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Madagascar
>> Regional Overview >> Madagascar Overview
Previous Years' Activities
2002, 2001, 2000, 1999, 1998, 1997
Last updated: 20
THE DEVELOPMENT CHALLENGE: Poverty, unproductive agriculture and weak governance continue to threaten Madagascar's unique natural resource base and its biodiversity. The vast majority (70%) of Madagascar's population (growing at over 3% per year) depends on low-productivity, extensive agriculture for its livelihood. Yet, this is the main and most severe source of environmental degradation. Deforestation, bush fires, and extensive cropping of marginal lands result in destruction of ground cover necessary to prevent soil erosion, contributing to an annual loss of significant amounts of topsoil. Degradation threatens not only biological diversity, but also watershed and soil stability vital to the agrarian economy, and carbon storage to mitigate climate change.
Seventy-one percent of Madagascar's people were living in poverty in 2000. Poverty in Madagascar is more widespread in rural areas; 75% of the rural population lives below the poverty line, compared to 50% in urban areas. Forty-nine percent of Malagasy people are illiterate. Infant mortality (under age 1) has improved slightly to 88 deaths per 1,000 and maternal mortality is stable at 488 deaths per 100,000. This situation is mainly due to low economic growth and a rapidly increasing population against the backdrop of the country's 20 years of failed socialist economic and regulatory policies that discouraged private sector investment and growth.
The national presidential election held on December 16, 2001 marks an important step on the country's continuing path towards democratic development, following on late 2000 elections of provincial councils. This recent movement toward greater decentralization provides an opening to bring development activities closer to local populations and to adjust inputs to local needs and circumstances.
U.S. foreign assistance to Madagascar is motivated by three primary interests: Madagascar's natural resources - notably its unique biodiversity, which is of immeasurable global importance; the country's growing importance as a commercial partner, as demonstrated by its exceptional response to the African Growth and Opportunity Act (AGOA); and the deep poverty of its people, exacerbated by their vulnerability to recurrent natural disasters, continued food insecurity, and discontinuity in government management of social sector priorities. Complementary interests include the nascent HIV/AIDS epidemic, which further threatens improved economic well being, and the evolution of the country's transition to democracy.
THE USAID PROGRAM:
FY 2002 Estimate: $27.247 million FY 2003 Request: $28.260 million The Program Data Sheets provided cover the three objectives for which USAID is requesting funds. FY 2002 is the final year of funding for USAID/Madagascar's FY 1998-2003 strategy. A new strategy will be approved in FY 2002 with funding beginning in FY 2003. The new program is expected to focus on: environment; agriculture and trade development; health, population and nutrition; and democratic governance. Requested P.L. 480 food aid resources are critical to assuring that USAID's assistance reaches vulnerable populations.
OTHER PROGRAM ELEMENTS: USAID continues to play a catalytic role in bringing the benefits of the Internet to Madagascar using past investments from Leland Initiative and additional resources from the Africa Regional Education for Democracy and Development Initiative. USAID helped to extend the capacity of the Internet gateway in the capital as well as to install a high-speed Internet Point of Presence in four of Madagascar's most important secondary cities over the last two years. Establishment of a local Cisco Networking Academy, a campus computer network and Internet connectivity to Malagasy civil society and other partner organizations will be completed in early 2002. In collaboration with the Africa Regional Office of the Global Technology Network, a local branch for Madagascar was established, with 110 local firms expressing interest in the Global Technology Network program. One firm has concluded a contract with a U.S. company and seven Malagasy firms are actively involved in negotiations. With USAID/Washington funding, awareness workshops on regional and multilateral trading systems and the development of a strategic plan for the Madagascar-U.S. Business Council are underway. USAID/Washington funds also are supporting partial privatization and financial service improvements at the National Savings Bank. USAID will continue to implement cyclone rehabilitation and disaster preparedness activities, for which $20 million in International Disaster Assistance funds was received in FYs 2000 and 2001.
OTHER DONORS: In rank order the World Bank, France, the United States, the European Union, and Japan are the key donors. Transportation and communications, health and education, environment, and agriculture remain the priority investment areas for donor support. Donor coordination is well established on disaster relief, HIV/AIDS prevention, structural reform, natural resource management, rural development and food security, improved governance and transparency, and strengthening civil society. USAID has also established fruitful partnerships with other donors, private businesses and foundations. In the past year, alone, USAID has leveraged resources from the Packard Foundation, CISCO Networking Academies, Global Alliance for Vaccination and Immunization (GAVI), Conservation International, and Catholic Relief Services.
Program Data Sheets
- 687-001 Improved Environment for Private Initiative
- 687-002 Smaller, Healthier Families
- 687-003 Biologically Diverse Ecosystems Conserved in Priority Conservation Zones
Country Background Information Resources
CIA Factbook
Library of CongressNational Geographic Country Maps
State Dept. Country Information
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Last Updated on: May 29, 2002 |
