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A literature has developed on whether discrimination in the marketplace due to prejudice disappears in the long run. Whether employers who do not want to discriminate will eventually compete away all discriminating employ- ers depends not only on the distribution of tastes for discrimination among potential employers, but critically also on the nature of firm production functions. Of greater significance empirically is the long run discrimination by employees and customers, who are far more important sources of market discrimination than employers. There is no reason to expect discrimination by these groups to be competed away in the long run unless it is possible to have enough efficient segregated firms and. | Mozambique The year 2011 may well be remembered as a turning point in Mozambique s economy with the first overseas export of coal marking the birth of Mozambique as a world exporter of minerals and paving the way for the country to secure its future fiscal sustainability through yields from natural resources. The main short-term challenge for the government is the enlargement of its fiscal space while keeping its debt levels under control in order to accommodate the ambitious infrastructure investment plan and the roll-out of social safety nets within the inclusive growth agenda while resisting political pressures on expenditure prioritisation. The approval of the Action Plan for Reducing Poverty frames the government s political development agenda for the next four years around the promotion of inclusive growth in order to reduce the incidence of poverty which has been stagnant since 2003. Overview The boost in coal production from the first mega coal mining projects that came online this year coupled with strong performance in the financial services sector transport and communications and construction helped to push GDP real growth rate to 7.2 in 2011. The country has achieved an impressive average of 7.2 growth during the last decade. The continuation of high foreign direct investment FDI inflows mostly in extractive industries together with strong agricultural growth and infrastructure investment will drive growth to 7.5 and 7.9 in 2012 and 2013. Despite the strong growth the Central Bank s consistent tight monetary policy supported by a prudent fiscal policy reduced the end of year inflation from 12.7 to 10.8 in 2011. Prospects of a further decrease in inflation to 7.2 in 2012 and stabilisation at 5.6 in 2013 will allow a monetary policy easing in 2012 targeting credit expansion. The roll-out of pro-poor measures prepared during 2011 coupled with an ambitious infrastructure investment programme should widen the fiscal deficit from -3.3 in 2011 to -6.8 and -7.4
