anduniversity faculty awarded in 1991 in recognition of their special status as scarce national humanresource. Foreign staff salaries have increased as a consequence of significant losses ofrelatively less expensive foreip faculty from Eastern Europe and the USSR and their replacementby more expensive technical assistance from Western nations.

AZ 'Iis number fell to 86 in 1992 due to the collapse of technical assistance ftom the formerSoviet Union and East Germany that occurred at the end of the previous yea.

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3.49 UEM has made notable progress in developing national staff andprogressively substituting them for foreign faculty members, especially in some departments. T'hecnent situation is reflected in Table 3.6.

B X.M: ........... ~~~~~~~~~~~.. i ' S . . .... .. .... ....... ......... .

19R8~ 26 ' 40 sis 'ooo

1SW =92 ZZ$0 ,33 . 17 S

-iou~~~~~~~~~~~~~~~~~~~~~~o

........... .o. .

prgesiey usittngtr frfreg acult members eseial in soedprtet h

current situation is::;:: refled Tb 3 ;8 2 .6

Tat4*^£ -:6 3

Ag-o:o., , 2 66 ::2146 469 31%

Aro1iitpctui" g td B $ f 1' ' 50 '''' ' "; ""'''"Ph.ysi . ... .c: s -1| 4. 1l 7S _ _12||||| 58 ' ''

3.50 T he large numbers of foreign f3culty and their limited time in Mozambique (somestay less than a semester) affect the quality of teaching and research in various ways. On the onehand, visiting staff often possess higher levels of advanced training and greater experience thannational staff. They thierefore have the potenltial to play a usefull mentoring role to te 45% of UEM's

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Mozambican staff who have five years or less of professional experience-a role that is oftenunfulfilled in practice. On the other hand, expatriate staff reflect a diverse array of nationalities (atleast 22 countries are represented among the foreign staff) and varying theoretical approaches. Insome cases they do not speak Portuguese well, and are inclined to rely on bibliography from theircountry of origin. Furthermore, most of them do not engage in research, often because their contractterms of reference are limited to teaching duties.

3.51 In the last several years, the university has had more positive experiences with visitingfaculty provided through institutional linkage or twinning arrangements, particularly with Dutchuniversities. The initial assessment is that these mutual institutional commitments introduce greateraccountability, permit more systematic planning, and encourage research by visiting faculty whoseperformance will be evaluated by their home university. As a result, UEM intends to moveprogressively towards a greater use of such twinning arrangements whenever appropriate partners andfunding can be identified.

Staff/Student Ratios

3.52 Academic staff/student ratios are gradually improving as student enrollment increasesat a faster pace than faculty growth. In 1992 the academic staff/student ratio was 1:8.4 if oneexcludes the 55 Mozambican staff who were abroad for graduate training and considers each part-timeappointment as one-half of a faculty position. Ihis ratio is somewhat less than the norm for Africa(1:12), which in turn is low as compared to Asia and Latin America. It suggests that additionalimprovement should be possible. This will require monitoring and appropriate UEM managementintervention as student enrollments continue to increase, particularly within the recendy re-openeddepartments, and as Mozambican staff return from study abroad.

3.53 In its recent institutional stabilization plan, the university proposes to move towards anoverall staff/student ratio of 1:8.5 (including faculty studying abroad) by 1996. It is suggested that amore appropriate target might be 1:10. Given the generally weak secondary education thatcharacterizes in-coming UEM students, the presently very limited availability of teaching inputs(textbooks, laboratories, equipment, research activities), the relatively high numbers of rotatingforeign staff, and the larger numbers of Mozambican staff engaged in overseas graduate study, short-term efforts to achieve a ratio beyond this (such as 1:15) could well prompt an unacceptable loss ineducational quality that would offset any efficiency gains obtained. Toward the end of the decade,however, a higher ratio should be sought.

3.54 The 1991 staff/student ratio by department (Table 3.7) displays considerable internalvariation. Efforts to improve the use of staff resources could begin by analyzing the possibilities forestablishing more efficient staff/student ratios in veterinary medicine, agronomy and medicine. Buteconomics, engineering and possibly law may be approaching the limits of efficiency under prevailingconditions of educational quality.

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Thye~~~~~. .......

By ''folown a strtg o .,'af:ffff'B.,,':"X':y:.'":X''2ff.f not replacing allsuportstff los thog noma mm r it;.decided in

However, unle'ss h nvriymr actively ietf 5ies2 prdctv supr staff an tRake stp toS f B'

retin their servcs iti rm th ris tha noma gattrito prcsse w lev it wit it le i:ast

pays anTaverage moniversiy also suppose sto af with naioe of edem ic sthis to not beBy following a strategy of not replacing all support staff lost through normal turnover, it decided in1991 toe move gradually from a ratio of 1:2.7 to one of 1:4. It further proposed to improve theaverage educational level of its support staff by actively recruiting new support staff who possess atleast nine years of education. By 1992 some progress had been registered, as tiis ratio increased to1:3.

3.56 Thiis s a laudable policy decision which should contribute to increased efficiency.However unoless the university more actively identifies productive support staff and takes steps toretain their services, it runs the risk thlat normal attrition processes will leave it with its leastcompetent employees, as more able persons seek employment elsewhere. the university currentlypays an average monthly salary of $73 to support staff with nine years of education; this may not besufficient to attract and keep the support staff needed to implement this policy. UEM may wish toconduct a salary survey at this skill level in order to determine whemer additional incentives areneeded, and consider more aggressive measures to insure that high-performing employees areretained.

3.57 It is worth noting that current public sector financial administration procedures offerthie University no tangible incentives for improving efficiency in its personnel management. Anysalary savings generated through a more rational deployment of staff cannot be used for non-salaryneeds and must be returned to the government at the end of the fiscal year.

3.58 In 1990 the University confronted a serious problem of staff retention. Over theprevious three years, its salary and benefit package had become increasingly uncompetitive. As aresult, it lost 34 Mozambican faculty members, or 13% of the 255 Mozambican staff presently in

-S9 e

residence (i.e. excluding those now studying abroad), and a substantial investment of time andresources in their professional training. In addition, the number of staff on formal part-time contractsincreased from 64 In 1986 to 151 in 1992. This suggests that the University faces growing difficultyin winning a full-tme commitment from its staff.

3.59 A survey of UEM department heads conducted in May 1991 indicates that 74% of thefull time Mozambican staff are engaged in outside income-supplementing activities. Staff repeatedlystated that current salary levels ($535 a month in 1992) are insufficient to meet family subsistenceneeds. While the pressures for income supplementation are understood in this context, this spreadingpractice produces a deterioration in the quality of university endeavors by sharply reducing theamount of faculty time available for course preparation, student advising, research, departmentalplanning, and administration. Furthermore, lack of compliance with the staff member's full timecommitment provides a poor role model for students.

3.60 Staff losses and income-supplementing outside work are not spread uniformly acrossthe various university departments, but tend to concentrate in those disciplinary arsas where currentmarket demand for professional skills is the greatest. As a result, several departments-notablyeconomics, engineering and law-have been harder hit than others. The Department of Economics isin particularly difficult straits. With virtually no staff available on a full time basis, it is currentlyunable to provide teachers for four of its existing courses and is rapidly losing the capacity to planand manage routine departnental affairs. After 15 years of operation, the Department has achievedlittle in the way of institutionalization and its research output has been virtually nil. Moreimportantly, it does not presently possess the capability to address its own problems, placing its futurefunctioning at risk.

3.61 The University is hard pressed to be even moderately competitive with the labormarket in areas of current high demand. Informal soundings of public and private employers in theareas of economics, agriculture, engineering, law and medicine (conducted in April 1991) suggest thatsalary and benefit packages frequently range from $700-2,000 a month. Benefits generally includesome combination of housing, utilities, car, gasoline, payment of income taxes, and overseas trainingcourses. Often, a portion of salary is paid in foreign exchange. Given the shortage of skilledprofessionals in the country, competition for their services is likely to remain active for some time.Future efforts to expand UEM's Mozambican staff imply that the university wUI have to recruit 20%of its graduates annually. However, its current lack of a competitive alary and benefit packageplaces this goal very much at risk.

3.62 The University is poorly placed to compete with other employers in the effort torecruit and retain staff. University salary scales are tied to the overall salary structure of government.Although the government has recognized the special nature of university contributions by approving a100% salary supplement for academic staff, salary levels are still rigidly tied to governmental payscales. Under this system, the university management is unable to reward exceptional staffperformance, or to offer either differentiated or temporary incentives in areas of greatest labor marketdemand.

3.63 Although significant staff losses have not yet occurred among senior management andadministrative staff, this possibility should be anticipated. Given that these persons are often highlyspecialized in their jobs and that their subordinates frequently do not possess the educationalrequirements to replace them, even a few losses in this area could be catastrophic. As the universityreviews its salary structure and seeks to provide incentives for the retention of its academic staff, itwill therefore be important to insure that senior management and administrative staff are included in

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this proces. In this context, the recent decision to make this group eligible for access to eventualuniversity housing is a step in the right direction.

3.64 Staff retention has also been a problem among the university's unskilled workers(those with four years of education or less), but with different consequences. A monhy salary of$37 has prompted rising staff turnovers, now averaging eight persons per month. Ibis high rate ofturnover produces increasing administrative costs. Significantly, low wages have also contributed to arising incidence of robberies. University equipment losses are growing, and suggest an urgent needfor measures to improve security.

Recommendations

3.65 The UEM staff development program to increase its numbers of Mozambican facultyshould be accelerated. The present policy of sending staff abroad for MA training should bemaintained, as it provides quality education, development of important methodological skills, andbroad exposure to current knowledge. For PhD training, the use of 'sandwich' programs may bemore cost-effective in some disciplinary areas. Most UEM departments currendy possess staffdevelopment plans. These should be used as guides in seeking donor support for increased staffdevelopment. In addition, the training needs of management and administrative staff should also beassessed and efforts made to establish a scholarship fund for this purpose.

3.66 Investment in staff development will not be productive unless it is accompanied byparallel actions to insure the retention of trained staff. Ihe provision of housing is currently thesingle greatest incentive for this purpose, and it is recommended that the university seekdonor/government collaborati' in supporting a program of staff housing development. Moreimmediately, a short-term response is required to hold staff in place until a systematic response can bedeveloped. Flexible ways should be sought to reward performance and direct assistance to the areasof greatest need; for example, through a research support fund such as the one recently establishedwith assistance from SAREC and NORAD.

3.67 It is recommended that a review be undertaken of the situation of senioradministrative staff, possibly in conjunction with the broader management and government studyplanned by the university in 1992. This process should ascertain whether their present salaries andbenefits are consistent with their responsibilities. It should also examine the question of professionalcareer paths and the need for more systematic attention to staff succession issues.

3.68 The University's intention to improve the ratio of faculty to support staff is supported,and it is recommended that this process be more actively managed so as to insure that the bestqualified staff are rtOined.

Student Dro-out and Reetitlon

3.69 The University offer a five-year course leading to a licenciatu degree. The soleexception is Medicine, which requires seven years. Its efficiency in producing graduates under thisprogram could be improved. Drop-out rates have consistently averaged 11% a year, meaning thatonly one out of every two incoming students reaches graduation. Additionally, just 40% ofgraduating students obtain their degree within the normal five-year period, the remainder requiring asixth or seventh year of study for completion. It should be noted that because a number of UEMcourses are less than five years old and have therefore not begun to produce graduates, the use of theproportion of graduates to total enrollment as an efficiency indicator Is not appropriate at this time.

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3.70 A principal cause of these high drop-out and repetition rates is inadequate secondaryschool preparation. It requires urgent and sustained attention. This is the subject of Chapter 4 andwill not be furter discussed here. However, UEM has sought to address this problem byestablishing an intensive remedial program during the first semester (the BUSCEP program). Ifimprovements in secondary education could be obtained, this semester might then be profitably usedfor other subjects.

3.71 In the effort to improve the quality of entering students, the university instituted anadmissions examination in 1991. This initiative was prompted by the fact tiat, for the first time, thenumber of university candidates was greater than the number of places available. It is expected tiatthe use of a competitive admissions exam will increase academic motivation - and consequentlyachievement - at the secondary level.

3.72 A second cause of poor academic performance is the difficult conditions in whichstudents live and study. Three-quarters of students live with families, relatives or friends. The rest,largely from the provinces, are crowded four or six to a room in university dormitories that sufferfrom the University's financial inability to maintain them. All students are victims of the city'spoorly developed public transportation system. Most need an hour to walk to the main campus, or anhour and a half to travel to the more distant engineering, sciences and veterinary faculties. Home anddormitory environments contain frequent distraction and do not offer adequate study areas.Textbooks, laboratory equipment and reference books in Portuguese are scarce. Consequently,classes - often taught by rotating foreign professors who are not always fluent in Portuguese - tendto be heavily theoretical, with students relying almost exclusively on their hand-written notes forlearning.

3.73 Systematic attention to increasing textbook provision for students and to improving theUniversity library system could help to improve students' academic performance. The average age oflibrary holdings does not in itself appear to be a problem. Same 43% of the University's 170,000volumes have been acquired since 1980. But a number of the sixteen UEM deparmental libraries(there is no central library) no longer have the space to accommodate new acquisitions. Studentscomplain that insufficient Portuguese language materials are available, and that basic texts are far toofew for adequate access. Library resources are spread unevenly among the various departments, asshown in Table 3.8. The departments in greatest demand - economics, engineering and law - arethe least well equipped.

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-4

4--~~~~~~~~~~~~~~2

; .4. . ...> _ u nt By D............. ...................

3.74 At this stage in the University's development, it would be useful to review thelibraries' acquisitions policies and priorities, as well as their possibilities for improving organizationand access. A more aggressive approach to building working relationships with publishers in Brazilor Portugal should be considered, along with needs for staff training. The University has carried outsuch a study in 1992 under the auspices of its World Bank Education II Project.

3.75 Living conditions for UEM students on scholarships have become increasinglydifficult as inflation has eroded the purchasing power of their entitlements. Between 1986 and 1991the amount of this scholarship was increased 460% while the consumer price index jumped 1045%.Students have sought to cut their expenses by preparing meals in their rooms and reducing their useof public transportation. But they express concern with their growing inability to eat adequately,cover medical expenses, and acquire basic study materials. These constraints clearly have a negativeimpact on students' academic performance, and were the cause of the student strike in 1989.

3.76 As noted earlier, the University took steps in 1992 to improve student performance byincreasing tuition fees while offering the possibility of fee exemptions to students who obtain above-average grades. this is an interesting experiment which should be monitored to determine whether itis achieving its desired impact on student repetition.

3.77 A third cause of student drop-outs and repetition has been a series of overly restrictiveacademic regulations. Until this year, for example, students were not pemitted to choose theircourse of study. Available university places were allocated by goverment on the basis of studentperformance and anticipated national labor needs, thus negatively affecting student motivation. Otherregulations slow student progression through the study course. Advancement from one year to thenext Is dependent upon successfully completing all but two of each year's courses. Failure to do someans spending a year repeating the failed courses prior to moving ahead. This requirement, togetherwith others which create an excessively rigid course structure based on numerous prerequisites, iscurrently under review. Finally, mandatory attendance at all classes and obligatory politicalindoctrination and physical education classes will be ended In August 1992 in the effort to makestudents more responsible for managing their affairs and give them more time for independent study.

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Recommendations

3.78 To improve the effectiveness of classroom teaching, short term efforts should bedirected at increasing the supply of Portuguese language textbooks, teaching materials,laboratoryequipment and related consumables, and teaching support items such as photocopiers. The definitionof appropriate norms and procedures for equipment maintenance should be an important adjunct tothis process, and will hopefully be facilitated by the results of a study carried out in 1992.

3.79 More creative approaches to the problem of student study areas are needed. Forexample, student access to the Faculty of Medicine and the SELF dining room for study purposes inthe evening would alleviate the problem for some students if appropriate supervision arrangementscould be worked out. It is recommended that the University determine those that it can takeimmediateiy (e.g. more hours of access to the SELF dining room), those actions that can be takenwith relatively little cost (e.g. removing a wall or acquiring more furniture to create study space), andthose actions which will require a more comprehensive approach (e.g. a plan for expanding library orstudy space).

3.80 While the enormous inefficiencies created for UEM staff and students by deficienturban transportation are recognized, the university is urged to consider fully all alternatives beforeembarking on an costly expansion of its vehicle fleet, e.g. the use of bicycles as a partial option. Aplanned study of university transportation alternatives under the World Bank project will provide anopportunity for further assessment of these possibilities.

3.81 Recent growth in the UEM student body has generated increased pressures onuniversity capacity to manage student residences and food service. New and more professionalapproaches may be needed, including greater student participation in some aspects of these activities.A thorough review of existing arrangements, including detailed cost analyses, is recommended. Suchan effort should seek to identify and cost out appropriate alternatives, including the option of privatemanagement in some cases, and provide incentives for efficient service delivery.

3.82 In order to encourage student academic performance and improve student livingconditions, it is recommended that the present levels of student scholarships (k.lsas) be evaluated.Scholarships should be adjusted to compensate for their recent loss of purchasing power due toinflation, and the policies governing their allocation reviewed to insure that they assist the financiallydisadvantaged while maintaining incentives for good academic performance.

3.83 The University's recent efforts to diversify its funding base through a substantialincrease in the level of its matriculation fees (prainjs) must be applauded as an important steptowards greater financial stability. In order to guarantee this benefit, however, UEM leadershipshould take immediate steps with the Ministry of Finance to insure that these higher fees produce aproportional increase in the university's operating budget. Under the present system, matriculationfees are paid through revenue stamps purchased direcdy from the Ministry of Finance, and it is notclear that these amounts accrue to the university's benefit.

3.84 There is some concern that the increased matriculation fees may, in some cases,exceed the financial possibilities of students and their families. It Is therefore recommended thatparallel efforts be made to guarantee university access for enrolled students with limited financialresources. These might include a campaign (directed at businesses, churches, communities andinterest groups) to establish student scholarships, and the possibility of selective fee reduction orexemption, based on clearly defined criteria and annual review processes that consider documented

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financial need and demonstrated academic performance. It is furither proposed that, in the interest ofenhanced accountability, the university may wish to consider applying this additional fee incometowards material improvements that will directly enrich the students' academic environment.

Management

3.85 The University's recent growth In enrollments and accompanying support servicesproceeded more quickly than the capacity of its management systems to adjust to these changes. As aresult, an excessive concentration of decision-making occurred, with some 33 different units reportingdirectly to the university rector in 1991.

3.86 Other management problems emerged as well. The prevailing organizational structurewas inefficient because it absorbed senior management staff time in the review of numerous minoradministrative processes, frequently removed decision-making from its departmental context, andlimited the amount of time university leadership had available for important institutional activitiessuch as strategic planning and extemal relations. Common responsibilities (such as donor relations,student affairs) were sometimes spread across several different units, creating coordination difficulties.The physical distance (several kilometers) that separates senior management offices from the two mainuniversity campuses also contributes to communication costs and decision-making delays.

3.87 University management is sensitive to these problems. The University's 1991stabilization plan proposes to address a series of neglected management issues. To this end, eightstudies of specific management issues are planned for 1992 and 1993 with UNDP assistance under theWorld Bank's Education II project, on:

- information systems for management decision-making (1992);- organization and computerization of student records (1992);- management of student residences, food service and financial aid;- organization, staff development and computerization of the libraries (1992);- maintenance of scientific and office equipment (1992);- rehabilitation and maintenance of buildings (1992);- staff and student transportation problems;- university computerization policy (1992).

3.88 The University also took the bold step of reviewing its overall management andgovernance structure in early 1992. With financial support from the Commonwealth Secretariat andthe Ford Foundation, it brought in the former Vice-Chancellor of a British university, the formerRegistrar of an African university, and a specialist in management organization to conduct a thoroughreview and submit specific recommendations for re-structuring. Based on this report, the Universityhas already taken some actions and is considering others. These include the creation of two DeputyRector positions, the establishment of a broadly representative University Council, some delegation ofresponsibilities to the faculty level, the consolidation of dispersed financial administration activitiesInto a single unit, the setting up of a University Buildings Office to oversee construction andmaintenance, and the use of an independent auditing firm to identify financial accountability problemsand assist in the training of administrative staff.

3.89 Personnel management is one area where a review of existing policies might proveparticularly beneficial. In the interests of staff retention, promoting research activity and boostingquality, tangible incentives must be provided to staff who perform well in these areas. Incentives

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might take various forms: cash bonus, travel to lnternational professional meetings, preferentialaccess to new equipment, etc. In order for an incentive system to function in an objective andequitable manner, it will be necessary to update current job descriptions for both academic and non-academic staff, and to institute a formal system of periodic performance evaluation as a basis fordistributing rewards.

3.90 While numerous aspects of the University's financial management policies meritcommendation, payment approval procedures is one area that should receive some facilitatingattention. Staff frequently express frustration with the lengthy processes for effecting payments. Insome cases, these delays add to overall costs, for example, when slow customs clearance generatesadditional storage fees. In others, delays undercut the possibilities for successful completion ofresearch activities, particularly where investigations involve crop, plant or animal cycles where thetimeliness of research endeavor i3 critical to understanding.

Recomniendations

3.91 The University's review of its overall management and governance structure is highlycommended. Related to the review:

(a) Efforts should be made to insure that levels of decision-making and accountabilitycoincide, particularly at the faculty level. Faculty deans and department heads shouldhave the capacity to make decisions concerning activities for which they areresponsible, and mechanisms (e.g. annual work plans, progress reports, accountingsystems) should be devised to insure adequate accountability;

(b) In order to reduce unnecessary operating costs, and to increase the managementefficiency of the university, it is recommended that the Ministry of Finance and theuniversity should seek ways to shorten the process whereby routine payments forimported academic goods are approved and made;

(c) To strengthen the university's capacity for planning its organizational, financial andphysical development, it is recommended that the university management assessrelevant staffing, training and institutional arrangements In order to reinforce such acapacity;

(d) To improve communication and more effectively integrate senior management andadministrative services with the various academic faculties, the University shouldbegin to plan for the transfer of its central administration, including personnel servicesand student affairs, to the main campus; and

(e) It is further recommended that the university, wherever possible, _itiate the transferof its non-academic services (food services, security, transportation, maintenance,printing, construction) to capable entities located outside of the university.

D. Structural Flexibility

3.92 Mozambique is currently about to enter a period of considerable uncertainty andchange. Economic behavior is rapidly shifting in response to a re-structuring of economic policy andproductive activities under a national economic rehabilitation program. Labor markets for new and

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traditional skills are quickly evolving, and new economic alliances are emerging. A new nationalconstitution, approved in late 1990, creates a multi-party political system based on popular elections.The October 1992 peace accord has brought an end to seven years of economic destabilization andrural dislocation, permitting the start of rural reconstruction in both the productive (agriculture,mining, hydro-electric) and service sectors (health, education). Political re-structuring in neighboringSouth Africa will also bring profound changes in the political and economic relationships of SouthernAfrica.

3.93 In the face of so much uncertainty and change, the watchword for the Universityshould be flexibility. If UEM is to offer training and research that is relevant to national needs, itwill need to possess internal organizational structures and management mechanisms that can monitorand adjust to changing circumstances.

3.94 To the extent possible, flexibility should also be sought in the University'srelationships with government and donors. At present, for example, University salaries reflect theprevailing pay scales for government service and they are paid through the Ministry of Finance. Thiscreates a relatively inflexible system which makes it difficult for the university to offer performanceincentives or to reward excellence. This system does not encourage efforts to improve managementefficiency.

3.95 To resolve this problem, the University is exploring the possibility of establishingitself as a more autonomous public institution under the new National Education System legislationapproved in early 1992. Such an arrangement would provide the University with the flexibility itneeds to face present and future challenges. At the same time, it would increase the resourcespotentially available for reconstruction of the rural education system.

3.96 Greater flexibility in the structuring and management of donor projects would alsocontribute to increased cost-effectiveness. Although well-intentioned, some funding agreementsreflect donor priorities more than university needs. Others are so narrowly defined that they curtailmanagement initiative; for example, by tying activities such as training, technical assistance andequipment purchases to the donor country. The accumulated result of such projects over time is tointroduce institutional distortions into the university. Training may be offered in subject areas thatare not the highest UEM priority, or library books may be provided in languages other thanPortuguese.

3.97 Donors underwrite 71% of UEM's recurrent expenses and nearly three-quarters of itsinvestment budget. Donors therefore have a large responsibility to insure that their funding assistanceis compatible with university priorities. In this context, the 1991 SIDA initiative to provide generalinstitutional support to UEM through a more flexible funding arrangement is a laudable exaniplewhich other donors have begun to emulate. Likewise, the Ford Foundation has sought to target itscomparatively more modest contributions on key institutional needs (such as staff development,professional and institutional contacts, library acquisitions) often overlooked by other donors.

3.98 In the effort to more actively manage its donor relations, the university hosted aconsultative meeting in May 1991, at which it presented a well-conceived institutional stabilizationplan for the coming decade, and asked for greater donor flexibility in assisting the plan'simplementation. Specific proposals included small but un-tied donor contributions to generaluniversity funds for staff development, technical assistance and library acquisitions. The need to

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earmark a limited portion of project fimds for maintenance of UEM's institutional infrastructure wasalso highlighted.

3.99 If the university is to obtain greater flexibility in its relations with government anddonors, it will have to insure that it remains fully accountable for any delegation of responsibility thatit receives. There are various ways in which the university's accountability might be enhanced. Theyinclude:

(a) The preparation of a yearly work plan, including concrete objectives and activities,which might serve as the basis for coordinated funding discussions witlh govermentand donors.

(b) The preparation of an annual report which lists accomplishments under the yearlywork plan and identifies problems for future attention.

(c) A broadening of the University Council to include representation from the public andprivate sectors in the effort to enhance the university's articulation with the societythat supports it.

(d) The establishment of informal advisory committees at the level of individual facultiesto enrich discussion with academic staff regarding training needs, course content andresearch priorities.

(e) The establishment of an informal donor support group, composed of representatives ofthe university's principal funding agencies, to serve as an occasional forum forimproving the effectiveness of foreign assistance provided to the university.

(f) The commissioning of an annual financial audit by a reputable independent auditingfirm.

3.100 The University held its second consultative meeting with government and donors inNovember 1992. During this meeting, University leadership delivered on many of these ideas (whichhad been shared with them in 1991). They presented the University's first annual report, a yearlywork plan based on a program budgeting approach, a proposal to establish a representative UniversityCouncil, the University's first independent audit, and a set of indicators for monitoring institutionalperformance.

Recommedati°DQ

3.101 The following general recommendations pursue the combined goals of increasedflexibility and greater accountability:

(a) The university's present degree of autonomy has been instrumental to its success inmeeting challenges since Independence, and should be maintained;

(b) To acquire the management and budgetary flexibility that will be necessary for theuniversity to preserve its current institutional capacity and respond to the challengesthat lie ahead, the feasibility of establishing the University as a more autonomouspublic institution should be actively explored. If this solution is not poAlble, a morelimited alternative would be to obtain the government's budget allocation for the

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University (for both recurrent LA investment expenditures) on a block grant basis.This would enable the University to manage its budget in accordance with its needsand with the concrete incentive that any savings generated by more efficientmanagement could be retained for the university's use;

(c) Donors should respond positively to the University's proposal for greater flexibility inthe structuring and management of donor projects by extending more flexible fundingin support of the University's strategic plan for its institutional stabilization;

(d) The University should take all appropriate steps to increase its accountability in returnfor greater flexibility in the management of government and donor funds.

E. Postscript

3.102 Eduardo Mondlane University provides an impressive example of what can beaccomplished by institutional vision and commitment in the face of adversity. Although located in anembattled and exceedingly poor country, the University has produced a record of initiative, adaptationand innovation over the past decade that is unequaled on the African continent. Its achievements aredescribed above. They testify to the possibility of institutional reform and offer an encouragingreference point to beleaguered sister institutions elsewhere in the region.

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IV. GENE EUAY AMDP C S D

A. ,lnptduction

4.1 Secondary education is included in this study because of its importace in producingqualified candidates for university education and its vital role in developing critical and constructivecitizens for Mozambique. General secondary and pre-universirty education are covered, with emphasison the latter. However, as it is not be possible to study pre-university secondary education withoutexploring its links with the National Education System (SNE.) and the principal agents involved in theeducation process, these linkages are also examined.

4.2 The findings and recommendations in this chapter are based on interviews anddiscussions with top officials and specialists in the Ministry of Education (MINED), the University,and the provincial directorates of education. These were supplemented by more detailed observationsof a limited number of secondary schools and interviews with school directors, teachers, and students.These institutions included schools in the capital and the provinces and a private school.

