Opportunities and challenges for inclusive and resilient growth : compendium of policy notes for Madagascar : Opportunites et defis pour une croissance inclusive et resiliente : recueil de notes de politique pour Madagascar (Français)
This study posits that Madagascar is a country with many advantages of unmatched biodiversity, great potential for agriculture, mineral resources and abundant labor. With assured complementarity between physical and human capital, and good governance,... Voir la suite
This study posits that Madagascar is a country with many advantages of unmatched biodiversity, great potential for agriculture, mineral resources and abundant labor. With assured complementarity between physical and human capital, and good governance, it would be a prosperous country. Indeed, Madagascar has shown its ability to be efficient when its resources are deployed effectively, but these periods were punctuated by recurrent political crises. Disturbances have left the majority of the population living below the extreme poverty. It is an urgent task for the new administration to implement policies to reverse the increasing poverty. In this regard, the following recommendations for resource-rich economies may be helpful: To succeed, the resource-based economies will do what the developers have succeeded in East Asia and Central Europe have done: integrate with the rest of the world through trade and foreign investment. This is the condition sine qua non for economic development. A change in governance from the "rule of man" to the "rule of law" requires many ingredients, one of which is the competition with a level playing field in various economic and political fields. The rules must be clear, apply equally to all, and should be implemented through discussions with stakeholders. Having emerged from a long political crisis five years, the country needs to resume the path of growth as redistribution alone cannot bring prosperity to the majority of the population of which three quarters live below the absolute poverty. The large share of the dividends of prosperity is a way to reduce the fragility that has plagued the country since independence, because it gives a stake in the continued stability and growth to benefit a larger segment of the population. The economy also needs workers and consumers healthy with purchasing power. So the study chose growth and sharing as the first theme of this collection of policy briefs prosperity. The three themes are found in the eighteen policy notes in this collection. The notes are not presented in order of importance, but organized around the types of assets, grouped into four categories: institutions, the natural, physical capital and human capital. Each note is written as a standalone piece, with two policy recommendations to improve the performance of this particular sector.