The paper presents a wide range of data on Mozambique and examines what this shows about changes to poverty and income levels over the past decade. The authors point to the lack of changes in farming practice which is contributing to the persistence of poverty and consider cash income and the poverty trap in Mozambique. The paper goes on to discuss the failure of donor-led development models and looks at Mozambique and other countries for alternative policies that might reduce poverty and raise agricultural production. Finally, the paper considers the arguments for and against a change of policy in the future