B. Secondary Education in Mozambique

4.3 Organlzation og the Sctor Since Mozambique's education system (SNE) isdescribed in detail elsewhere (e.g., in the Staff Appraisal Report for the Second Education Project),only a few main features of the system will be summarized here. Since 1983, the SNE has beenorganized at four levels - primary, secondary, intermediate and higher - into the following fivesubsystems:

(a) General atin, covering lower (grades 1-5) and upper (grades 6-7) primaryeducation, general secondary education (ESG, grades 8-10), and pre-universityeducation (EPU, grades 11-12);

(1) Adult-Educadon, intended to promote the literacy of those over 15 years of age andpermit their entry into technical and vocational education, higher education andteacher training;

(c) Tehnical and VocationalLducto, comprising basic (corresponding to grades 8-10)and intermediate (grades 11-12) education;

(d) gasherT.raining, at intermediate and higher (post grade 12) levels; and

(e) JHjgh Education, which currendy includes the University, the Higher PedagogicalInstitute (ISP), and the Higher Institute of International Relations (ISRI).

Figure 4-1 illustrates the basic organization of the SNE, showing the possibilities for vertical andhorizontal integration between the various levels and forms of education, with the General Educationsubsystem being its core.

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Capacity Buiding Study

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NATIO-NAL E-DLICATION SYSTEM

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4.4 Far purposes of this chapter, the key section of MINED at headquarters level is thenadonal directorate of secondary education. It has responsibility for planning and preparing curriculaand prograrms; guiding and supervising the preparation of teaching aids and the training of teachers;assessing the quality of instruction in secondary schools; and developing regulations governing schooloperation and management. ITis suggests a high degree of centralization of a kind that has beencriticized in a number of other countries for hampering local initiatives that would lead to betterproblem-solving and resource utilization.

4.5 !Currnt and Fuure Enrollments The education sector has been very hard hit by thewar in Mozambique. About 60% of primary schools have been destroyed or damaged, and abouthalf of the school network has been paralyzed. As a consequence, the total number of childrenenrolled in primary schools has fallen from about 1,377,000 in 1981 to less than 1,200,000 in 1988.The Government's target is to raise the enrollment for p, mary education (EPI) from 60% at presentto around to arouind 85% by the year 2000, with priority given to regions most affected by the war.In EP2, efforts will be focused on maintaining the current transition rate from EPI to EP2 at about70%.

4.6 The Government is also proposing a modest expansion of general secondary education(ESG) and pre-university education (EPU), with emphasis on the northern and central regions of thecountry which have been less well-served in the past. In terms of targets, the hMNED projects thatby the year 2000, the transition rate from EP2 to ESO will be 51% and from ESG to EPU 39%,which translates into enrollments of the order of 61,000 students in ESG and 8,300 in EPU. If theseestimates are accurate, the number of graduates from EP1, EP2 and ESO who will be unable tocontinue their studies will increase substantially. One of the challenges facing the education systemwill be to ensure that these graduates are either prepared for meaningful employment or can continueto improve their skills through vocational-technical training opportunities.

4.7 Gneral Secondary Education Table 4.1 shows the broad pattern of enrollments ingeneral secondary education (ESG) in Mozambique. Enrollments in ESG are extremely low whencompared with enrollments in primary education (EPI and EP2). Indeed, a comparison ofenrollments among the various levels and stages of general secondary education produces disturbingcontrasts: 1.28 million students in EPI, 133,000 in EP2, and fewer than 41,000 in ESO, includingevening classes. About a third of secondary students are female.

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Tabl 4.1: Enrollments In Genl Secndaar Education (WM,f. 1991

Gaza 1,548 1,~~063 -2611221nhan~bane 2,492 8 3,319, 124

Ma1 1,4 1,348 29788 70

Mapuw(p) 1,731 1`124 28511" J8

nia 199wee937.inc 3274 s 1 in 3

courses, 1815 in technical-vocational, and 997 in teacher traini81. Annexes 421 to 4 4 provide amore detailed breakdown by province and field of specialization.

4.9 The preuniversity schools prepare students explicWty to enter UEM; graduates ofother forms of intermediate education can also have access to higher education in fields related totheir specialization (e.g., technical school graduates in the Engineering Faculty at UEM, teachertainees at ISP, etc.). Access to higher educaton for adults and others who work part or faul-time isacso limited by cuinent legislation which requires that worker-students, before embarking on stpdies inhigher education, must work for at least three years in an assioned Govement agency or enterprise.

4.10 Given these constraints, admission to university is faclitated only for graduates ofprefuniversity education. Indeed, quite rcanly, those concludiog pre-university secondary educationwere guaranteed places at UEM: a university entry exam was only introduced in 1991. This isconsistent with the law establishing the SNE, which states that the objective of pre-universityeducation is to "encourage the student to take on the role of someone who changes the world, societyand thought"23, while the aim of the intermediate technical and vocational courses is to "trainmid-level technicians for the economic and social sectors involved in production and serviceactivities"W,4.

4.11 With the new thrust toward progressive consolidation of a market economy, theintroduction of multi-party democracy, and the opening of the educational arena to the private sector,

2W/ People's Republic of Mozambique, National Edcation System, Maputo,November 1985.

WA Idem.

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it is likely that there will be pressures for a significant expansion of secondary and pre-universityeducation. A comparison between the official statibtics and the actual practice illustrates thisexpansionary trend. In MINED documents, it is said that there are only five pre-university schools,but in reality there are more institutions offering this type of education. According to the availabledata, enrollments in pre-university schools already cover six provinces plus Maputo City (Table 4.2).Furthermore, only one of the 10 provinces in Mozambique does not have some form of EPUoperating (Niassa). In many provinces, such as Tete, Manica, and Cabo Delgado, unofficial EPUclasses have started in 1990/91. MINED does not officially recognize these courses since the level ofteachers' training is below standards set for EPUs. Although students from these schools are allowedto sit the university entrance exams, preparation levels are poor, and in 1990 less than 10% of thestudents were able to pass the examinations and receive the pre-university diploma. Recently, withthe opening of the education sector to private participation, private schools have also begun to providepre-university classes, and the Catholic Church is likely to enter this arena in the near future.

Table 4.2: Enrollmnots in Pre-University Education. 1291

|Province Day vning Total | -. - . Y: .- .:*.::. -- - .TalAerCen Toa ecnt ttl Prcent

- ~UW - 2---G~ 233. 4.8 > a E - .23. ... 2_8Manaca:.-.- :.::.:.0.;-.:.:.;: . ;.-g 2.:. .18.0% 200 18.0%

Sofala 531 ~21.$ 7 41 0 23,0'Ft:. ' ;e. - 0.22v.# - yt 2274l ...$21,1% 227 2.1%Zambdzia. 46 21.5% 2S8 29.0% 721 248%C.Maputo 1,52 3426% 1,382 42.4% 3,134 42.5%

Total , .% 2,833 35.7% 63,4 14

C. Problems and Constraints

4.12 Many of the problems and constraints facing the secondary education system inMozambique grow out of the political and financial conditions that the country inherited from thecolonial period and has had to wrestle with over the past 16 years (see Table 4.3 below).

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Table 4.3

EDUCATIONAL STRUCTUWtAL SYMPTOMS EVtDENT AT SYMPTMs EVIDElIT IN SCHOOLSPARAMETERS CHARACTERISTICS NATIONAL LEVEL

PHYStCAL Economfc deperdency Lack of ffnancila Shortages of books, teachingresnQrea materials and laboratory equipmnt.

Buildings nd facilities In need ofrenovation and nmintenance. A tackof lfbrary stock, Up to 45 studentsper class. Program are ifqosfibleto fulfill. Students cannot prepareproperly for examinations. High

____________________ ____________________ repetitfon and dropout rates.

R£EULATORY Yh. colonial legacy Inadequate A rioid assessment system, toachersand centralization comumnicatfon between do not particfpate In the prepereti on

central agencies wnd of curricula. Lack of financaltactfvities fn the autonony, initiatives and tocal.field. Little educational devtopment.feedback. Too umichbureaucracy.

RELATIONSHIP Imsblsnues between Little prtfcipetion Littte pubtflc fnterest in schools.BETWEEN THE the leistetiv* in publ c Mife. Io Little cowumnication between schoolsGOVERNMENT AND process, decision- communication of wnd parents and between schoots andTHE CO"WITV making nd demand for the local commmity.

government addinistrativwI performnce I_ffi__en_y_

4.13 Sehool Inftastructure On the whole, the physical fabric of the EPUs is in badcondition. Although in some cases well-designed and solidly built, buildings have suffered from totallack of maintenance which results in steady deterioration which is accelerating as the years go by. AtFrancisco Manyanga EPU in Maputo, for example, water leaks through expansion joints are causingserious problems, and nearly all the electrical outlets and switches are broken or missing. At SamoraMachel ESG/EPU in Beira, the bathrooms are not working and fixtures are broken; overhead lightsare missing; and the auditorium is virtually unusable.

4.14 Learningreaclilng Materials While most of the ESGs and all the EPUs havelaboratories for physics, chemistry and biology, these are not functioning, either because of lack ofequipment and supplies or because the teachers lack time (excessive teaching load) or adequptitraining in laboratory use. On the few occasion when labs are used, it is much more a result of theindividual initiative of the teacher than any part of accepted school practice. Previous attempts atequipping secondary school laboratories have failedl to produce the desired results as the schoolsposses neither the ancillary services. Among leaming/teaching resources, the EPUs generally lackeven basic teaching tools, such as a globe or an atlas for geography lessons, rulers and compasses formathematics and drawing, and grammars and dictionaries for languages and literature. But the mostserious problem is the shortage of textbooks.

4.15 Suppjz of ts3jbwks At present, the supply of textbooks to the EPUs is inadequate.Pre-university students have no books for many subjects. In their absence, the teacher dictates thematerial or copies hand-held notes onto the blackboard. This wastes much valuable time which couldbe used for discussing and deepening the content of the lesson. Some schools have libraries, butthese lack modern collections and suitable conditions for study. Furthermore, an increase in theavailability of textbooks to EPU students is dependent upon the finalization of the new curriculum bythe National Directorate-of Secondary Education (NDSE), and the subsequent contracting of apublishing house (either local or foreign) to produce the relevant texts or to modify existing upper

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secondary texts so that they conform to the Mozambican curriculum. As of May 1992, sample linesof textbooks were being requested from various publishers to be considered in conjunction with thedevelopment of the new EPU curriculum. The final line of textbooks chosen will be modified by thecurriculum teams managed by the NDSE so that the Mozambicaz reality is adequately reflected.

4.16 Textbook Financing Government policy on the financing of textbooks is that parentsare fully responsible for covering the full cost of textbooks, with no Government subsidy. However,given the high costs of textbooks, and the low income levels of many families (more than 2/3 ofMozambicans reside in absolute poverty), the government has established a subsidization mechanismcalled the Caixa Escolar. While the Caixa Escolar is somewhat effective at the primary level, thismechanism does not operate at the pre-university level. Individual school administrations take theinitiative in identifying poor students and subsidizing the provision of their learning materials fromAcao Social funds and other school monies. In effect, targeted subsidies have become decentralizedto the school level.

4.17 Gender Distribution of Student Body Girls make up a little less than one-third ofthe students at the EPU level. Maputo City, with the largest number of total enrollments, also has thehighest percentage of female students. In the provinces, the situation is considerably worse, withfemale enrollments averaging around 20% in both day and evening sessions. The share of femaleenrollments in upper secondary education in Mozambique is consistent with the prevailing (ow)regional averages for Sub-saharan Africa.2/ Given the demonstrated high social returns to femaleeducation, efforts should be made to increase the access of girls to pre-university education. Greaternumbers of female EPU graduates would also contribute to raising the low percentages of womencurrently enrolled at the University (25%), or holding management positions in the public sector(7%).

4.18 Teacher Availabillty One limiting factor for the expansion of the EPU network isthe availability of teachers. A comparison of the actual distribution of teachers in 1991 with the idealnumber of teachers required to handle the entire curriculum shows that the EPUs are grosslyunderstaffed. There are especially acute shorlages of teachers in the key disciplines of English(50%), Geography (53%), and History (41%). In some areas to be introduced as part of the newcurriculum, such as French and Computer science, no teachers were employed (see Annex 4.8).

4.19 An analysis of projections for output from the Instituto Superior Pedagogico (ISP), thesole institution charged with the training of pre-university teachers in Mozambique, suggests that ISPgraduates will not fill the pre-university teaching gap, much less expansion needs, in the years tocome. An optimistic scenario is that some 20 of the hundred odd ISP graduates per year mightactually end up teaching classes at the EPU level (see Annex 4.9). Low salary levels, lack ofhousing, and poor working conditions in the EPUs all contribute to make alternative employmentoptions more attractive. In short, therefore, the Government faces an imminent crisis in the supply ofteachers for pre-university education, and there is an urgent need to define a strategy to resolve thesituation.

21/ According to World Bank estimates, for a group of 32 low-income countries in Sub-saharan Africa,female students made up 32 percent of total secondary enrollments in 1986.

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4.20 Teaching Ouality W'hile most EPU teachers have at least some university-leveltraining, only 19% has master degrees, and the majority of the teaching force has had little or noskills upgrading. For example, in Francisco Manyanga EPU, despite expressed interest by staff, noupgrading activities are taking place, due to lack of funds. In all the EPUs, laboratory equipment liesgathering dust because teaching staff have not been trained in its use. Teachers' competenciesstagnate year by year, as support is nor.-existent for even independently initiated skills-development,in the form of self-help reading materials.

4.21 Gender Structure of TeachIng Force Women are poorly representekl among EPUteachers, comprising only 16% of the total teaching force. As has been documented in a number ofstudies, the lack of women teachers often has a detrimental effect on girls' educational achievements.It has also been shown that increasing the percentage of female teachers can be part of a successfulstrategy for raising girls' enrollments.26/

4.22 Teaching_Methods Since practical classes are in general nonexistent (aboratories arenot working or have been abandoned, etc.), the instruction process is basically theoretical or verbal.This learning from dictation and by heart interferes with one of the major oojectives of secondaryeducation, which is to develop the student's ability to think for himself and take into account andexploit his/her own real life experience. Instead, the school becomes an instrument of relativelynarrow thinking and stereotyped approaches.

4.23 Class Size Another serious obstacle to effective and creative learning in secondaryschools in Mozambique is excessive class size and related overcrowding of school facilities. Theaverage class size is 45 students, which is already well above the recommcnded norm of 30, but thereare cases in which it reaches 70 students per class. As a result, in many schools students do not havetheir own desks, but must share with one or two others.

4.24 Language of Instruction Tne existence of a large number of ethnic groups inMozambique, each with its own dialect and language enormously complicates the issues of teachingand student achievement testing. Children only begin to learn Portuguese in primary school, havingspoken African languages up to this point. The problem of adapting to Portuguese as the language ofinstruction is aggravated by the lack of Portuguese textbooks and teachers. As a result, mostMozambican students read very little. This issue of bilingualism needs special attention as part of thereform of secondary education.

4.25 Curriculum Design Curriculum design has been highly centralized in the Ministry ofEducation. In the past, curricula prepared by the Ministry were excessively detailed, covering foreach unit the methodological approach, the week in which each subject is to be taught, the number ofclasses to be devoted to each chapter, etc. This substantially reduced teacher/school participation bypreventing teachers from devising a teaching plan that takes into account the features and conditionsof each school. Examinations have also been excessively centralized, with teachers under pressure tocomplete the entire program. Teaching has thus been linear and mechanical, with a mandatoryprogram and a system of examinations to verify compliance.

2&I See, for example, World Bank Discussion Paper No. 133, L&& Girls Lar: Promisinp Amroachsin Primary and Secondary Elducation, by Barbara Herz, et.al., The World Bank, 1991.

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4.26 Capaitvl at NDSE Curricula for the 11th and 12th grade are currently being revised(with many disciplines being revised for the first time since Independence).22/ Curricula areprepared by staff from the Departments of Science and Letters of the NDSE, meant to be composedof two to three person teams for each discipline. Certain disciplines, such as Introduction toComputer Science, are not represented whatsoever. For other disciplines, official posts exist, butmany remain vacant - more than one-third of the posts are unfilled and members of curriculum teamsdouble in other capacities in the Directorate. The curriculum experts within NDSE, iij turn, are intheory supposed to w7ork with outside specialists such as faculty from the University, ISP staff, andother relevant experts in the design and crafting of new study programs. The Capacity BuildingHuman Resources Development Project has made available additional financial resources to pay forthe services of outside staff thus reactivating this process in 1992.

4.27 NDSE is poorly equipped to carry out its functions of curriculum design andpedagogical support for the EPUs. More than 50% of its listed posts remain vacant, and output ofteaching materials is limited by lack of equipment and an insufficient recurrent budget to operate andmaintain the few pieces of equipment they have. Although staff are eager to engage in greaterdialogue with the EPUs - by increasing the frequency of school visits, providing on-site training incertain disciplines, and hosting yearly seminars in Maputo for all EPU teaching staff - the fundinghas not been available to support such activities. Furthermore, the staff lack needed training ineducational planning and administration as well as the teaching experience and qualifications necessaryto design curricula.

4.28 E*-amination Design and Student Evaluation Examination design has also beencentralized within MINED. Although teachers are asked to prepare examination questions, the extrawork is performed begrudgingly, and the quality of submissions received is low. The grading ofexams is done at the school level, again with no extra compensation for teachers, in accordance toguidelines established by the NDSE. Teachers are charged with grading the examinations not only oftheir own students, but also those of students from near-by private schools who must sit their examsat credentialed public schools. Cases have been reported of unfair grading practices, with teachersbeing unduly harsh on private school students. This is not surprising since private school students areknown to pay fees as much as 100 times greater than public school fees and yet public school teachersreceive no extra compensation for grading their written exams or administering oral examinations.

4.29 Internal EMciency In 1991, the repetition rate for EPU was 25%-30%. Highrepetition rates are a reflection not onl,- of poor student performance but also of the harshness andpunitive nature of the existing evaluation system. It is an error to suppose that failing large numbersof students helps to improve the education process. Rather, what improves education is theavailability of good quality textbooks and teaching/learning aids, the continuing education of teachers,and the creation of conditions for individualized student attention. From this standpoint, revision ofthe current assessment system is essential. The MINED has taken some important steps forward in1992, through the introduction of a credit system at the EPU level. Now, when a student fails to passone subject, he or she no longer has to repeat the entire year, as was the case previously, but insteadonly has to repeat the failed subject.

27/ The future study plans for pre-university educvion are shown in Annex 11-12; certain subjects (French,Latin, Philosophy, Introduction to Computers, German) will be introduced gradually in line with theadequacy of teacher supply.

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4.30 Student Holang On the whole, while students appear motivated to study and evenmake considerable sacrifices, housing and transport presenat serious obstacles. Conditions in studenthostels for those coming from the provinces to study are often in a deplorable state. There are atleast 12 students to a room and in sometimes more than 20. There is no medical care, sanitaryfacilities are poorly maintained, and the premises are not cleaned. Areas reserved for study andrelaxation are inadequate, and student meals are of poor quality. Information on the number ofstudents currently residing in EPU dormitories and the average costs of student housing presented inAnnex 4.10.

4.31 School Management Secondary and pre-university schools are managed by adirector, aided by pedagogical assistants who supervise instruction, and a secretariat to oversee andadminister school activities. The administration of a school in which more than 5,000 students areenrolled is very difficult, and the problems are compounded by the lack of administrative, educationaland financial autonomy. While one should not expect the same degree of autonomy in a secondaryschool as in a university, it is both desirable and necessary to increase the present level of autonomy,which is virtually nil. It is also impossible to manage a secondary or pre-university school if theadministration lacks certain essential educational and financial resources to ensure normal operation.

4.32 The school administration reports to the provincial directorate of education, which inturn answers both to the provincial governor and the Ministry of Education. Since communicationbetween the school and the MINED is weak and the provinces in Mozambique have very littleautonomy, it is difficult to reach appropriate decisions on school management. Furthermore, thecentral government budget allocation to the schools is grossly insufficient, and the gap cannot becompletely bridged by matriculation charges, which go into a Social Action Fund. The students alsopay a monthly fee (propina) of Mt 2,000-3,000, but this goes to the central government treasury andis not returned to the school. As these fees can add up to a considerable sum (in 1990, for example,Francisco Manyanga Secondary School collected Mt 22 million, or about US$10,500 on the parallelmarket), their non-retention by the school, combined with delays in services caused by an excessivelycentralized bureaucracy, is a serious disincentive for staff and students.

4.33 Community Pagrtlpalon Decentralization of school management will only be trulyeffective if it is accompanied by increased community participation in school affairs. The currentadministrative structure of the school makes no provision for such participation. The establishment ofa parents' council or community council, for example, could be a positive step in improvingattendance and student academic performance, increasing local financial contribution to the school,and enhancing the relevance of the curriculum to local needs and priorities.28/

D. Mar Issues in Secondary Education

4.34 Flnancne otQ Sendary Education Mozambique's ability to finance necessaryimprovements in secondary education and to respond to the demand for expanded enrollments dependsheavily on the share of the Government budget devoted to education, and the fraction of the educationbudget allocated to secondary schools. While the percentage of the budget for education hasrecovered somewhat from a disastrously low level of just 8.7% in 1987 to around 13% during the last

27/ In Josina Machel Secondary School, for example, a Parents' Council has been established, which in thepast year has succeeded in raising some $25,000 towards basic repairs in the school's infrastnzture.

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two years, it has yet to recover to the 17-19% level that prevailed during most of the 1980S (seeAnnex 4-5) a level which is typical for countries in Sub-Saharan Africa. Increased Governmentallocations to education will be critical if quality and quantity enhancements are to take place in thesector in the coming years.

4.35 Within the education budget, the share of secondary education, including ESG andEPU is surprisingly small (Annex 4-6 and 4-7). In 1990, for example, this amounted to Mt 3,083million or just 6.7% of recurrent expenditure for education. Even when spending for vocational andtechnical training is added, a total of 13% of the budget went to secondary learning, as compared toan average of about 32% for Sub-Saharan Africa. There are therefore compelling measons to arguethat secondary education is seriously under-resourced, even after accepting the commonly-heardstatement that primary and tertiary education need to be given priority in Mozambique, since theyaddress directly the country's pressing literacy and capacity constraints. Better balance will need tobe achieved among the relative allocations within the education sector.

4.36 One way to expand secondary education without increasing unduly the burden on theGovernment budget would be to encourage further the creation of private secondary schools. At leastone such school has started in Maputo, but Government guidelines on accreditation are still unclear.More attention needs to be given to this.

4.37 Analysis reveals a sharp difference between the cost of technical and general educationat the secondary and intermediate levels. Since the employability of technical school graduatesappears to be limited, it is questionable whether it makes sense for the Government to continue tosupport the technical training system in its present form. Especially since the education budget islikely to remain highly-constrained over the coming years, a more cost-effective strategy for theGovernment might be to utilize part of the current allocation for technical education to improvequality and possibly expand the number of places in general secondary schools.

4.38 Quality-Ouantity Trade-Offs With further political and economic liberalization inthe next few years, there will be strong pressures from the population to expand education, and thiswill inevitably affect secondary schools. Related to this, the Government's current policy for pre-university education is to make it available in all the provinces, and to increase the numbers ofevening classes. Since budget resources are highly constrained, however, even including possibleexternal funding, the Government has stated, in a revised EPU strategy document approved by theCouncil of Ministers in June 1992, that its priority is to concentrate first on stabilizing the teachingforce and improving the quality of existing secondary schools, before investing in an expansion of theupper secondary system. If the pressures to expand are unavoidra: 'e, one option for MINED wouldbe to examine non-traditional alternatives in distance education, including the use of television, video,correspondence courses, etc, which have worked successfully in a number of countries.

4.39 Post-Secondary Alternaives EPU students are in general strongly committed togoing on to higher studies. Given the rising trend in enrollments in pre-university education and thepolicy to hold down the size of the University, an issue has already started to arise: what options canbe offered to the EPU graduate who does not succeed in getting into the University? At present,there are really no other post-secondary alternative forms of education or training for these persons.In this context, it would seem appropriate to examine, in terms of labor market requirements and thepreparation of mid-level personnel for government service and the private sector, the possibility ofdeveloping other types of post-secondary training, such as the para-legal and accountancy trainingdiscussed in Chapter 5.

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4.40 Improving Maiagement at Schoogi L nl 1990 the directors of four pre-university schools proposed to MINED that a limited amount of the investment budget be earmarkedfor the schools, to be spent according to the wishes of the school officials themselves. They alsosuggested that fees be increased for students attending evening courses, since many of them workingin business or for the Government and can afford to pay more. These fees would also remain withthe school and help to cover needed maintenance. The difectors' letter highlights the seriousness ofthe current situation in which excessive centralization and bureaucracy hampers effective schoolmanagement. An important policy issue for MINED is how to decentralize certain aspects of schoolmanagement, while maintaining accountability for the pedagogical and financial results obtained.There is also the issue of how to support experiments in community participation in schoolmanagement.

4.41 Discussions with Ministry of Education officials during project preparation f'or theCapacity Building Human Resources Development Project revealed support on the part of theMinistry for increased decentralization of financial and administrative functions to the school level,contingent upon adequate training of school officials and clear definition of norms and standards forpersonnel and financial management. The Directorate of Administration and Finance, jointly with aFUNDAP team, began working in these areas in 1991. There is also the issue of how to supportexperiments in community participation in school management. If community involvement isincreased, the education system is bound to begin to undergo transformations at local level, and thisprocess is important in fostering needed innovation and change.

E. RecomnendatIM

4.42 The recommendations presented below are divided into categories relating toinfrastructure, pedagogical concerns, management and education policy. This division is purely amatter of convenience, however, because in practice it is necessary that the physical, pedagogical andpolicy aspects be interrelated and integrated. There is no point, for example, furnishing secondaryschools with modern laboratories if, at the same time, there is no provision for their proper operationand maintenance. Many of these recommendations have been incorporated in the EPU component ofthe Capacity Building Human Resources Development Project, approved by IDA's Board ofExecutive Directors in November, 1992.

4.43 Physical in f =J of the secondary system needs to be greatly upgraded, utilizingfunds currendy available f-om the World Bank under the Second Education Project and additionalresources, to cover:

(a) Renovation of the buildings and facilities of the pre-university education centers inMaputo (Francisco Manyanga), Beira (Samora Machel), Nampula (10 de Maio) andQuelimane (25 de Setembro);

(b) Construction of the Xai-Xai pre-university education center;

(c) Renovation and re-equipping of the physical components of the EPU studentdormitories, to provide acceptable standards of housing, food, medical assistance, andstudy and leisure facilities;

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(d) Preparation of a study of the Josina Machel Secondary School and its possiblerenovadon, with support from Government and the private sector.

4.44 The technical and pedaoical infrastrutre of the EPUs also requires majorimprovement. Priorities include:

(a) nstallation and re-equipping of laboratories for teaching basic sciences (i.e. physics,chemistry and biology), and provision for their operation and maintenance, on top ofthe assistance already pledgec by the Italian Government;

(b) Modernization of school libraries and the organization of basic teaching materials foreach EPU;

(c) Increased supply of textbooks for the various EPU subjects, and measures to promotedonors and publishers' interest in textbooks, e.g., a biannual Textbook Fair.

(d) Creating curriculum committees, with teacher participation, to review and updateexisting programs and forms of assessment. Each school should also be allowed toadd subjects that it regards as appropriate and necessary for dealing with local issues;

(e) Re-evaluating the existing centralized examination system and making changes toensure that EPU teachers are involved in their preparation and assessment; and

(f) Building management capacity at the National Directorate of Secondary Education, sothat it can filfil its policy-making and supervisory role, and provide technical supportto the ongoing process of decentralization.

4.45 To strengthen the effectiveness of secondarv school teachers, the Government shouldtake a number of steps, including:

(a) Developing a system of continuing education, with the support of the University, ISP,and the LAP (reacher Upgrading lnstitute). ITis might comprise a series of shortcourses and annual meetings organized by specialty; and

(b) Studying fiurter the role that ISP should play in training teachers for secondary andpre-university education with specific attention to an analysis of the adequacy ofexpected output in the future, in line with the age structure and expected retirementprofile of existing teaching staff (see Annex 4-8).

4.46 Management of individual pschOI requires urgent strengthening, through a variety ofmeasures, including:

(a) Delegating greater financial authority to individual schools. The option of havingschools retain fees collected by them should be fully explored;

(O) Creating Parents" Councils that would encourage greater community participation inschools, including the financing of secondary education; and

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(c) Promoting greater cooperation among schools (Including cooperation with foreignschools), following the example of Francisco Manyanga School.

4.47 It would also be useful for MINED to recoGsider its IU c esQ in a number ofareas, including:

(a) Options for providing post-secondary education for EPU graduates who do not go onto the University;

(b) Incentives and career opportunities for secondary school teachers that would help toattract and retain qualified teAschers and reward them for continuing education andteaching performance, and not simply for years of service;

(c) Possibilities for exploiting distance education technologies for secondary education;and

(d) iNED procedures for accreditation of private secondary schools and certification oftheir graduates.

