poverty in madagascar essay

How Madagascar Can Break a Vicious Cycle of Poverty

Marie-chantal uwanyiligira, marcelle ayo, francis muamba mulangu.

With its young population, vast and unique biodiversity, dense forests, fertile agricultural land, unparalleled touristic assets, and one of the longest coastlines in Africa, Madagascar has excellent potential for growth. But Madagascar is also unfortunately among the poorest countries in the world. Between 1960 (its year of independence) and 2020, Madagascar’s per capita income declined by 45%. Remarkably, this occurred in an environment largely free of violent conflict, perhaps the only such instance in the world.

The meager progress recorded during periods of relative stability has been swept away by various crises, usually political but also climatic and, more recently, by the COVID-19 pandemic. Despite a modest economic recovery after the country’s most recent political crisis, from 2009 to 2013, the GDP per capita growth rate has averaged just above 0% per year. The share of the population living below the national poverty line rose from 72.5% in 2012 to 75.2% in 2022.

What is preventing Madagascar from meeting its potential?

According to World Bank analyses, per capita income and the poverty rate are highly correlated in Madagascar. This means that the persistence of poverty is a result of the stagnation of growth. The World Bank’s Systematic Country Diagnostic indicates that elite capture and the lack of competition and transparency at the core of the state have hampered Madagascar’s growth performance.

Globally, the private sector has a leading role to play in improving growth and reducing poverty. However, Madagascar’s private sector is small, highly uncompetitive, and marked by low levels of investment, thus unable to create jobs, lift economic growth, and reduce poverty. Investment averaged 19.4% of GDP during 2013 to 2019, which is much lower than its level for peer countries.

Madagascar’s structural economic transformation has been limited: more than 90% of the working-age population remains engaged in subsistence agriculture and informal services. Job creation in industry and high value-added services remains low. Agricultural productivity is low, with limited technological adoption among smallholder farmers and weak market orientation. Low productivity coupled with deteriorating market accessibility are major contributors to high poverty rates in the rural areas.

Governance failures have limited Madagascar’s ability to achieve the sustained, inclusive, and high economic growth needed to reduce extreme poverty. High poverty is also the result of the weak governance that has remained unresolved for decades: weak institutions and elite control are eroding the rule of law, public sector accountability and the fight against corruption. The COVID-19 pandemic exacerbated an already-centralized power structure, weakened institutions, and created new challenges for transparency and accountability.

Another major obstacle is the weakness of human capital: Madagascar’s Human Capital Index (0.39) is among the lowest worldwide, meaning that, unlike healthier and better-educated children elsewhere, Malagasy children will not grow into productive adults.

Tropical cyclones are another major threat to Madagascar, particularly in the coastal regions of the east and north. On average, the country experiences three to four cyclones annually, causing death, destruction, and the disruption of economic activity. Natural disasters cost the economy about 1% of GDP each year—a huge amount for a desperately poor country. The World Bank’s early estimates of the impact of four cyclones in 2022 indicate that per capita consumption of impacted households declined by 30%, again a staggering amount.

What needs to be done to break the cycle of poverty in Madagascar?

The answer is almost mechanical because it comes up too often. It is, however, inescapable: Madagascar urgently requires a sustained period of robust economic growth spanning multiple years, which would enable the country to accumulate assets and build a solid foundation for its economic transformation. Put simply, to reduce poverty in Madagascar, it is essential to increase growth. High growth is possible in Madagascar but a strong commitment to economic reforms is needed to ensure its sustainability.

Madagascar needs to establish a pro-growth coalition that prioritizes the creation of the strong institutional framework necessary for a dynamic and competitive private sector. This will require a stable, reliable, and effective public administration that can provide infrastructure and services while enforcing only reasonable regulatory requirements. The absence of these crucial elements will result in insufficient growth, perpetuating poverty and missed opportunities. Recent bold reforms in mining, telecom, and energy can help foster the growth Madagascar needs to leap out of the poverty track it is in.

