The report examines the annual report of Madagascar’s Poverty Reduction Strategy Paper. Madagascar’s economic situation has been characterized by steady growth estimated at 5.0 percent on average against an average annual demographic growth rate of 2.8 percent. However, the living standard of the population as captured by the indicators related to the big objectives of the Madagascar Action Plan has not kept up with this pace. The organic law on public finances and the new code of public procurements have become more effective.
This Joint Staff Advisory Note provides feedback from the World Bank and IMF staff on the first and second progress reports on the Madagascar Action Plan (MAP)—the poverty reduction and growth strategy for 2007–12. Progress on governance has been reported with improvements in the functioning of the national anticorruption agency (BIANCO), the establishment of a financial intelligence unit, and improved national security indicators. To further improve transparency, the government will need to make an effort to secure property rights through the judicial system or alternative conflict-resolution mechanisms.
The Joint Staff Advisory Note on the Republic of Madagascar’s Poverty Reduction Strategy Paper (PRSP) is analyzed. The government of Madagascar has prepared its second growth and poverty reduction strategy called the Madagascar Action Plan (MAP), a bold development plan for 2007–12. The MAP builds on the first PRSP prepared in 2003 and is underpinned by a broad consultative process. It outlines the commitments, strategies, and actions that are expected to ignite rapid growth and lead to the reduction of poverty in line with the government’s national vision document.
The Poverty Reduction Strategy Papers (PRSPs) on the Republic of Madagascar explain the Madagascar Action Plan (MAP) to accelerate and better coordinate the development process. The National Leadership Institute of Madagascar (NLIM) was created in 2006 to provide cutting-edge training to build leadership capacity at all levels of government and for all sectors of society. The Economic Development Board of Madagascar (EDBM) is charged with ensuring that the business climate of Madagascar is attractive for companies and conducive for the success of private enterprises.
The Annual Progress Report (APR) candidly indicates that the macroeconomic objectives for 2005, notably pertaining to growth and revenue objectives, could not be achieved. Looking forward, the preparation of the Madagascar Action Plan (MAP) will provide a useful opportunity to revisit and improve the country’s poverty reduction strategy in light of recent developments and experience. Reasonable progress on the public sector governance agenda was triggered by substantial investments in training and capacity building, in particular in the areas of public financial management, planning, change management, and monitoring and evaluation.
Developing and boosting the private sector, in the area of industry, trade, and private sector, actions for securing investment, promoting investment, developing partnerships in Madagascar produced positive results. The investment rate is 12.37 percent out of an objective of 14 percent. The achievements in the rehabilitation of rural roads have improved compared with those of 2004, but the objectives for the year have not been achieved (65 percent). In posts and telecommunication, for the postal service, the number of savings “Tsinjolavitra” recorded a net improvement compared with those of the previous year.
This paper reviews Madagascar’s progress under the Heavily Indebted Poor Countries (HIPC) Initiative. Total assistance to be provided to Madagascar under the HIPC Initiative amounts to US$836 million in net present value terms—US$22 million higher than the decision point estimate. The paper assesses Madagascar’s performance in meeting the requirements for reaching the completion point, as set out in the decision point document. The paper also reviews the status of creditor participation and the delivery of debt relief to Madagascar under the enhanced HIPC Initiative. It also presents results of the updated Debt Sustainability Analysis.
This paper presents a Joint Staff Assessment of the Poverty Reduction Strategy Paper Progress Report for Madagascar. The assessment reveals that following a strong noninflation growth performance in 2003, macroeconomic developments in 2004 have been affected by adverse exogenous shocks. Madagascar is making good progress in implementing its poverty reduction strategy, which is delivering results. Primary net enrolment rates have increased from about 70 percent in 2002 to 84 percent in 2003/04. The roads program has been successful and rehabilitated about 1,850 km of roads, a threefold increase over 2001.
This paper examines the first annual report on the implementation of Madagascar’s Poverty Reduction Strategy Paper (PRSP). The report reviews the status of achievements on policy measures, action plans, as well as reforms concerning the Initiative for the Heavily Indebted Poor Countries (HIPC). It covers the first year of PRSP implementation corresponding to the period from July 2003 to June 2004. It also highlights the connections between the achievements and objectives, programs, and indicators.
The report reviews the Joint Staff Assessment (JSA) on Madagascar's Poverty Reduction Strategy Paper (PRSP). The full PRSP is built on the interim poverty reduction strategy. The report evaluates both strengths and weaknesses of Madagascar's poverty reduction objectives and strategies, and considers whether the PRSP provides a sound basis for concessional assistance and for debt relief under the Enhanced Heavily Indebted Poor Countries (HIPC) Debt Initiative. The JSA considers Madagascar PRSP as a major accomplishment and provides a sound basis for IMF concessional assistance.