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V. G

A. Introduelion

5.1 Ihe low levels of education for public and private sector workers documented inprevious chapters have important implications for Mozambique's training system. The pervasive lackof basic educational preparation promotes the inclusion of remedial education in training programs soas to enhance the trainability of the participants. In-service training programs can expect to find widedisparities in the educational backgrounds of trainees, complicating both course design andimplementation. The shortage of educated manpower encourages the inclusion of training componentsin each donor-funded project and there is a strong temptatiot, to save time and effort, for this trainingto be carried out in parallel with existing, national training structures.

5.2 These and other related issues are explored in the chapter below. Section B examinesthe overall system for professional training in Mozambique, reviews the strengths and weaknesses ofthis system, and Identifies areas for policy or operational reform. Sections C and D deal,respectively, with training in various professions.

5.3 In the context of this Capacity-Building Sector Study, the term 'training' is used isused to cover both long-teim, preservice preparation for professional occupations, and shorter-term,in-service training for skills upgrading. Within the former category are included those professionalareas considered key to the building of local capacity in economic management, namely: economics,accountancy, law and business studies. The latter covers in-service training in management andadministration, as well as continuing education or refresher training for the relevant professions.

B. Overview of the Training Situation

The Qrganization of Training

5.4 Education and training of manpower for middle level occupations in Mozambique hastraditionally been spread over a number of ministries and directorates and numerous training centersand schools have been established across the country. Some training is provided within the formaleducational system through the professional and technical schools and institutes. Other training isoffered by line ministries and organizations through a large network of vocational training centers.The majority of workers, in the civil service, the enterprise sector and the private sector, have beentrained on-the-job, through in-house training efforts or by attendance at short-term courses offered bya small number of the vocational training centers.

5.5 From 1983 until early 1991, technical and vocational training was administered andcoordinated by an independent state secretariat (SETEP) under the Ministry of Education. In January1991 SETEP was abolished and responsibility for technical training reverted to the Ministry ofEducation, while responsibility for the coordination of vocational training passed to the Ministry ofLabor. The revised allocation of responsibilities is shown in the diagram below.

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Education and lTraining Responsibilities of the Y_6iJus Ministries from Januar, 1991

5.6 SET1EP had difficulties in fulfilling its role in relation to vocational training - namely,*-he definition of policies for vocational trainng and the coordination Of allocational traningactivities. SETEiP often had no Information on the vocational centers that existed, nor their activities.The individual sponsoring agencies for the vocational centers planned and conducted training activitieswIthout reference to the central coordinating body. 'Mere is no indication that under the currentarrangements, die Ministry of Labor will have any greater success.

Proessignal and Technical Training

o.7 The professional and technical schools and institutes form part of the formal educationsystem of Mozambique, as previously discussed in Chapter 4 (see Figure 4. 1). The professional andtechnical schools and instittes trovide a mixturel of general education and vocational (or job-related)trhineg at basic-level (equivalent to secondary grades 8-10) and medium levels (equivalent to the pre-university grades 11-12). 'ne educational courses offered are certified by the Ministry of Educationas equivalent to the general educational system at he appropriate level, and graduates receive both aneducational qualifucation and professional ctification. The professional courses are in the areas ofcommerce (acunting, customs, computing and secretarial); industrial skclls (including engineering,mininPs construction); and agriculture.

5.8 As of May 1991, o b aere were a total of 23 basic-level, professional and technicalschools distributed across each of the Paovinxeo, and 9 medium-level insati tes. Of the basic-levelschools, 9 are commercial (Maputo and Beira cities) or commercial/industrial (Cabo Delgado, Gaza,Inhambane, Nampula, Niassa, Tete, Zambezia); of the institutes, there is one commercial institute inMaputo and combined commercial/industrial institutes in Sofala (Beira city) and Manica Provinces.

5.9 The commercial courses offered at the schools vary from two years (for typing) tothree years queneral adminastration and book-keeping). Some evening courses take an addithonal year.The institute courses are all of three years' duration for full-time day students, with one year addedfor working evening students. The cwricula used in the professional and technical system weremosly developed in 1982, and there have been no significant revisions since that date. And, to date,there has been liteds relationship between tie technical education system and employers. Humanresource development in M ozamb ique has traditionally been supplyriven na natural course in a

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planned economy. The learning' process tends to be that of lectures and note-taking. The content ofthe general education curricula in the "chnical system is close to the content of the single-purposeschools, but within the former the students also have to cope with the theoretical and practical trainingfor the concerned professional or trade area. This means that the workload of students in thetechnical system is much higher than that of students in the academic schools.

5:.10 The commercial schools charge tuition fees ranging from M12000 per year(approximately US$1.00) for full-time students to MTSO00 per year for working students. Theinstitutes charge MT1000 more for each category. These fees are paid in the form of stamps and donot directly support the financial needs of the institution. Allocations from the Ministry of Educationfor recurrent costs have been estimated to cover only 5 -10% of what is required to deliver anadequate quality of training. Boarding fees range from MT1000-3000 per month and do not coveractual costs. The living conditions of students have been described as varying from tolerable todeplorable.

5.11 Approximately 1000 tcachers were employed within the technical education system in1988, of which around 70 were foreigners. The Mozambican staff have been trained at the localtechnical pedagogical school or, for very few, at the University. All the technical training institutionsmake heavy use of monitores who tend to be recent graduates of medium-level technical institutesthemselves. A recent SIDA survey of technical education (May 1991) found that only 4% of thevocational teachers covered had at least 2 years of work experience in the profession they wereteaching. The suivey also found that none of the institutions had any systematic staff developmentplan.

5.12 Over the period 1980-1988, approximately 2,600 individuals graduated from themedium-level professional and technical institutes and 12,350 from the basic-level schools. (Fulldetails by area of specialization are given in Annex 5-1.) On average, this equates to a total of only36 graduates from all disciplines per institute per year and 55 basic-level graduates per school peryear. This indicates a very low level of cost-effectiveness.

5.13 The low level of student through-put is due largely to high dirop-out rates. As shownin Annex 5-3, for the years 1987-1989, 22-40% of basic level students and between 13-38% ofmedium level students did not complete the year or failed to re-enrol for the next year. Of those whoremained to sit end of year exams, a further 25-11% of basic-level students and 14-62% of medium-level students failed the exams. For example, at the Commercial lnstitute of Maputo, out of 191entrants to the medium-level accounting course in 1987, only 22 (11.5%) graduated at the end of thethree-year program. Similarly, of 204 entrants in 1988, only 17 (8.3%) graduated at the end of 1990.

5.14 Ihere appear to be several reasons for the poor student performance. The curriculumis overloaded, combining a full academic content and trade-related subjects. Secondiy, the currentexam system forces a student to repeat an entire year if she/he fails in one core subject. No creditsare given for subjects passed. Thirdly, most of the teaching staff have inadequate pedagogic trainingand experience and there is an acute lack of learning materials, books and equipment. Finally, afurther contributing factor appears to be the students' inadequate educational preparation for thecourses as currently designed. For example, of the 421 applicants for 1991 entry to the eveningaccounting course at the Commercial Institute of Maputo, only 27 passed the entrance test (coveringmathematics and Portuguese). For full-time, day courses, selection is made by the Provincial or CityEducation Officers, without an entrance test and otherwise poorly-defined selection criteria.

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5.15 In summary, therefore, the professional and technical education system has attemptedto simultaneously meet two objectives: to prepare student for further education at a higher level(medium or university) and prepare students for the workplace. However, what appears to behappening is that the length of the programs, combined with the formal qualification requirements ofthe Ministry of Education, have made flexibility in curricula difficult, and have restricted instructionalinnovation. Civil service salaries make it difficult to hire qualified and experienced teachers, and theinadequate recurrent budgets have further reduced the effectiveness of the training and educationgiven. The result, as highlighted by the low levels of graduation, is that the system has failed to meeteither of its original objectives.

Vocational Training

5.16 The vocational training centers were originally intended to provide professional in-service or job-preparation training only. However, the lack of basic educational background of theworkforce, combined with severe economic constraints on the Government's ability to raise both thequality and the quantity of the formal education system, have encouraged a number of these centers toengage in remedial education to enable participants to absorb the professional content. Several of thevocational training centers are now negotiating with the Ministry of Education for formal recognitionwithin the system of general education equivalencies. On the one hand, this move c be seen aspositive, in the sense that the Government's educational burden is being shared by employers andindividuals. On the other hand, the combination of general education and vocational training leads toinefficient use of scarce human and material resources, results in less attention being paid to thevocational content of the curriculum, and causes difficulty in standardizing quality.

5.17 It is estimated that there are currently approximately 92 vocational training centers inoperation, organized by individual enterprises, groups of affiliated enterprises, or GovernmentMinistries. (A list of these centers is given in Annex 5-3.) In the main, training activities are for thepurposes of initiating newly-recruited workers to their jobs or for upgrading the skills of existingworkers. Most of the centers restrict their students to those from the sponsoring agency or relatedenterprises widtin the sector. Some centers receive administrative, financial or pedagogical assistancefrom its sponsoring agency, but others operate independently. Ihe length of the courses offered bythese centers varies widely, ranging from a few days to more than 3 years. However, most courses,with the exception of those offered by the Centro de Formacao Agraria (CFA - the AgriculturalTraining Center), and the Centro de Formacao Industrial (CFI - the Industrial Training Center) are of6-10 months' duration. Most courses, (again with the exceptions of CFA and CFI), are full-time.There is no centralized data on enrolment levels.

5.18 Since many of the vocational training centers are training workers for specificenterprises or sectors, the relevance of the training to the needs of the workplace is much closer thanthat of the professional and technical system. SIDA's recent review of training (May 1991) indicatesemployers' satisfaction with the training provided. In addition, the drop-out rates in the centerssurveyed by SIDA showed that less than 5% of students fail to complete the courses, with the majorreasons being not failures in tests and examinations, but health, financial and travel difficulties.

5.19 However, a survey of vocational training centers, conducted by SETEP in 1988,indicated that many of the vocational training facilities are underutilized and many are struggling tomaintain their operations. They face a lack of teachers and teaching materials; equipment is in a stateof disrepair; and available funds are often inadequate to cover operating expenses.

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S.20 There aro some sigificant successes, however, among the vocational training centers.CPA provides shorttrim, in-service trainng in the promotion of agricultural planning, managmentand extnion services (see Box below). The importance of agriculture to the national economy andthe strong and contining demandi for training in agricultural management have clearly encouragedgovernment support to CPA, but the success of CFA is also due to thie relevance of its portibilo ofactivitie and its operating policies.