These reforms, bringing more market competition and transparency, are at the core of addressing elite capture and unlocking the door for jobs and private sector investment. Madagascar needs to raise capital accumulation which is now two to four times less than its peers. Can this reform-oriented agenda be the new normal for Madagascar? If the country can sustain inclusive growth over a long period, through the accumulation of human capital and physical assets while strengthening its resilience to shocks, then the country could exit the poverty trap. And, if not, growth will remain insufficient to reduce poverty and Madagascar will face another decade of missed opportunities.

As we embark on the new five-year (2023–2027) Country Partnership Framework (CPF) for Madagascar, the World Bank Group has taken stock of its past experiences and lessons learned. This new framework aims to increase and sustain growth in Madagascar. It’s summarized under three high-level outcomes (HLO): (i) Improved job opportunities; (ii) Improved human capital outcomes, and (iii) Enhanced resilience against shocks. The first HLO focuses on creating jobs and increasing incomes. The second seeks to make that growth more inclusive and remove constraints on future growth. The third focuses on strengthening resilience, which is necessary given Madagascar’s history of crises.

The framework proposes an integrated approach to the pathways to poverty reduction, combining promoting economic growth and overall economic transformation; creating opportunities for as many poor people as possible; and targeting the ultra-poor who do not have the capability to respond to incentives.

The CPF will leverage the approach to expand programs and financing in areas that have worked well in the past, such as nutrition, social protection, and integrated growth poles. Additionally, it will focus on two major sectors, energy, and telecommunications, and adopt a maximizing-finance-for-development approach, with joint implementation teams of the International Finance Corporation and the World Bank, as seen in the digital and rural electrification sectors.

As Nelson Mandela once said, “It is impossible until it is done.” Madagascar stands at a crossroads to convert its development challenges into an opportunity to find a path out of its predicament. Progress is possible if political ownership of its reform agenda is reinforced, and the fate of poor and vulnerable populations is put at the center of the policy debate.

Country Manager, Madagascar, Africa

Country Manager for Madagascar, International Finance Corporation (IFC)

Senior Economist, Statistician

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Why is Madagascar so poor?

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Multidimensional poverty affects two in three children in madagascar, according to the results of an analysis carried out by the government of madagascar, in collaboration with unicef.

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Antananarivo, 03 November, 2020 : Madagascar will be able, for the first time, to prioritize the poorest people in programmatic interventions. The results of the Multidimensional Overlapping Deprivation Analysis (MODA), developed by UNICEF, which will allow monitoring of child poverty, are launched today by releasing the data related to the child deprivation in many areas.

The study has been carried out since January, while using data from the national survey on the socio-demographic situation of households (MICS-6) of Madagascar, in collaboration with the Ministry of Economy and Finance, the National Institute of Statistics and Oxford Policy Management. In this analysis, material deprivation and child well-being in general were assessed.

The MODA methodology uses the child (not the household) as the unit of analysis and focuses on the well-being of children by recognizing different needs at different stages of their lives. In addition, the analysis includes overlapping deprivations experienced by children. Indeed, the more simultaneous deprivations a child is facing, the more disadvantaged he or she will be. For example, a child who is malnourished and lives far from a health centre will be less able to cope with an illness. For this reason, it is important to know not only how many children suffer different deprivations, but also whether it is the same children who suffer different deprivations.  It is therefore essential to realign strategic development priorities so as to expect more equity in children's living conditions. The dimensions of poverty considered are: health, nutrition, education, water and sanitation, housing and communication. A child is said to be multidimensionally poor if he or she suffers material deprivation in at least two dimensions.

The analysis revealed that more than two thirds (67.6%) of Malagasy children are experiencing material deprivation in at least two dimensions of well-being simultaneously and 23.7% suffer deprivation in four or more dimensions of well-being. Thus, the proportion of poor children is higher in the south and west of the country, while the central plateau and the north-eastern area have the lowest poverty rates. In the regions of Atsimo Andrefana and Ihorombe, for example, almost one child in two (49.3% and 49.1%, respectively) suffers material deprivation in at least four dimensions of well-being simultaneously, compared to Analamanga with less than 5%.

