Mozambique already lives with "the shadow of the resource curse" and must increase funding to ensure that vulnerable populations enjoy basic human rights in order to avoid conflict, argues a study consulted today by the Lusa news agency.

The study is entitled "Fair and Efficient Taxation: A Path to Breaking the Natural Resource Curse" and is authored by the Fair Tax Monitor (FTM) - or Just Tax Monitor - an international non-governmental mechanism that assesses the tax efficiency of countries.

Regarding Mozambique, the analysis stresses that "the shadow of the resource curse is already hanging over the country, in a context where the extractive industry is known for its cycles of expansion and recession, leaving countries vulnerable to economic shocks and social instability".

The FTM argues that "Mozambique has already experienced human rights violations related to the resettlement of communities living in natural resource extraction areas, as well as conflicts over who should benefit from resource extraction".

The country, the analysis continues, is rich in natural resources such as natural gas, coal, graphite, heavy sands, precious stones and gold, but remains on the list of the world's poorest countries, with high levels of inequality and a history of violent conflicts and political instability.

In this sense, in order to finance public services and guarantee basic human rights, the Mozambican tax system needs to collect more revenue and apply it in the best way, argues the FTM.

The study states that Mozambique's extractive industries present opportunities and risks and, if managed well, have the potential to produce significant income and benefits for communities.

For this reason, it adds, the government must give priority to social sector spending, fulfilling international and regional commitments to allocate at least 15% and 20% of the annual budget to health and education, respectively.

On the other hand, sustainable debt management must be ensured, argues the FTM, noting that the Mozambican state "is already struggling with debt made with the Rovuma Basin's natural gas reserves in mind".

In the study, the government is urged to reorient public spending to speed up the decentralization of resources to the local level and reduce regional asymmetries, as well as to strictly respect the budgetary rules associated with the contracting of public debt.

The executive must also present a plan to reduce debt to a sustainable trajectory. (Lusa)