2.3 Major Achievements 141. Mozambique’s emergence over the past 20 years from economic decline, conflict and repressive governments to macroeconomic stability, high levels of growth and considerable political freedom represents a major turnaround. In post-conflict Mozambique, over a period of barely 16 years, the world has witnessed an astonishing economic improvement. This has revolved around a number of key positive developments. 2.3.1 Sustaining the Peace Dividend 142. Mozambique’s reconstruction and transition are widely regarded as one of the great success stories in Africa. The government has indeed carefully maintained a prudent set of macroeconomic policies that have elicited continued aid flows from the donor community. 2.3.2 Political Reforms and Multiparty Democracy 143. Following the end of the civil war in 1992, Mozambique launched a process of democratisation. Since the early 1990s and continuing until the present, there has been a significant measure of political liberalisation in Mozambique. This has been evidenced by the emergence of a free media and civil society, although both are largely confined to major urban areas, especially the capital city of Maputo. The challenge in Mozambique is to consolidate the democratic gains and deepen the reform agenda. 2.3.3 Macroeconomic Reforms and Stabilisation 144. Mozambique continues its successful transformation following a return to peace and political stability in 1992. It has had a notable economic recovery and impressive economic growth rates in the past decade, averaging about 8 per cent. In 2006, per capita GDP was estimated at US$423, which was a significant increase over the mid-1980s level of US$120. With high levels of foreign debt and a good track record of economic reform, Mozambique was the first African nation and sixth country worldwide to qualify for debt relief under the World Bank and IMF-initiated Heavily Indebted Poor Countries (HIPC) Initiative. In April 2000, Mozambique qualified for the Enhanced HIPC programme and reached its completion point in September 2001. In November of the same year, the Paris Club members agreed to reduce the remaining bilateral debt substantially, resulting in the complete rescindment of a considerable volume of bilateral debt. On 21 December 2005, the IMF formalised the complete cancellation of all Mozambican IMF debt contracted prior to 1 January 2005, worth US$153 million. 75