It should be noted, however, that with the health crisis caused by COVID-19, poverty is likely to have increased at both household and child level; an additional 1.3 million children are likely to fall into poverty by the end of the year according to preliminary simulations by UNICEF. "We believe that accurate and up-to-date information on development indicators is the first step in any successful strategy, and therefore the main objective of this analysis report," said Mr. Michel Saint-Lot, UNICEF Representative in Madagascar. He added that UNICEF is fully committed to this task and is eager to continue working alongside its national and international partners.

"Whenever opportunities arise, the Malagasy government will undoubtedly update the indicators developed on the basis of a multidimensional poverty analysis based on major national surveys. The aim is to have data for monitoring progress towards achieving SDG 1, relating to poverty in its various forms, especially child poverty," stated Mr Romalahy Isaora Zefania, CEO of INSTAT.

The results of the study:

·      More than two out of three children (67.6%) are multidimensionally poor in Madagascar, meaning that they suffer material deprivation in at least two different dimensions of well-being. 23.7% of children are in extreme poverty (4+ dimensions of well-being).

·      The extreme poverty rate in rural areas (27%) is more than twice as high as in urban areas (13%). The south-west of the country is the most seriously affected: almost one child in two lives in extreme poverty in the regions of Atsimo Andrefana (49.3%) and Ihorombe (49.1%).

·      Children with multiple vulnerability factors are particularly likely to be poor. For example, the analysis indicates that the extreme poverty rate is almost seven times higher among children living in households headed by uneducated, non-Christian women in rural areas (53.4%) than among children with none of these characteristics (7.4%).

·      There are pockets of severe deprivation lurking within non-poor households. For example, the analysis reveals that children in care and double orphans are particularly likely to suffer more deprivation than the other children in the same household. In particular, the former are twice as likely to suffer sexual violence as the average. Children with disabilities also tend to experience more deprivation than other household members, especially as regards nutrition, education and vaccinations.

·      Boys tend to suffer significantly more deprivation than girls in terms of education. This may, in part, be explained by the fact that boys are more likely to work than girls. Boys are also more likely to be exposed to violent discipline. On the other hand, girls are more likely to be assigned the chore of fetching and carrying water.

·      The education of parents, especially mothers, is strongly associated with reduced deprivation among children, even after taking into account that more educated parents tend to be wealthier, more urban, and older than the average. However, after the primary education, other social and economic pressures come into play, which may negatively affect the well-being of some children (non-breastfeeding, violence, etc.).

A few days before Madagascar celebrates the 30th anniversary of the signing of the United Nations Convention on the Rights of the Child, this study is even more important to place children – who represent 50% of the population – at the centre of development policies.

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Dissemination of the results of the Multidimensional Overlapping Deprivation Analysis in children

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Madagascar’s Poverty is Further Impacted

The COVID-19 Pandemic

Since the onset of the COVID-19 pandemic , Madagascar’s economy has drastically worsened and so has Madagascar’s poverty as a result. With an already frail economic climate before COVID-19, the pandemic has negatively affected both the rural and urban areas of Madagascar, as precautionary measures enforced by the government are obstructing the flow of food and job opportunities, further stifling the already impoverished. Movement restrictions, one of many precautionary measures being enforced by the government, have cornered the most poverty-susceptible households to stay in place versus finding labor opportunities through seasonally migrating. Without the freedom to move about and access markets, these rural households are hard-pressed to find food and urban households are feeling the economic effects of this as well.

Drought in Madagascar

About 1.6 million people in southern Madagascar have suffered from food shortages since 2016. The reason for this food shortage: drought. Ejeda is one of many Madagascar villages that finds its villagers trekking miles away from their homes to dig holes into sand beds around rivers in search of water. If water is found, these villagers are then tasked with transporting it miles back home. Three years of recurrent drought in southern Madagascar has almost entirely eradicated farming and crop yields.

Declining Tourism Industry

Tourism in Madagascar is a significant source of annual revenue for the country. Home to lush national parks and scenic beaches, it is estimated that the fallout of COVID-19 has taken away about half a billion dollars of tourism revenue from the country since the pandemic began. Travel restrictions in Madagascar have gradually been eased but the damage has been done as people are simply not traveling unnecessarily during COVID-19. This loss of tourism revenue has been widely felt as it has added to the people’s ongoing struggle with poverty in Madagascar.