S:.>^UE~~RNT*BOM~A AOlAI w |CFAfs6:s :t: 194@*M* $i~. a*e~i 1 tu4

4~~e~wal ~~e*~~~_ ;1is t ~MEta~auo *Mai'Y6~Ma~

nu1mim h Aebngon*u£ovfilt~a Jsw ~ a IWCPA l. aMivw rM.tS~ fO.p1w~wd~4~~ivu.M.uL

~~~~~~~~~ $gs~e4a~t ~ ~ v o~iet'$dPe l~ u wfgwa ,ivs W in . X~W@v

mi m4. ..

XP e-n ts No),i Ew adWatt; S$ta E ah-S a at~W *vmi vi5w *Q9 au a)4. Xn 4WdwudwL 1bnod uaw a9idl1 ~ut t o. adir mnq ~ ax paIi.2

~i ~ a~sga*apnat almtlI ,igywm mid tu~di =

5.21. CA futer exape of~ swauccs among thwe lfvocational araing center ~i8thecseo

CP,. esrie An futherb eo.CP rvdsa example of sunes amon the vocationalmo training cnesI h aeo

institutions thiat has established linkh with the business sector, adjusted its activities to market demand,and financed its ownl activities without government support.

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~~~ _O

.~~~~~~~~~~~b fe4Twh

system. F qirstly, it appearf~ ~on~ s tht hreisncnta ifn ati ~on i on then mbe, theatviisorW threouce o eisin vcaioalWDining center~s. A c kompehnsv pitr of A epnitueohs

center indthei uw~tiia otiyon T is not avalbe eondl, the ilimitduedinformalM tioin tat saaialindiate tha th goermen oes nfotpii have~* the financia capaityto adeuatlyun all W he exitin

ffian usin e mpoers to provide the practica tainn ompotn~ent inly the tnd enc to mk dincrase

lasto simila prolemsi~ as Jthose des~Ocr t5inbed forthprfsiona and aM4 satechnicalen~*thersael:a

inc22s in sumary alnumbe of issueseariseffromlaniexamnnationno the vocational turcuarapn iveit g

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employer needs; and the danger that academic requirements will supersede practical trainingcomponents.

5.23 The Ministry of Labor, in collaboration with the Ministry of Education with financialsupport from DANIDA, plans to present a revised vocational and technical education strategy by theend of 1993. The strategy will be based on a thorough inventory and analysis of existing vocationaltraining centers, and promises a series of recommendations which will aid In the rationalization of thevocational training system.

In&Sevice Training

5.24 In addition to the training courses provided by the technical and vocational trainingcenters, on-the-job training is conducted by individual ministries and enterprises. In most cases, thesetraining activities are prompted by, or supported through, donor-funded projects, aimed atstrengthening the agencies responsible for project implementation. In many cases, these trainingefforts are not channelled through existing training institutions, but use outside technical assistance todesign and implement training activities.

5.25 For example, the World Bank-funded Small and Medium Business Enterprise Project,based in the Bank of Mozambique and working to strengthen credit mechanisms for businessdevelopment, conducts all its training of bank loan agents through imported technical assistance ratherthan working with the Bank of Mozambique's training unit. Similarly, UNDP is launching a projectfor the training of local government staff in the provinces, to be implemented by foreign trainingexperts. The SIDA project within the Ministry of Finance uses technical assistance to providetraining for staff of the National Budget Directorate and other major economic agencies.

5.26 While the project-based training approach can be very effective in achieving theimmediate objective of a better trained, workforce, unless efforts are made to provide counterparts tothe external trainers, the opportunity to build local training capacity for the future is lost. Theapproach tends to promote several small-scale and short-lived efforts rather than consolidate trainingbases that already exist. (See the example of PROFORGE in the Box below.)

. .. ....... ....................::::::.:.: ~

... .... .. .... ... ........... ..X ..

.~~~.. ~~~. f. .... a~4 ~ aawtn,. ~ ~ Kjgl* .. W-6. j~

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5.27 A different approach to in-service training is that of the Ministry of StateAdministration (MAE) in the field of personnel management. A team of MAE officers Is workingwith an external consultant group in the development of improved personnel procedures for the civilservice and the subsequent training of personnel staff and managers from the line ministries. Thisapproach combines the benefits of experienced technical assistance with the on-the-Job training of aMozambican team who are gaining experience of each stage of the training process - knowledge ofthe area to be taught, design of training objectives, curricula and materials, implementation oftraining, evaluation and follow-up.

5.28 A final form of training considered here Is that scholarships or bursaries for studyoutside of the country, provided both by donors and by the government itself. Mozambique makesextensive use of overseas training, for basic education, post-graduate specialization, and short-termspecialized courses, including language training.

5.29 Clearly, Mozambique has great need for opportunities for training abroad. No post-graduate education opportunities exist within the country, nor are there local training programs formany professional categories needed by government. However, the costs of sending individualsabroad are high, both in terms of financial outlay when supported directly by the government, and interms of opportunity cost if the donor-funded scholarship is not used effectively or if the newly-acquired skills of the returning individual are not exploited.

5.30 In theory, systems and procedures exist for estimating the needs for overseas training,allocating scholarships and tracking those abroad. In practice, however, there is little such planningin Mozambique; scholarship and bursary decisions are made by individual ministries or organizationswith no guidelines or selection criteria; there is no collated information on awards made; and there islittle, if any, attempt to monitor progress or plan for re-entry. In addition, little effort has been madeto assess common training needs across ministries and enterprises to be able to identify alternativemethods of providing the necessary training. For example, English language courses in Zimbabweseem to generate much of their income from Mozambican participants funded by the Government; thefeasibility of importing English teachers to run periodic courses in Mozambique could be explored asa more cost-effective alternative. The British Council in Mozambique stands ready to coordinate thetechnical support for English training, including creation of customized courses and the provision ofsector-specific language skills.

Recommendations

5.31 QuaHlit of Traini Versus Quantitv Given the shortage of human and materialresources for training in the county and the serious problems evidenced in the current performance ofthe training system, priority should be given to raising the quality of training rather than expandingquantity. In the present situation in Mozambique, the emphasis should be on the production of fewervocational graduates of a highear quality and with the relevant skills. This should be accompanied byan improvement in the general education system to create an adaptable and flexible workforce.

5.32 Holes of the DilMTerent Training Institutions There is considerable confuision of rolesamong the different technical and vocational training institutes, schools, and centers. The currentsituation is one in which a number of institutions are trying to do jobs they are not fit to do, leadingto a waste of human and capital resources. Each of the different types of training unit should have aclearly defined function or specialization.

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5.33 An analysis of the overall needs for different forms of education and training, withinthe context of the national capacity of the country (fnancial and human) to adequately support suchtraining, needs to be carried out. Serious consideration should be given to reducing the number ofcenters offering vocational training (including the professional and technical schools), perhapsconverting the 'excess' to academic institutious.

5.34 The Professional and Technical Traiing Institutlno Within the technical andprnfessional schools and institutes, general education and professional skills components should beseparated. Minimum educational requirements for entry to professional training should be establishedand entry to such training should be open to all those who meet the criteria, wherever they havegained the academic credits.

5.35 An analysis of the vocational (professional) courses offered should be conducted toassess the needs of the labor market. This should be accompanied by the establishment of amechanism for continuing links between the training institutions and employers, for example by theestablishment of advisory boards.22/

5.36 An extended range of levels of professional taining should be developed, somerequiring secondary level education for entry. This would enable those who have completed generalsecondary education, but who fail to gain entry to the University, to continue their studies and gain aprofessional qualification (a similar point has been made in Chapter 4). This would also allow forcareer progression within a profession.

5.37 The professional courses should be offered both as fill-time programs and part-time,day or evening classes as appropriate. Short-courses for skills upgrading, in response to perceivedemployer demand or specific request, should also be offered.

5.38 Support from the Ministry of Education should be focussed on increasing theresources and raising the standards of general education in the country. Professional training,whether through the technical institutions or the vocational training centers, should gradually becomethe financial responsibility of both the individual and emp!oyers. The fee structu.es for theprofessional courses offered should be reviewed and income so derived should be retained by theindividual center.

5.39 Opportunities for skldls upgrading for teachers should be provided, both locally andthrough overseas scholarships. Teachers should be allowed to conduct consultancies to supplementtheir incomes.

5.40 The Vocational Tgining Centers An inventory and analysis of existing vocationaltraining centers, affiliation, activities, resources and sources of funding should be conducted as part ofthe review recommended in 5.38 above. The aim should be the rationalization of the vocationaltraining system, to promote the production of a more limited number of well-trained graduates.

5.41 General education leading to academic credits should not be offered by the vocationaltraining centers, although some general education content may be necessary in support of thevocational training component.

W2/ Such an evaluation is scheduled to be completed by the Ministry of Labor by the end of 1993.

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5.42 Entrance requirements for state-supported vocational training should be revieweu, withparticular attention paid to the development of employable-skills programs in some centers for drop-outs from the academic system.

5.43 Istead of trying to provide full in-house capacity for practical training at thevocational training centers, with al the corresponding equipment and material requirements,apprenticeship schemes with local employers should be developed wherever possible. Responsibilityfor the development of apprentice schemes rests with the Ministry of Labor, who, in conjunction withrepresentatives of the training centers aad employers, should also develop the necessary guidelines.

5.44 StanddizatIon of oftessional Tra-nln Increasing operational autonomy of theprofessional training institutions should be accompanied by the establishment of professionalcertification standards for defined professions such as accounting, computing, paralegal studies,administration and management, secr;tarial, etc. Award of the professional diploma or certificateshould be based on successful performance on measured written or practical tests which represent auniform understanding of competence. The establishment of the standards, the design of the tests andthe monitoring of student performance should, in the medium tern (until professional self-regulationis possible), be the Joint responsibility of the Government and selected, qualified representatives of theprofession in question. Progress in this regard has already been started In the area of accounting,where a National Technical Commission has been established to take responsibiliy for establishingand monitoring accountancy standards and training.

5.45 CooEination or Training Activities The National Planning Commission shoulddiredt donor-funded project resources towards the support of existing training institution-g whereverpractical, thus strengthening both their experi.s-e and their financial base. Project-based technicalassistance in the training area, if necessary, should also be used to counterpart existing trainingfaculty.

5.46 The Relalonshin of LTraining to Career Development In the past, the relationshipbetween job responsibilities, job performance, training and career development has often been weak,!eading to a waste of training effort and a perception of training as "a necessary evilf" by employees.For certain jobs, there is the need to link job selection decisions to professional qualifications suchthat individuals are encouraged to continue their own development and are rewarded for doing so.

5.47 In terms of short-term, in-service training, there is the need to improve selectioncriteria for participation, to ensure that the training is relevant to an individual's present or proposedfuture job responsibilities. Those responsible for implementing a training program should issueguidelines for participant nomination and screen nominations before acceptance on the program. Theeffective utilization of training opportunities should also be included in the personnel trainingprograms being designed and implemented by the Ministry of State Administration, as should theways in which promotion and other career development decisions need to be based upon anindividual's performance on the joib, work experience and training pre-paration.

5.48 Management of Overseas Training Clear procedures and ministry responsibilitiesshould be established for identifying priority needs for overseas training, determining selection andparticipation rules, tracking participant progress and planning for participant return. A central levelministry should be given responsibility for collating all information, coordinating the priority-settingprocess, and overseeing individual ministry scholarship and bursary programs.

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C. EcononmiarrjnInIrg

The Nd for CI Tralning

5.49 Economics and business management graduates are critical for the directing asuccessful economic recovery program in Mozambique. The issue here . 'igher, specializededucation in economics; while short-term, in-service training in economlcb - iciples is of value forpracticing managers, the country has a basic need for professionals for both economic policyformulation and implementation. The demand for economics graduates appears to be high andincreasing. Requests for entrance to the UEM faculty are high, with 227 applications for 100 placesin 1991. Advertisements by employers for economics graduates are appearing in the press, withgenerous levels of renumeration: salaries offered by the business sector are at least four times that ofthe government salary for UEM economics faculty.

The Univer5ty's acultyof EconomIA

5.50 At the time of independence, there were 258 economics students at the University ofEduardo Mondlane (UEM). Most of these joined the immediate Portuguese exodus from the countryafter independence and less than 12 still remain in Mozambique. Over the 10 years to 1989, 347bacharels (3-year program) and 47 licenciados (5-year program) graduated from UEM.

5.51 The UEM Economics Faculty opened in 1970, offering a five-year degreeaicenciatura) program, which, following the model of the Portuguese universities, covered botheconomics and management. Following independence, in response to pressure to increase the numberof graduates to fill the gap left by the exodus of qualified personnel, the Faculty replaced the 5-yearlicenciatura program with a 3-year bacharel course. At the same time, the curriculum was revised toreflect the predominant political and ideological context of the country. This shortened program,however, proved to be inadequate. The revised curriculum left insufficient time for practicaleconomic content - a situation exacerbated by the low quality of academic preparation of thesecondary school graduates. Thus, in 1985, the S-year licenciatura was restored, but with no revisionto the nature or content of the curriculum.

5.52 To upgrade the b Ibach-es, the faculty created two 2-year courses: the speciallicenciatura in management, and the special licenciatura in economics. This development, togetherwith the launch of the Economic Recovery Program, led the Faculty to split its basic 5-yearlicenciatura program into two streams in economics or management. The current content outlines foreach course is given in Annex 5-4.

5.53 In 1991, the Economics Faculty had 480 students, the largest number at UEM afterengineering. Of these, 300 were following the management course and 180 economics. About 40%of the students were working and studying at the same time. The Economics Faculty had 17 "full-time" Mozambican teaching staff, of which 8 were overseas on long-term training. Of thoseremaining, only one was available full-time; the remainder restrict their University contribution toteaching the required sessions, with the balance of their time given to supplementing their governmentsalary through outside activities. The Faculty has had, and continues to have, great difficulty inattracting or retaining qualified teaching staff.

5.54 In addition to the national teaching staff, the Economics Faculty has 14 expatriate staffon contract from 9 different countries (Argentina, Canada, Chile, Colombia, India, Italy, Portugal,the Soviet Union, and the USA), under 6 different aid agreements or projects. The expatriate staff

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tend to restrict their activities to the direct teaching of their specialist Pxea; due to the short-termnature of their involvement with the University, their lack of experience In the country, and languagedifficulties, they do not add significantly to the facu'lty's capacity for research, publications or thesupervision of student dissertation projects (see Chapter 3). In addition, the number of differentsources and arrangements for foreign assistance add to the administrative burden of the Faculty.

5.55 Due to the shortage of staff, the Faculty had to cancel some courses during 1991, thusieopardizing the position of those intended to graduate this year. In addition, due to lack ofsupervisors for dissertation work, there are many students who have passed their final examinationsbut are unable to complete the dissertation requirements for their degree. The Faculty has expresseddoubts about its capacity to deal with the next intake of students.

5.56 A number of donors are already assisting and others have expressed interest in doingso. However, the real issue facing the faculty is how to channel this assistance towards buildinglong-term and sustainable local capacity. A review of overall policies at the University, relating tothe organizational status of UEM, funding and salary mechanisms and operational autonomy iscurrently under way, and the results should provide a improved basis for the future development ofthe Economics Faculty. Within this framework, the Faculty of has committed itself to the immediatedevelopment of a strategy and action plan, to be reviewed and discussed by the University as a wholeand by representatives of both government and business sectors. The strategy is to adopt thefollowing principles:

(a) The Faculty will aim to create long-term institutional linkages with a small number ofexternal universities or institutes for its foreign teaching staff. Current possibilitiesinclude: the Instituto Superior de Economia e Gestao da Universidade Tecnica deLisboa for economics; a Brasilian, Chilean or Portuguese University for businessadministration and management; and the Center for African and Asian Studies at theUniversity of Sussex, England for applied research.

(b) All donors to will be asked to channel their support within the framework of theagreed strategy document so as to permit the Faculty as much flexibility as possible inthe utilization of this support.

(c) In the longer-term, the Faculty will take a number of steps to expand its range ofactivities by: creating a consulting unit, adding optional streams within themanagement course for such specializations as public sector management, developinga post-graduate diploma in management, establishing distance-learning programs ineconomics and management, etc.

(d) As an immediate measure, the Faculty has contracted an external team, comprised ofa Department Director, Pedagogical Director and Research and Extension Director, toensure effective management within the staff-depleted department during this criticalre-building period, whose responsibilides include, nt &A, to implement the long-term stabilization strategy for the Department, undertake a revision of the curriculum,coordinate linkages with external institutions, and teaching and research activities.

The Economics Distance Learning Program

5.57 In addition to the UEM's efforts to provide special 2-year licenciatura courses forthose who graduated from the 3-yeat bacharel program, SIDA has financed a distance-learning MSceconomics program with the School of Oriental and African Studies of the University of London

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(SOAS). About 25 individuals, selected from applicants from the Ministry of Finance, Ministry ofCommerce, Ministry of Cooperadon, Bank of Mozambique, and several parastatals are currentlyparticipating. The programme started in 1989, with a year of remedial economics, taught by a teamof Portuguese teachers in Maputo. At the same time, the participants undertook intensive Englishlanguage training. The second and third years of the program are taught in English, using videos,audio-cassettes and manuals developed by SOAS, and facilitated by local tutors (drawn from theUniversity or other practicing economists in the country). The participants have two hours of earlymorning classes daily before their normal work activities. A one-month period at the University ofLondon takes place in the final year to assist the participants in the preparation of their finaldissertation.

5.58 Although it is too early to evaluate the long-term effectiveness of the program, itappears that the learning materials are excellent, the system of local tutoring is well-established, andthe participants are highly motivated. A formal evaluation of the SOAS distance learning programshould be completed by 1993, together with an assessment of the numbers of bacharel-leveleconomists who would be candidates for participation in future rounds of the program. Based onpreliniinary evaluations, plans are underway for starting off a second groivp for the distance-learningprogram and for seeking fiurther donor support.

D. Accountancy Training

Accounting Practice in MozaMbigue

5.59 The demand for accounting skills in Mozambique has been growing, due to acombination of changes in economic activity and pressures to comply with existing reportinglegislation. The General Plan of Accounts (GPA) was issued by the Govemment in December 1984and is applicable to all enterprises except banks and insurance companies. The GPA sets out theformats to be used in the reporting of business results and dictates the way in which a company'sbooks and records should be maintained. It has been mandatory for all companies to use the newformats starting from fiscal year 1986.

5.60 With the passing of the GPA legislation, there has been increasing pressure to bringtaxation assessments up to date. During the period 1975-1986, with the upheavals caused byIndependence and confusion over the implementation of the revised fiscal system, taxation was basedon estimated profits and no reconciliation between the estimated and actual results was made.Mozambique's income tax code divides companies into three categories based on volume of activities.The largest companies (category A) must maintain adequate accounting records and must reportaccurate financial data. The other two categories are not obliged to have structured accountingsystems. As the economy recovers, the anticipated growti in the number and the size of companiesmeans that more are likely to meet the criteria set for category A concerns and the demand for in-house accounting skills will increase significantly.

5.61 In part because compliance with the GPA has not been very high, the Governmentissued Decree No.32190 in December 1990, declaring that from fiscal year 1992 all category Acompanies, together with certain other business concerns, must prepare annual accounts, certified byan independent and professionally qualified auditor. Ibis decree also makes the first moves towardsthe establishment of an accounting profession in Mozambique, with the appointment of a technicalcommission to establish accounting standards, determine criteria and procedures for professionalaccounting qualifications and licensing, and take other steps to move towards the eventual self-regulation of the profession.

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5.62 The government recognizes that organized accounting and auditing procedures havenot been part of traditional business practice in the country. One of the results of this is a severeshortage of trained accounting staff. According to a census conducted in 1980, only 3,142 book-keepers and accountants were identified, of whom just 187 had more than seven years of educationCrable 5- ). Based on the numbers of graduates from the commercial schools and institutes since1980, it is estimated that there are approximately 500 individuals who can be classified asaccountants, and approximately 3,500 accounts clerks. (Che term 'accountant' in Mozambique cancover a range of competence from that of senior clerk/book-keeper to financial controller/director. Itis Viought that most of the trained accountants in the country fall within the lower end of thecontinuum.)

Estimaled Number of Trmined Accounting Staff, 1980

Current Accountancl Training

5.63 The pre-service training of accounts clerks takes place at the 10 basic-level technicalschools, training of acoountats is done at the Commercial Institute of Maputo and theCommercialAndustrial Institutes of Beira and Chimoio. As previously staed, graduation rates fromboth the schools and the institutes are very low. Ihe Industrial Training Center of Maputo alsoprovides short courses in book-keeping and basic accounting techniques. In order to raise thestandards of accounting practice and meet the GPA requirements, several ministries and parastatalshave established their own in-service training proram for accounting staff. The Bansl ofMoolsbique, in coordinataon with the national tanks of other Portuguesospealdng An ican countries,runs short-term trsing programs for ito own stasi. PROuOn GE provides short-term trains g itaccounting and financial management for staff of agricultural parastatals and of the Ministry ofAgriculture. However, these in-service courses are neither standardized nor certified.

5.64 Since 1983, several attempts have been made to strengthen national accountingtraining and upgrade the skills of previously-trained accounting staff. In 1983, the Ministry ofFinance embarked on a Professional Training and Accounting Project to strengthen accountingsystems within the business sector. As a componeint of this project and with the assistance of aPortuguese consulting firm, a plan was developed for the establishment of an accounting institute, anddetailed training manuals were developed for the remedial training of commercial institute graduatesin basic and intermediate accounting. However, the project was never implemented.

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5.65 A new proposal was developed and incorporated In the design of the World Bank-funded Economic and Financial Management Technical Assistance Ptoject, to establish an accountinginstitute to set standards for the training and operating practice for accountants, and to offeraccelerated short-tem training for practicing accounting staff. The Ministry of Finance is currentlydeliberating on how best to move forward, and as of November 1992 were evaluating bids forconsultant services. In 1988, the World Bank First Education Project included a component tosupport the Commercial Institute of Maputo to revise the accounting curricula, provide referencematerials and textbooks, and finance study tours and further training for ICM faculty.Implementation here, too, has been delayed.

5.66 Thus, despite several attempts to improve accountancy training in the country, littleprogress has been achieved over the last eight years. Previous approaches have been somewhatpiecemeal, either trying to revise basic accounting training without a prior definition of theprofession, or trying to implement remedial training of practitioners without tackling, within acommon framework, the problems inherent in the basic training curricula. With the legislative andprocedural framework now in place for a comprehensive approach to accountancy training in thecountry, there is an urgent need to move forward in this area.

Recommendatonfi

5.67 To strengthen accountancy training in the country, it critical to: (a) assist theTechnical Commission to define the accounting profession, including the various levels of professionalqualification; (b) determine where and how the different levels of accounting training should becarried out; (c) develop or revise basic training curricula and certification standards; (d) establishentrance criteria for the different levels of training; (e) develop and/or acquire the necessary teachingand learning materials; (f) retrain existing accounting teachers and establish mechanisms for thetraining of new teachers; and (g) develop and implement remedial or upgrading training for existingpractitioners in both the public and the commercial sectors.

5.68 Several principles should guide the design of future efforts in accountancy training:

(a) All the activities listed ab)ve should be seen as integral components of a single planof action and mechanisms or coordinating the different activities will need to beestablished;

(b) As far as possible, the basic, pre-service training of accounting personnel should beconducted through existing training institutions in the country (i.e. the commercialschools, commercial institutes, the University, and other appropriate centers such asthe Industrial Training Centers of NMaputo and Beira);

(c) The feasibility of establishing joint programs with other accountancy traininginstitutions abroad should be explored. The difficulties of language imply that basiclevel training linkages might have to be restricted to Portuguese-speaking countries(such as Angola). However, joint actions with regional Anglophone countries wouldprobably be suitable and desirable in such areas as post-graduate courses, auditingtraining, seminars and study visits; and

(d) The definition of the accounting profession, the definition of the professionalstandards required, and the development of the necessary training curricula andmaterials should be carried out, under the guidance and supervision of the TechnicalCommission, with the assistance of an experienced, international accountingorganization.

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E. LanL Training

The Need or LeAmI Seices

5.69 During the colonial period, no law school existed in Mozambique and the few lawyerswithin the country were either Portuguese nationals or Mozambicans who had been trained inPortugal. The chaotic conditions under which Mozambique achieved independence severely impededthe introduction of an effective system of justice. The flight of judges, lawyers and law clerks leftonly about 25 lawyers in the country. The scarcity of qualified jurists hindered the drafting of newlegislation, so for a period the Portuguese legal codes were retained, although former legislationconsidered contrary to the 1975 constitution was treated as automatically revoked. Today's result is aMozambican legal framework composed of old Portuguese codes, decrees enacted after independence,and recent legislation, all applied In an uncoordinatea manner.

5.70 Some legal changes have taken place as part of the Economic Recovery Program. In1984, the Government enacted the Foreign Investment Law which guarantees the investor's right toremit earnings and capital abroad; provides for currency convertibility; ensures compensation in theevent of expropriation; and offers incentives, such as tariff exemptions and tax holidays. Passage ofthe 1984 Petroleum Law opened up new exploration opportnities for foreign enterprises. Anotherrecent law authorizes private investment by Mozambican nationals and offers special incentives toencourage the repatriation and investment of funds owned by nationals abroad.

5.71 The 1990 Constitution and the 1991 private sector development legislation envision ademocratic pluralistic society and a free-enterprise system. No market economy can operate withoutan extensive underpinning of private law. Modern legislation on fundamental matters, inter alia,international trade, company structure, corporate finance, tax regulations, administrative law,bankruptcy law and business law needs to be enacted. To effectively implement such a extensivelegal reform, a strong and well educated legal profession needs to develop in Mozambique.Moreover, these laws will be meaningless unless a competent judiciary is established and appropriatemechanisms are put in place to efficiently enforce and disseminate the law. In negotiating equityinvestments with foreign multinational companies, for example, Mozambique will need lawyerscompetent to represent its interest. Increasing exports will require expertise in the laws concerninginternational finance, the GATr, and GSP. The shift toward a market system will call for creation ofa capital market, as well as modern legislation on company structure, corporate finance and securitiesregulations. Privatization of housing stock will demand a efficient system of title registration andmortgage laws. Contract negotiation capabilities will need to be strengthened in all spheres, as willthe mastery of tae relevant comparative legal terminology.

The kul ProfeQan

5.72 Currently there are about 90 fully qualified lawyers in Mozambique to serve apopulation of 16 million. 27 of these lawyers are female professionals. Initial assessments providedby the Law School estimate that approximately 1200 graduates would be needed by the year 2000 tofulfill the need of legal services demanded by both government and private sector, although it wouldbe very difficult to accomplish this ideal goal. The legal work of the nation is carried on by threedifferent groups. First are the 'advogados' who qualify for this title, after becoming a 'licenciado";there is one woman "advogada". Under the proposed Bar Association regulations, the licncladowould have to complete a one year "estagio" (internship or practical training at a governmentagency.) "Licenciados" are those having completed the full 5-year law school course. Second, there

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is a group referred to as 'tecnicos juridicos' who have finished a portion of law school sufficient toobtain a degree of "bacharel en direito" and their practice is limited to the lower courts. Finally, the"assistentes juridico" have normally completed high school and a practical training course rangingfrom three to six months.

5.73 Besides lawyers, legal services in Mozamb.que are performed by a variety ofprofessionals. First, there is a vast group of paralegal staff working in the administration and thejudiciary, lacking essential legal skills. Second, "notarlos" enforce legal requirements that variousacts and documents be notarized and "conservadores" maintain updated registries. At present, theeducational programs for the profession of notary have not been clearly established. Third, asignificant number of government employees, with no formal training in law, must of necessity dealwith legal matters.

The Crrent Legal Structure

5.74 lhe Instituto Nacional de Assistencia Juridica (INAf was created by the Governmentin 1986 to organize, control, and monitor legal services. INAJ maintains a list of legal techniciansfrom which the public can select a legal representative. The INAi list contains 42 advgado (ofwhich only 20 are litigators); 40 tecnicos juridicos, and 12 assistentes juridicos. Fees are regulated.

5.75 As yet, there is no program for continuing legal education, nor any statutoryrequirement for updating legal knowledge and skills. In May 1991, INAJ convoked the firstextraordinary session of its general assembly to consider a draft statute creating a national BarAssociation (Ordem dos Advo2ados )ocaMbicaWos). This statute limits thie admission to the Bar,establishes ethical standards, and imposes sanctions for violations. The Bar Association was formallycreated in the beginning of 1992. In the past, only INAJ could provide legal services to the public.Now it is intended that the private Bar Association will function along side INAJ. MULEIDE, theWomen's Association for Law and Development, has also been established (1992). Functioning as aprivate organization, its goal is to improve the status of women through studies, legal assistance, andcivil education. In August 992 MULEIDE opened a small office to provide legal services to poorwomen and to advance the equality of women.

5.76 The Judicisr Under the post-independence system of justice, considerable discretionand power was placed in the grogarad and the investigatory competence of trial judges. Theshortage of legal personnel made the revamping of the court system a difficult task. However, until1977, a few Portuguese judges remained in Mozambique under a bilateral agreement betweenFRELIMO and Portugal. By 1978, the Ministry of Justice (MOJ) had created a national courtsystem, guided by the broad principles of popular justice that FRELIMO had originally formulated.Judges' decisions were largely based on common sense and the general notions of justice set forth inthe constitution. In communal villages, the local tribunals were entirely com,posed of lay judges withno legal training. In some provinces, (e.g., Nampula), there is only one judge.

5.77 In 1989, the Supreme Court was made a separate body from the Ministry of Justice.These two institutions joined efforts to start a one-year practical training program for magistrates. Atpresent "licenciados" are not required to complete this training to become judges. In addition to theSupreme Court, the 1990 Constitution calls for the establishment of an independent judiciary and anew Administrative Tribunal to hear and decide claims against the State. Other specialized courts(e.g., Labor, Tax, Maritime) may be created in _..Ie future. Recent legislation has been enacteddefining the institutional aspects of the administradon of justice. Ihe "Lei Organica dos TribunalesJudiciais" of March 1992 calls for the following courts: the Supreme Court; provincial courts, and

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district courts. Simultaneously, the Assembly of the Republic enacted the "Lei dos TribunalsComunitarios", establishing a community court system with jurisdiction over small claims, familydisputes, and minor misdemeanors.

5.78 The "Procurador Geral da Republica' (Attorney General) is responsible fordetermining the "legality" of legislation. The Attorney General's office is further obligated to defendthe jurid.cal order and to see that laws are enforced. The Attorney General's office has only 70professional staff for the entire nation, of which only four are licenclados. Eight of these procuratorsare female. This lack of personnel burdens these professionals who must take responsibility fordistricts other than their own. The situation is worsened by the lack of transportation and insufficientbudget for lodging.

5.79 The Ministry of Justice The Ministry of Justice is responsible for the revision,stteamlining and drafting of legislation in Mozambique. This comprehensive task is furtheraggravated by the fact that many of the nation's laws and regulations have been written by non-lawyers and existing jurists have little experience in legislative drafting. To assist the Ministry ofJustice in undertaking this responsibility, there is a technical council composed of four, full-time paidlawyers, and four part-time paid jurists. Moreover, there is only one attorney in the division ofresearch and legislation. The notarial registry office does not have lawyers. "Notarios" and"conservadores" play a fundamental role in the Mozambican economy by certifying and registeringproperty rights and titles. Clear ownership of property is a key aspect of any market economy.Another area of concern of the Ministry is the design and implementation of training of professionaland in-service training of legal staff and court officials.

5.80 Customs Mozambique is a member of the Lome Convention and of the Eastern andSouthern Africa Trade Preference Association. Both these arrangements have complex legalstructures and rules which should be interpreted and applied by lawyers. Mozambique has become amember of GATT (General Agreement on Tariffs and Trade) and is in need of sophisticated legaladvice on the benefits and drawbacks of adhering to GATT. Moreover, with recent importliberalization, customs and tariff law enforcement has become increasingly important. To handle thiswork, there are only three licenciados and a small number of law clerks in the Customs Department.

Lea Training

5.81 The University Law School The nation's Law School at the UEM opened afterindependence in 1975. In March, 1983 the school was closed. Some believed that the Law Schoolwas a center for reactionaries, but other factors played a more significant role in the decision to closeit down. Neither the original curriculum, patterned after the Portuguese model, nor the later socialist-oriented curriculum, equipped lawyers to meet the needs of the Mozambican society, and a decisionwas made to close the School until the curriculum could be revised. It was finally reopened inAugust 1987.

5.82 The latest curriculum, implemented in 1991, aspires to provide a well-roundedmodern legal education in the neo-roman civil law tradition. The first two years, as is typical of civil

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law education, largely concentrate on social sciences with the bulk of the technical juridical subjectsleft to the last three years. Several aspects of this curriculum are noteworthy. The requirement fortwo years of Portuguese and English reflects the Mozambican reality where qualified jurists will, inthe future, often need to work in both these languages. The program appears to provide a goodgeneral background in the domestic area-both for civil and criminal law. Mozambique may be aleader among developing nations in making tax and tariff law a mandatory course. The requirementfer three international subjects-public international law, private international law and internationaleconomic law-is both unusual and admirable, as Is the compulsory Introduction to Computers course.While the proposed curriculum is praiseworthy, It is questionable whether the law School has 4henecessary human and material res3ources to carry it out.3Q/

5.83 The Law School currently has 435 students, of which 72 are women, with theentering class of school year 1991-92 numbering 100. University teachers are divided into fivecategories: nrofessores catedraticos. associados. auxiliares and assistentes primeros and segundos.The entire teaching corps does not include a single catedratico and is composed of 8 full-time and 33part-time professors, the student-teacher ratio is 1:17. There are only seven women teachers at theLaw School. Two-thirds of the students work and study only part-time; one third are full-timestudents. The Law School has three classrooms for 200 students each, and 7 classrooms which hold35 students each. Registration has not been computerized and there are only eight administrativeemployees and one documentation technician. There are virtually no textbooks for the students andthe law library resources are meager. There are no electives, no specialization and no graduatecourses.

5.85 An initial needs assessment for the Law School was carried out in June 1991, with theassistance of a grant provided by SIDA. The report points out that the main obstacles faced by theLaw School are: insufficient number of qualified professors; lack of strategic planning and modempedagogical approach; lack of bibliography and updated legal materials; poorly trained staff; and non-existent career development plans for the teaching corps, including the provision of continuingeducation programs. There is consensus among all legal institutions that the need for short-termgraduate training to update the knowledge of existing jurists is of utmost priority.

5.86 The lack of appropriate technical skills is aggravated by the isolation from other legaltraditions in which the Mozambican professional operates. In short, today's lawyer has littleexperience in coping with the intricacies of international transactions or the complexities of financialand business legal issues. Coordination on this issue is essential, as the definition of commonguidelines would maximize the donors' efforts and avoid burdening the weak Mozambicanimplementation capacity.

5.87 Judicial Trainine Programs Aware of the magnitude of the structural weaknessessuffered by the legal profession and institutions, the Mozambican authorities have given specialpriority to the strengthening of legal services and to the definition of a strategy for the sector. Theforum for the definition of said strategy was a seminar held in Maputo during February 1992, wherethe role of the lawyer in a society under transformation and the needs for legal training were reviewedand agreed upon. As part of the F vernment's strategy, the Ministry of Justice established as ofDecember 20, 1991, in agreement .with the Supreme Court, the Attorney General, the AdministrativeTribunal and the Law School, a special working group (WG) composed of representatives of all

IQ/ The curriculum is once again under review; however the changes anticipated are minor, suchas adding a requirement for a course in "Legal Writing and Research".

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mentioned institutions. The WO is responsible, inter alia, for defining the guidelines for the long-term strategy to build professional capacity within the legal profession and the judiciary, periodicallyupdating them, and coordinating all existing and future donor contributions in the sector.

5.88 In close coordination with the Supreme Court, the Ministry of Justice launched a pilotprogram of short-term practical training for magistrates, court clerks, and judicial administrators.Due to the satisfactory results of said program, MOJ has proposed to expand it and coordinate similartraining carried out by other legal institutions under a single training facility. In defining theinstitutional and functional features of the Center for Judicial Studies (Centro de Estudos Judiciarlos),other existing relevant models will be examined (eg. Portugal, California, New Mexico). Tbis Centeris to coordinate such training. The proposed Center aims at ensuring the most efficient utilization ofscarce resources, while harmonizing different training initiatives. Initially, the Center would providepre-service training for magistrates and, at a later stage, to extend its future operations to includerefresher courses for district judges and orientational practical courses to recent Law School graduatesinterested in pursuing a judicial career. Ultimately, all magistrates would receive one or two years ofspecialized training. During the 1992 Seminar, a policy decision on the roles of the Ministry ofJustice and the Law School as training centers was reached and coordination mechanisms weredesigned and approved to avoid overlaps and conflicting curricula.

5.89 Tax OfficialS With the assistance of UNDP, the Ministry of Finance Tax Departmentin October 1990 conducted a two-week course to train trainers for the training of tax officials. Thistraining of trainers course was given to 54 participants, all of whom had previously obtained degreesin law, economics or accounting. The trainers will now teach seven-week tax training courses to 22tax officials in Maputo, 20 in Beira and 20 in Nampula.

5.90 The law degree program at UEM includes material related to customs in the "Tax andTariff Law" ard "International Economic and Trade" courses. In addition, the Commercial Instituteoffers the equivalent of a 3-4 year secondary school education with a specialization in customsmatters. Students study the tariff code, methods of production, introduction to fiscal law, basiceconomic and commercial law. Approximately 15 students graduate from this course each year andmost are absorbed by the parastatals (such as the Bank of Mozambique) or by transnationalenterprises, where they work as dspachantes. The Customs Department cannot compete with thesesalaries.

