2023-04-30 02:36:15
With our correspondent in Madagascar, Sarah Tetaud
In Madagascar, the representatives of the World Bank and the International Finance Corporation, Marie-Chantal Uwanyiligira and Marcelle Ayo, as well as the economist Francis Mulangu, have just published a column on poverty on the Big Island, one of the poorest countries in the world.
« With its vast and unique biodiversity, its dense forests, its fertile agricultural lands, its incomparable tourist assets […]and a young population “, enumerate the authors, “ Madagascar has excellent growth potential ».
And yet, the island has risen to the rank of the poorest countries in the world. ” Between 1960, the date of independence, and 2020, per capita income has fallen by 45% “Recalls the platform bluntly, before emphasizing that the country has never experienced violent conflict. Another uniqueness specific to Madagascar.
State Capture
So, what is preventing the country from realizing its potential?, ask the authors. The persistence of poverty precisely, due to the lack of transparency at the heart of power, and the capture of the state by elites.
The small and uncompetitive private sector, characterized by low levels of investment, prevents, according to the authors, create jobs, stimulate economic growth, and therefore reduce poverty ». « Investment averaged 19.4% of GDP during 2013-2019, well below its level for peer countries “, Underlines the note.
In addition, Madagascar’s structural economic transformation has been limited: more than 90% of the working-age population remains engaged in subsistence agriculture and informal services.
High poverty is also the result of poor governance, which has gone unresolved for several decades. Weak institutions and control by elites erode the rule of law and make it difficult to fight corruption effectively.
In addition, tropical cyclones, which affect the country three to four times a year, constitute a real obstacle to development.
Finally, the text recalls that with a human capital index of the island of 0.39 (one of the lowest in the world), lack of education and good health, Malagasy children will not become productive adults. .
A signal sent
The authors are categorical: to break this cycle of poverty on the island, growth must be increased. Different injunctions are listed, such as creating a solid institutional framework to promote a dynamic and competitive private sector, initiating reforms, strengthening transparency.
Criticized by several partners of Antananarivo for its persistence in allocating budgetary aid in a country where governance is failing, the World Bank shows, with this publication, that it dares to point the finger at dysfunctions. A freedom of tone which clashes in this pre-election period, and which was acclaimed by members of civil society.
The World Bank is about to allocate 200 million dollars to Madagascar. Her platform is therefore undoubtedly also a way for her to show other donors that the international institution is not that conciliatory.
► To read also: Madagascar: the concerns of planters after the announced liberalization of the vanilla sector
1682825391
#World #Bank #oped #roots #poverty