Poverty in Madagascar continues to worsen due to COVID-19, drought and the ensuing loss of tourism. With an already feeble economy before these crises, poverty has been intensified in both rural and urban areas as these crises continue to play out.

The Good News

Madagascar’s poverty has increased but there is good news to be found. A dietician and missionary from Poland named Daniel Kasprowicz recently raised 700,000 PLN through an online fundraiser to build a medical facility for malnourished children. Construction on the building has already started, and as poverty is expected to increase throughout Madagascar for the foreseeable future, it is believed that the facility will be opened and treating the malnourished by February 2021. In a time of crucial need, foreign aid means life or death in Madagascar and no act of assistance goes unnoticed.

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The World Bank in Madagascar

The World Bank is helping the Madagascar government to fight poverty and improve the living standards.

Madagascar is the world’s fifth largest island, situated in the Indian Ocean off the coast of southern Africa. Despite considerable natural resources, however, its population of about 28 million (2020) has one of the world’s highest poverty rates.

Political Context

Andry Rajoelina was re-elected President of the Republic of Madagascar in December 2023 following the first round of presidential elections on November 16, 2023. He reappointed Christian Ntsay as Prime Minister. The new government was officially presented on January 14, 2024, and comprises 27 ministries.

Economic Situation

For decades, Madagascar has struggled with sluggish growth and persistent poverty, largely due to weak governance, inadequate human and physical capital development, and slow structural transformation. The situation is exacerbated by increasing climate crises and heightened vulnerability to external shocks. Moreover, weak economic growth combined with rapid population growth has resulted in Madagascar having one of the highest poverty rates in the world, reaching 75% in 2022 using the national poverty line.

Although economic growth decelerated from 5.7% in 2021 to 3.8% in 2022, largely due to the spillover effects of the war in Ukraine and climate shocks, it gradually recovered. Growth is expected to continue its recovery path, stabilizing at 4% in 2023, before accelerating to around 4.7% in 2024-25. Inflationary pressures have intensified, with headline inflation increasing from 6.9% in June 2022 to 11.3% in June 2023. Inflation is expected to remain at 10.5% in 2023, before moderating to around 8.5 % in 2024-25.

The current account deficit widened from 5% of GDP in 2021 to 5.6% in 2022. However, a decline in global oil prices is projected to contribute to a further narrowing of the current account deficit to 4.5% of GDP in 2023-25, as the decline in imports outpaces the slowdown in exports. The rebound in exports may face challenges, however, as restrictive import policies−such as the lowering of permissible nicotine levels in imported food products−from Madagascar's main vanilla trading partners are likely to hinder progress.

The overall fiscal deficit widened from 2.8% of GDP in 2021 to 6.4% in 2022, and total public debt rose to 56.9% of GDP in 2022. This deterioration in the fiscal balance is largely the result of deferred payments of oil duties by oil distributors. The settlement of these cross-liabilities is projected to narrow the budget deficit to 3.8% of GDP in 2023, as tax revenues rise to 12.8% of GDP from 9.6% in 2022. Moreover, the projected gradual increase in capital expenditure from 5.1% of GDP in 2021 to 8.7% in 2025 reflects improved budget execution and the implementation of the government's priority projects.

Last Updated: Jan 10, 2024

The Country Partnership Framework (CPF) for Madagascar for 2023 to 2027 , approved by the World Bank in April 2023, sets out the strategy to support Madagascar’s efforts towards inclusive and resilient growth. The new five-year CPF is centered around three high-level outcomes: (i) improving job opportunities through transformative action, (ii) making growth more inclusive by addressing weaknesses and inequities in public service delivery; and (iii) creating resilience to shocks that can reverse improvements in growth or worsen socioeconomic inequalities. Underpinned by the Systematic Country Diagnostic (SCD) , and the Country Private Sector Diagnostic (CPSD) , this CPF also reflects broad consultations with the government, development partners, the private sector, civil society, and academia.