5.91 The Ministry of Finance is considering the institution of an in-service trainingprogram for customs officials in Maputo and in Beira. A proposal for such a course has beenprepared by a management consulting firm. A suggestion for a multinational customs training centerfor all Luso-African nations was rejected as too complex and too expensive.

5.92 Training in Legal Drafting Many of the nation's laws and regulations have beenwritten by non-lawyers and the existing jurists have little experience in legislative drafting. The resultis poorly crafted laws. In recognition of this problem, the Ministry of State Administration held a 10-day course in legal drafting during 1991. The 25-30 participants from various ministries were allexpected licenciados. Further support to the strengthening of contract negotiation and legal draftingcapabilities is forthcoming under the Strengthening Legal Capabilities component of the CapacityBuilding Project, which will finance the attendance of local lawyers to special seminars.

Recommendations

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5.93 Goals for gal Assistance External assistance to build capacity within the legalprofession should be directed primarily toward: (a) creating a group of well-educated lawyers capableof designing and implementing the system of sophisticated law that must underpin the emergingmarket-oriented economy; (b) strengthening the Judiciary; (c) promoting the wide dissemination of thelaw; and (d) building a corps of lawyers, paralegals, and judiciary adequate to ensure the properadministration of justice.

5.94 Strenethening of the Unl Crity Law School The two major objectives of UEMshould be to: (a) to stabilize the Law School by retaining existing professors, employing moreteachers, furnishing teaching materials to the students, providing increased assistance to the studentsand making administration more efficient; and (b) once the Law School is stabilized, create thefinancial, economic and human conditions to increase the number of law students. Urgent stepsinclude the recruitment of more full-time professors to teach in the areas of civil and economic law(e.g., corporate law, commercial law, mortgage law, alternate dispute resolution), as well as ininternational economic law (e.g., the GATT, LOMB, technological transfers, commodity agreements,environmental law, maritime law, etc.). Short courses or seminars aimed at updating the expertise ofprofessors and other lawyers in these areas of law are required, and many are programmed under theStrengthening Legal Capabilities Component of the Capacity Building Project.

5.95 To increase student capacity of the Law School and enable the school to give short,specialized courses for practicing lawyers, additional teaching staff will be needed. The policyreforms and other measures recommended for the University as a whole should have an impact on theLaw School's ability to attract and retain academic staff. However, as it will be some time before thefull effects of these measures will be seen, it may be necessary to recruit additional professors fromabroad.

5.96 There is an urgent need to develop capacity within Mozambique to continuouslyupdate the knowledge of practicing lawyers. As mentioned above, most lawyers have little experiencein coping with the intricacies of a market-oriented system, the complexities of internationaltransactions, or the difficulties of protecting human rights. Courses on these topics should beconducted in Portuguese and taught by Mozambicans to the maximum extent feasible. The LawSchool appears to be the best place to locate such programs, and they could provide a mechanism forincome generation. In other instances, the Law School could collaborate with other programs, suchas the international finance seminars to be hosted by the Bank of Mozambique.

5.97 Paralegal Training To prepare individuals to work as solicitors (persons whoprepare pleadings, notarial registration, etc.) and legal clerks, it is recommended that the Law Schooldevelop a course leading to the award of a bKaharel degree. Such a program could provide severalyears of university credit, should the individual subsequently wish to obtain a fil nciado degree.

5.98 Distance Education IVoluntarlos Programn As the security situation in the countryimproves, there will be great need to increase the access to education for those who live outside ofMaputo. An expansion of the existing voluntarios program would provide a mechanism forachieving, this if sufficient funding were available to provide textbooks, audio and video cassettes, aswell as short lecture visits by faculty members to the outlying regions. Under the Legal Componentof the Capacity Building Project, logistical and administrative support will be provided to legaltraining activities carried out by Law School in the provinces of Nampula and Sofala, including travelexpenses for teachers, audio and videocassettes and textbook reproduction.

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5.99 Jn elg TeachngLearniJnjln MaLtrals The University law library requiresadditional books and periodicals. In addition, there is the need to develop local legal textbooks.Teachers should be granted incentives for this purposes In the form of flnancial remuneration, extratime off, or some other rewards. The effectiveness of the Law School would also be enhanced by theprovision of photocopy machines, computers, audiovisual equipments and other equipment required toimprove services to the teachers and students.

Techniques for Accessing Legal nformation

5.100 Printed legal publications are expensive and tend to become rapidly out dated.There is, however, a more advanced level in computerization which may offer an innovative solution.Plans for the implementation of modem legal information system include: (i) designing techniques forcomputer storage and retrieval of the full text of laws, regulations, case decisions, articles and otherappropriate legal materials; (ii) computerized cataloguing and indexing of library collections for theSupreme Court and the Law School libraries; (Ili) providing a word processing program for thepreparation of legal documents and creation of legal forms, standard clauses and form contracts; (v)tutoring legal secretarles in the use of word processing programs; (vi) training government officialson use of computerized registries; and (vii) training judicial officials on the operation of computerizedmaster clendars and other computerized systems for judicial administration.

5.101 Task Force for Donor Coordination Legal assistance Inputs to Mozambique arebeing made or considered by Portugal, Denmark, France, the United States, Brazil, the UNDP andthe World Bank. Donors do not necessarily know what other donors are doing and their Mozambicancounterparts may not be clear how, or if, the various components flt together. Although eachcontribution can of itself be meritorious, there is an inherent danger here of duplication and waste.Consequently, it is important, in this sector as in others, that a task force for donor coordination beestablished. The WG (para. 5.87) mentioned above would serve as Government representatives tosuch a task force, determine agenda items, and perform the secretarial and reporting functions.

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F. Training In Maggement and Adminiatrtiton

Evaluation of Local Management Talning

5.102 Before summarizing the current situation regarding management training inMozambique, it is important to be more precise about the term 'management training'. Firstly, thereis the need to differentiate between training in specific, professional 'management' areas (such asaccounting, human resource management, statistics and information science) and training in generalmanagement competencies (such as planning, organizing, resourcing, monitoring and evaluating).The former are those areas which could be taught as basic, certificated skills in preparation foremployment within either the public or business sectors. The latter applies primarily to those alreadyworking, who are not necessarily technical specialists, but are responsible for the work of others.Secondly, it is useful to differentiate general training in these management competencies from thetraining of managers in the application of these competencies wlthin the specific legislative,procedural or technical context of a particular sector or organization.

5.103 Using these distinctions, a review of the current 'management' training situation inMozambique exhibits the following characteristics: (a) inadequata definition of the professional skillsrequired in the workplace and a weak infrastructure for delivering the necessary preparatory (pre-service) training. ITis has been discussed in the area of accounting; the same applies to otherprofessional areas; (b) a lack of institutional capability for training in general managementcompetencies. A notable exception to this is CFI, which is perhaps the only training institution opento the general public which offers "management' training. Other efforts are either sectoral (eg CFA,PROFORGE), or project based (eg. the UNDP Local Government Training Project). Within the civilservice, MAE's personnel management development program offers an approach well-suited to thecurrent situation. It tackles both the problem of weak management systems as well as providing amechanism for reaching all relevant civil servants. A coherent strategy for public administrationtraining, which defines clear roles for the existing institutions and identifies gaps in the traininginfrastructure, has yet to be developed. (A sample of the myriad approaches which have been putforth for the provision of management training in Mozambique is offered in the box below.)

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TheNeed for Management Training

5.104 There is a serious shortage of managerial skills and expertise in Mozambique, arisingfrom the lack of pre-independence education and training for indigenous people at all levels and fromthe post-independence exodus of the Portuguese. Educational levels within both the business andpublic sectors are very low. Added to this problem in the civil service is the lack of coherentmanagement systems for finance, personnel, procurement, etc. Whilst there are already problemsunder the current structures of responsibility, the implementation of the Government's plans forsignificant decentralization of authority and responsibility to the provinces and districts will place aneven greater strain on both management systems and the managers themselves.

Local Availability of Management Training

5.105 There is a general absence in Mozambique of institutions structured to meet thetraining needs of administrators and managers. Current institutional sources of training in the countryinclude: the technical schools and institutes under the Ministry of Education; the School of StateAdministration and Law and the Center for Local Government Training under the Ministry of StateAdministration; the Faculty of Economics at the University; and some short-term training coursesoffered by a few of the vocational training centers. In addition, and to fill an identified gap, variousproject-based training activities have been implemented.

5.106 The technical schools and institutes are really educational institutions whereequivalence with the general education system is of paramount importance. The professional trainingcontent of their courses aims at providing basic administrative skills training in such areas as officeorganization, secretarial skills and book-keeping. As mentioned earlier, these institutions suffer froma lack of qualified teaching staff; shortage of books, teaching equipment, teaching aides and furniture;inadequate physical facilities; limited institutional experience; little contact with the needs of theemployment market; and inability to formulate or adjust their curricula. Their future role in publicmanagement training is therefore likely to remain limited.

5.107 The School of Administration and Law, located on the outskirts of Maputo andaffiliated to the Ministry of State Administration, faces problems similar to those of the professionaland technical training schools and institutes. It was established in 1985 to provide pre-service trainingof civil servants (equivalent to basic-level and medium-level technical training) and short-term in-service refresher training for existing staff. As of May 1991, the School had stopped rumning in-service training due to lack of faculty, hostel accommodation and budget and had curtailed otherintakes. The annual grant from its sponsoring agency (the Ministry of State Administration), togetherwith tuition and boarding charges, are totally inadequate to cover running costs. The school lacksteachers, has few, relevant books or teaching materials, its curriculum is out-dated (never revisedsince 1985), student drop out rates are approaching 50%, and its staff are demoralized. The schoolhas neither the funds, experience, nor the authority to make significant changes to its operations.

5.108 The Center for Local Government Trainin was established in 1989 with EEC supportfor a period of three years. It is affiliated to the Ministry of State Administration, under thedirectorate of Local Government, and was receiving technical assistance from a Portuguese consultingfirm. The objectives of the center are to provide short-term, in-service training for mid-levelmanagers and administrative assistants in order to strengthen capacity at this level, in line withgovernment plans for decentralization and greater local autonomy. The center works primarily inMaputo, although there are plans to open branches in the provinces. Courses run for two months andinvolve five modules. The standard modules include basic management tools and ideological content.

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Around 100 individuals have participated in the center's programs, which had a staff of sixprofessionals, half of them foreigners. Unfortunately EEC support has not been renewed as of flrstquarter 1993 and the Center has existed in name only during 1992. Support from Italy and theMunicipal Development program is also being formulated.

5.109 The business management stream of the degree course of the Faculty of Ec Mics att Uniyersity provides the only higher-level education in management in the country. However, asdescribed above, the faculty is currently facing severe problems of its own, and expansion of theintakes to offer new under-graduate and post-graduate courses in management and publicadmninistration will take some time to come to fruition. Such developments will only benefit a snmallproportion of those destined to become public or business sector managers and will not compensatefor the lack of practical, in-service management training for the majority of practicing managers.

5.110 Within the network of vocational training centers;, a few offer courses in managementand administration, some open to the general public, others restricted to employees of the trainingcenters' host organization. Notable examples of agencies that offer management training (as opposedto office administration skills) are the CFA and CFI (see earlier boxes). CFA concentrates ontraining local government officials involved in decision-making for the agricultural sector. CFIfocuses on training commnercial sector managers. As described earlier, CFI has succeeded in meetingemployers' needs and is the only training institution offering management courses to the generalpublic. CFI's potential has been recognized by donors, and it is currently launching a new projectinitiative, involving the opening of a branch in Beira, SIDA support.

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5.111 ft.Bused Training A number of donors concerned at the low level ofmanagement experience for project implementation, have Included management training componentswithin their project' terms of reference. CARE provides training for provincial and district projectofficers in logistics management and supervision of disaster relief operations. Both the First andSecond World Bank-funded Education Projects include management training activities within theMinistry of Education, as does the Small and Medium Business Enterprise Project within the bankingsystem. Somewhat different project-based activities are exemplified by PROFORGE, whichspecializes in training managers of state agricultural enterprises, and a new UNDP initiative toprovide management training to provincial and district administrators.

5.112 MAE's Personnel Management Trainlng A final approach to managementdevelopment is currently being implemented by MAE in the area of personnel management. During1988, MAE initiated an in-service management training program for senior civil servants, but haltedthe program the following year when it became clear that participants were finding it difficult to relatethe training they received to the realities of their workplace. MAE decided that strengthening civilservice management first required the existence of adequate management systems, and subsequentlyturned their attention to an immediate priority - that of personnel management. Since 1989, withfunding from SIDA and the assistance of a Brazilian consulting firm, MAE has been revising civilservice personnel policies and procedures and developing modular training programs for theirimplementation and use. A central technical team leads the efforts, with firther training teams trainedin the regions and within the different sectors. Four Ministries (Health, Commerce, Planning andWater, and MAE itself) have been piloting this integrated systems development and training approach.Following the pilot phase, other ministries will gradually be included in the neawork. In November1992, the Council of Ministers formally approved the implementation of this integrated systemsapproach to personnel management for all sectors. MAE believes that otier management areas wouldbenefit from the approach being used for personnel management. The Ministry of Finance is movingin the same direction in the area of financial manage tent; other areas of priority might includeplanning and statistics, project management, logistics management and procurement.

5.113 MAE's approach has several clear advantages:

(a) The development of the management systems before training ensures that themanagement framework exists for individuals to practice the skills learned in thetraining;

(b) The central technical team is involved in all phases of design and implementation,thereby being well-versed in the content of the training;

(c) The decentralization of training to individual ministries means that a large body ofpeople can be reached faster and at a lower cost than would be possible with a singletraining unit. However, the effectiveness of the approach depends largely upon thequality of the central technical unit. They must be able to participate actively in themanagement system and training design, develop a clear plan and strategy forimplementation, and monitor the implementation of this plan in coordination with theparticipating ministries.

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5.114 Within the English-speaking countries of the region, there are numerous managementdevelopment institutes MDIs) offering long and short-term training for both business and publicsectors. Mozambique makes use of these and sends a number of individuals for training to, forexample, ESAMI in Tanzania and IDM in Botswana and Swaziland. The main problem in makinguse of these centers Is that of language. English language training opportunities in Mozambique arelimited, and the quality of the training is not reported to be high.3l

5.115 A recent SADCC-sponsored assessment of management training institutions (MDIs)within the region concluded that Mozambique did not have a training center that would qualify as anMDI.32/ More recently, the PALOP Program, funded by the Gulbenkian Foundation, SIDA, ILOand the World Bank, is attempting to create a network of lusophone african training institutions. Tlisprogram will focus on three target areas of training - public administration, business administrationand financial sector management (banking) - with one country providing leadership for each. CapeVerde will take responsibility for public administration and Angola will head the banking activities.The Faculty of Economics at UEM has been selected to lead the business administration stream, butthe situation within the faculty is likely to preclude any significant activity within the PALOPprogram for some time to come. The first activities are scheduled for 1992. Mozambique will beable to send participants to any training activities and could share training materials developedthrough the program. It has to be remembered, however, that none of the participating countries yethas a strong base for management training.

5.116 The experiences of UNEDIL (the UNDP/EDI/ILO program to strengthen Africantraining institutions), within which no Mozambican institution is a core member, indicate that whilethe inputs provided through such programs do impact on the capacity of the individual MDIs,programmatic linkages between MDIs is difficult to achieve. The MDIs are in competition - forfunds and for participants.

5.117 For Mozambique, therefore, the opportunities exist to send participants to trainingprograms offered by other institutions in the region, if the individuals can cope with English. Inaddition, Mozambique could request the assistance of a regional training institution to mount coursesin Mozambique. Some of the training organizations, particularly in Zimbabwe, can offer Portuguese-speaking trainers for such activities. Further, Mozambique could contract with a regional MDI toprovide technical assistance to a local institution in any area of training design or implementation.

RecommendAUMQ

5.118 As stressed throughout this chapter, the situation in Mozambique points to the need tostrengthen the quality of existing training activities before attempting to expand quantity. This posesa problem in the area of magement training, since there is very little to build on. However, threeareas of management training could be strengthened:

3J In recent years the British Council has stepped in to fill this gap, providing customizedEnglish language training in specific sectoral areas, allowing the trainees to preparethemselves for field-specific studies abroad.

32/ This perhaps may change in 1993, with the advent of the proposed Commonwealth Capacity-Building Facility for Mozambique.

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(a) At the UniversItyel. it Is iWOrtant that all deee coes include a managmecompnent. As referencM in Chapter 3, employers complain that graduates aredeficient in basic management skills such as problem-solving, work organization andgeneral finance and administration. Assuming that the capacity of the Faculty ofEconomics soon recovers, students from other faculties could participate either incomponents of the business management course or in special programs;

O) Both the Goverment and donors should continue to encourage and suppgor the trendof having lead ministries develop improved management systems and related trainingfor the civil service. However, attention should be given to institutionalizing theseefforts, both at central and provincial/ district levels. For example, the possibility ofinvolving the School of Local Government Training should be explored;

(c) A review of the courses offered at the technical schools nd institutes in relation to theneeds of the labor market in a changing economic environMent should be. caried out.It is expected that this would lead to a definition of priorities for new coursedevelopment and a plan for the implementation of these courses in terms ofcurriculum development, teacher preparation and other material support requirements.

5.119 3The feasibility of deloping a national college of administration and managementshould be, exploQe. The primary role of such a college at the beginning would be to offer short-termtraining (and perhaps technical assistance) to both business and public sectors. Experience elsewherein the region indicates that the more successful colleges are those that have a substantial degree ofautonomy from government and are financially independent. A link with an externaladministration/management institution would be highly desirable, possibly one within the region or aPortuguese-speaking institution located outside Africa. Such a link should be established at an earlystage to assist in the analysis of training needs and feasibility and to develop a strategy and plan forfaculty recruitment and the design and development of training materials.

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Vll. OKIAL Z31M A&%V1A]EE

A. Intrdudilsn

The diletmma of technical assistance Is that it appears indispensablebut difficult to use well. The more a counrny needs technicalassistance the more salient are the conditons that mitigate against itseffective use.WU/

6.1 Given the current shortages of skilled manpower in Mozambique - a country withonly about 3,000 university graduates, 60 lawyers, 350 economists, and 500 accountants - technicalassistance will continue to prove indispensable into the next decade at least. The predicamentMozambique encounters is that the shortage of human resources that justifies high levels of technicalassistance (TA) also prevents government from managing it effectively. Ihe introduction of measureswhich increase the cost-effectiveness of TA and strengthen its impact for local skills development isan essential elemenit of capacity building. Government and donors need to work together in definingguidelines and creating incentives so that TA is used to create the conditions wherein, over time, theuse of foreign expertise is no longer necessary.

6.2 The total cost of technical assistance to Mozambique in 1989 was $246 milliondollars, comprising roughly one-quarter of total external assistance and equal to more than 18% ofGDP. Of this $246 million, about $165 million, was free-standing TA, with the remaining third ofthe resources being investment-related.M/ Development assistance in areas specifically related tocapacity building is highly TA-intensive. In 1989, free-standing TA comprised 71 % of externalsupport for economic management and 82% of assistance for human resources development.Management difficulties arise because this technical assistance is largely externally funded but ismanaged by the Government. Thus, costs are not felt direcdy by the agency responsible formanaging TA, objectives held by the two contracting parties are often in conflict, and lines ofauthority can be vague and ambiguous.

6.3 The challenge for Mozambique is to generate the greatest developmental return fromthis extensive use of TA. Ideally, TA should be self-destructive rather than self-perpetuating. TAshould involve a successful transfer of skills to local counterparts. Innovative contractingarrangements with individuals and with institutions could create incentives for training and specify agradual phasing out of expatriate labor over time. A supportive work environment and the willingparticipation of Government managers and local counterparts are also essential elements in effectingthe transfer of expertise.

6.4 This chapter examines the extent and nature of the use of TA in Mozambique. Atypology of technical assistance is presented in Section B, which serves to clarify the range ofcontracting mechanisms which exist in Mozambique for the use of foreign manpower. Types of TAare also characterized by function, which helps to analyze issues in the use of technical assistance fortraining and human resource development. Section C explores Mozambican policy on TA, focussingon four general areas: the NatCAP exercise; expansion of the Personnel Fund; taxation policy, andthe use of "local" TA. Section D analyzes donor experiences in the area of TA, highlighting best

U/ From World Bank, The Reform of Public Sector Management: Lessons of Experience, ReportNo. SecM91-798, June, 1991, p. iv.

31A UNDP, 1l2evea ent eron RIM, 1989.

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practice approaches to contracting, recruitment, and evaluation that have been emerging in the field,and also noting the points of resistance and constraints which arise in TA management inMozambique. The fifth and final section of the chapter presents a series of conclusions andrecommendations for the Government and the donor community.

B. Profile of Technical Assistance in Mozambique

6.5 A precise count of the total number of foreign workers currently employed inMozambique is unavailable. Estimates vary, ranging from 3,000 to 5,000 expatriates working intechnical capacities in the Government and the private sector. Lack of clarity in the definition of thevarious types of technical assistance; the wide number of financing groups, contracting parties, andtypes of contracts; and limited capacity on the part of government agencies responsible for managingthe flow of funds and information related to TA, all contribute to the scarcity of reliable information.

6.6 One way to better understand the complexities inherent in the management oftechnical assistance is to examine the multiplicity of c3ntracting arrangements. Expatriates(individuals or firms) can sign contracts to work in Mozambique with local parties or internationalagencies. Contracts signed with Mozambican parties can be held by either the public sector or theprivate sector. A further complication is that public sector contracts, i.e., those in which theGovernment is the contracting party, can be financed either by the Government, or by a third party,i.e., an international agency such as the World Bank. International agencies can also contract foreigntechnical assistance to work on their projects, prepare reports and studies, etc., independent of theMozambican government.X/

6.7 For each type of TA, whether or not the Mozambican Government is a formal partyto the contract, contracts are approved and processed through at least one, and usually more,government agencies. For example, all contracts signed by Mozambican entities, public or private,which involve foreign exchange payments, have to be approved and administered by the ForeignExchange Division in the Ministry of Finance. TA contracted by the private sector also needs to becleared by the Ministry of Labor, while Government contracts are the responsibility of the contractingministries. Contracts entered into by international organizations must be recorded at the Ministry ofCooperation. Considerable bureaucratic delays and inefficiencies result.

6.8 Preliminary estimates on financing needs for TA over the 1991-1993 period revealthat the bulk of TA man-months will be used in three sectors: Agriculture (16.5%), Health (28.5%),and Education (24.6%). The cost of free-standing TA in 1991 (excluding extra-budgetary TA relatedprograms and projects, TA to the private sector, and investment-related TA), has been estimated atapproximately USS176 million - a 6% increase over the US$165 million for free-standing TAcalculated by the Development Cooperation Report (DCR) in 1989.

6.9 Lacking conclusive survey results on the deployment of TA in Mozambique, it isnecessary to work with the existing fragmented data on tie number of expatriates employed, and the

&I These categories roughly parallel the modalities for technical cooperation defined by the GOM inits Technrical Co rion Poicy Framework Per, of May, 1990. For free-standing technicalcooperation, these are: Bi - Technical cooperation programmes, projects and activities(expatriates working for international agencies); B2 - Technical cooperation, whether on anindividual basis or not, contracted and paid for directly by the state for public administration;and B3 - Technical cooperation, whether on an individual basis or not, contracted and paid fordirectly by the state for the business sector.

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amount spent on TA. These numbers Indicate that the bulk of expatriate labor employed inMozambique Is under direct contract to the international community:

(a) In 1990, of the more than $210 million spent on free-standing TA, about one-eighth passed through the Foreign Exchange Office of the Ministry ofFinance.2/ In other words, almost 90% of funds going to TA wereprovided by international agencies, with payments made abroad rather than inMozambique.

(b) Of the $25-$30 million paid out by the Government for TA contracts,approximately $10 million went towards 800 individual contracts withexpatriates while the remaining $15 - $20 million financed TA agreementsmade with firms.

(c) Fees to the roughly 800 expatriates working in the public sector, asGovernment of Mozambique contractees, are paid out of the Personnel Fund.Approximately 90% of the total value of contracts flmanced by the PersonnelFund came from two sources: SIDA and NORAD.32/

6.10 The following typology serves to distinguish the various categories of TA byfunction-./

(a) Foreign experts are high-level policy advisors to the govermment. They can either belong-term resident advisors or specialists, brought in for either short-term or long-term assignments, to perform tasks for which no local expertise exists;

(b) Gap fillers are expatriates that are brought in to fill already established positionswithin the government or parastatal sector. In the Mozambican context, these workersare most often known as 'cooperantes". In general, gap fillers perform tasks whichcould be filled by Mozamnbicans, but the combination of labor scarcity, poorincentives in the civil service, and, in some cases, donor-driven hiring practices, hascreated a situation where cooperantes have become an established group within theMozambican civil service;

(c) Gate-keepers are expatriates hired by donors with the speclflc task of managingproject implementation; and

(d) Institutional twins are foreign institutions which have been contracted on a long-termbasis to engage in institutional development with a homologue in Mozambique.

/fiI As estimated by the Commisao Nacional do Plano (CNP), in November, 1990. See"Problematica da contabilizacao de servicos, incluindo Assistencia Teenica na optica da Balancade Pagamentos," by the Direccao Nacional de Plano, Maputo, 1990.

32/ In 1989/90, NORAD contributed 9 million Kr. to the Personnel Fund, while SIDA contributed35 million Swedish Crowns, which depending on the exchange rate, sums to between USS 7 and9 million. According to the Foreign Exchange Office in the Ministry of Finance, PersonnelFund payments amounted to about $9,000,000 in 1990.

aj/ This discussion benefits from the typology laid out in the recent Harvard Institute forInternational Development Paper by John M. Cohen, "Expatriate Advisors in the Government ofKenya: Why they are there and what can be done about it," Development Discussion Paper No.376, January 1991.

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Figure 6.1RUIIUL TIPLD OF 1EUUICL AS AISrIhA KU 1U11E

Trainirg Accountability toFwict lnat Type Effectivene Cost Issues Govt. Hanaers

(if Forefgn Experts * Difficult to fird - Expive, re - If requnted bylocat coaterparts. likely to be tied. by Govt., exceltent.

- Bet in design of If sL*ptiedxytm rather than Laolicited, poor.Individul training.

(ii) Gap-Fillers - Hired to meet teporary - Nost likely to be - O rpy line postsskills shortages, not to untied. within Govt.train perssnnel. - Salary differentials - Unclear lires of

- Heed to inclule training generate resentment authority betmeencatw. In contracts. frmo local couttrports. fiding agency and

Govt. _gers.

Ciii) Gate-keepers - Hired to iwige *wd loptement Often tied. - Can recoend project-demr-furded projects, can specific training, underainingidentify trainiq neds axw formt Govt. training activities.provide training to localcounterprts.

Civ) Institutioal twins - Host conthcive to lorg-term Contract with institution, - Greater accountability, iftraining tinked to institutionat rather than individuat. irdividual doesn't work out,develapment. - ost likely candidates from firm is- resposible. -

tusophone. and thus lou-wage,countries.

- Some risk of applying high-costaed inappropriate internationalstandards.

* This discussion benefits from the typology laid out in the recent Harvard Institute for International Development Paper by John H. Cohen."Expatriate Advisors in the Gowrtumnt of Cerrya: Wly they are there ari what can be done about it," Development Discussion Paper No. 376, January 1991.

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6.11 For each category of TA, there are issues regarding cost-effectiveness andeffectiveness in human resources development and institution building. These are presented inmatrix form in Figure 2.1. Note that the key distinction between these functional types of TAdoes not lie in the professional qualifications of the individual or the type of contractualarrangement, but concerns the role that the TA is expected to play in relation to the localorganization. The basic distinction between a foreign expert and a gap-filler is that theforeign expert offers some type of advisor or training service beyond that provided throughthe normal functioning of Government, while the gap-filler aids in the normal functioning ofGovernment.

C. Government Policy for TA Management

6. 1? The Government has three policy instruments which impact on themanagement of TA: (a) the National Program of Technical Cooperation (PNCT); (b) thePersonnel Fund; and (c) taxation of TA salaries. A further issue, regarding guidelines for theremuneration of local consultants (including policies regarding leaves of absence from thecivil service and salary top-offs for project-related work), awaits the definition of Governmentpolicy.

6.13 The PNCT, approved by the Council of Ministers in May 1990, is amultifaceted progrfm which, over time, will define TA guidelines, gather information andmaintain a databasL on TA usage throughout the country, as well as facilitate the integrationof TA needs into the design of overall institutional development strategies and financialplanning. The PNCT is being implemented by the Ministry of Cooperation in coordinationwith the UNDP NatCAP exercise. The Personnel Fund is the instrument used by theGovernment for hiring cooperantes, or gap-fillers, and is managed by the Foreign ExchangeOffice of the Ministry of Finance. Taxation of salaries paid by international organizationswas instituted in December 1990 by Government in order to introduce a cost element intodecisions regarding TA hiring. The practice of government employees leaving the civilservice to work as consultants to international projects, either full or part-time, is becomingincreasingly common, and the need for formalization of Government policy on this issue isbecoming increasingly apparent. Government action (or inaction) on each of these fronts isexamined in more detail below with an eye towards evaluating the effectiveness of thesemeasures in improving TA management.

6.14 National Program of Technical Cooperation The Government has madeimportant strides in the formulation and dissemination of a national policy on technicalassistance, with a Policy Paper on Technical Cooperation (TCPFP) passed by the Council ofMinisters in May of 1990. The TCPFP establishes a series of guidelines recommending: a)use TA whenever possible for training activities; 5) rationalize and program technicalcooperation, channelling it preferentially towards those sectors which are consideredpriorities; c) promote regular meetings with the donor community; and d) evaluatesystematically the costs and benefits of technical cooperation. These guidelines are beingimplemented through the PNCT, and the component sectoral programs.

6.15 The activities being undertaken by the Ministry of Cooperation jointly withUNDP can be classified into two broad groups: the collection, analysis, and dissemination ofinformation on the distribution of TA in Mozambique, and the elaboration and disseminationof guidelines to aid in directing future investments in TA. Since this program is ambitious in

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scope and the implementation capacity of the Ministry of Cooperation is limited, prioritiesneed to be established within the methodological framework, so as to clarify whichInformation is most accessible, and most relevant to the intended audience.

6.16 Personnel I'und The Personnel Fund, the vehicle through which theGovernment of Mozambique contracts cooperantes, is largely financed through externalassistance. The advantages of the Personnel Fund are four-fold: (a) TA is recruited forclearly defined vacancies within the Government; (b) TA is untied, i.e., can be recruitedworld-wide and is not restricted to any single funding agency's country of origin; (c) TA issubject to standard contracting procedures; (d) flexible donor funding provides greaterautonomy to the Government in establishing priorities.

6.17 If more funding is to be attracted from the donor community in support of thePersonnel Fund, improvements in its management are needed. Interviews with members ofthe donor community suggest that the following issues need to be resolved before increaseddonor support is forthcoming:

(a) Rcuitment - At present, there is no structured recruitmentsystem in place. Norms and guidelines do not exist, andrecruitment of cooperantes tends to be ad ho, often based onpersonal contacts.

(b) Salaries and Benefits - The terms of donor-funded contractsdiffer significantly from those contracts funded by thePersonnel Fund, in particular regarding the provision of fringebenefits, often decreasing the effectiveness of the PersonnelFund in attracting cooperantes.

(c) Time limits on contracts - At present, cooperantes fundedthrough this mechanism can continue indefinitely, and in effectsubstitute for permanent staff. As part of the post description,time-limits should be specified.

(d) i= - The time lag between recruitmentand first payment can be as long as 3-6 months. For donorsto fund TA via the Personnel Fund, payments need to takeplace in a more timely and efficient matter.

(e) Accountability and reporting - Current Governmentobligations to the donors concerning reporting have not beenfulfilled. Uniform reporting procedures for all contributors tothe Fund must be established and upheld at regular intervals.

(f) Sector allocations -- Some donors are likely to insist onflexibility in earmarking a portion of their contributions to thePersonnel Fund by sector, so as to have some correspondencewith the objectives of their overall assistance program.

6.18 Taation Polic- In December of 1990, the GOM published a new set ofregulations (decretos 30/90 and 31/90) governing the tax liability of foreigners working in

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Mozambique, and Mozambicans employed by international agencies. These stipulated thatthese individuals (with certain exceptions examined below) are subject to an income tax of30% on income earned within Mozambique. An objective of the tax decrees was to decreasethe total costs of TA by making public sector entities more aware of the choices they have tomake with their limited budgets and to entice them to search for lower-wcost alternatives.

6.19 During 1991, the Introduction of these tax laws caused great confusion as theirprocedures were gradually clarified. Delays in contract negotiations and renegotiations allcontributed to delays in project Implementation. Because these payments had not beenforeseen during the 1991 investment budget preparadon, the approved budgets in localcurrency were insufficient to carry out full project implementation. Consultant contracts wereshortened, or less qualified (and cheaper) consultants were used.

6.20 In 1992, these tax payments were factored into budget preparation. Theyrepresent from 30% to 80% of the local currency budget in IDA projects, depending on theweight of technical assistance in the project. The implications are that the local contributionto the financing of IDA projects has increased significandy.

6.21 Despite a series of meetings, seminars, and the resolution of project-specificissues, doubts linger among some members of the dowr community, and uncertainty stillexists as to the criteria for tax exemptions. Further analysis by the Directorate of Taxes,perhaps in conjunction with the Foreign Exchange Department, would help to evaluate theimpact and effectiveness of this tax. Questions that need to be answered include: Is the netresult an increase or decrease in the cost of TA to the Mozambican economy? Does it have asignificant impact on the numbers of expatriates being hired? Has it contributed to areduction in average salaries of foreign experts? What is the revenue impact of the tax? Canrevenues received be earmarked for the Personnel Fund or the Salary Incentive Fund?

6.22 Local Consulhnts A natural result of the scarce supply of skilled personneland the heavy demand for informed staff to work on internationally-funded projects has beenthe use of Mozambicans, who may or may not be members of the civil service, as localconsultants. The modalities of contracting Mozambicans run the gamut from full-timeemployment, to salary top-offs for civil servants engaged in project-work, to output-specificpayments to civil servants who perform project-related duties on an occasional basis. TheMozambicans who work as consultants include University students, genuine free-lanceconsultants (i.e. those with no other formal occupation), civil servants on formal leave ofabsence (destacamento), and full-time civil servants. At present, there is no formalgovernment policy govemring the payment of local consultancy fees to civil servants, nor isthere an incentives scheme which explicidy takes into account payments for project-specificservices which fall beyond the call of the nrmal activities of civil servants.

6.23 At the heart of the issue is a severely distorted labor market for skilled laborin Mozambique. Donors are accustomed to paying international salaries for skilled personnel,and Mozambican counterparts who work with expatriates resent the discrepancies betweentheir earnings as civil servants and the remuneration of the TA (which can be as much as 20to 30 times as great). This resentment is compounded by the fact that TA often can onlycomplete their tasks by relying on inputs and informrion from Government staff. Naturally,civil servants want a share of the pie. The large and growing market for local consultants -

fed by demand from the donor community, international firms, and the ever increasingnumber of local consultant firms - has opened greener pastures for discontented civil servants

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who have precisely the skills, knowledge, and experience most attractive to the internationalcommunity. Wage rates for local consultants are further inflated due to the opportunity costof international expers, which includes the cost of travel, relocation, etc.. The result, anongoing bleeding of the civil service for the local consultancy market, which threatens to be averitable exodus.

6.24 According to the Estatuto Geral do Estado, public service In Mozambique isconsidered an exclusive occupation - i.e., no other forms of remunerated activities arepermitted. However, there are a variety of ways for civil servants to "leave" the publicpayroll in order to take on work for the private sector:

(i) formal resignation from the civil service;

(ii) "destacamento", where a civil servant is transferred on a "loan'-basis fromthe current position to another post, where the person is given leave withoutpay for a maximum period of two years, the assumption being that slhe willbe paid by the new employer in the new post. The person maintains seniorityand the right to return to the previous position, which is therefore fflled on an'ad interim" basis; and

(iii) "licencea registada", hereby the person goes on leave without pay with nodefinite time limit, but also without claim to the same post upon eventualreturn - one only is maintained on the roster as a civil servant.

6.25 A number of civil servants are using the "destacamento' rule in order to takea time-bounded leave during which they can take on consultancies. However, this does notfall within the intent of the legislation, which allows for transfers within the civil service. Ineffect, the Government is maintaining a vacant post, something it can ill-afford given theexisting capacity constraints, while the staff member goes off to earn some extra income,being guaranteed of seniority and his/her post upon return.

