RECREATING COLONIALISM OR RECONSTRUCTING THE STATE - PRIVATISATION AND POLITICS IN MOZAMBIQUE

The privatisation process currently taking place in Mozambique raises important questions about state/capital relations. While supporters of the process argue that the state will become more efficient and the e conomy move productive, critics claim that privatisation is tantamount to recolonisation. To explore the new relationship being forged betwe en state and capital, this article looks at the different operations o f two joint venture cotton companies in the northern districts of Namp ula and Cabo Delgado. It assesses the impact of capital formation on t he state's regulatory powers, policy-making capacity, and legitimacy, and how local communities have reacted to the changes brought by priva te investment in cotton production. The article argues that privatisat ion constrains the government's capacity to shape the economy, but off ers opportunities for it to seek legitimacy at the national and local level. Moreover, the diverse investment and production strategies purs ued by the two private cotton companies suggest that capitalism will h ave a varied and uneven impact in the country, depending on the capabi lities and objectives of national and foreign investors. Local respons es by producers and traditional authorities coupled with the exercise of regulatory powers by the national government will also shape the fu ture development of capitalism in Mozambique.