As of September 2023, the World Bank portfolio in Madagascar stood at $4.3 billion and includes 26 national projects and 4 regional operations. Infrastructure takes the largest share of financing at 34% ($1,467 million) followed by sustainable development at 31% ($1,330.2 million), human development at 23% ($1,012.8 million), and equitable growth, finance, and institutions at 12% ($538 million). The World Bank also provides analytics and advisory services to support evidence-based decision-making and the stronger implementation of development.

Recent International Development Association (IDA) approved projects include:

• Digital and Energy Connectivity for Inclusion in Madagascar Project (P178701, $400 million), approved on March 30, 2023, will contribute to doubling energy access from 33.7% to 67% in Madagascar and add an additional 3.4 million internet users to promote socio-economic inclusion.
• Rural Livelihoods Productivity and Resilience Project (P175269, $200 million IDA, $25 million AFD) was approved on March 30, 2023, and aims at increasing productivity and strengthening resilience of rural livelihoods in Alaotra-Mangoro and Sofia, two regions that are critical to national food production.

Last Updated: Sep 25, 2023

Human Capital

The Social Safety Net Project in Madagascar has supported 5.2 million people since the project began. Over 1.8 million people have received regular cash transfers and other forms of support, with women accounting for 75% of direct beneficiaries. In 2022, the project implemented exit strategies for the first cohort of beneficiaries for the first time. Thanks to social safety net projects, coverage of extremely poor households will rise from 5% in 2016 to 13% in 2025.

To combat malnutrition , more than two million people have benefited from health and nutrition services and  4,500 community health and nutrition sites are operational and 1,081 primary health care facilities strengthened with necessary nutrition and health commodities and equipment. Based on a 2021 Demographic and Health Survey, stunting decreased from 42% to 39.8% nationally between 2018 and 2021, and specifically from 51% to 48% in the eight regions targeted by the Improving Nutrition Outcomes using the  Multiphase Programmatic Approach (MPA) Project . This improvement is even more significant in the five regions that were enrolled in the program in 2019 and 2020: from 55% to 49%.

To improve access to and quality of education for all children, the World Bank has focused on supporting primary education reform through the development of a new curriculum, training of over 30,000 teachers and 5,000 school principals across Madagascar, and distribution of textbooks to over 2.7 million children in the first two years of basic education. Over 17,000 teachers, school principals, and technicians have been equipped with tablets to support distance learning. 800 classrooms are being built in extremely remote areas, with water points and improved sanitation facilities. The Basic Education Support Project set up 1,000 community early learning centers in rural areas  and school canteens, particularly in the south of the country, benefiting 50,000 schoolchildren.

Jobs The series of Pôles Intégrés de Croissance et Corridors (PIC) projects has supported more than 600 entrepreneurs and Small and medium-sized enterprises (SMEs) through technical assistance, subsidies, co-financing instruments, and support in accessing other sources of financing. More than 23,000 agricultural producers working in cash crops or aquaculture have been supported to improve their productivity and market access. The projects have also increased the value of exports from the main agri-food value chains supported by over 23% and provided more than $6 million in additional income for smallholders.

Sustainable Development More than 560,000 land certificates have been distributed since 2016 with the support of the Agriculture Rural Growth and Land Management Project , giving farmers more security in their production . By 2023, the project expects to issue a total of almost 1,400,000 land certificates, thanks to massive operations implemented using low-cost, relatively rapid methods.

The  Support to Resilient Livelihoods in Southern Madagascar Project  has finished its drought emergency response activities with 50,000 households supported in re-starting agricultural production. The project is now turning towards longer-term development activities to build resilience , supporting to local government institutions and decentralization processes and  building state presence and leadership for sustainable development. 134 commune local development committees are now running and being supported to lead local development planning, and all have produced a local development plan  outlining priorities. The first 30 communes received funds to invest in those development priorities and a range of local infrastructure is nearing completion including schools and health centers.

Infrastructure On roads: phase 1 of Route Nationale 44, consisting of 40km of rehabilitation , is now completed, and travel time from Marovoay to Vohidiala has been reduced by half. Around 310,000 rural residents in the east and south-east regions now have access to an all-season road.