6.26 Civil servants also take on tasks, paid for by outside agencies, while still inpost. Normally this consists of preparing documents, collecting data or carrying out ananalysis of a specific issue against a fixed payment. The tasks are related to their jobs, andare generated in the interface between a project and its defined outputs, and the publicinstitution it is supposed to support. Distinguishing between project tasks and the regularduties of the specific Govemment agency is no easy task in a country so reliant on externalassistance. For this reason, many international donors, including the World Bank, havespecific prohibitions against salary top-offs, or bonus payments for civil servants engaged inproject work. The rationale is that such practices could lead to situations where the regularwork of Government was abandoned, and civil servants undertake tasks in response to thedemands of the highest bidder.

6.27 The situation is a difficult one. As one consultant has put it, there has arisena conflict between the just and the correct: From the point of view of international donors, itis not coffect for civfl servants to seek extra remuneration for the fulfDilment of their regularduties; deny access to information; demonstrate disinterest in projects for which they areresponsible; not complete their obligations; show motivation only in those tasks which offersome personal benefit; or abandon ongoing tasks when the possibility of paid work appears.On the other hand, civil servants question whether it is ijst that they receive payment which is

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30, 50, or up to 100 times less than foreign consultants; furnish, free of charge, Informationwhich constitutes the basic input for consultants' reports; participate in meetings and seminarswhich often are hidden means to provide assistance to consultants, witiout any personalbenefit; and content themselves with low salaries. And, independent of whether or notexternally funded projects represent the "normal" work of the Government or not, the bottomline is that public servants who are linked to projects end up working much more than thosewho are not. Their willingness to put in the extra effort is directly correlated to the system ofpayment in place for such work.

6.28 The Government has yet to furnish a formal policy statement regarding thisissue, and subsequently, the existing regulation governing the exclusive nature of civil serviceemployment remains in vigor. Nonetheless, public sector employees continue to receivesalary top-offs, take leaves of absence, and, in general, invent ways to receive payment forservices rendered correspondent to perceived rates of the local labor market, without formallyleaving the civil service. While implementation of the proposed Salary Incentives Fund willserve to reduce the variance somewhat between salaries in the public sector and the fees paidto foreign consultants, great discrepancies in remuneration are likely to remain. And, project-related work will continue to demand increasing numbers of local consultants and attentionand information from the staff in the afflliated Government ministries.

6.29 The first step in resolving this dilemma is to get a clear picture on the localmarket for skilled labor, which can be provided through the undertaking of a labor marketremuneration survey, and the disseniination of its results to the donor community andgovernment agencies. This would prove highly beneficial in increasing transparency andcompetitiveness in the market for highly skilled labor in Mozambique. Once the results ofthis survey are available, Government will have the information base ne*ssary with which itcan establish a recommended salary grid for local consultants, as is planned for early 1993.Donors too, can use this information to coordinate hiring practices and curtail consultantcosts. Further steps will be needed in terms of building in performance bonuses into civilservice remuneration schemes. Work has already begun within the Ministry of StateAdministration on developing payment criteria for a scale of project-related activities.

D. TA ManageMent Practices in Mozambigue

6.30 Effective TA management requires: (a) accurate analysis of the absorptivecapacity of the receiving institution and integration of free-standing TA projects intoinstitutional development strategies; (b) strong commitment on the part of the Government; (c)full participation of local counterparts; and (d) careful attention to project design andimplementation issues. Each of these areas is explored further below, with illustrativeexamples drawn from the Mozambican experience.

6.31 Inte ion of TA with Intitutional Devlopment Statees One of themost frequently heard criticisms of TA management practices is the lack of institutionalmemory, both in the borrowing country and at the donor organization. Studies havechronicled the history of successive TA projects over a period of 20-30 years, all with thesame objectives to improve local management capacity, which ignored the experience of theirpredecessors and continued in the tradition of providing a TA band-aid with no long-termsustainability. Information currently being collected under the PNCT for the data base on

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technical coop ration will go a long way towards establishing a comprehensive point ofdeparture for those wishing to base new support to TA on analysis of past performance.

6.32 Areas in which there has been a chronic dependency on TA not only exhibitcontinuing lack of capacity, but suggest that a new TA strategy is needed. The CommissaoNacional de Plano (CNP) is an example of one of these TA-intensive enclaves withinGovernment. Expatriates far outnumber local staff; in 1987 more than half of the slottedmanagement positions were unfilled.32/

6.33 Government Commitment TA is often ineffective in transferring localexpertise or contributing to institutional development because the government does not sharethe objectives of the international agency providing the funding. There are various cases inMozambique of foreign experts contracted for by Government but paid by donor agencies,who left negligible impressions on their colleagues. Accounts abound of expatriates who were"hoisted upon" government departments, contracted to write some study which had little to dowith the immediate objectives of the ministry. As TA is often tied to other projectcomponents which appeal to the Government, incentives exist to accept the contracting of theexpatriate. The tax on TA salaries was introduced in part to discourage Government agenciesfrom accepting low-priority TA because it appears to be cost-less to them.

6.34 General guidelines established by the Ministry of Cooperation are intended tofoster greater Government commitment to TA. These Include: (a) active solicitation on thepart of the Govermnent agency for the defined position; (b) participation of the Governmentin drafting the consultant's terms of reference; (c) clear definition of the output of theconsultant, with strategies for the integration of this output into the overall work plan of theGovernment agency; and (d) when appropriate, the full participation of local counterparts.

6.35 Participation of Local Counterparts Many studies have documented caseswhere TA has been contracted and expected to train counterparts which were never appointedduring the duration of the contract. In Mozambique, there is a growing awareness on the partof the Government that the full participation of local counterparts is an essential component ofsuccessful TA projects. However, the same skills shortages which create the reliance uponTA in the first place (particularly in the gap-filling capacity) engender difficulties in providinglocal counterparts with the levels of training, experience, and education adequate to benefitfrom and absorb the training offered by an expatriate. Due to the limited number ofGovernment employees with formal educational qualifications, it is possible that the TA'ssupervisor and his counterpart are the same person, which creates difficulties for supervisionand evaluation of training. There are also instances in which TA projects do not includefunds to train local counterparts, effectively thwarting the goal of the TA project before itbegins. Low levels of remuneration of Mozambican civil servants compared to the earningsof the expatriates, and the lack of additional incentives based on performance criteria can alsogenerate resentment and create a disincentive for the full cooperation and participation of thelocal counterpart.

32/ Exercicio NATCAP de Mocambique. Background Paper No. 14, por Joao Loureiro,Caracterizacao da Forca de Trabalho e Necessidades em Assistencia Tecnica na ComissaoNacional de Plano. p. 2.

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6.36 A 1990 swrvey undertaken for UNICEF!Q/ recommended that for everycoperanie position in UNICEF or other donors' projects, a Mozambican should be given a

scholarship to study for the relevant education/gualification required for the given post. Othierstudies have insisted on the need for this training to be undertaken p.EiQ to the arrival of theTA. Parallel actions which could strengthen local counterparts include a national scholarshipfind for local counterparts and increasing the salary for Mozambican counterparts over thelife of a TA project. These are further explored in Section E below.

6.37 Project Design and Implementation In the absence f ofi lvouIPJI, it becomes difficult to evaluate TA performance. Contracts which specify the rangeof outputs to be delivered allow for the designed phasing out of the gap-filling function of theexpatriate, and a gradual transition to a supervisory role by the end of thie contract. Someexamples of output specific TA contracts are provided in the box below:

* .n¶toyO <f thein ~4oin1woii sbfopiX etmplye who htkpoedn etortit ihhe> a"'guhmi

6.38~~~~if In # order frT to giMet the jwnob~ don te, awSitbea ttwork uul.tazml is

nede,including T ncnsslareqimnt w sl uc*v hea cmuters,In offilce '~ suppies andfie

maerals mOe yand a copeitv reoruaitmen w pr cedure are eo aplsoan essgential( element of

impove TA mnagmet UICFhalmd sm progress inpr.I sapce htts a this area ethleir prorainvovesthe daftewin h o hf destailcd job nesrriptions fresgpobe fr alntuw positions,peaaino

@0/ Dani ~el E. ot Le a, l~ (b,()ad()acepce o _ cmltdI4nstwat Ml Governmen of l Mozambinu anadvoy 4ap*Itye M puto, n Oc.be 19j0.

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annual work plans, and annual performance evaluations for the 80 odd cooperante positionsthat are jointly funded by UNICEF and the Govermnent.

6.39 The Technical Assistance Component within the Development Programme of the BeiraCorridor Authority provides another example of the degree of attention and detail which mustgo into design of TA components to meet the basic goal of transfer of skills and lmow-how:Detailed terms of reference are provided for each expatriate and counterpart. Lines ofauthority within the executing agency are clearly drawn prior to implementation, and clear jobdescriptions given for all actors. TA are definitivet y put in the role of advisors andcouncilors, decisions are made by Mozambican staff. Minimum qualificatious forcounterparts are identified Ur& to the recruitment of TA, and training provided as needed. Ifnecessary, more qualified staff are contracted to fulfill the counterpart function. This allbefore the TA even arrives. And, during implementation, TA are expected to complete dnilbriefing notes, describing to what extent skills and knowledge transfer took place. Thesenotes are submitted to the team leader who them compiles them in a monthly report.Furthermore, the foreign expert, together with the counterpart(s), fills out a quarterly self-evaluation form which is submitted to the team leader and the Mozambicn supervisor. BothTA and counterparts' job security is dependent upon demonstrating an effective transfer ofknow-how. Finally, the duration of the TA contract is established by the time taken tocomplete the skills-transfer as previously specified, after which the counterpart assumes fiulresponsibility for the specific duties.

E. ReommenAsoi

6.40 If the effectiveness of TA is to be enhanced in the coming years, much greatercooperation among donors, and between Government and the donor community, will beneeded. Donors fund most of the TA and account for many of the problems with TA: thesesame donors must help to find solutions. A series of recommended actions Is given below.

Actions for Government

6.41 Imbroved Managem2nt of the RWonnuljFjud could open the door foruntying donor support to Technical Assistance. SIDA has already provided computers andsome software to the Foreign Exchange Department of the Ministry of Finance, to improveaccounting and reporting procedures. Other needed changes include the introduction of astructured recruitment system, improved contract terms, the establishment of time limits oncooperante contracts, and increases in the efficiency and speed of payments. Given its presentstaffing, the Foreigp Exchange Department does not have the human resources available toimplement these changes. External support will be necessary over tho medium-term.Computers are already in place but software needs to be designed. A member of the ForeignExchange Department should recive training in infotmation technology and informationmanagement, so as to be an effective counterpart for whatever TA is brought in.

6.42 Ianlon liQU A fill evaluation of the probable impact of the TA tax ondeployment of TA, average salaries, total cost, and Government revenue, is suggested. Thisstudy should be carried out jointly by the National Directorate of Taxes ad the ForeignExchange Department of the Ministry of Finance. The possibility of earmarking all, or someportion, of the revenues from this tax to be used by the Personnel Fund, should beconsidered. Mechanisms should be introduced which give Government departnents incentivesto improve the effectiveness of TA in achieving the objectives. One possibility would be to

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give each Government agency a certain budget allocation for local currency contributions toTA salaries, which is increased or decreased annually according to an evaluation of TAperformance, based on output measures defined in the contract of the TA.

6.43 EPCT Prioritization of key components and more rapid dissemination ofinformation would greatly increase the impact of this exercise. Continued support will benecessary to establish strong links between the Ministry of Cooperation and the HumanResources Departments of the sectoral ministries so that the results of the analyses currentlybeing carried out n.der the auspices of the NatCAP exercise can be disseminated as widely aspossible and translated into operational action plans. The Sectoral Donor Working Groupsformed by Government and the donor community in Mozambique could furnish the necessaryfinancial and technical support.

Actions for Donors

6.44 Donors should consider increasing their involvement in the Peornnel Fun .The untying of finding for TA would help in recruiting the lower-cost personnel. Thepossibility of indicative sectoral support should be explored.

6.45 For free-standing TA projects, training and institutional development concernsshould be inmorporated into the design and implementation of TA eoectS. These include:the presence of a qualified counterpart as condition of disbursement; formulating projectswhich strengthen the Government agency's ability to perform project administrative functionsrather than providing TA for this purpose; providing continuity in the use of TA viainstitutional twinning arrangements where there is a demonstrated long-term need; anddesigning TA contracts which are output-specific and call for a gradual phasing-out.

6.46 The establishment of a flexible finding mechanism to provide scholarships andtraining-for local counterparts should also be considered. Conditions of eligibility forreceiving scholarship or training funds would include demonstration that the TA Is in line withoverall sectoral and institutional development strategies; a clearly written and output-specificcontract; and a justification of the need for training which specifies exactly how the trainingreceived will contribute to the effective transfer of expertise.

6.47 The use of technical assistance is a practical necessity, given the currenthuman resource constraints faced by Mozambique. It is important to emphasize that thedonor community is in large part responsible for whatever "problems" exist with themanagement of TA, in that most of the TA, as well as the bulk of the projects, programs, andother activities which require TA in order to manage, implement, or otherwise get the jobdone, are funded by external assistance. When the use of TA becomes an effective barrier fbrlocal skills development, the moment has arrived to take the time to evaluate past fundingpatterns, and rethink the ways in which TA is provided. The above actions, taken together,can contribute greatly towar(ds red lcing the cost of technical assistance, and increasing its roleIn the transfer of skills and institutional development. Technical assistance can contribute tocapacity building, but as has been demonstrated, it can also impede this process. It Is thejoint responsibility of Government and donors to ensure that fiuture reliance on TA is notautomatic and unthinking, but rather carefully evaluated, wnd crafted in such a way so asreinforce local skills development and further the ability of Mozambicans to get the job doneon their own.

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VII. GQVERNMENT - DONOR WG QROUPSO

A. INTRODUCTION

7.1 While the donor community is fully committed to assisting Mozambique'sdevelopment and, in particular, to building up local capacity to do so, many past actions bydonors have actually had the paradoxical effect of weakening capacity, especially of publicsector institutions. The widespread practice of "topping-up" project managers' salaries; therecruitment of Mozambicans to work directly for the donors at salary levels far above thoseprevailing in the local market; the casual hiring of donor-funded TA, without consideringcarefully the associated training of local counterparts; the establishment of autonomous projectunits within Government ministries, staffed largely by loal 'consultants"; the creation ofproject-specific training courses that bypass local training institutions - while intended toaccelerate project implementation, have in a number of cases undermined the capacity ofimportant institutions. Since the donors have thus in a sense contributed to the current crisisof local capacity, it should be incumbent upon them to be actively involved in the search forsolutions.

7.2 The lack of coordination among external donors has been a major factorcontributing to Mozambique's capacity building difficulties. Already over-burdenedGovernment staff spend hours a day providing the same set of information to mission aftervisiting mission. Ad-hoc and uncoordinated projects are developed to solve system-wideproblems, ironically weakening the system-wide capacity to do so. If steps are to be taken toremedy this situation and make a concerted effort to build capacity, the donors must start towork together.

7.3 Donors have been asked to help fund an improved program of incentives forsenior civil servants, for example, at least during a transitional period after which theGovermnent can finance the entire program; donors would also need to agree not toundermine such a program by outbidding the Government in the local labor market. Badly-needed investments in secondary and higher education and in local in-service training will alsorequire close coordination of external funding. The concept of flexible funding to help meetrecurrent spending needs, in the University or in other sectors, depends on donors reachingagreement with Government counterparts on overall programs of support as opposed toproject-specific activities. Active participation in Government-Donor Working Groups canlead to significant savings in information, coordination, and implementation costs, forGovernment and donors alike.

7.4 This chapter describes in detail the Government-Donor Working Groupswhich have begun, with varying degrees of success, to provide fora for sectoral-levelcoordination. The Government-donor working groups were established May/June 1991, tocontribute to the Public Expenditure Review, PER, by assisting in the timely collection ofreliable expenditure and planning data from the donor community. The groups were further-more to serve as a forum for exchange of information and discussion of policy issues ofimportance to both parties.

7.5 To make the working groups more productive, a series of steps have beendiscussed between the Government and the donor community, and it is the intention of both

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parties to Implement the changes during 1993. What follows is a series of recommendationswhich may serve as guidelines for the individual working groups - under the guidance of aSteering Committee - for the development of their work during the years to come. Theoverriding objective of the working groups is to reduce information, coordination andimplementation costs, particularly to Government. This is to be achieved through improvingexchange of information, better collaboration between Government and donors inimplementing development activities, and strengthening the policy dialogue.

B. AGENDA/WORK PROGRAMME FOR TH WORKING GROUPS

7.6 Three sets of tasks have been suggested for the working groups: (i) collectionof statistical information; (ii) discussion and resolution of problems regarding donor-financedactivities; and (iii) presentation and discussion of policies and policy implications.

7.7 Statistical Information The large number of donors with different accountingsystems and disbursement procedures makes it difficult for Government to get a correct andtimely picture of planned disbursements and actual expenditures. The working groups shouldassist the national planning authorities with better forecasts and expenditure reports from thedonor community. A first effort using a "minimum data needs"-form developed by CNP hasbeen tested by one group. It is recommended that CNP review the experience from thisinitial data collection exercise, and, based on this review, discusses with working groups a(modified) data collection effort.

7.8 ErbleM Identificion/Rggolution Many implementation problems arecommon to all externally funded projects (delays In clearing contracts, customs procedures,procurement of major items, etc.), and gains can be generated for all parties if commonsolutions are found. The working groups should identify which problems are amenable tojoint efforts and prioritize them, since such joint resolution of problems requires considerableinvestment in terms of time from both sides. The experience so far indicates that only byworking on practical issues - preferably at the field level but with fairly high-level (political)participation - is it possible to arrive at conclusions/recommendations which really contributeto lowering implementation costs.

7.9 In the Health Sector Working Group substantial efforts have been expended byboth parties. In addition to the concrete results obtained, the process has generated substantialpositive "externalities": the relationship between the Ministry and donors has improved;donors' understanding of the functioning and prioritizing in the sector has improvedsubstantially, leading to a much improved dialogue; mutual trust and understanding --prerequisities for a genuine policy dialogue - have been established.

7.10 There are several areas where Working Groups can act to reduceimplementation costs for Government, and, in the long run, for the participating donors: (i)mutual financial reporting, accounting, and auditing, preferably within a sectoralcontext4V/; (ii) standardization of working relations with central and provincial authorities

IL/ Posiblo i.nclude agring on geneall/nardized finial categorie, for plannn, roing and auditing pu ows (io,donorn begin uwing Germmnt ceegorie to the extent pouible); agreing to one omal but igorous audit a year of projectaccounts by an auditinS compny ageable to all panies, slected on a competitivo bais; etc.

- 127 -

and clarification of flow of funds mechanisms for province/district level activities2/; (iii)improved management of technical assistance, TA43/; and (iv) agreement withGovernment on transparent procedures for payment of extra compensation to civil servantsfor their work on project-related activities.

7.11 Information/Policy Dissemination/Discussion Lack of knowledge by donorsof Government policies, procedures and programming is one of the major stumbling blockstowards better overall collaboration and coordination. This is in large part due to high turn-over in donor agency offices (weak donor institutional memory). At the same time, donorsare constantly requesting updated information on matters such as new regulations, sectorpriorities, status of national programs, etc. The working groups constitute a structured wayfor disseminating and discussing such information.

7.12 Several options exist by which Working Groups can reduce information costs:(i) The Government/working group can organize annually an information workshop for theirsector/area of one day's duration, where basic policies, objectives, projects/programs,experiences are presented in a comprehensive fashion. The primary target group is (new)staff in donor agencies/NGOs who need to familiarize themselves with sectoral goals andachievements. Written information (statistics, policy statements, etc) should be available; (ii)Important Government documents (the budget, the Three-year Public Investment ProgramPTIP, the annual Economic and Social Policies document, the National Reconstruction Plan)should be presented by Government officials when they are made public, for a moresystematic discussion on possible implications for donor programs/activities.

7.13 Joint field visits offer another means for making the most of limitedinformation, and can offer substantial savings of time and energy to local Governments. It isrecommended that the working groups identify one or two areas of mutual interest for fieldvisits, to verify potential benefits from joint field visits. Possible topics for such visits: (a)changes in local-level priorities in light of National Reconstruction Plan; (b) assesspossibilities for modifying implementation behavior in particular areas.

7.14 Joint debriefing of programming missions could be organized by workinggroups for interested donors after major missions have had their wrap-up meetings withgovernment. Terms of reference for visiting missions should include a much greater emphasison information spreading/debriefing.

C. Structure of Working Groups

7.15 Due to time and resource constraints on both the donor and Government sides,the number of groups should be reduced and areas of concentration re-defined in line withcurrent priorities: (i) macro-economics; (ii) agriculture and rural commercialization; (iii)education; (iv) capacity building; (v) health; and (vi) infrastructure (including rural roads andwater).

MI Thb could includc agrmeing on how all parties are to be kept infonned - paticulely by donors when projects come up, arebeing modified, etc; how to get financial mouze down to activity level - how to sructure rolationships not only to sctorlministies but alo to Ministry of Finance and perhaps CNP in guch cae; etc.

Al/ Admintion/management coas per TA dollar spent are high, wasge and duplication exst, so subsdtal avings areposible. A coherent approach based on the Govenment's new policy on technical ausisanc is nweded in all ectors.

- 128 -

7.16 Where they exist, inter-ministerial commissions and "grupos tecnico" orsecretariats should participate in the working groups, as this would provide a clearGovernmental "counterpart" body at the technical-political level. This would both permit theGovernment to take a clearer command of the process, as well as providing a much moredirect route for the Government to evaluate and absorb the inputs from the groups.

7.17 A distinction between levels of donor coordination and participation must bemade. It may be helpful to have only 24 donors, who are willing to dedicate the necessarytime, in a "core" group. The core groups would prepare and organize larger, moreinformational meetings for all interested donors in the sector4A/. For these largerinformational meetings, NGO participation should be considered, since their experience canprovide relevant inputs to policy and problem solving discussions.

7.18 The focal donor should be prepared to contribute considerable time andknowledge inputs to the process, presumably spending time with the authorities discussingissues, allowing for in-depth talks, and providing a low-key, non-pressured environment forbrain-storming on issues where the parties might wish to review alternatives before taking thedebate to a wider forum.

D. Coordination of Working Group

7.19 The Government is responsible for overall management of the groups. Wherethis is taxing already scarce human resources, the focal donor might assist, either in the formof providing additional capacity through consultancy funds, secretarial assistance, equipment,or more directly by the donor taking on tasks such as reporting, preparing documentation etcwith the authorities4l/. Over time, all such functions should clearly devolve toGovernment.

7.20 Management of the groups needs to be improved through preparing agendas,distributing necessary background information, and defining follow-upg/. Agendasshould define responsibilities regarding meeting preparations, better articulate goals, andstrongly direct meetings toward conclusions and concrete proposals, including realisticworkplans specifying how and when certain targets can be attained. Outputs should beprepared focussing on the potential users: Who will use this information? For what purpose?Is the information readily available to the pool of potential users?

7.21 Ouality of the Working Groups contributions can be improved by focusing onfewer issues. In this way, sufficient resources can be dedicated to a limited agenda, ensuringthat the group can produce the best possible result.

44/ An alternatuve/complementary proposal is to croatc omaller working groups on specific issues, where other donors apart fromthe focal donor take a lead in reviewing issues. This is being done with success in one wordcng group, this delegation of tasks onboth donor and government side (different deputments within the ministry) alleviating Xt pressure on the centalinstitutions/persons.

/ The historical precedent is emergency coordination, where UND? played a lead role early 1984, before fis DPCCN late 1984and later CENE took this over - though stll with donor suppott.

_K Distributing a brief ununary in the form of a working document, highlighting impoWrtant points and decisions includingconclusions regarding follow-up, would bh helpful.

- 129 -

7.22 Beyond the improved management of the individual groups, however, a"Steering Committeel consisting of responsible Government representatives and the focaldonors should ensure better coordination of the process as a whole. It should meet at leasttwice a year to discuss the functioning and progress of the groups, looking at the generalagenda for the coming year (summing up meeting after the CG, discussing what might berelevant for the groups to focus on), establishing bench-marks for performance evaluation ofthe groups (number and quality of informational meetings; progress on sector programs;improving coordination of technical assistance inputs to the sector; managed joint visits, etc).This would provide Government with possibilities for better overall management of theprocess, ensuring that the groups focus on issues which are of major concern to Government.

E. onclusions

7.23 The Government-donor working groups are a joint and ambitious attempt atreducing the very high costs of managing an exceptionally large and complex aid program ina country whose administrative capacity to deal with the numerous donors and their highlyvaried assistance schemes is limited. A Government initiative, the donor community hasactively supported the idea, and during this period important lessons have been learned. Inorder to develop this scheme further, a number of steps are proposed. If successfullyimplemented, they should contribute to further strengthening Government's capacity toprovide overall guidance to donor-funded activities in Mozambique.

7.24 Reduction of aid coordination costs is an important task which requires itsown commitments and resources. At the same time, the inputs provided should - as in othercases - be measured against actual results, to evaluate whether achievements are reasonablegiven the efforts made. An (informal) assessment of the working groups' functioning shouldbe carried out during the first half of 1994. If the conclusion is that they have not been ableto atain their over-riding goal of reducing various forms of costs, their future should bereconsidered.

130 -

Annex 2-1

MozambiqueCapacity Building StMd

Salary Increments for Eduction and Health Sector, April 1991

Renumerat on EqULv.1990 Technical Tab*la Vnica including L*tras

DesignatLon BSau Salary Subsidy MZM Letras "bonus" Approx.

Education Sector

Prof. univ. *azoc. 248,390 297,283 545,673 A3 818,509 SuperProf. univ. auxiliar 222,651 306,558 529,209 3t 793,813 SuperProf. univ. lo assist. 188,334 277,171 465,505 C1 651,707 SuperProf. unlv. 20 assLst. 152,302 257,203 409,505 DI 573,307 A2Prof. unlv. a*zlit. eat 118,842 241,384 360,226 31 504,316 32Prof. "An 118,842 241,384 360,226 31 504,316 E2Prof. "3o 95,677 183,068 278,745 G1 362,368 E1Prof. "CO 87,037 46,134 133,171 H3 159,805 L2Prof. "D" 49,909 0 90,648 P3 90,648 P3Prof. "Z" 40,32S 0 54,277 T3 54,277 T3

Health sector

Enformeiro la el.(espocislizado) 103,341 29,630 133,171 M3 159,805 L2Enformeiro Goral 90,531 42,640 133,171 M3 159,805 L2Enformeiro Basico 50,544 0 99,938 P1 99,938 P1Enferm-lro Zlemen. 34,92S 0 54,277 T3 S4,277 T3

Sources MLnistry of FLinano, May 1991

Ceooraphic Distribution of Senior Ctvil Serviceby Level of Educational Achievement, 1959

NotKnow, Primry Secomanry Middle lachelor ticentie Espec. Total Percent

NO. Province I F U F 1 F n f N F N F 11 F N f Ttet

Cap. Central tov't. 33 2 35 2 14 118 120 15 90 16 96 16 14 502 71 3S,3XDim.Cap. Cs e f lO b 3 1 7 a 4 1 1 1 23 31."1Dig. 33 41 1 1t 1 92 25.51Cap. aze 3 6 10 4 1 24 1.SXoff. 37 20 10 67 4.11CSp. ;radmin 2 5 14 2 3 1 2S 21.3XDi.. 25 27 3 I 1 56 13.52Cap. Ixnic I 1 16 5 I 1 2S l.SSDie. 7 14 4 1 26 1.62Cop. Nat. Pew. I S 17 3 6 1 1 2 1 32 S2.31Sf.. 13 1 27 1 10 I 50 43.31Cap. nputs 2 1 4 IS 11 I 1 2 34 22.2 2off. 16 35 19 2 72 4.4XCop. laise 2 7 13 1 3 1 1 27 11.71DI.. 7 20 10 37 2.31SCap. Seatal 1 5 1 21 S 12 1 6 3 1 S4 93.92Di.. 7 Ss 21 4 1 56 S.3Z oCap. Tete 2 6 13 4 1 2 25 1.72Dis. 24 24 7 2 1 50 3.62 ICap. Zdzia 4 4 10 3 2 1 24 1.51OWs. 20 3 3 26 1.61 e Cap. "ADoCW 1 4 27 3 40 4 20 1 4254 13 1* OX

Cap. 0. Centrat O.O1Dig. O.OXC...................................................... ............................................. 0.. .Crp. Totat S5 4 29 3 278 32 220 22 124 1 152 27 17 936 109 64.5Die. Totat 1o 1 269 2 1oS 2 11 I ' 1 s76 35.5X.................................................................................................................................. ...................................................................................

Cru itotat 244 S 356 5 383 34 231 22 125 15 153 27 18 0 1S12 109Percent 15.11 0.31 22.11 0.31 23.62 2.1S 14.31 1.41 7.71 1.11 9.41 1.7S l.X O.OX 93.3s 6.71Cwatltive Percent 15.4X 37.8J 63.5X 79.11 87.9S 99.01 100.11 200.11

Summry I f Total S.........................................................

Centrat Goverumnt 502 71 573 35.2xProvincisl Cop. 434 35 472 29.0XProvincial Dis. 576 7 563 35.81........... .................................... ............. ................... .

Totals 1.512 116 1.62a 100.01

Source: Data provided by Hinistry of State Administration

- 132 - Annex 2-3

Mozambigue Page 1 of 4Capacity Building Study

Geographic Distribution of Total and Higher Level Staff, 1990Selected Ministries and Agencies

Sector: Comiseao tacional Do PlanoTotal QTSD

Provincia tspec. LicenC. Bach. Media Outros Total S S

Central 0 7 a 34 106 155 35.1? 26.51Cabo Delgado 0 1 1 6 6 14 3.2Z 4.37Gaza 0 0 0 10 10 20 4.5Z 5.4:Inhambane 0 1 0 6 LO 19 4.3Z 4.95Kanics 0 1 1 8 27 37 8.4Z 5.4ZMaputo Provincia 0 1 4 9 15 29 6.6? 7.6ZAnpula 0 1 0 16 10 27 * 6.1? 9.2ZNLassa 0 0 0 a 9 17 3.9Z 4.32Sofala 0 1 6 13 29 49 11.1Z 10.8:Tate 0 1 0 1S 19 35 7.9? 8.6?Zambez:& 0 1 0 13 5 .9 4.3t 7.6?Maputo Cidade 0 1 0 9 10 20 4.5t 5.14

..........................................................................................

Total Do Sector 0 16 , 20 149 236 441 100.0? 100.O?

Sector:s lnisterio Das FinancasTotal QTSD

Provincia Espoc. Licenc. Bach. M dio Outras Total Z 2……. .. . . _ ... 0.............................

Central 0 62 17 0 154, 1625 65.4? 66.9?Cabo Delgado 0 1 1 1 67 70 2.9? 2.5?Gaza 0 1 1 1 51 54 2.3? 2.5ZInhambane 0 1 0 2 61 64 2.7? 2.5?Manica 0 1 0 2 61 64 2.7? 2.5?Haputo Prowincia 0 1 0 2 34 37 1.6? 2.5ZAnpula 0 1 2 2 117 122 5.1? 4.Z?miass& 0 1 1 2 56 62 2.6? 3.4?Sofala 0 3 2 4 95 104 4.4? 7.6?Tote 0 1 0 2 63 66 2.6? 2.5?Zambezia 0 0 0 0 72 72 3.0? 0.0?Maputo Cidado 0 1 0 2 33 36 1.52 2.5?

ea. n.e..... a0w a..........................................

Total Do Soctor 0 74 24 20 2256 2376 100.0? 100.0?

Sectoct Hinisteri0 Da AgriculturaTotal QTSD

Provincia tepeC. Licenc. Bach. Hedlo Outroo Total 2 I...... O . ...... a.................

Central 3 56 1 34 9g1 1077 26.1? 56.5?Cabo Delgado 0 4 0 4 130 136 3.6? 4.7?Gaza 0 2 0 a 6U4 694 16.1? 5.9?Inhambane 0 2 0 1 79 82 2.1? 1.8?Kanica 0 3 0 4 229 236 6.2? 4.1?Maputo Provincia 0 5 0 3 242 250 6.5? 4.7?Anpula 0 2 0 0 97 99 2.6? 1.2?Niacca 0 1 0 2 336 339 6.5? 1.8?Sofala 0 40 7 266 279 7.3? 6.5?Tote 0 2 0 4 312 313 8.3? 3.5?ZaabezLa 0 3 0 a 236 247 6.4? 6.5?Maputo Cidade 0 S 0 0 69 74 1.9? 2.9?

.C … SOC - C . . ....... _._....... *. ........ of _ _ ..........

Total Do Sector 3 91 1 75 3663 3863 100.0? 100.0?

-133- Pag 2 of 4

Sectors Ministerio Da nduutrta K EOaralaTotal QTSD

Provincta cspse. LWcenc. Bach. Medio Outrwu Total z 2.. -. ... * ..... ,-* ........ _... .

Central 2 4 1 2 75 a3 36.92 20.5ZCabo Delgado 0 0 0 3 a 11 4.92 7.7tGaza 0 1 0 1 7 9 4.02 5.1?Inhambane 0 1 0 3 6 10 4.42 10.32MAnlc . 0 1 0 3 13 17 7.62 10.3ZMaputo Peovincla 0 1 0 1 13 15 6.7? 5.12Anpula 0 1 0 3 9 13 5.82 10.32Niasss 0 1 0 2 4 7 3.2. 7.72Sofala 0 1 0 2 .2 15 6.72 7.72Tote 0 1 0 2 o0 13 5.8? 7.72ZUmbezia 0 1 0 0 11 12 5.3Z 2.6ZMaputo Cldade 0 1 0 1 18 20 8.92 5.1

.... .. ...... *. .b . ......... ,,,_,

Total Do Sector 1 14 1 23 186 225 100.02 100.Ot

Sector: Mnistserio Do TrabalhoTotal QTSD

Provincia Espec. LL:enc. tech. Medio Outras Total 2 2.a .a,,,,,,,,,,,,,,,,,,,,,,,,,,,,,* . . .............................

Central 0 8 0 7 155 170 30.2. 23.1ZCabo Delgado 0 1 0 1 21 23 4.1Z 3.21Gaza 0 1 0 6 26 33 5.82 10.82Inhambane 0 1 0 1 34 36 6.42 3.12Kanica 0 1 0 3 22 26 4.62 6.22Maputo ProvincAa 0 1 0 3 31 35 6.22 6.2ZAnpula 0 1 0 2 40 51 9.02 4.62Niassa 0 1 0 0 19 20 3.52 1.5:SofeEs 0 2 0 5 43 49 5.72 9.22Tote 0 1 0 2 25 28 5.0? 4.6ZZambezi. 0 1 11 2 29 43 7.62 21.52Maputo Cidade 0 . I 0 3 47 31 9.0? 6.2Z

= ................................ _ ............................

Total Do Sector 0 19 11 35 500 565 100.02 100.02

Sector: Ministerio Do ComurcioTotal QTSD

Provincia Espoc. Liceac. Bach. Media Outros Total z 2… a.-.....…- ....... …-----------2---------, …--- ....... -- -0 ,- _

Central 2 20 6 33 227 288 38.92 41..52Cabo Delgado 0 1 0 6 15 22 3.02 5.1ZGaza 0 1 0 9 22 32 4.3Z 7.32Inhambane 0 1 0 7 19 27 3.62 5.8ZManica 0 1 0 9 23 33 4.52 7.3ZMaputo ProvincLa 0 1 0 3 35 39 5.32 2.92Anpuld 0 1 1 5 37 44 5.92 5.1ZNiassa 0 1 0 4 13 is 2.42 3.62Sofala 0 1 1 4 62 60 9.22 4.42Tete 0 1 0 7 31 39 5.32 5.82Zambezla. 0 1 0 2 29 32 4.32 2.2ZMaputo Cidade 0 1 0 7 91 99 13.42 5.82

… a...... .... . ……… a…..................,,,,,,,,,,,,,,,,..*-*-*e - - .*..............

Total Do Sector 2 31 8 96 604 741 100.0. 100.020

Annex 2-3Page 3 of 4

SeCtor: MinisteriO Do Administracao EtttalTotal QTSD

Provincia Espec. Licefc. Bach. Medio Outros Totsl I. ..... .. ..... _... ..... _.,_......... ..... ... .. ... . .. . . .. . . . ...Central 0 a 5 192 112 317 5.4? 37.5?Cabo Delgado 0 0 1 27 596 626 10.7S 5.1:Gaza 0 1 * 29 344 375 6.4? 5.72Inhambane 0 1 21 509 331 9.1? 4.02Manics 0 1 0 29 402 432 7.4? 5.5ZMaputo Provincia 0 I 0 26 270 297 5.1S 4.9ZAnpul 0 1 0 5O 778 637 14.3? 10.8?Niassa 0 1 0 34 632 667 11.4? 6.4?Sofala 0 1 4 37 664 706 12.1Z 7.7?Tete 0 2 0 is 406 427 7.3? 3.5?Zambezia 0 1 0 26 442 471 O.1? 5.3?Maputo Cidade 0 0 1 19 134 154 2.6? 3.7?

...... _....... ..Total Do Sector 0 17. 12 510 5293 5040 100.O 100.0?

Sectors Ministerio Dos Transportes I Commicacso. Total QTSD

Provincia Espec. Licenc. loch. Mcdio Outros ot4l I… _.. ................... .. ....... .

Central a 65 53 146 590 692 62.3? 85.5?Cabo Delgado 0 1 0 3 6 10 0.7? 1.2?Gaza 0 1 0 1 42 44 3.1? 0.6:Inhambane 0 1 0 4 . 90 95 6.61 1.5?Monica 0 1 0 10 19 30 2.1? 3.Z2Maputo Provincia 0 1 0 3 7 t1 0.0? 1.2?Anpuls 0 1 0 2 9 12 0.0? 0.9tNiasts 0 1 0 1 15 17 1.2? 0.6?Sofala 0 1 0 6 139 146 10.2Z 2.0?Tete 0 1 0 1 30 40 2.0S 0.6?Zamb.zis 0 1 0 5 103 109 7.6? 1.7?Maputo Cidade 0 1 0 3 22 26 1.6? 1.2?

._. ........ .... ......... . 0.......

Total Do Sector a 96 53 107 100s 1432 100.0? 100.0?

Annex 2-3-135 ~.Pg4o

Sectors UnLversLdade Eduardo MoandlaneTotal QTSD

ProvLncia topec. LLcenc. Bach. medio Outro. Total z z

Central 0 10o 0 95 1447 1643 100.0S 100.02Cabo DelgadoGazaInhambaneManic&Maputo ProvinclaAnpulaNia saSofalaTetZambeza,Maputo CLdade,,,,,,,_,,,,,__,,,_,,,,....0......... ........ ........................... ........ .0 ..............................................

Total Do Sector 0 101 0 95 1447 1643

Sector Ministcero Da CooperacsoTotal QTSD

Provincia Espec. Licane. Bach. Medio Outros Total S S

Ccntral 0 2 3 7 62 74 100.0 100.OZCabo DelgadoGazaInhambaneMancesMaputo ProviaciaAMpulaliaise

SofalaTete

aub.bziaMaputo Cidado

a...0........ ..... a....... ..................... ...........0.

Total Do Sector 0 2 3 7 62 74

Sources data provided by the uisLltry of State Administration

Senior Civil Service: Age and Sex Structure, 1989

S. 1. (19 19-25 26-30 31-35 36-45 46-55 56-60 160 TotalaIencWNinistry n V N F U F N F H F N f H F N F N F U f....... ............ ...... ........... ............................ ............................................................. . ..... ....... ... .............................. .....

Preidqy 2 1 2 7 2 9 2 20 5Agriculture 3 4 IS 2 14 3 5 41 S1N1d. a*ric. 1 3 1 5Cotton 2 2 4 2 2 10 2

CaIw 1 4 1. 1 7EI atin 32 2 4S 2 67 3 683 23 4 2 1 237 20SETEP 7 2 3 2 1 12 3UIp. Ed. I S 3 2 11Culture 2 1 4 1 S 1 4 2 1S SIid. & 8 rtw 1S 2 10 1 6 3 1 36 2fIueiie 2 1 1 166 6 2 a 4 1 1 25 14cmrce 3 9 4 20 1 1S 6 1 53 6Truuimt 1 4 8 2 17 1 9 1 2 42 3S.E.A.C. 2 1 3 nPb. ts & Sin 1 2 S 2 17 1 30 4 12 1 68? Justice 3 3 2 1 1 10 1: XPIwning 2 3 6 20 1 13 2 3 49 3 to wCoprative SI 31 S 1 1 1 2Finrnc 2 13 1 25 3 13 1 59 4State Ain. 93 1 1 2 1 49 100 1 128 S4 6 1 4343 P n

1im 1 6 2 14 20 4 6 47 6 :2 9 32llimr. aes. 7 b 2 9 3 1 27 3 ons

lleItth 6 2 1 1 7 1 1 23 3 265 16 6 2 97 13 uFor. Affirs 1 3 11 1 13 1 12 2 2 442 2Infos_tion 1 2 3 1 10 2 is I Interior 1 2 16 6 1 28N.0.U. 3 * 2 5Samity 4 6 27 12 1 2 511 Eat. Assably 1 4 1 2 1 1 1 9 2Prim Ministw 1 1 3 4 1 3 12 1SE AuT. . 1 2 a 7 6 24Swr_i Cowt 2 1 3Prec. S. Sup. I 1 2U.. 1 1

3.P.0. 1 2 2 5..... ........ ... .... ... .... ._...... ........... ..... ...... . ..... ...... .... ...... .... . .... .... ...... ........... ............ ....................... ..... ..........

Total 10 7 2 1 21 2 190 21 426 25 472 43 210 11 23 1 17 1 1525 113

Percent 10.4S 042 O.1X 0.11 1.3 0.1X 11.6" 1.3S 26.02 1.5 28.6X 2.6S 12.82 0.7S1.4X 0.1X 0.7X 0.1X 93.1S 6.9SCuuInative Percent 0.2: 1.62 14.5S 42.0X 73.4S 86.9X 88.4X 89.12 100t l3

Source: Oats Provided by Ministry of State Achinistration v.

_-137 - Annx 2-5

MozambiaueCapacity Bu1lding Study

Senior Civil Service by Length of Service

Ycers of Service

5.1 '3 3-5 6-10 111s 16.20 21-25 t25 TotatAgency/finfstry N F N F N P N p N F P N N F N f............. ............................................ .......................

Presidency 1 2 2 5 1 2 1 3 1 52 20 5Agriculture 2 1 2 3 10 12 4 9 1 2 41 5Hydr. Agric. 1 1 1 2 5Cotton 2 2 1 4 1 1 1 10 2Cushew 4 2 1 7Education 34 2 2 1 32 96 6 40 7 1t 4 15 237 20SETEP 3 1 2 1 6 1 1 12 3Phys. Ed. 1 2 5 1 1 1 11Culture 1 1 2 1 1 9 2 1 1 1 15 5Ind. & Energy 21 1 2 4 1 7 11 1 36 2Fisheries 10 3 5 5 2 1 2 2 5 3 1 25 19Commerce a 4 6 10 3 17 2 5 2 11 53 6Transport 4 2 1 1 3 1 14 1 9 1 6 42 4S.E.A.C. 1 1 1 3Pub. Wks S Son 3 5 1 3 13 2 23 3 6 1 7 6 666Justlce 1 1 3 3 1 1 10Plannlng 6 6 7 14 2 12 1 1 3 49 3Cooperative 2 2 1 2 6 1 3 1S 3FInance 4 1 1 24 3 14 7 9 59 4State Adm1n. 131 1 14 15 1 67 105 54 1 24 24 434 3Labour 2 2. 1 6 1 19 3 11 1 3 1 3 47 6

inor. Res. 5 1 13 1 6 2 1 1 27 3Health 7 1 1 13 13 2 25 4 17 3 9 1 121 9? 13For. Affefrs 2 1 6 28 2 2 5 44 2informotion a 1 2 1 5 1 1 16 Iinterior 3 23 2 26M.0d4. 4 1 5Security 3 9 39 1 51 1Not. Assa bty 1 2 1 5 1 1 9 3Prife Mnister 4 1 6 1 1 12 1SE AN?. CONS. 2 3 19 24Supreme Court 2 1 3Proc. S. Rep. 2 2U.N. I .P.OD 2 1 2 5

.................. ...... ................................................................... *

total 267 53 10 70 6 226 19 537 41 189 16 26 101 4 1525 122

Percent 16.26 0.5S 3.2$ 0.61 4.31 0.4X 13.7X 1.21 32.62 2.51 11.51 1.01 5.01 0.fi 6.11 0.21 92.6S 7.41Cumulative Percent 3.6L 6.4X 23.32 56.41 70.9X 76.31 t.0.7 100.01

Source: NInlitry of State AoinlstratIon

- 138 ^ Annex 2-6

MozambiqueCapacity Building StudyZ

Higher Level Staff by Level of Educaional AchievementSelected Ministries

Total OTSOMinistry Espec. LICmnc. each. Ndio Outros Totol S X............................. .............................................................. .. .,,......, Comisaso Neional Do Plano 0 16 20 149 256 "41 2.6% 10.2XMinfstarlo Doe Finanes 0 74 24 20 2250 2376 13.0% 6.5%Minhstorlo De Cooperaiso 0 2 3 7 62 74 0.4% 0.7%MInisterrio 0 Agriculturs 3 91 1 75 3663 3833 22.3% 9.4XNInfsterio Do kdufnftrecooEs U tl 0 17 12 510 5293 $540 34.0% 30.2%

Ministerio Oor Tranportes. Comuic a 96 53 16 1OJS 1432 8.3% 19.0%Ministerio Do Indu teo* Enorgfo 1 14 1 23 166 225 1.3t 2.2%Minfsterio To rblho 0 19 11 35 SOD 565 3.3% 3.6%NInasterlo Do Con rieo 2 31 S 96 606 741 4.3% 7.6%Universidad. Eduardo Mondlon 0 101 0 95 1467 1663 9.6X 10.6%

...............................................................................

14 461 133 1205 15357 17170 100.0%X loo,%

Sourct Data tupplied by Ninistry of State Adiniotration

- 139 -

Annex 2-7

MozambiqueCgaci1uidian StudX

Qualifications for Senior Civil Service Posts

Letra Position Academic Previous Post Experionce------------------------------------------------ _-------------__-----------

S1 Director nacional Liconciatura/ Tocnico superior/principalbachozelato/ de adminietracaonivel modio Tocnico A or B (Lotra E,G)

El Chef, do departamento Nivol modio/ Tscnico de administracao 1/2(central) basico Tecnico 3 or C (Letra G,M)

I1 Chef. de roparticso Nivol modio/ TScnlco do admlnistracao 1/2(central) basico T.cnico B or C (L*tra G,M)

N3 Chefs de s.ccao Nivel modio/ Tocnico do administrecao 2(central) socundarto Toenico C or D (Lotra M,P)

El Director provincial Nivol modio Tocnico principal doadministracao

Tocnlco B or C (Lotra D,M)

Ni Cheto do dopartamento Nivol Toenlco do administracao 2(provincial) socondarbo Tocnlco C or D (Lotra M,P)

'3 Chef o do roparticao Nivol Tecnico do administracao 2(provincial) sacondarbo Teenico C or D (Lotra H,P)

G1 Chef. do soecao Nivel Primoiro/bogundo officialdo a*dministracao

(provincial) socundarlo TScntco D (Lotra P)

Pi Director distrital Nivol TScnico do adminietracao 2socundario TScnico C or D (Lotra M,P)

Si Choto do soccao Nivol Segundo official deadminhmtracao

(diatrital) socundario Tocnico D (Lotra P)

- _ , _ _f . ___ _ _en eee _cn_________________________s__

- 140 -

Annex 2-8

Mozamb igueCapacity Building Study

Estimated Budgetary Impact of Staff Retrenchment

Redusco de 35.0OX do pussoatnos nivje asinaldos

...................................................................................................

uANTIDADES cusTo POII LETRA........................... .......................................................................

1 2 3 7 red 0 t 2 3 TOrtAL

2 7 9 1,203,210 0 3,619,714 5,022,924214 39 253 113,250.752 19,656,;39 0 132,907,09179 1 33 113 36,776,496 443,357 13.934,090 51,153,943

139 2 2 143 56,921,193 780.009 742,"6 58,444,0695S0 96 354 1030 208,931,115 32,94,954 1S5,664,422 357,530,491

2 2 633,755 0 0 633,75567 40 597 704 18,675,911 10,618,855 150,939.439 1860234.205

0 0 0 0342 1 2 345 73,767.48' 205,423 391,282 74,364,19862 143 478 60 11,763,769 25,640,537 62,262916 119,867,22331 26 4 61 5,174,072 4,132,099 605 553 9,912,52331 1 32 4,551.435 0 133,171 4,6,606

555 595 5049 61" 71,679, 6 7,16,361 591,"5,450 736,331,435535 165 704 1404 60,7816 1753,062 72,545,65 151,160,564

1035 1539 656 11140 5996 103,481, 146,439,013 776,459,379 1,026,360,106152 3 14 169 13,362,6 251,176 1,116,349 14,730,22045 39 6 3,479,997 0 2,735,S99 6,215,595

152 7 20 179 10,340,127 453,514 1, 34.053 12,027,6941161 1941 2976? 33269 95,411,667 110,620,204 1616,761,091 1,620,794,962739 695 604 2038 38,900,605 34,642,526 28,66,489 102,581,622632 877 628 2537 36,525,955 36,675,696 34,776,176 11,97,02

2269 35 142 2460 93,237,737 1,357,766 5,24,332 99.61,6543035 S959 420 9414 5069 106,42,469 203,357.700 13,6.750 325,746,919

