MADAGASCAR

Democratic Republic of Madagascar

République Démocratique de Madagascar;
Repoblika Demokratika n'i Madagaskar

CAPITAL: Antananarivo

FLAG: The flag consists of a white vertical stripe at the hoist flanked at the right by two horizontal stripes, the upper in red, the lower in green.

ANTHEM: Ry Tanindrazanay Malala O (Our Beloved Country).

MONETARY UNIT: The Malagasy franc (fmg) is a paper currency. There are coins of 1, 2, 5, 10, 20, 25, 50, 100, and 250 Malagasy francs and notes of 50, 100, 500, 1,000, 2,500 5,000, 10,000, and 25,000 Malagasy francs. fmg1 = $0.00051 (or $1 = fmg1,960) as of 2005.

WEIGHTS AND MEASURES: The metric system is generally used.

HOLIDAYS: New Year's Day, 1 January; Commemoration of 1947 Rebellion, 29 March; Labor Day, 1 May; Independence and National Day, 26 June; All Saints' Day, 1 November; Christmas, 25 December; Anniversary of the Democratic Republic of Madagascar, 30 December. Movable religious holidays include Good Friday, Easter Monday, Ascension, and Pentecost Monday.

TIME: 3 pm = noon GMT.

LOCATION, SIZE, AND EXTENT

Situated off the southeast coast of Africa, Madagascar is the fourth-largest island in the world, with an area of 587,040 sq km (226,657 sq mi), extending 1,601 km (995 mi) nne–ssw and 579 km (360 mi) ese–wnw. Comparatively, the area occupied by Madagascar is slightly less than twice the size of Arizona. It is separated from the coast of Africa by the Mozambique Channel, the least distance between the island and the coast being about 430 km (267 mi). The coastline of Madagascar is 4,828 km (3,000 mi). Madagascar claims a number of small islands in the Mozambique Channel—the Îles Glorieuses, Bassas da India, Juan de Nova, and Europa—covering about 28 sq km (11 sq mi), which are administered by France.

Madagascar's capital city, Antananarivo, is located near the center of the island.

TOPOGRAPHY

Madagascar consists mainly of a block of crystalline rocks. It is generally described as a plateau, rising sharply from the narrow plain of the east coast and descending in a series of steps to the strip of sedimentary rocks along the west coast. The high plateau is much indented and, on the eastern edge, cut by deep gorges and waterfalls.

There are numerous volcanic outcrops that produce heights over 1,800 m (6,000 ft); the highest point is Mount Maromokotro (2,876 m/9,436 ft) in the Tsaratanana Massif. The eastern coast is almost straight and has very few anchorages. Behind its coral beaches there is an almost continuous line of lagoons from Foulpointe to Farafangana. These are linked by manmade channels to form an inland waterway called the Pangalanes Canal. The island's major rivers flow westward and are navigable for about 160 km (100 mi) inland.

CLIMATE

The climate of the eastern and northwestern coasts is dominated by the almost constant blowing of the southeasterly trade winds, which carry heavy rains during the austral winter (May to September). The central plateau and the western coast are sheltered from these winds but receive rain from the monsoon winds, which blow during the austral summer (October to April). Neither the trade winds nor the monsoons reach the southern part of the island, which consequently receives little rain and is, in places, a semidesert. The central plateau enjoys a tropical mountain climate with well-differentiated seasons. Generally speaking, the climate throughout the island is moderated by altitude, with the coast being hotter (average temperatures 21–27°c, or 70–80°f) and wetter than the plateau (average temperatures 13–19°c, or 55–67°f). Toamasina (Tamatave), on the east coast, has 284 cm (112 in) of rainfall annually, while Antananarivo, inland, has about 140 cm (55 in). Occasional cyclones have been devastating.

FLORA AND FAUNA

The flora and fauna of Madagascar have developed in isolation from those of Africa, and the flora is highly specialized. Scientists hold that Madagascar was originally covered with evergreen forests in the wetter areas of the east and north, which gave place to savanna on the plateau and semiarid vegetation in the south. Much of the original vegetation was destroyed by burning, so that the evergreen forest is now found only in a narrow strip along the steep eastern edge of the plateau, from north to south. Where the forest was destroyed, it was replaced by bush known as savoka, especially in the narrow east coast plain. There are a few small patches of deciduous forest in the northwest and west and mangrove swamps are general along the northwest and west coasts. Most of Madagascar is covered with a rather bare savanna-steppe, green in the wet season but brown and red in the summer. The greater part of the plateau has a covering of laterite and fertility is low. The extreme south is free of laterite, but lack of rainfall prevents the greater fertility from being of much practical use.