On energy , with the ongoing Electricity Sec Operations & Governance Improvement Project (ESOGIP), the " Matselaka " electricity customer management system is now operational in 100% of the country, and 8,500 smart meters were deployed. The project also financed the construction and rehabilitation of 320km of distribution and transmission lines, improving network quality. Total network losses were reduced from 35% to 28% between 2016 and 2022. Under the Least-Cost Electricity Access Development Project (LEAD) , the first phase of health center electrification has been achieved and 500 basic health centers will have access to electricity by 2024. With the development of the off-grid market, 150,027 kits benefit from the system have been distributed, and around 200,000 new customers are expected to be connected via JIRAMA grids by the end of 2024.

The World Bank works closely with the following partners in Madagascar: the African Development Bank, Agence Française de Développement  (AFD), the Food and Agriculture Organization (FAO), UNICEF,  UNDP, World Food Programme, the International Potato Centre, United States Agency for International Development (USAID), the World Health Organization,  the GAVI Alliance, Power of Nutrition, the German International Cooperation Agency (GIZ), Japan’s International Cooperation Agency (JICA).

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Poverty and hunger in madagascar.

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            Poverty and Food Security in The Republic of Madagascar .              The Republic of Madagascar is a country that is located on an island off the coast of south east Africa in the Indian Ocean. It is known to be the fourth largest island in the world. Madagascar is known for its beautiful atmosphere and diversity of nature. Madagascar was previously a French colony until the island gained it's independence in the 1960's. From a relatively small population, the community has recently grown to roughly 22 million people, of which many are below the poverty line. The islands population is reliant upon farming and cattle, rice, coffee, vanilla and seafood exports in order to gain economic standings. A factor that decreases productivity in farming in this country is its susceptibility to natural disasters such as flooding, cyclones and droughts. An estimated 5 million people live in areas of the island that frequently suffer from these particular disasters.              Level of Poverty in Madagascar.              Madagascar is seen as a low income level developing country. It is estimated that 72 percent of the 22 million inhabitants of Madagascar live below the national poverty line. In the past half century, income per capita has fallen by 40 percent while the population keeps steadily increasing, which emphasizes pressure on the overall economic standings of Madagascar as a nation. Because of the drastic rates of poverty, malnutrition, access to clean drinking water and lack of basic health care services among the Malagasy people 84 children out of every thousand will die before reaching the age of five. With over 80 percent of Madagascar's inhabitants living in rural areas, majority of those people suffer to have little to no access of basic transportation, education or any type of health care. When comparing urban areas to rural areas, it has been calculated that 76 percent of people in rural areas are below the poverty line and 52 percent of people living in the urbanized areas of the island are below the national poverty line.

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A tropical cyclone makes landfall in northern Madagascar, killing 18 people

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A tropical cyclone that swept across Madagascar has killed 18 people and left four missing after making landfall on the north of the Indian Ocean island nation earlier this week, authorities said on Friday.

The storm has also caused severe flooding that partly submerged entire villages, displaced or affected some 47,000 people and set off landslides that injured three people, the National Office for Disaster Management said.

Cyclone Gamane hit northern Madagascar on Wednesday and has now weakened considerably, leaving a trail of destruction behind it.

In the Diana and Sava regions in the north, bridges and roads were washed away and houses and rice fields were submerged. Residents paddled around their villages in canoes looking to help others trapped in their homes as the water level nearly reached the roofs of some buildings.

The cyclone red alert was lifted on Thursday morning after the worst part of the storm brought wind gusts of over 210 kilometers per hour (130 miles per hour).

Madagascar has been hit by at least 10 strong tropical cyclones since the start of 2022 and is facing a hunger crisis in parts of the island, due to the damaging impact of extreme weather , according to the World Food Program.

The United Nations said the number of cyclones in the past two years is unprecedented for Madagascar, which has also suffered from its worst drought in 40 years in the south. It is one of the countries most at risk to climate change and one with the highest rates of poverty, according to the World Bank.

AP Africa news: https://apnews.com/hub/africa

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