~~~~~~~~~~...... ..... ... &....... ......... .00. ............

12,479 12.164 47,61 72,294 11.06? ,1U67,55,"60? 721,649,a37 3,513,320,976 5,402,564,21

6,30,632,611teJce

I m velou: 726,068,398iunletpIc 0.45 13.47635 ADMUIED 691,929,99?

- 141 -

ANNEX 2.9Pase 1 of 6

MozsmbiguaC&PacitZ Building Study

Perfozunce Evaluation Format Currently Being Introduced in Ghana

Performance Objectives

Nmoe. ............. Grade .. . . Division ...

Set out below the purpose and main duties of your job.T.y to set the duties out in order of importance under a number ofheadings. Do not forget staff management and trainingresponsibilities.

Job Title .......... ................ . ............. . Percentage

List specific objectives.These should show what you are expected to do and how well. For someparts of your job this may be in clear cut terms, e.g., quantity,cost, target dates. But other objectives could be about how the jobis done or the *ffect on other people. Be as speclflc as possible,so everyone is clear how you are to be assessed. So not set toomany objectives - 4 or 5 may be enough. Be realistict they should bepossible but a challenge.

Give a broad indication of the resources you manage and any changesyou plan.Only a broad Indication is required. Examples Include the totalnumber of staff you are responsible for and how mny expenditureyou advise upon and control directly. Are you planning changes toget better value for money?

- 142 -ANNEX 2-9Page 2 of 6

STRICTLY CONPIDENTIAL APPENDIX 'A'

SENIOR STAFF PERFORMANCE APPRAISAL

.*_.-------…-------------------------------------------

1. PERSONAL INFORMATION

Surname ------------------- Mr/Mrs/Miss Other Names ------------_-

Job Title -------------------- Date of Birth ------------

Present Grade --------- Date of Appointmentto Present Grade --------

Department… ------------------Region -- e-------------

District -- e-----------

Period of Report from -------- to -----------------------

GUIDANCE NOTES FOR COMPLETION OF PERFORMANCE APPRAISAL FORM

OBJECTIVES

The main objectives of performuance appraisal are tos-

(a) review the Appraise's performance and assist him or her toimproveg

tb) set work objectives for the following year; and(c) discuss the Appraise's future development including potential

for promotion and training requirements.

USE OF THIS FORM

The key element of performance appraisal is a structureddiscussion or interview. Thli performance appraisal form should be usedto help structure the discussion, to ensure consistency and to provide awritten record of the discussion.

THE APPRAISAL PROCESS

The performance appraisal process is in three parts.

Before the Interviev - The Reporting Officer shouldt-(i) give notice to the Appraise

of the interview,(ii) consider previous objectives

and the Appraise'sperformance,

(iii) complete section 2 in draft,

- 143 -

ANNEX 2-9Page 3 of 6

(iv) provide a copy to theAppraise before theinterview.

- The Appraise should:-Ci) review his or her performance

and list the mainachievements,

(ii) prepare for the discussions ofthe Reporting Officer'scomments.

During the Interview - The Reporting Office andAppraise should:-

(i) discuss performance openlyand frankly,

(ii) complete sections 2, 3 and 4.

After the Interview The Appraise should recordany coaments on the appraisal,including areas ofdisagreement. in Section 5.

- The Reporting Officer andCountersigning Officer(normally the Reportingofficer's direct manager)should record coments and anyaction agreed with theAppraise in Section S.

- 144 -

ANNEX 2-9Page 4 of 6

2. REVIEW OF PERFORMANCE

(a) Meeting ObjectivesHas the Appraise set the objectives agreed for the period

DESCRIPTION OF OBJECTIVES COHMENTS ON PERFORMANCE

1.

2.

3.

4.

(b) What is Your Assessment of the Appraise's Performance ln the PastYear?1 a outstandLng 2 * performance well above requirements3 - performance meets fully the normal requLrements4 - performance does not meet requirements, some improvementnecessary 5 * performance not acceptable

I 1 1 2 1 3 4 l5 CMMENTS

TECHNICAL SKILLS AND JOB KNOWLEDGE

(specify main technicalskills or dotles of thejob)

WORK ACTIVITY

. quality of work _

. output of work. ubnerpy to work

under pressure

KANGD3T AND ADHtNISTRATION

. overall judgement. adminLitrative sklls. abliLty to plan andorganize work

. ability to motlvateother staff

. ability to Initiateand Innovate

_ 145 -

ANNEX 2-9Page S of 6

1 2 3 4 5 COMM)NTS

COMHUNICATION

* oral coimunication• written conmunication* ability to train and

develop subordinateo

WORKING RELATIONSHIPS

* ability to get on withother staff

* ability to gain respectfrom others

* ability to work wellwith the public

OVERALL PERFORMANCE RATING FOR THE GRADE

______I.I.I_ __-__3 FUTURE DEVELOPMENT

(a) Training and Development NeedsIndicate any specific training needs identified to Improve thethe Apprasle' perfoNmnce in the present job or to preparethe Appraise for a future post.

(b) Promotion AssessmentAssess the Appraise's potentlal to perform the duties of the

next grade, taking account of the assessment of performance insection 2 above.

likely to not ready forPlease should be suitable be ready promotion for unlikelytick promoted for for at least 3 to beone as soon promotion promotlon years promotedbox ---- as in 2 to further

possible 3 years

- 146 -

ANNEX 2-9Page 5 of 6

4. SITTIN OBJECTIVES

Agree vith thg Appralse no more than 4 key objectives for the nextperiod. Wherever possible quantify these objectives.

'1.

2.

4.

5. RXCORD OF APPRAISAL INTERVIEW

Appraise's Co ments

-Reporting aOffacasss aomss

Signature Date

Ceportgin Officere' Come etn

a a a a aeais.Caai.lS.... a a...

