Life, during the best of times, is precarious in Madagascar, where the average citizen lives on less than $1 per day. The 2002 political and economic crisis that resulted from a disputed presidential election had a devastating effect on the economy and the country’s poorest citizens. For example, 80,000 workers in the export processing zone were laid off.

Jaona was one of the unlucky ones to lose his job. The impact of layoffs reached far beyond individuals; it also affected children and extended family members who relied upon the income. When Jaona’s wife recounted the sudden changes brought about by the crisis, she summarized the hardship in very simple terms: “We used to cook three meals a day, but now we can only afford one, and poor quality cassava is replacing rice.”

The collaborative Madagascar-U.S. efforts are supported by USAID economic growth programs. These programs provide business relations training and technical assistance to Malagasy firms. They teach – in very practical terms – how to “do business” with the United States. The USAID program has begun to reap huge benefits. A 2003 trade delegation, comprised of sixteen investors supported by the two business councils, recently visited the island. Paul Hooker, president of Sferra Brothers, a U.S. importer of fine embroidered linens, expressed the investors' determination when he announced, “Only a few Americans buy from the Malagasy. We are going to change that now.”

Madagascar U.S. exports, imports, and trade balance (thousands of dollars) 2001 2002 2002 YTD 2003 YTD Exports 20,947 15,217 10,717 17,470 Imports 271,791 215,923 204,215 342,569 Trade Balance -250,844 -200,706 -193,497 -325,099 AGOA Imports* 97,105 79,728 75,708 167,489 *AGOA trade benefits including the Generalized System of Preferences (YTD = Year To Date: January – November) Source: U.S. International Trade Commission

The U.S. trade mission was a catalyst for the signing of twelve commitments with the government of Madagascar to explore investment opportunities. On an individual level, these commitments promise hundreds of Malagasy people, like Jaona, employment that will allow them to improve their daily lives, gain access to health care, develop professional skills, and very simply, serve their families three meals a day.

Besides creating hundreds of jobs in sectors such as telecommunications, mining, textiles, and handicrafts, these investments will increase the demand for Malagasy products and create significant tax revenues for the government. During the trade mission, the U.S. Ambassador to Madagascar noted that American businesses are noted for their “just do it" attitude. It is this growing interest by can-do American investors, coupled with the political will of the government, that together will help Madagascar reach its stated goal of reducing poverty by fifty percent in the next ten years.