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USAID Information:
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Madagascar
The Development Challenge: 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.
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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 semi-precious 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.
While the new government has considerable public support and momentum for its ambitious programs, it faces a number of risks: that a weak and poorly equipped bureaucracy will be unable to realize many of the planned reforms and results; that the public will grow impatient with the new government under the weight of grinding poverty; that vested interests will retard the reform agenda; that foreign investment and donor support will fail to materialize at the rate necessary to meet economic growth objectives; or, that natural disasters will impede progress. U.S. assistance will contribute to mitigating these risks.
The USAID Program: The overall goal of the USAID program in Madagascar is sustainable and inclusive economic development. A new country strategy was approved in March 2003 that integrates strategic objectives through shared activities as well as through cross-sectoral programs and partnerships.
Under the new strategy, the democracy and governance program will address the weaknesses of Madagascar's democratic institutions, compounded by poor governance. It will build a deeper and stronger civil society, increase information flows, and increase government responsiveness to its citizens. The new health, population and nutrition program will address the prevention and management of sexually transmitted infections and HIV/AIDS, and strengthen public and private health services. The demand for quality and the availability of selected health products will be increased to continue improvements in child, maternal, and reproductive health. The new environment and rural development program builds on the successes of the predecessor program. It will work to conserve Madagascar's biologically diverse forest ecosystems, in part by linking natural resource management closely with economic development, i.e., helping people find livelihoods that are compatible with efforts to decrease deforestation and conserve biodiversity. The new agricultural and trade program will concentrate on accelerating economic growth through market development and trade.
In general, political will and involvement on the part of the GOM are strong, but human resource and financial limitations constrain capacity to implement activities and reforms. The GOM actively seeks input from civil society and the private sector for validating national action plans, changing laws, and pursuing new anti-corruption efforts. However, NGOs and citizens' associations remain largely ineffective as advocates for change. Planned USAID efforts to strengthen such organizations are closely matched to U.S. interests in anti-corruption, good governance, HIV/AIDS and other infectious disease programs, and global climate change.
Other Program Elements: USAID centrally funded education activities and support received through the Leland Initiative provide increased Internet access in Madagascar, and a three-year program under the Women's Legal Rights Initiative will begin in early 2004. Central population funds contribute to joint environment-health programs. Child Survival and Health grants and Reproductive Health Flexible Funds will support community-based health and family planning activities. Central USAID/Washington funds enable the conservation of a national park in the west of Madagascar. Funds provided by the Office of Foreign Disaster Assistance assist populations affected by drought in the south of the country, as well as victims of recent cyclones on the east coast. Finally, P.L. 480 food assistance will continue to support child survival and nutrition education and rural development.
Other Donors: Madagascar's major donors are the World Bank, European Union (EU), United Nations System, France, United States, and Japan. The World Bank has identified governance and institutional development as its central theme. The World Bank, International Monetary Fund, and EU provide budget support linked to improved public financial transparency and accountability. The World Bank, EU and France support reform and strengthening of the judicial system. The World Bank also leads efforts to reform the trade in gems. The United Nations Development Program (UNDP), EU, Japan, Germany, and Switzerland partner in electoral observation and support. The World Bank, the United Nations' specialized agencies, and France are active partners in the health sector, particularly in maternal and child health. The World Bank is becoming the lead donor in fighting HIV/AIDS, while the United Nations Population Fund is a major partner in family planning, and Japan collaborates with USAID in certain areas, including behavioral change activities. Madagascar receives funding from the Global Fund to Fight AIDS, Tuberculosis and Malaria, and the Global Alliance for Vaccinations and Immunizations. The World Bank, EU, UNDP, France, Germany and Switzerland are, with the United States, active members of a multi-donor group on environment, rural development and food security. The World Bank leads in the education sector. The World Bank and EU lead in infrastructure development, and the World Bank aids privatization efforts. The World Bank and France support the financial system, especially mutual credit institutions. Agricultural development is a priority of the World Bank, EU, France, and the International Fund for Agricultural Development. France is an active supporter of urban development projects. Finally, UNDP is a major partner in disaster preparedness, and the World Food Program is the major partner in promoting food security.
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