Nam in Capitals Sipgnaure Date

Countersigniu Officer' Comments

~~~~~* .e .a..a.aaa_ aa_s aa ._a _ _ a

N"ae in Capitals Sig,nature Date

147 -ANNEX 2-10Page 1 of 3

MozambiqueCagac it Buildins Sttdv

Note on Selection Strategy for Housing Scheme

There are basically four possible approRches to the identificationof indivLduals to be selected for participation in the proposed housingconstruction or purchase loan schemes

(a) on the basis of merit, confirmed through a systematicperformance appraisal system;

(b) on the basis of classifying certain positions as being ofspecial significance, or involving responsibilities over andabove these normally associated with the position;

Cc) on the basis of more subjective, informal appraisal bycolleagues and superiors of their contributions to the workof a department or division;

(d) by lottery.

It is the case in Mozambique that, while the introduction of asystematic performance appraisal system as part of the ongoing programfor the reform of pay and grading structures in the civil service, isunder consideration It is not yet in place. In some of the parastatalsa weighted evaluation scoring system Is In operation and it could beused as a selection mechanism. Until the Civil Service scheme is inplace an alternative mode of selecting participants in such incentivemeasures as the proposed housing schome would be more appropriate.

The second option -- that of ldentifying; positions carryingresponsibilities warranting the provision of a special incentive packagefor the postholder -- Is not recomnended either. In this case there areseveral foreseeable problems that It would be better to avoid. First isthat there is no objectively neutral means for designating some posts asmore meritorious than others; any attempt to do so will provokeresentment. Second, when lt is the deslre to recognLze specificindividuals the effort to do so indlrectly Is cumbersome anddemoralizing -- lessening the signLfeicance of the recognition anddemeaning lts value In the eyes of the recipient. Third, the indicatedintention and need Is to relate an Incentive package to speciftcindividuals who occupy posts of different level, seniority andresponsibillty and to make that Incentive package 'portable, in thesense that It would not operate as a disincentive for promotion ortransfer. Similar problems erise concerning the objectivity of aselection made under option 3.

For this reason it is suggested that, pehding the implementationof a systematic performance appraisal system, participants In thehousing scheme be defined to include all serving officers at pay levelsB and above. This particular group of senior officers totals some 1,S00and the housing scheme might assume that about one-half will wish to

- 148 -ANNEX 2-10Page 2 of 3

take up this option; the other half are assumed to elect the option ofpurchasing the Government-owned housing they currently occupy.

What is suggested is that all officers in the group be surveyed todetermine their interest in participating in such a scheme. Assumingthat there are more interested than places available in each year, 150in the illustrative example in attached Annex table, the actualparticipants each year would be selected by lottery.

For illustrative purposes it is assumed that there will be 750eligible, participating officers. These would be selected at a rate of150 per year. All would be included over a 5 year period. The valuesuseu in the illustrative example assume an average unit constructioncost of US$30,000; this value is in the lower middle range of costssuggested by various authorities and may well be far from representativeof actual conditions. On these assumptions donor support totalling someUS$22.5 million disbursed over a 5 year period would be required.

Beglnning in year 6 payments by beneficiaries would be used tofinance additional housing units at a rate rising to 20 per year at year11 of the revolving fund scheme.

Reference Table 1, Annex D.

- 149 -

ANNEX 2-10Page 3 of 3

Annex D

Illustratliv Scheme for Financing:Housing Construction or Purchase

Cost in Cumulative PaymentsYear Units /000 US$ Inventory /000 US$_____ . _ __.. _. ... … --------------------------- ____ -____------_-_

1 150 4500 150 02 150 4500 300 1203 150 4500 450 2404 150 4500 600 3605 150 4500 750 4806 34 1029 784 6007 17 514 802 6278 18 538 819 6419 18 550 838 65510 19 562 856 67011 20 574 876 68512 20 587 895 70013 20 600 915 71614 21 614 936 7321s 21 628 957 74816 22 642 978 76517 22 656 1000 78218 22 671 1022 80019 22 686 1045 81820 23 701 1068 83621 24 717 1092 85522 24 733 1117 87423 25 749 1142 89324 26 766 1167 91325 26 783 1193 934

................... -..-............... O....... _ __ e_____.___ .. _._.._

Assumptionsa

1. Housing unit average cost of construction - US$30,000.2. Average salary in senlor civil service assumed to be US$2,800.3. Repayment over 40 years at 35Z annual salary/year.4. Housing all vance at 20Z basic selary - more than half payments.5. Payments Include Interest and principal but interest forgiven.

provided conditions of Recommendation 22 are satisfied.6. Donor financing required * US$22.5 million over 5 years.

MozambloueCayacitv Building Study

Ministry of Education: Dlrectorate of Plannin!

Enrollments.-by Province. Level and Sex 119901

Province 3P1 EP2 ESQ 2PU

V HF F MF P NF V Mr

1 C. Delgado 42,487 193,002 1,586 5,940 207 1,4242 Gaza 62,316 130,636 4,243 9,090 545 1,220 32 1843 Inhamban 63,892 138,507 5,459 12,728 595 1,8424 Manica 23,703 57,617 1,843 5,721 259 1,248s Maputo 48,196 99,417 4,397 9,138 667 1,4776 Kampula 75,873 194,919 3,912 14,328 625 3,131 116 6087 siauma 17,797 46,075 1,110 4,388 197 1,084B Sof-la 37,803 89,234 4,293 12,493 699 2,571 101 490 9 Tate 20,238 47,168 2,120 S,327 434 1,23510 Zab6zia 73,11? 198,105 3,331 12,320 610 2,418 64 34!11 Maputo Cley 77,486 155,538 12,991 25,247 3,718 7,226 707 19720

TOTAL 542,908 1,260,218 45,285 116,718 8,556 24,876 1,020 3,343

ZPI igrades 1-55: Provisional data. 04/17/913P2: 6 and 7.350: gradbe 8 and 9 of 53 and grade 9 of AS.enP: grad.. 10 and 11.

Cavac ty Eutidin Stud,Ninietrv oggEducatlon: Dirorate of Plannina

General Secondsry Educationareakdown of S&Htuets.b roi. Grade and iez farn Sit October 2. 19901

enino ZShLfts March 1990 Survey

MulT M am93 ~ ~ ~S s E C1 oaI S M 7 3 9 1i 11 iaiala

F 1C 11t f 0 b It 0 6 6 3X FM 29.2 A. 6.? 0.6 6.0 6.6 3.6 23.1S STUDES MUM: tOTE, ".1 U.4 6.0 0.6 6. 6.0 0.6 6.6TOth1 tUlt CLAZUS M OM 2 4 * 0 O * * S CLAMZITUTAL 33.3 6L .6 6.6 6.0 66 .0 6. .6

AKu m 3S n wSnKTS S P R 0 6 C O O Ss u2 GM vF 33 412 ml In 34S a O 1747f 124 211 179 13 123 0 *I 4 0.9 2. 47.6 4.6 33. 6.0 0.6 .STUDNS sM UM.: TOTAL 1. 2A 21. 17.S it.? 6.0 0.0 6.TOTAL muil OF MA= 54 MB U 7 I* a 7 a 40S CuSIM,y 17.5 3.6 23.6 17.S 23.6 6. 6.0 660&wUM t w SIUtus KR aASS 43 41 4T 43 43 0 * 43

o |*5S

3 WI 430 45S 240 217 21t a 0 115F IS0 33 to7 n 0 0 omrim 37.2 47.0 41.? 35.S 31.7 0.0 0.0 41.1Z Sius PU CIE: MAL 24.6 3.9 13.7 12.4 12.5 0.0 0.0 0.TAL11MKff0.CLAS M gM 7 I3 4 4 4 0 a 32S CLASIMTAL 21.9 40.6 12.S 12.S 12.5 0.0 0.0 0.0

MWial K O SIWIS M aM 61 4 a0 St S4 0 0 S64 1CA g at at 353 Ila 13 34 3192I 3 117 a a3 24 12 6972 FlU 21 7 3.6 IL.* 24. 24.2 17.6 13.6 21.3S SXIWI TIVgm; TOTAL :0M 27.2 1.? 11.2 S.6 43 2.0 0.O

TAL UUD OF CUS fMO 22 21 1T 9 S 3 2 itS CLI$STOM. 7. 21.6 21.S 11.4 6.3 3.6 2.S 0.0Awn" Da eONsiWETgUCEIA S 43 41 3? 39 35 45 32 40

S omispinmiK ow 694 694 515 416 392 0 0 1713f 236 2K 204 1?S 133 0 0 1372S FM 33.3 42.2 31. 41.9 133.9 0.0 0.0 3L3S ST13 M3WE: TOAL 25.1 25.? 21.4 15.1 14.2 0.0 0.0 0.0tOtA£ PWWI cusus to am is it 16 1s is 0 0 isS CIASsTDTASL 24.0 25.5 21.3 14.7 14.7 0.0 0.0 0.0 UAVEAGEIIOFsnwE sFit *sS 3B 36 35 33 35 0 0 316 sup= ow 2 I'0m 1.6 527 ?45 23 Yu 4.159F ISO 215 214 139 134 41 33 *65 F/X 24.2 m1 21.3 26.4 2r.6 17.4 1.6 23.7S S11313T UE 11: TOTAL 14., 264 24.2 12.V 11.? S.? 4.S 0.0TOTL 'IOF CLAS2SE QE t1 23 25 13 12 S 4 101I ctAssno 16.3 2.9 24.0 1.S .S 4.8 3.3 0.0

WUGE NMF S11MITPR CIASS 36 3v 43 40 40 4? 47 397 awassa ow its 239 3W 236 223 0 0 1.317f 29 is me 49 47 0 0 2105 fin 18.0 25. 20.5 20.6 20.6 0.0 0.0 21.3S STWWS Me g : TOTAL I?2 22.7 29.7 131 17.3 0.0 0.0 0.0TOTALSIOE CAUS Rfl3GA! 3 S 7 S 4 0 0 24s CIAsSEsnCALh 72.5 20.6 29.2 2.0 16.l 0.0 0.0 0.0tWV*E Onw OF STW #LS. Kg CLaSS 53 S Ss 4? ST 0 0 St

8 S0ALA 51 8a3 1.413 503 542 419 174 174 4.14F 156 30- 11 11 95 37 1i 876

SFM 21.7 21.4 23.5 21.3 19.3 21.3 10.3 21.1- STWItSPRt iME: TOTAL 20.7 34.2 12.1 13.1 11.5 4.2 4.2 0.0TOTAL U0 OF CAS EPRO 21 25 10 13 11 3 4 902 S ASflITMAL Z3.3 31.1 11.1 1.4 12.2 3.3 4.4 0.05LA& am* SOF TwS _ oiSS 40 so so 41 43 o 43

9 nTE w 56 63 572 331 325 209 II 2,"91 ZE 263 13 101 92 45 3 929

2 FM 32.0 35.3 32.0 30.S 28.3 21.5 16.7 32.2S S S wspagm .u TOTAL Z.Z 23.5, 19.3 11.S 11.2 7.2 0.6 0.0TOTAL a U OF CLSAWMPR 1? 16 11 7 7 5 1 I* O:sWJS BDAL 21.6 25.0 17.2 10.9 10.9 7.3 1.6 0.0AVEta OM= OF STUIES PO CUISS 4 42 52 47 46 41 15 4S

toSZUM OF 436 1,056 619 S31 432 115 114 3.3031 is 23 1S 131 106 30 30 a3A

2 5/5 22.5, 27.4 24.2 24.7 24.S 26.1 26.3 25.2X STUMM E20MUE MAL 13.2 32.0 13L7 16.1 13.1 3.S 3.5 0.0TOTALIWIIFOASF SFEAUo is 24 13 13 11 3 3 13S CUSISOAL 14.1 30.4 Ii.? 16.7 14.1 3.3 3.5 0.0

A*AE viF_S TSF PR SS as 44 47 40 39 33 33 42

SI CIT w flU 51 Z,2. 2.02 2,268 1,49 1.347 26 128 10,75f 320 VA 1.19 I15 530 310 191 4m,M

8 viM 40.S 4.4 52.0 43.3 39.3 37.5 30.4 4.1S 5WU l PEM ; TOTAL 15* 19.2 29.9 15.S 12.4 7.6 S.S 0.0TOTAL UIU Of CLAMES P9 am 43 46 33 31 19 1S 238XS CAUESTAL 1.3 15. 11.3 16.0 13.0 3.0 6.3 0.0

£w a nI OF3 Slm m cuSs4 43 49 43 43 41 4S

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- t56 - .Annex 4-3

m. ]. .

p.-

.z 5

S.. -a

1RozaibiaueCapacity sulidinQ Study

Teacher Traininp Subey-tee: 1990 Student Suryev!nteruediat. Pdtacooical Institutes: Initial Rubers of Students- Resident Students. rouns and Instructors

Prcliainmtw Data

""VW r_moveT _ fuufl

- _ n . 021a Mr. gm off. mm CLASS VW. EL ML3u

- ~ ~ ~ ~ ~ * 4 * 7 * * 7a a~~~~~~~~~~~ S n m 1D m w u w*~ ~ a a a a a * so u

S 5Smp~~~ IS 51 ~~ 4 63 a 33 me 0 is 4 a 433a 3 3 31 231 la 136 3 to 0

mm okor wow ~~~0 as 0 is I 0 33 a IS 4 le 61 5 6 WAMXAkftwIs 53 4 4 Rs3 3a3to1 133 4 43

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_ ai 4 36 l t 63 la 6 S_ * 3 47 * 6 Il * 3 I * 36 IIai s * St

n4 t I 33 I . 3

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3 e a in I n n GP 3 I t 36 51, . 1 ,s me "a sit

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_toom w 46 a *1 I n 13 3 US a 3 3 SI it,3i a et 1 "4 @1 ais 43 1 II n *t * is a n 3 41 am a I16336 ea t 45 in 0 i4 1 a 1 43' 3

II

Nozoi~Cwit Siuiidirm Stw'

Atic L4E*ti01 Exiiture fin william et Contos)

19 19l5 1952 1953 1956 1955 1956 1957 19U 1989 1990 1991

fetal ve t 14U.1 17.3 19.S 21.? 22.9 24.4 23.2 107.7 16488 247.3 345.0 446.S14u£m -2.s 3.0 3.7 3.0 4.1 4.1 5.0 9.4 17.0 31.1 453. 4U.9'Fecin I&AMIM 17.9 17.5 19.0 17.6 17. , 17.0 116A t.t 11.4 12.6 13.2 11.0

etao cW1gt 9.9 14.0 16.3 17.1 10.6 3.1 11.6 114.1 139.7 230.9 32.6 439.3Mcalim 0.4 0.2 0.2 0.3 0.3 0.3 0.1 0.3 7.1 3.3 16.3 n.eowt t gdwmlm 4.0 1. 1.Z 1.0 2.4 3.1 1.0 0.S 5.1 1.6 4.6 n.e

VWcs fkmwetIu 3.7 4.0 4.2 4.5 4.0 3.0 3.0 2.3 3.? 3.6 4.5'l .

C1) 15., imticdisu fcbdical asaiS at 51 (Mdim*a U u hhiIwlwty).2c S.2a. trmtuda takiedcal assta t 1. a£5) kere m 1t.p lwam.

0c

t

*-159 -

Annex 4-6

UX ..

9- ET. * >n

1 iiiiS

t i X i I 5 W s st.

l Ui EE

I | wIs!! :

31 SSl AOf

I.l *Is9

- 160 ̂hAnnex 4-7

CanaiLtv ayildina StudyDietribution of Recurrent Exo.nditurem by SAY-L

and TMn of Udugation 1Peretae

2985 1989 1990xcl. Lncl.

T.A. T.A.

Administration (contral, 23.8 22.1 18.4 15.3provincLal) 35.6 41.4 41.6 34.5EP, 7.7 8.6 7.1

14.4 5.1 5. 1. 4.3EP'tSG 0.7 1.7 1.6 1.3CPU 3.1 2.7 2.8 2.3Teacher training 8.0 6.2 6.3 5.2vocatlonal and tochnical 10.0 9.2 21.5 26.5Hlghor education (VRM, ISP) 4.4 3.9 4.1 3.4Other (adult and phys. ad., 100.0 100.0 100.0 100.0dormitorLes)Total- -

_ 161 -

Annex -Page I of 4

MozambqCaDagity Building Study

Teachgr T aainip

Teacher training for general secondary and pre-university education is provided by theInstitute for Advanced Pedagogical Training (future University of Education Sciences). Previouslythis train.ng was provided by the Eduardo Mondlane University, before the Government decided tocreate a specific institution in 1986.

From an initial enrollment of 93 students in its founding year the ISP has expanded to813 students in 1990 and its planned capacity for 1993 is 1,485 students. In addition to itsheadquarters activities in the city of Maputo, the ISP operates teacher training courses in the city ofBeira, Sofala, and It is also plainned to open new premises in Nampula. The opening of thesebranches in the interior is designed to ensure the availability of qualified teachers throughout thecountry, not just in Maputo, the capital. The following table contains, in summary form, ISP'sexpansion plans. a

THUB AP : ISP (INSTIT3TEOR ADVANCED PEDAGOGICAL TRAININ

City Course Academic Year

1990191 1991/92 1992/93 1993/94

Maputo History and Geography 165 1S0 190 190Mathematics and Physics 166 180 190 190Mathematics (evening) 28 2S 25 2SPedagogy and Psychology 142 IS0 160 160Education Planning 7 7 .Pedagogy and Planning - 2S 2S 2SFrench - 30 60Portuguese 121 150 160 160English 34 6S 95 12SChemistry and Biology 97 12S 1S0 0 160Subtol 760 907 1,025 1,09S

Beira Physics 27 SS 80 IOSGeogrohy 26 SS 80 IOSMathunaics 4S 40 40- - 30 S0

- _ . .30Subtotal 53 ISS 230 330

Nampula - a 30a . 30

Subtotal - - 60

TOTAL 813 1,062 i.2SS 1,48S

- 162 -

Annex 4x8Page 2 of 4

P!roiections for!Graduates

Table I (Annex 4-8, p.4) shows the distribution of teachers in the various levels ofeducation in 1988 in the General Educadon Subsystem. However, the data do not provide a properpicture as regards qualifications. The percentage of those with pedagogical training in this tablerefers to rapid training; only 282 professors In the SNE in Mozambique have higher-level training, ofwhich 86 have completed the master's degree (licenclatura) and 196 the bachelor's degree (two yearsof training). Tables 2 and 3 (Annex 4-8, p. 4), show the distribution of teachers in ESG and EPU bylevel of formal qualifications. "Unclassified higher education" most likely refers to those teacherswith some university training but who did not obtain a formal degree.

It was not possible to obtain more comprehensive indicators regarding the quality ofthe teachers being trained by the ISP. What can be said, on a provisional basis, since the Bankintends to arrange a specific study, is that the ISP is using various kinds of external cooperation todevelop its competence in education sciences. From this standpoint the current situation is as follows:

- five teachers are doing master's degrees abroad: two in English, one in anthropology,one in education administration and one in demography; three of these are studying InEngland, one in Portugal and one In Botswana;

- three teachers are preparing doctorates abroad: two in the teaching of mathematics inthe Netherlands and one In anthropology in Portugal;

- five teachers are to begin preparing doctorates in 1991, two in the teaching ofchemistry In Germany, two in ethnomathematics in BrazU and one In the sociology ofreligion in Germany;

* three teachers began graduate work abroad In 1991, one in a maaster's program inAustralia in the teaching of mathematics, one in education admlnistradon in Pakistanand one in the teaching of geography.'

In addition, of the 113 teachers working in the ISP, 24 have doctorates (10 from full-time study and 14 from pattime study). It should also be noted that some ueas in which the ISP isproposing to get involved, such as Anthropology of Educatlon, Ethnoscience, Study of NationalLanguages (Bantu lanaes) are of undeniable importance for education in Mozambique. Since theseare complex areas only a specific study will be able to determine the real possibilities of success.

IV Information provided by the Rector's Office of the ISP.

- 163 -

Annex 48Page 3 of 4

It should, however, be pointed out that although efforts are being made to trainteachers, the teaching profession in Mozambique does not offer adequate salary incentives to ensurethat teachers remain in the education system. In May 1991 the salary scale for teachers in secondaryand pre-university education was as follows:2

Teacher level A - with master's degree Mt 160,436.00Teacher level B - with bachelor's degree Mt 120,725.00Teacher level C - with two years of teacher

training after the ninth grade Mt 99,83S.00

Ibis remuneration in meticals converted into dollars at the parallel market rame isapproximately equivalent to US$76 (A), US$57 (B) and US$47 (C). It is true that teachers at levelsA and B receive supplementary allowances amounting to US$1,500 and 1,000 a year, respectively,but there is no allowance at other levels, which means that only 282 teachers are receiving allowances(a kind of salary supplement).

Also working in secondary and pre-university education are the coopdrants, whosemonthly remuneration (May 1991) was Mt 108,174, or approximately US$S51, plus an allowance ofUS$200 a month. There are not many teachers in this category.

Only level A and B teachers are wotking in pre-university education. Some of thelevel A teachers were trained abroad, especially in the former East Germany. However, as a result ofthe expansion of higher education and the introduction of a market economy, many of the teacherswho studied overseas have been or are being attracted by universities and companies.

Therefore, if the Issue of teacher training is to be dealt with successfully, newapproaches must be found as regards both traning and utilization. On the first point, rapid forms ofin-service training could be studied; on the second, teaching as a career must be reconsidered to makeit compatible with a policy for advanced training of teachers, in other words the effort made in thetraining area must have repercusions on career prospects (salary incentives). IhN urrent situationdoes not reward continuing education.

V Inlbrmation provided by Francisco Manyanga Secondary School.

- 164 -

Almex&4L8Page 4 of 4

MouambiauCaoaCily Ruldine S

Table 1: MIniwry of Educatica- Plmnnin DvpntInDeGenettl Education Sub;ysum . TeachIw Enyloycd by L&vsl of Eusation in 1988

, EPI EP2 ESG EPU

Provinc % -Total wtTmt wtFmg Total wTrmg wtl'mg To41 wTrmg w/Trng Total wtrmg %w.Tmg

C.Delgado 2.033 1.2.135 60.7 162 140 86.4 71 63 88.7GA 2,165 1,204 55.6 243 212 67.2 54 54 100.0 8 8 100.0LIhambaa 2,109 1,528 72.5 251 219 87.3 72 62 86.1Maoica 987 707 71.6 157 148 94.3 23 22 95.7Mrputo 749 347 46.3 91 93 94.9 23 21 91.3Nanvu1a 4,287 3.109 72.5 321 277 86.3 90 80 88.9 27 27 100.0Nib. 1.011 671 66.4 Ito 96 87.3 41 39 95.1Sofaa 1,47 1.214 78.5 266 182 68.4 63 61 96.8 16 16 100.0T-ts 843 643 75.8 121 85 70.2 42 35 t}3.3Zainbda 3,375 2.492 73.1 237 197 83.1 71 59 83.3 14 14 100.0C.Maputo 2,299 1.18 51.5 486 417 85.8 288 248 8S.1 67 67 100.0

21.410 14,335 67.0 2.452 2.066 64.3 838 7" = 88. 132 132 100.0

Tabte 2: Miniauy of Eduation. Statisics DepazwtMGtenra Sscondagy Trainw Necawap ft"wowu by QwU&Aco ir 1989

QuaIfiad. .____ . _onet3uStia 1 % %~~~~ Women

Basic wacber uzining 6.3 5.5

Medium level tachbrtniaui 65.7 11.7

Bachelors des 0.2 0.0

HIgbU dcef UmlafWe_ 22.3 23.3

Not Ui%s _s. 17.6

Tota 100.0 18.3

Table 3: MInliy of Education- Statitics ralpasmeoUW TucbTrmidn - P*rtastap Brkdown by Qualiao in 1989

Quaficao S S Wows

Medium leve 3.3 0.0

Bachekn d.pg. 25.4 5.7

HiSb education uapeciuted 65.2 23.3

No foisl utLi 5.1 0.0

Total 100.0 16.0

- 165 - Annex 5-1

TOTAL NUMBERS OF GRADUATES FROM BASIC AND MEDIUMPROFESSIONAL & TECHNICAL SCHOOLS 1980-1988

TOTAL GRADUATES AVERAGE1980-1988 GRADUATES

PER YEAR

PROFESSIONAL AMEA BASIC J0DZUM BASIC MEDIUH

COMMERCE

Book- 2689 417 299 46k**ping/Accounting 366 9 41 1Office Administration - 40 - 4

Computing - 210 - 23customs 206 - 23 -

TypLng

INDUSTRIAL TRADES

Mochanics (varLous 2833 378 315 42types) 1906 441 212 49Electrical 665 163 74 18engineering 366 161 41 18Water 556 56 62 6*ngineerLng/plumbing - 26 - 3

Industrial ChemLstry 136 s15 ConutructLonengineorLngCommunicationsciences

General Agrlultute 384 188 43 21MLxed Var.Lag 1638 96 182 11Llvestoek &arLng 250 148 28 16Forester 121 13Agricultural 370 145 41 16ZngLneorLng

TOTAL 12367 2599 1374 289

-- -.- , ,

- 166 -

Annex 5-2

STUDENT DROP-OUT AND FAILURE RATES FROM TECHNICAL ANDPROFESSIONAL TRAINING 1987-1989

% PROGRESS'NG t FAILNG END-COURSE/COHORT TO NEXT YEAR % DROP-OUT OF-YEAR EXAM

BASIC LEVELs

Agglculture1987 53 22 251988 46 26 271989 40 25 35

Commece1987 38 23 392980 24 43 331989 30 29 41

Zndustrtal1987 42 27 311986 44 29 271989 32 40 28

HMDEUM LZVL

Agriculture1987 4S298s 56 14 621989 65 n/l n/l

21 14Co-.rc.

1987 31 n/l n/l1968 45 21 341989 44 30 26

induatstel1987 6a 13 191988 56 16 282989 33 38 29

- 167 -

Mozambique Annex 5-3Capacity Building StudyPae1o2

VOCATrONAL TRAINrNG CENTERS IN MOZAMBrQUE

NAN! OF CENTER LOCATZON

Contra do Formcaco Profismionsl da O.T.M. MaputoContra do Formacao Protissional da D.3.H. Maputocontro do Formacco no Caminho da Vitoria (hOPP) MaputoContro do Formacao Profiwhional do Motoorologia MaputoContro de Formacao do Produeco Gratica MaputoContro de Formacao da Tol.comunicacao do Mozambique HaputoCentro de Formacao PotograficO MaputoContro do Formacao de Electricidado de MozambLque MaputoEScola NacLonal do Aeronautica Civil HaputoEacola da Radio Mozambique MaputoEscola do Danas MaputosEcols de Musica Maputolocols de Aet*s Visu*Lia Haputolscola NautLca do Mozambique Maputolecola de GoodosLa a CartografLi MaputoContra do Forrmicao Protflonal e. Cl2ctrotcniLa MaputoCentro do Formacao Proffional do Machava MaputoContra do Formacoo do Ramo TorcLerio MaputoCentro do Formecao TorcLario do l.I.C. caseContro de Formaceo Prof.Alboreto CsoLmo-Sorreacao/or81 SotalaContro de FormacaoS TorciarLo - S.C. Amaicar Cabral SotelaContra do Formecao TSrcLarLo ManicaCentro de Formaceo ToreLcrLo TateContro do Formacao Torclario - S.SZC. CZamLuisContro do Foruacao TorciLrio da rUC KampulaCentro do Vormacao Torcitrto da SIC do Pmba Cabo DelgadoContro do Formacao Proftulonal do Orupo Sntroposto MaputoContro do Formacao ProfL oonal Diesel Electrica MaputoCentro do ?ormacao Sowing Machlne Company MaputoContro do Formacao Protioional da OLnwola MaputoContra do Formacao Prot1isinal da ZCL MaputoCenero do Foarmacao do Carbomoc ToteContro do Formacao de Geptox-Macuba Zamb*oiaContra de tormacao da Sociodado Agrlcola do Madal gambesiaContra do Formacao da CoapanhLa Industrlal do Monap Zamb&s1aContro do Formacao ProfloLonal do Toxuaque KampulaContra do lormaoao Profiolonal de Seila MaputoCentro do Vonracao PratioLonal da Agricom MaputoContro do tormcaao Reglonal dom CIX Sul MaputoContro de tormaca ProtLisonal do lataloirom HavaiL MaputoContra do torm cao Profriional de trmoto MaputoContra do Fonmcao Industrial MaputoCcntro do famoaco ProtLoLonal dam LAN MaputoContra do eormacao Proflslonal do Mocanogro MaputoContro do Foamrcao ProtisLonal do Clmontas do Hot. MaputoContra do Formacao Profaiional do Cometal-Momotal HaputoContro do Formacao ProtLfLonal da tloctormoc MaputoContra do Formaeaa PatfioLonal da Faaol MaputoContro do Formacao dao Poses MaputoContro do Formacao PrafiLhonal do Caju do Mozambique Maputo

- 16E -

Annex 5-3

Page 2 of 3

VOCATIONAL TRAINING CENTERS IN MOZAMBIQUE (Page 2)

NAME OF CENTER LOCATIONcontro do Formaccao d soger* MaputoHotel Escols Andalucia MaputoLscola Forroviaria do Mozambique InhambaneContro do Formacao Prof iional doe CFM - Contro 3afalaContra do Formacao ProfLLonal da Electromoc SofalaContro do Formacao do Mozambiquo industrialContro de Formacao Profiuional TEXTAFRICA Manicacontro Hocanica do Oporadoros do Haquines AgricoLas Tat*contro do Farmacso Rodovlaria (SMOMA) ZamboezaContro Regional do CfM ZambosLaContro do Formacao ProfioLonal do Soguroo MaputoCentro do Formacao do Quadror de CNP MaputoContro do Formacao ProfLioLanai do Banca HaputoElccla do Jornalismo Maputolocols do Sotado * DLroito HaputoCentro dO Formaco ProfLoLonal do Admin.o FLnancas MaputoEocola do Fatudo Laboraio Alborto Casmimo HaputoProjocto do Formncao em Gostao Economics (PROVORGZ) HaputoContro do Formaeso de Comorcia HaputoContro do Formacao AgrarLa (CPA) HaputoContro do ToPmacao Prof .d Direcao NacLonal do Agus HaputoInotituto dad CLoncLis do Saudo de HMputo MaputoContro do formacao om Costao Agrania HaputoContra do Ponamcao Prof.dn HLn.do Consto* Aguas MaputoContro do Formaco Plloestal do Michaeutune HaputoContra do Pormacao d Cado * LotO - Hamaacha HaputoCentro d Formnaco do OperanLas Habil em SuLnicultura HaputoCentro d FoPnmaac doe Auxilieros Toenicao AgranLom Maputo_scola dO Fauna 8ravLs 1Salznanje - Namaacha) HaputoContro ProvineLal do Chikwachino Gaz4Centro do Reperaeca, Manutoncao * onrmacao do Chokwo GazaContro de Formnaco do tntormo Pert. Xlom.do Chicumbano GazaCentro Haeconal do Formacao ProtioLonal do M.C.A. tnhambansContro de Formnaco do Saudo do ChLcuquo InhambanornatLtuto do CLoncLes do Saudo - Boire SoaalaCentro NacLonal d FoPaaceo ProtLLonal do M.C.A. SofalaCentro do Pormecao ElomentaLa do Entfrm. a Partornas ManicLContra do Foracno do Opr*HabilLtadoo em Pecuala XaabezaZn*tLtuto do CLonoLs dO Saudo Zamboza.Instituto do CLsnaLo do Saudo do Nampula NampulaCentro do ?ozicao do Possoal do Saudo Cabo Delgado

_____________________________________________________________3

- 169 -Annex 5-4

MozambicLue Page 1 of 2

COrSI OA.UTLINES: ECONQMIC;S ANQ4~AEME!4T_ EQREES AT UE

YEAR ECONOMZCS HANAGEHENT

Year Basic Mathematics sasic mathematicsI Introduction to Political introduction to Political

Economy I Eronomy 1Dialectic C Historical Dialectic A HLitoricalMaterialism MaterialismBasic intormation Science Baeic Information ScienceEconomic Geography Economic Geography

IntroductLon to Political introductlon to PolitLealEconomy 2 Economy 2Economic History Economic HistoryMathematics 1 Mathematics 1Statistical Methode Statistical MethodsCommercial a Financial ?? Commerclal C Flnancial ??

Year Microeconomics MLcroeconomics2 tntroductLon to Business IntroductLon to Business

Managemont ManagementMathomatics 2 Mathematics 2Statistics and Probabillty Statistics and Probability

Macroeconomics 1 Macroeconomica 1PolitLcal Economy of Political tconomy ofCapitalLsm 1 Capitalism IMathematics 3 Mathematics 3

- ~General Accountin2 General Accounting

Year PolitLcal Economy of Politlcal Economy ot3 Capitalism 2 Capltalism 2

EconomLi Development Economie DevolopmentPlanning 1 Planning IAppiLed Statistics Cost AccountingNatLonal Accounting Applied Quantltative methods

In ManagementEconoetricsMacroeconomic* 2 General ManagmentAfrLcan onomics Monoetary economLcsPolltical Economy of 1.nancLal Managment ISocLalLsm I PolitLcal Economy of SoclalLsmeconomic Law 1

International EconvoLes 1-asic Legal PrincLplo_