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Home Madagascar Economy

The Government general politics

The aims of the Government are to promote a politic of fast and durable development with:

  • an economic growth higher than 7 %
  • an inflation lower than 6 %
  • a budget deficit lower than 4.5 % of the GDP
  • a monetary stability with a monthly fluctuation from more or less 2.5 %
  • a rate of private investment higher than 14 % of the GDP
  • a reduction of 50 % of the poverty by 2015

Framework documents

In order to achieve these goals the Malagasy Government sets up various long-term strategies which will have a direct impact in the basic population

  • The DSRP (Strategic Document for the Reduction of Poverty).
  • The PGE (General Politics of the State) which takes again the State priorities for a Good Government, the Infrastructures (roads, telecommunications, energy), the Private Sector, the Tourism, the Education for all, the Rural World, the Environment, the Drinking Water for all and the Health.
  • Vision 'Madagascar naturellement' .
  • The MAP (Action Plan for Madagascar)

Decentralization

The balanced regional development via the decentralization is one of the ambitions of the Government to emphasize the potentialities of the countries.

This is the basis of anchoring and development appropriation for the basic population. These actions are supported by international organizations (e.g. : PNUD).

In Madagascar there are 22 countries gathering 1,557 communes, and each country is managed by a 'Chef de Region'.

Economy general situation in Madagascar

The following data give an outline of the Malagasy economic conditions

  • The GDP is 2.83 thousand million dollar
  • The GNP per inhabitant is 230 $
  • The monetary unit is the Ariary

The main industrial sectors are as follow:

Agriculture:
The various types of food crops found in Madagascar are:

  • Rice: it is the base of the Malagasy food.
    This culture is the first for the local productions with an amount of 2.5 million tons per year.
  • Manioc: it is the second foodstuff after the rice.
    Due to its climatic adaptability the manioc is in fact cultivated in the entire island

Other cultures like those of corn, sweet potato and potato supplement the basic food.

The various exportation cultures are: vanilla, litchis, coffee, cane sugar, pepper, clove, .....

Breeding:
The most important herds in Madagascar are those of zebus which are hugh as well as draft animals as for slaughter. These herds are especially found in the South area.

One also finds porcine breeding (all over the island) and poultry breeding (especially domestic).

Fishing:
In Madagascar various types of activities are included in the fishing:

  • The marine and continental traditional fishing
    This sector becomes increasingly commercial and directs its efforts towards products with high commercial value. Almost the whole of this production is locally marketed or used for the own consumption.
  • The traditional fishing
    It is practiced by family companies of by fishermen groupings. This sector shows a rather development during last years due to the high demand of outside. It is remunerative and offers sure outlets (lobsters, octopus, squids, shrimps, algae, .....)
  • The industrial fishing
    It is practiced by specialized, Malagasy as well as foreign, companies by using professional equipments. The main products are tuna, shrimps, sea cucumbers and lobsters.
  • The aquaculture
    This sector is on a good way of development, it brings together the shrimp breeding and the fresh water pisciculture (rivers or lakes) where one can found fishes such as Tilapia, carps, trouts, eels, .....