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Madagascar
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Situation and cooperation
In 1960, when Madagascar gained its independence from France, it ranked among the world’s middle-income countries. From 1972 onwards, the country charted a socialist course and large companies were nationalised. Madagascar sealed itself off from the western world – and the country’s economic and social decline began. Today it is one of the least developed countries in the world. In the Human Development Index (HDI 2008) Madagascar is ranked 143rd out of 179 states.
Poverty is severe: some two thirds of the population have to manage on less than one US dollar per day. Poverty is particularly prevalent in rural areas. About 38 per cent of the population are considered to be undernourished. Income from fisheries, gemstone production, the tropical timber industry and the export of vanilla is unequally distributed. Some 90 per cent of income is in the hands of about 20 per cent of the population.
Madagascar’s economy is dominated by agriculture. Agriculture provides a living for more than three quarters of the population but contributes only about 16 per cent to gross domestic product. Eighty-seven per cent of agricultural land is used for subsistence farming. Soil erosion and the silting of fields are major problems. In the 1970s, Madagascar was an exporter of rice, but today the country no longer produces enough to feed its own people. Moreover, marketing often fails on account of transportation problems. The infrastructure is in very poor condition, especially in rural areas. In the rainy season, entire regions are cut off from transport routes and communication networks. Power supplies are also in urgent need of expansion and/or upgrading.
The challenge of protecting the environment
One of the biggest challenges for the government
is protecting the environment.
Madagascar is endowed with a unique biodiversity, including many species of plants and animals that are not found anywhere else in the world. But rapid population growth, widespread poverty and inappropriate traditional farming methods are jeopardising the country’s natural resources. More and more areas of rain forest are being chopped down or cleared by slash-and-burn to obtain firewood or create arable land.
Protection of the environment is a national objective under the country’s constitution. Sustainable use and management of the rain forests should, at the same time, help to protect biodiversity and improve the living conditions of the people.
Development potential
Madagascar’s natural beauty and diversity are among its greatest assets. Tourism is already an important economic factor and can be further developed – on a sustainable basis. Eco-tourism in particular is a potential new source of income for the people. Research into and the use of medicinal and healing plants also offer opportunities. Mining is another engine for growth (nickel/cobalt, mineral sand). Only if the political situation is stable, can these areas of development potential be tapped.
Priority areas of German development cooperation
German development cooperation with Madagascar began in 1962. Since then Germany has contributed a total of over 350 million euros to support the country. At the last government negotiations, in early 2007, Germany pledged 34.5 million euros to Madagascar for the 2007/2008 two-year period: 27.5 million euros for Financial Cooperation and 7 million euros for Technical Cooperation .
In March 2009, State Secretary Erich Stather announced that German development cooperation with Madagascar would be suspended for the time being; this decision was taken in response to the change of government that had taken place without any democratic legitimacy. Germany also called on the European Union not to commit any new development funds to Madagascar for the time being, due to the latest developments.
Madagascan-German development cooperation is focused on the priority area
- Environmental policy, protection and sustainable use of natural resources
In addition, Germany is supporting measures to promote the development and use of renewable energies and to fight HIV/AIDS at local level; these are activities which have no links with the central government. On top of this, Germany is advising Madasgascar’s municipalities on "good governance" and "reform of public finances". The municipalities are the only autonomous and democratically elected units of government left in Madagascar.
Environmental policy, protection and sustainable use of natural resources
Madagascar’s natural assets are acutely threatened by logging and clearance by slash-and-burn. The result is soil erosion and a deteriorating hydrologic balance, which in turn result in declining agricultural productivity and worsening poverty in rural areas.
Improving people’s living conditions through sustainable use of natural resources is thus at the heart of Madagascan-German development cooperation. Germany has been helping the government to reform its environmental and forestry policies and further extend the national parks network. In the villages, farmers are being introduced to erosion protection measures and ecological cropping methods, and reforestation schemes are being facilitated. Together with private companies, Germany is developing strategies for using the national parks for tourism. Young people in schools are being sensitised to the subject of environmental protection. Germany has also been promoting the development of renewable energies, one example being a loan that has been granted to finance a hydroelectric plant.
Debt relief
Madagascar qualified in 2000 for the Heavily Indebted Poor Countries Initiative (HIPC Initiative). Four years later the country reached completion point and was able to benefit from the Multilateral Debt Relief Initiative (MDRI) as well. By July 2007, Madagascar had been granted debt relief totalling 4.2 billion US dollars.
Germany was one of the countries that helped Madagascar reduce its debt burden to an economically sustainable level, cancelling debts to the tune of almost 230 million euros. Interest payments no longer have to be made on the cancelled loans, and the national budget funds thus released can be used to reduce poverty and protect the environment.
Information
Publications
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FLEGT – Combating illegal logging as a contribution towards sustainable development
Topics 180
(PDF 964 KB, accessible) -
German Development Cooperation in the Forest Sector
(PDF 249 KB, accessible) -
In partnership for a strong Africa: Cooperation in the area of good governance
Topics 165
(PDF 2.5 MB, accessible) -
Promoting Health – Fighting HIV/AIDS
Topics 178
(PDF 815 KB, accessible)
