clvi. The above factors point to the existence of a form of “democratic deficit” in Mozambique. This term refers to the failure of established, liberal notions of representative or participatory democracy to link citizens with the institutions and processes of the state. This impacts on the quality and vibrancy of democracy and consequently reduces accountability. It also tends to promote a sense of disappointment as to how little elections have improved the government’s accountability and performance. With high, and probably rising, levels of poverty and inequality in Mozambique, and as citizens become increasingly sceptical and distrustful of political parties and sensitive to suggestions of combating corruption, there is evidence of declining political participation. Under the current electoral system, links between citizens and the state are weak. The result may be a “weak democracy” marked by poor representation. clvii. It is important for citizens to be the guardians of democracy and to hold whatever government comes to power to account. The conflation between state and party should be replaced by the promotion of accountable politics. clviii. Ultimately, the citizenry should be the stewards of a democracy, operating through a government that respects their rights and the basic principles of democracy. The government should be reconciliatory and transparent, as well as accountable for its actions. This is the dream towards which the country should strive. Mozambique should explore ways in which to best engage its citizens in the process of deepening democracy – focusing on governance institutions, the capacity of civil society and the interface between the two. 4.13 Corruption clix. The scourge of corruption is a serious challenge to good governance in many countries. It has an adverse impact on all four dimensions of governance as defined by the APRM. In the political realm, corruption seriously undermines democracy and good governance. In elections and in legislative bodies, it reduces accountability and representation in policy making and the Judiciary, thereby eroding the rule of law. In the economic realm, macro-level, econometric-based studies have been able to establish a strong causal link between corruption and, more generally, poor governance on the one hand and weak private investment and growth on the other hand. This scenario undermines a country’s development efforts. clx. More recent studies have also shown that corruption distorts the allocation of resources by diverting budgetary funds towards activities where bribes and illegal commissions can be more easily made. This diversion tends to impose the greatest cost or burden on the poor, with serious implications for socioeconomic development. These findings have both heightened the awareness of policy makers, donors, the business community and the general public concerning the undesirable effects of corruption and the urgency in addressing its 33