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Democracy and Governance in Madagascar
Madagascar’s new government, led by President Marc Ravalomanana, is
demonstrating the will and commitment to tackle the country’s immense development challenges, notably
widespread poverty and corruption. Madagascar has an average per capita income of $260; 70% of its
population lives below the poverty line; 49.1% of children under five years of age are malnourished;
infant, child and maternal mortality rates are unacceptably high; HIV sero-prevalence is 1.1%; life
expectancy is only 58 years; the population growth rate is high, at 2.8%; and 46% of the population is
illiterate. Madagascar is emerging from a deep political crisis in 2002, which resulted in a 12% decline in
GDP and increasing poverty. The country is now stable and economic recovery is underway, with GDP
growth in 2003 estimated at more than 9%. Madagascar is expected to reach the Completion Point under
the Highly Indebted Poor Countries Initiative in mid-2004, resulting in extensive cancellation of sovereign
debt. The United States and Madagascar enjoy close relations, and Madagascar is an ally in the global
fight against terrorism. USAID/Madagascar's programs coincide completely with the top three U.S. foreign
policy objectives with response to Madagascar: democracy promotion; broad-based economic
development, including health; and environmental protection.
Government of Madagascar (GOM) priorities, as articulated in the country’s Poverty Reduction Strategy
Paper and demonstrated through recent actions are: 1) good governance; 2) economic growth; and, 3)
social welfare. To promote good governance, the GOM: has established an Anti-Corruption Commission
in the Presidency, which USAID is supporting through the Anti-Corruption Initiative; is requiring public
disclosure of assets by public officials; is introducing reforms in public financial management, including
customs procedures; is instituting a program to reduce corruption in the trade of precious and semiprecious
stones, with support from the World Bank and the USG; and, has canceled illegal forestry
permits and banned exports of endangered species. To stimulate economic growth, the GOM: has
strengthened its partnership with the private sector; is investing, with donor support, over $1 billion in
transportation infrastructure, especially roads, between 2002 and 2005; has declared a two-year tax
holiday on imports of investment and some consumer goods; and is opening up land sales to foreign
investors. Recognizing the importance of its unique environment to the long-term health of the Malagasy
economy and the welfare of its people, and building upon support of USAID and other donors, the GOM
plans to increase land in protected areas from 1.7 million to 6 million hectares over the next five years. In
the social sectors, the GOM is committed to: preventing the spread of HIV/AIDS; fighting malaria;
strengthening health care at the community level using models developed through USAID programs; and,
increasing access to and quality of education through its “Education for All” program.
(Excerpted from the 2005 Congressional Budget Justification for Madagascar)
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