financial sector. Most of the practices provided for have been mainstreamed in various pieces of legislation, policies and programmes. Particularly noteworthy is the progress in the implementation of the following: • Code of Good Practices on Fiscal Transparency; • Payment systems guidelines; • Core Principles for Effective Banking Supervision; • National and international corporative governance guidelines; • Policies on debt management; and • International accounting and auditing standards. xxxviii. xxxviii. However, a major deficiency in economic management in Mozambique is that the growth process has mainly resulted from large foreign investments in megaprojects and substantial aid flow. With foreign spending making up over half of all public expenditure, Mozambique is one of the most aid-dependent countries in Africa. Megaprojects are a small number of projects that dominate what some stakeholders see as an otherwise small and slow-moving economy. Two very large projects in particular dominate the economic data from the 1990s through to the early 2000s: the Mozal aluminium smelter and the Sasol gas pipeline. There are also large project investments in agriculture (e.g. large-scale farms make up 60 per cent of land under sugarcane), which amounts to around 20 per cent of the GDP. While some sectors such as cotton and sugarcane are expanding, others (notably cashews) are not, as prices collapsed in 2000. xxxix. The dominance of capital-intensive megaprojects in the country’s economy is raising concern in some sections of Mozambican society. While these projects seem impressive, their net benefits to the rest of the economy have been questioned. The linkage of megaprojects to the rest of the economy is minimal, and there is almost no spillover effect or significant job creation in related industries. Not even tax revenues have increased, because the megaprojects are the beneficiaries of generous tax holidays. Their contribution to employment creation is minimal. xl. The government has taken a number of steps to address the problem of the dominant role of mega-industries in the Mozambican economy and the substantial tax benefits they enjoy. These include the laws adopted in June 2007, which provide for specific taxation in the mining and petroleum sectors and specify the incentives and benefits applicable to the mining and petroleum sector. The plans of the government to accede to the Extractive Industries Transparency Initiative (EITI) will also increase the benefits to the economy from this sector. xli. More far-reaching measures are, however, required. In particular, the government should embark on a broad-based, pro-growth development strategy in order to create the structural conditions for sustainable growth and poverty 9