Photo: UNDP.Photo: UNDP

Good Governance: Background and Development Cooperation

Good governance is the ability to efficiently formulate and manage policies based on respect for fundamental rights and freedoms and democratic processes and institutions. Norwegian development cooperation seeks to strengthen partner countries’ ability to implement efficient policies for development and poverty reduction.

Promotion of good governance and democratic development, anti-corruption, women and equal rights, as well as environment and climate are important components in the collaboration. Anti-corruption efforts and collaboration for good governance are key in the collaboration with African countries, through the dialogue with the authorities, support to the work of the African Union to implement relevant conventions and to targeted project.

The Mozambican government aims to  “guarantee the mobilisation, receipt, allocation, control and the prudent, transparent, effective and criteria-based use of public resources with the aim of satisfying the public interest and promote inclusive growth and sustainable and harmonious development» (Public Financial Management Vision Paper (2011- 2025). Norway, together with Denmark and Italy, supports the public financial management reform program in Mozambique known as SISTAFE, as well as the development of the electronic financial management information system e-SISTAFE. The aim is to contribute to effective capturing of resources to finance sustainable and harmonious development of the public sector within a framework of economic effectiveness and efficiency, and social justice.

Mozambique is a country rich in natural resources. Over the past few years additional discoveries of off-shore natural gas in the north and coal in the Tete province have substantially increased the potential revenue base for Mozambique. Successful revenue collection could provide billions of US dollars in additional funds for the government. However, experience from many countries rich in mineral resources shows that actual revenues are often below the potential. Measures to increase revenue collection include strengthening the revenue authorities together with international cooperation to combat tax havens and illicit flows of funds. Through the Tax for Development Programme Norway pools resources with DFID, Denmark, Sweden and Switzerland to support the Mozambican Revenue Authority in its effort to increase revenue collection in a sustainable way.

The support to the Mozambican Revenue Authority complements the cooperation between Norway and Mozambique in the field of petroleum (the Oil for Development Programme)  by improving revenue collection and the dialogue between the relevant ministries and the Revenue Authority. More concretely, the Norwegian Tax Administration and the Mozambican Revenue Authorities conduct joint audits within the petroleum sector. Together with the improvements in the financial management systems of Mozambique (SISTAFE), efficient and correct collection of taxes contribute to strengthen Mozambique’s management of the country’s rich natural resources.

There is agreement globally that independent and unbiased production of statistics support development oriented policies and a base for measurement of results. Reliable statistics facilitate knowledge based planning and improved governance. Norway has supported Mozambican Institute of Statistics since 2003. The current phase of the cooperation (2013-2017) focuses on strengthening the statistics production capacity at the provincial, district and municipal level.

Corruption and abuse of power prevent efficient use of national resources, hampers economic growth and contributes to unjust distribution of resources in any given society. Norway contributes globally to building the capacity of local civil society organisations to assume an advocacy role through independent information sharing and watchdog activities. Norway supports the work of the Center for Public Integrity (CIP) to promote integrity, transparency, ethics and good governance in the public sphere, as well as the promotion of human rights in Mozambique.

The Center for Public Integrity (CIP)

The Center for Public Integrity is a non-profit, independent organization focusing on transparency, good governance and integrity in Mozambique. CIP was established in 2005 and the Norwegian Embassy entered a partnership with CIP in 2010.  

CIPs strategy has four focus areas: Extractive Industry, Public Private Partnerships, Public Revenue and Expenditures and Anti-Corruption Institutions. They have in short time become recognized as an important and relevant resource center for anti-corruption and transparency work in Mozambique, with a strong commitment to the good governance agenda.

The goal of the support is to goal strengthen their ability and capacity to carry out poverty reduction and longtime effectively in line with their national development plan. The Embassy signed a new contract with CIP in 2014 for four additional years.

For additional reading and information about CIP, visit their website here.

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