Monday 15 August 2011

Increasing savings rate in Mozambique to create economic growth

A story on the BBC website on how Mozambique is trying to persuade citizens to keep their savings in the bank, rather than under the mattress - so that banks can lend the money out to businesses wanting to invest and expand, creating jobs and economic growth.

This is an illustration of the Harrod-Domar model of economic development.

http://www.bbc.co.uk/news/world-africa-13984044