The fauna is remarkable chiefly because of the presence of 28 species of lemur, a lower primate largely confined to Madagascar. The island has 32 species of chameleon. Among the 172 species of birds, 105 are found nowhere else in the world. The same is true for about 80% of the island's flowering plants and more than 95% of its reptiles. Madagascar is also unusual in its lack of poisonous snakes and, except for recent introductions, useful mammals. As of 2002, there were at least 141 species of mammals over 9,000 species of plants throughout the country.

ENVIRONMENT

Erosion, caused by deforestation and overgrazing, is a serious problem in Madagascar. Many farmers burn off their old crops at the end of winter and damage surrounding forests. By 1994, 75% of Madagascar's forests had been eliminated. In 2000, about 20% of the total land area was forested. Water pollution, caused mainly by sewage, is also a significant environmental problem in Madagascar: only 34% of the people living in rural areas and 75% of all city dwellers have access to pure drinking water. The nation has 337 cu km of renewable water resources. The Ministry of Animal Husbandry, Water, and Forests is the chief government agency with environmental responsibilities. In 2003, only about 4.3% of the total land area was protected.

According to a 2006 report issued by the International Union for Conservation of Nature and Natural Resources (IUCN), the number of threatened species included 49 types of mammals, 34 species of birds, 18 types of reptiles, 55 species of amphibians, 66 species of fish, 24 types of mollusks, 8 species of other invertebrates, and 276 species of plants. Endangered species in Madagascar include the Alaotra grebe, Madagascar pochard, Madagascar fish eagle, and seven species of lemur. There are nine extinct species, including Delalande's coua and the Malagasy hippo. Worldwide trade in endangered and extinct species, estimated at between $10 and $20 billion in 1996, has created a market for Madagascar's exotic snakes and tortoises. The looting and smuggling of these species has decimated animal habitats and caused severe ecological harm.

POPULATION

The population of Madagascar in 2005 was estimated by the United Nations (UN) at 17,308,000, which placed it at number 57 in population among the 193 nations of the world. In 2005, approximately 3% of the population was over 65 years of age, with another 45% of the population under 15 years of age. There were 99 males for every 100 females in the country. According to the UN, the annual population rate of change for 2005–2010 was expected to be 2.7%, a rate the government viewed as too high. A Poverty Reduction Strategy Paper issued in 2005 sets access to contraception as a high priority. The projected population for the year 2025 was 28,177,000. The population density was 29 per sq km (76 per sq mi), with the western part of the country the least densely populated.

The UN estimated that 26% of the population lived in urban areas in 2005, and that urban areas were growing at an annual rate of 3.84%. The capital city, Antananarivo, had a population of 1,678,000 in that year. Other important cities and their populations are Fianarantsoa, 300,000; Toamasina, 230,000; Antsiranana (Diégo-Suarez), 220,000; Antsirabe, 220,000; and Mahajanga (Majunga), 200,000.

MIGRATION

Since independence, government policy has been uniformly opposed to immigration in any form. The advent of independence led to some emigration of foreign nationals, but it was not until the early 1970s, when the government undertook policies of national control and nationalization of foreign businesses, that foreign residents began leaving in any appreciable numbers. Comorians numbered 60,000 in 1976, but after Comorian-Malagasy clashes in December of that year, about 16,000 were repatriated. As of 2000, there were only a small number of refugees in Madagascar, all of urban socioeconomic background.

Rural-to-urban migration is nearly 6% a year. In 2000 there were 61,000 migrants living in Madagascar. In 1999 and 2005, the net migration was zero. The government views the migration levels as satisfactory.

ETHNIC GROUPS

The Malagasy people are the result of the intermingling of immigrants. The original immigrants are believed to have been members of an Afro-Malagasy race that lived on the East African littoral. Later arrivals were Africans, Arabs, and, much more recently, immigrants from Europe, China, and India.

