Ranked number 68 on the Failed State Index of 2010 and 135 on the Human Development Index out of 169 countries and areas, Madagascar is considered to be at a low human development level. Madagascar’s development situation is the product of a history of corrupt government and neocolonialism. Madagascar has been labeled a “developing” country because of its current conditions.
Madagascar was home to socialist economic policies and single-party rule up until the mid 1990s. Free elections took place for the first time in 17 years during the 1992-93 National Assembly elections. In 1997 Didier Ratsiraka, whom led Madagascar during the 70s and 80s, was elected president. The 2001 presidential election nearly caused a secession of half the country, due to the hostility between the followers of incumbent Ratsiraka and his contester Marc Ravalomanana, whom was declared the victor. This first crisis caused a 12% drop in GDP for 2002. Ravalomanana achieved a second term, and in 2009 protests over restrictions on opposition press and activities led to him stepping down. Since the start of the current political crisis, the World Bank and IMF-led policy of privatization and liberalization has been undermined and the economic situation in Madagascar has gotten worse. The situation has caused investors to be cautious about investing in such an environment. The political and economic turmoil has taken its toll on the citizens of Madagascar.
Madagascar was an independent kingdom, not all indigenous were loyal to the king, up until 1896 when it became a French colony. Independence was reclaimed in 1960, but implications of the colonization have had an impacting affect. The colonization was by force and the annex unified all of Madagascar under one government. Up until independence was won, many rebellions against the French took place. The newly independent Madagascar had a relatively peaceful start with a stable economy up until 1975. Three years of political instability ended with Didier Ratsirake taking control and establishing a quasi-Marxist state. Until the 1990s Madagascar suffered an economic collapse. Ever since the Socialist ideals were put into place, Madagascar’s development had been halted. The French colonization of Madagascar may have had a positive effect by uniting Madagascar under one government and giving the inhibitors a common enemy, the occupying French. However, the effects of the Cold War interfered with development, and neocolonialism would soon influence Madagascar.
Recently, Madagascar has found itself dealing with neocolonialism at its worst. In 2008, Madagascar’s president, Ravalomanana, signed a deal with South Korean firm Daewoo Logistics allowing Daewoo to exploit 1.3 million hectares of arable land for a period of 99 years. The area equals almost half of Madagascar’s cultivatable land. Daewoo has hired peasants to work the land which will produce palm oil and corn. However, most of the crop is to be exported to South Korea and the rest elsewhere. On the positive, Daewoo has planned to invest $6 billion in infrastructure and to employ over 70,000 people.The problem with this deal is that the wages earned by the workers won’t make up for the lost production that would have otherwise been used to feed Madagascar’s people. Already being a part of the World Food Program and receiving enough food to feed 600,000, the contract signed with North Korea added to the growing opposition of Ravalomanana.
Given Madagascar’s current economic crises and political situation, assistance could help Madagascar out of its decline. Problems that would be key to fix include: child mortality, nutritional deficiency caused by poverty, disease, trade restrictions, a corrupt government, and North Korea’s neocolonialism. Solving these developmental issues will help raise the quality of life for people living in Madagascar and also their ability achieve a better living. The most effective aid strategies would be those that aim to reduce or eliminate the issues listed above.
Addressing the developmental issues can be done in many ways. Taking on each problem individually rather than all at once would lead to the best results. Individual assessment of the aid efforts would allow for adjustment or termination of ineffective strategies. However, some of the problems listed above are linked and may be addressed simultaneously. Child mortality is linked to nutritional deficiencies and disease, but those are not the only causes of child deaths below the age of five. Other causes may include lack of sufficient health care or unseen social problems. The trade barriers and neocolonialism Madagascar faces and are linked to the corrupt government. However, aid cannot directly fix corruption, but the aid may give the means to Madagascar’s people to fix it. A little extra food and income may give the poor enough strength to cause change.
The current aid being provided by the World Food Program (WFP) needs to be continued and expanded. With over 60 percent of the population living below $1.25 a day, it is difficult to keep food prices within the poor’s purchasing range. Another reason to expand the food aid is that Daewoo’s neocolonialism of Madagascar is preventing much of the population from being able to produce their own food and the wages being paid are not enough to support a family. The WFP’s aid needs to be monitored to make sure those who need it are receiving it. If the aid passes through the government or gets in the hands of the elites, it may not reach the poor.
Madagascar is not being held back by low unemployment or lack of resources, but the corrupt government and division of wealth is what is holding the poor down. Infrastructure improvements were promised by North Korea and so were added jobs. The many industries of Madagascar are also still running and also provide employment. Increasing the wages of those living in poverty would complement the food aid and also have the greatest affect on living conditions. Increasing these wages would have to be done by a nongovernmental organization. Sending money through the government would have the same issues that providing food would, and much of it would also be lost as overhead. Aid workers would need to establish a center or even train trustworthy people to distribute the money. A system would also need to be developed to figure out how much to give to each individual worker based on need and type of work. Just giving money to those living in poverty would discourage work. Adding to wages will encourage productivity and will allow for increased purchasing power of food. More food will give workers more strength which will increase productivity even more. The downside to providing aid in the form of currency is that the price of food may simply increase with inflation. However, the food aid being provided along with an increase in wages should leave room for money to be spent on other things such as health care, mosquito nets, or even investments. Even if the money is only spent on living necessities, at least it will be increasing the poor’s quality of life.
In the long run, it can be optimistically anticipated that the food and money aid will give the poor enough strength to start challenging the standing government. The current political situation has yet to unfold, but if popular elections continue, it is desired that the people will vote in someone who will help turn around the economic crisis. Madagascar’s ability to export and handle the effects of current neocolonialism can only be addressed by Madagascar’s government. Those living in poverty have the numbers to challenge the status quo, but currently the strength is not there. Providing more food and extra income may be give the means to increasing their strength.