Madagascar: An Agenda for Growth and Poverty Reduction (World Bank Country Study)

164 Pages·1997·0.73 MB·English

by  World Bank

Madagascar, an Agenda for Growth and
title: Poverty Reduction World Bank Country
Study, 0253-2123
author:
publisher: World Bank
isbn10 | asin: 0821345516
print isbn13: 9780821345511
ebook isbn13: 9780585351452
language: English
Poverty--Madagascar, Privatization--
subject
Madagascar, Madagascar--Economic policy.
publication date: 1999
lcc: HC895.Z9P62 1999eb
ddc: 338.9691
Poverty--Madagascar, Privatization--
subject:
Madagascar, Madagascar--Economic policy.
Page i
Madagascar
An Agenda for Growth and Poverty Reduction
A WORLD BANK COUNTRY STUDY
Page ii
Copyright © 1999
The International Bank for Reconstruction
and Development/THE WORLD BANK
1818 H Street, N.W.
Washington, D.C. 20433, U.S.A.
All rights reserved
Manufactured in the United States of America
First printing August 1999
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prepared for internal use as part of the continuing analysis by the
Bank of the economic and related conditions of its developing
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ISBN: 0-8213-4551-6
ISSN: 0253-2123
Library of Congress Cataloging-in-Publication Data
Madagascar, an agenda for growth and poverty reduction
p. cm.- (A World Bank country study)
Includes bibliographical references.
ISBN 0-8213-4551-6
1. PovertyMadagascar. 2. PrivatizationMadagascar.
3. MadagascarEconomic policy. I. Series.
HC895.Z9P62 1999
338.9691dc21 99-32772
CIP
Page iii
Abstract vii
Currency and Equivalent Unit viii
Executive Summary ix
Chapter 1 : Can Madagascar Revert from Decline to High 1
Growth?
The Problem 1
The Challenge 2
Why is the Recent "African Growth Performance" 3
Not Good Enough for Madagascar?
What Economic Performance Would Make a Sizable 4
Dent in Poverty Levels?
The Proposed Strategy and the Reform Agenda 5
Fostering Private Sector Development 6
Redefining the Role of the State 7
Opening up the Economy 7
Conclusion 11
Chapter 2 : How to Unleash Private Sector Development? 13
Privatization 13
Creating a Favorable Legal Environment 16
Reducing Administrative and Regulatory Barriers to 18
Investment
Economic Potential in the Agricultural, Mining and 21
Tourism Sectors
Chapter 3 : Adapting the State to a New Role 29
Strategy for Public Sector Reform 29
B. Revenues: Efficiency and Equity 30
Expenditures: Better Services from Public Money 34
Organizational and Institutional Changes 40
Civil Service and Public Sector Effectiveness 40
Deconcentration and Decentralization: Creating a 42
State Responsive to People 's Needs
Annex 47
Statistical Annex 59
Page iv
Tables
Table 1.1 1
Growth and GDP Per Capita Performance for Countries
Which Had in 1970 Incomes Similar to Madagascar
Table 1.2 3
Madagascar, Selected Projections under an "African
Performance Scenario," 19852015
Table 1.3 5
Madagascar, Economic Indicators, Actual Values and
Projections under an Ambitious Reform Scenario,
19852015
Table 1.4 9
Foreign Direct Investment in Selected Countries (Net FDI
in Millions of US$ and Growth Rates in Percentages)
Table 2.1 22
Madagascar, Agriculture Potential, Target Yields for the
Next Decade
Table 2.2 26
Madagascar, Unlocking Tourism Potential
Table 3.1 30
Madagascar, Fiscal Developments for the Next Two
Decades, High Growth Scenario
Table 3.2 31
Madagascar, Tax Performance, 198497
Table 3.3 35
Madagascar, Non-Interest Expenditure per Capita in 1997
US$, 19852015
Table 3.4 38
Distribution of Education Benefits (As a Percentage of
Total Education Benefits)
Table 3.5 42
Madagascar, Trends in Civil Service Personnel
Expenditure, 198597
Table 3.6 43
Resources Spent at the Local Government Level, 1996
Table A.1 48
Madagascar, Selected Economic Indicators, 19831997
Table A.2 51
Madagascar, Agricultural Production 199096 (Thousands
of Tons)
Table A.3 51
Madagascar, Performance of Main Exports, 19901996
Table A.4 52
Madagascar, Selected Indicators of Performance in the
Manufacturing Sector
Boxes
Box 1.1 2
Madagascar at a Glance
Box 1.2 8
The High Costs of a Strategy without Foreign Direct
Investment
Box 1.3 10
Lessons from Madagascar's Past Economic Policies
Box 2.1 14
How to Mitigate the Social Consequences of Privatization
Box 2.2 15
Mechanisms to Promote Local Ownership and Distribute
Privatization Proceeds
Box 2.3 20
Access of Foreign Investors to Land
Box 2.4 24
Lessons from Agricultural Liberalization
Box 3.1 36
Recent Progress in Improving the Budget Process
Box 3.2 44
Block Grant System as an Incentive for Improved Tax
Collection
Graphs
Graph 1.1 4
Poverty Level by 2020 under Different Growth Scenarios
Graph A-1 55
Distribution Per Sector of the Public Investment Program
in 1990
Graph A-2 55
Distribution Per Sector of the Public Investment Program
in 1997
Graph A-3 56
Madagascar, Evolution of External Accounts
Graph A-4 57
Madagascar, External Financing