The general population can be divided into 18 tribes, with no single group holding a majority. Major ethnic groupings include the Malayo-Indonesian (including the Merina and related Betsileo) and the Cotiers (mixed African, Malayo-Indonesian, and Arab ancestry—the Betsimisaraka, Tsimihety, Antaisaka, and Sakalava). The Merina and Betsileo live in the central highlands and show evidence of Asian origin, while the coastal peoples, such as the Betsimisaraka, Tsimihety, and Sakalava, are of predominantly African origin. The Merina have been the ascendant group since the late 18th century. The course that colonialism took in Madagascar strengthened their domination of the political and intellectual life of the island. Resentment of the Merina and their dominant position by the other ethnic groups is still a source of social unrest.

The Indo-Pakistani community is commonly referred to as the Karana. There were about 20,000 Karana in the country in 2004. There are also significant numbers of French, Creole, and Comoran peoples.

LANGUAGES

The principal and official languages are French and Malagasy. Malagasy is a Malayo-Polynesian language which has different but mutually intelligible dialects and is spoken throughout Madagascar. The Merina dialect has come to be considered the standard literary form of the language. Instruction in French is preferred by the coastal peoples, as it avoids connotations of Merina cultural dominance.

RELIGIONS

About 50% of the Malagasy are traditional tribal religionists, some exclusively and others practicing in conjunction with Christian beliefs. Although there are many variations in detail, nearly all of these traditional Malagasy share certain basic religious ideas, the central one being belief in the soul and its immortality. Besides the almighty (Andrianahary or Zanahary), secondary divinities are recognized, especially the earliest inhabitants of the island (Vazimba), legendary kings and queens, and other great ancestors. The burial places and other places of special significance in the lives of these secondary deities are objects of veneration and pilgrimages, during which special rites are performed.

Christianity was introduced to the Malagasy in the early 19th century, and it is influenced to a large extent by traditional beliefs. According to a 2004 report, about 50% of the population were nominally Christian; most are Roman Catholics. The Reformed Protestant Church of Jesus Christ in Madagascar is the largest Protestant denomination. Other denominations include Lutheran and Anglican churches as well as congregations of Seventh-Day Adventists, Jehovah's Witnesses, and the Church of Jesus Christ of Latter-Day Saints. Muslims, concentrated mostly in the north and northwest, constitute just under 10% of the population. There is also a small number of Hindus among the Indian population.

The constitution allows for freedom of religion and this right is generally respected in practice. The Malagasy Council of Christian Churches is an organization of Roman Catholic, Reformed, Lutheran, and Anglican officials that participate in a number of national programs addressing a wide variety of political and social issues.

TRANSPORTATION

As of 2004, Madagascar's railway system largely consisted of four main railroads, all publicly operated, that operated 732 km (555 mi) of one meter, narrow gauge track. These run from Toamasina to Antananarivo, with a branch from Moramanga to Lake Alaotra; from Antananarivo to Antsirabe; and from Fianarantsoa to Manakara on the east coast.

There are about 49,837 km (30,969 mi) of motor roads on the island, of which 5,781 km (3,592 mi) were paved in 2002. The main roads radiate from Antananarivo to Mahajanga and Antsiranana, to Toamasina, to Fianarantsoa, and to Ihosy, from which one branch goes to Toliara (Tuléar) and another to Tolänaro (Fort Dauphin). The road from Antananarivo to Fianarantsoa is tarred, as are portions of the other main routes. In 2003, there were 70,705 passenger automobiles and 43,000 commercial vehicles in use.

The three major ports are Toamasina, Nosy Be, and Mahajanga; Toliara and Antsiranana are also important. There are at least 13 other ports, engaged mainly in coastal trade. There was considerable freight traffic along the Pangalanes Canal, which runs parallel to the east coast from Toamasina to Farafangana for a distance of 700 km (435 mi). The canal was closed in 1979, however, because of silting. However, dredging had begun by 1985. The merchant fleet consisted of nine vessels of 1,000 GRT or more, totaling 14,865 GRT in 2005.

In 2004, there were an estimated 116 airports, 29 of which had paved runways as of 2005. The principal international airport is at Ivato, near Antananarivo. Air Madagascar (the national airline), Air France, Alitalia, Aeroflot, Air Mauritius, and Air Tanzania also provide international service. Air Madagascar, which is owned partly by Air France, also services internal locations. In 2003, about 404,000 passengers were carried on domestic and international flights.

HISTORY

Madagascar had no human inhabitants until about 2,500 years ago, when immigrants came, probably from Indonesia via the East African coast. This wave of immigration continued for at least 1,000 years, and there was also an influx of African peoples. Additional immigrants from Africa, Arabia, and the Persian Gulf and, much later, from Europe, India, and China did little more than supplement a fully settled population.

