Global Development Matters
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Madagascar

Madagascar
flag of Madagascar map of Madagascar

 

Madagascar, eligible for the MCA each year since its inception in 2004, was again selected as eligible in the 2007 and 2008 selection rounds. Madagascar signed a 4-year $110 million compact in April, 2005.

 

MCA Status

Madagascar is the first country to enter into a compact with the MCC. The compact, signed on April 18, 2005, is for $110 million over four years. The compact focuses on securing formal property rights to land, accessing credit and protecting savings, and training in agricultural production, management and marketing techniques.

Country Compact

Read Madagascar's MCA Compact (pdf)
Read an MCC summary of the compact (pdf)
CGD's summary of the proposal

By way of comparison, Madagascar's Poverty Reduction Strategy Paper (PRSP) focuses on: rule of law and a well-governed society; economic growth with a large social base; establishing human and material security; and systems for enlarging social protection.

Madagascar's PRSP (PDF)

Joint Staff Assessment (JSA) of Madagascar's PRSP (PDF) 

 

Country Eligibility

In the FY 2008 selection process, Madagascar scored above the median on all six "ruling justly" indicators, on zero of four "investing in people" indicators, and on five of six "economic freedom" indicators. Madagascar was reselected as eligible in 2008 despite not passing the “investing in people” category.

Madagascar’s performance (pdf) on the FY 2008 selection indicators

Review Madagascar’s performance (pdf) on the FY 2007 selection indicators

Review Madagascar's performance (pdf) on the FY 2006 selection indicators

Learn more about the MCC’s country selection process

 

Country Facts

Data are for 2005 (or most recent year available)

Per capita income (GNI, current US$) $280
Poverty rate ($2 a day) 85%
Average economic growth, 1996-2005 3.2%
Population 19,086,826
Percent population rural 73%
Life expectancy 56 yrs
Literacy Rate 71% 

Source: World Development Indicators 2007

Madagascar at a Glance from the World Bank (PDF)

 

Other U.S. Policies

Development Assistance In FY 2006 USAID requested $20.4 million in program funds for Madagascar from Child Survival and Health Programs Fund and the Development Assistance Economic Support Fund.

USAID strategy in Madagascar

Trade The U.S. imported about $469 million in goods from Madagascar in 2004, about $315 million of which was apparel under the Africa Growth and Opportunity Act (AGOA).

 

See a spreadsheet of U.S. imports from Madagascar
Read a country report from the Office of the U.S. Trade Representative

 

Other Donors

The top three donors to Madagascar in 2005 were:

Donor

ODA/OA* Disbursement 2005
(net $ US millions)

World Bank IDA 214.47
European Commission  137.31
Spain  135.44

Source: Development Assistance Committee Database
Organization for Economic Cooperation and Development (OECD)
*ODA/OA is Official Development Assistance and Overseas Aid
www.oecd.org/dac/stats/idsonline

 

World Bank Involvement

As of August 2006, there were 16 ongoing projects supported by the World Bank with a commitment value of about US$964.6 million and US$493.3 million in undisbursed funds. Current projects are aimed at agriculture, infrastructure and water management, industry and finance, and education and health services.

World Bank projects in Madagascar

 

Other Resources

MCC Madagascar web site

Compendium of food and agriculture indicators from the UN’s Food and Agriculture Organization (FAO) - (PDF) 

Department of State country profile providing background on Madagascar's history and U.S.-Madagascar relations