Political situation Little scope for urgently needed measures
The government is no longer able to carry out its key tasks. With a tax-to-GDP ratio of 10.8 per cent (2016), there is not enough revenue to finance urgently needed investments in the country's run-down infrastructure or in its education and health systems.
Moreover, more than 95 per cent of government funding remains in the region around the capital, Antananarivo. In the past few years, the government has no longer paid out the grants to municipalities that are envisaged by Malagasy law.
Civil society is not very developed in Madagascar. People have very few opportunities for critically monitoring government policies or for voicing their concerns and demands.
One challenge is the fact that government revenue is not sufficient to lend significant impetus to development or to provide basic services for the people (education, health, infrastructure) nationwide.
Even though the country's central democratic institutions are carrying out their core functions, it is very difficult for outsiders to rise in the political system, and the political system is inefficient. A small economic elite reaps the profits from the country's wealth of natural resources and stands in the way of fundamental reforms. Most tropical timber, gemstones and gold are exported through illegal channels.
Corruption is widespread, the justice system is dysfunctional. In 2019, Madagascar ranked 158th out of 180 countries evaluated on the Corruption Perceptions Index of the non-governmental organisation Transparency International.