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Periodical article Periodical article Leiden University catalogue Leiden University catalogue WorldCat catalogue WorldCat
Title:Complex Management Contracts: The Case of Customs Administration in Mozambique
Authors:Hubbard, MichaelISNI
Delay, SimonISNI
Devas, NickISNI
Periodical:Public Administration and Development
Geographic term:Mozambique
Subjects:tariff policy
Labor and Employment
Economics and Trade
Politics and Government
External link:https://doi.org/10.1002/(SICI)1099-162X(199905)19:2<153::AID-PAD72>3.0.CO;2-E
Abstract:In 1996, the government of Mozambique contracted the management of its customs service for three years to a private company. The purpose was to facilitate radical reform of the service. The literature suggests that management contracts for public services work best when payment to the contractor is performance-related and when there is minimal involvement by government in daily management. However, as this case study of Mozambique illustrates, neither of these principles can be straightforwardly applied in management contracts for organizational reform in a developing country. First, establishing successful performance-related payment is difficult in a contract with multiple objectives and poor information. The value in setting up performance-related payment appears to be more in focusing the objectives of the contract than in improving the contractor's performance. Second, a virtually 'hands on' role is required for the government agency supervising the contract, in the numerous political, legal and staffing issues which arise. The capacity of the agency to carry out this function is critical to the performance of the contract. The conclusion for the Mozambique customs reform case is that there are grounds for guarded optimism. The paper is based on research in Mozambique in 1998. Bibliogr., notes, ref., sum.