What Does Cheap Labour Do To Mozambican Economy?

The Confederation of Business Associations (CTA) and the United States Agency for Development (USAID) suggest that a debate is held on the cost of labor in Mozambique, in a document entitled 'Competitiveness of Mozambique and the Boom of Natural Resources'.As 'O País' reports today, the discussion aims to analyse to what extent does the use of cheap labour develop the country’s economy, based on two arguments: "the low labour costs may be attractive to the labour-intensive industry" and " the low-cost labour usually means that there are large numbers of unemployed or underemployed in low-paid jobs populations”.The study considers a minimum wage as low as US$70, below the current levels, stresses the article in 'O País'.