Mozambique, which has in the past few months suffered extensive flooding, is a southeastern African country that is bordered by the Indian Ocean on the east (Encyclopedia). The capital of this coastal country Mozambique is Maputo (Encyclopedia). There is about 1,600 miles of Indian Ocean coastline to this African country (Encyclopedia). They also have over 60 rivers and lakes, which are located throughout the country (Potential). Which is one of the reasons that they have Africa's largest hydroelectric dams (Encyclopedia). With this large amount of water it helps their economic standing due to the fact that much of their revenue is generated by agriculture, such as cotton, sugarcane, and tobacco to name a few of the major cash crops that they produce (Potential). They have over 36 million acres of fertile land that can be used to produce these crops yet only 10% of this land is in use at the this time, with the other 90% they could increase their total revenue tremendously (P!
             In 1987 Mozambique's government started the Economic and Social Rehabilitation Program, which reformed their economic system and started their Market Economy (Policy). A Market Economy is an economy that only private decisions of consumers, resource suppliers, and firms determine how resources are allocated. Their basic goal is to gain financial stability on a national and international level (Policy). Some of the ways that they are trying to help their economy is by implementing a Monetary Policy (Policy). Monetary Policy is the use of a central bank to change the money supply to influence interest rates and assist the economy in achieving a full employment, non-inflationary level of total output. This has made an improvement in their economy. Their economic growth rose from an average of 6.7% during 1987-95 to an average of 10% in 1996-98 while their inflation dropped an amazing 50% in 1995 to less than 1% (Development). They have a high economic ...