The earliest written histories of the Malagasy are the sorabe, in the Malagasy language using Arabic script. A Portuguese ship sighted the island and sailed along the coast in 1500. In 1502, the island was named Madagascar by the Portuguese, after the island of the same name originally reported by Marco Polo. During the 16th and 17th centuries, attempts were made by the Portuguese, British, Dutch, and French to establish settlements. All these efforts failed, and Madagascar became the lair of pirates who lived on Nosy Sainte Marie and intermarried with the Malagasy.

Among the Malagasy themselves, three main kingdoms appeared: that of the Merina in the central plateau, that of the Sakalava in the west, and that of the Betsimisaraka in the east. Under King Andrianampoinimerina (r.1787–1810), the foundations were laid for the primacy of the Merina kingdom.

Andrianampoinimerina was succeeded in 1810 by Radama I, his son, under whose guidance the Merina kingdom extended its rule over the major portions of the island (especially over the Betsimisaraka kingdom and the south). Radama welcomed Europeans to assist in the modernization of the kingdom and to further his conquests. On Radama's death in 1828, he was succeeded by his wife, Ranavalona I, whose hostility to the innovations in her husband's reign led to a persecution of the Malagasy Christians and eventually to the expulsion of the Europeans after an Anglo-French bombardment of Toamasina in 1845.

Radama II, who succeeded his mother in 1861, was sympathetic to the French but was murdered in 1863. Shortly after this, Rainilaiarivony, who was to become prime minister and consort to three successive queens, took control of the government. The last three decades of Malagasy independence during the 19th century were marked by continued attempts of those opposed to innovation to undermine the prime minister's authority. He therefore slowed modernization and tried to retain independence by seeking British friendship against the French. The latter claimed a protectorate over parts of the Sakalava kingdom by virtue of treaties made in 1840, and disputes over this claim and over French properties on the island resulted in a war in 1883 which was ended in 1885 by a treaty giving the French control over Merina foreign policy.

The British recognized the French position under the terms of the Anglo-French Agreement of 1890, in exchange for French recognition of a British protectorate over Zanzibar. This exchange cleared the way for the French annexation of Madagascar in 1896. Malagasy resistance, especially in the south, was not finally overcome until 1904, however. Gen. Joseph Gallieni, governor-general from 1896 to 1905, opened the first government schools (hitherto all schools had been in the hands of the missions), established a free medical service for Malagasy, encouraged the study of Malagasy language and customs by the creation of the Malagasy Academy (Académie Malgache), and introduced new tropical crops in order to promote economic development. The impress of his policies remained substantial until the end of World War II. His successors, career colonial officials, struggled to promote economic growth, but World War I, subsequent economic difficulties in France, and the prolonged depression of the 1930s, together with the absence of easily exploitable resources, the distance of Madagascar from its main markets, and the shortage of labor, combined to impede their efforts.

During World War II, the Vichy French retained control of Madagascar until it was occupied in 1942 by British troops to prevent its naval facilities from being used by the Japanese. In 1943, French administration was restored under Gen. de Gaulle's Free French government. Madagascar became a French overseas territory in 1946. All Malagasy thus became French citizens, but only a limited number were accorded the franchise (mainly those with some education or experience of European ways in the French civil services or armed forces). A Territorial Assembly was established, with some control of the budget. It was composed entirely of members indirectly elected by provincial assemblies. The latter were wholly elected bodies, but there were separate electorates (and separate seats) for the French citizens of metropolitan status (including Europeans, Réunionnais, and some Malagasy given such status) and for Malagasy citizens of local status. Although the latter had a majority of the seats in both provincial and territorial assemblies, the number of seats assigned to the metropolitan electorate was most disproportionate to its numerical strength. This system was denounced by the nationalists, who had secured a majority of the Malagasy seats in the Territorial Assembly as well as the three Malagasy seats in the French National Assembly.

In March 1947, a rebellion broke out, and for a time the French lost control of the east coast. Europeans and loyal Malagasy were murdered and roads cut. The suppression of the rebellion required substantial forces and took more than a year. Loss of life was estimated at 11,000. The nationalist movement was disrupted by the rebellion and subsequent repressions, but was not destroyed. A period of reform beginning in 1956 resulted in abolition of the dual electorate system, placed Malagasy in important government positions, and led to the rebirth of serious political activity.

The End of French Rule

In the referendum of 28 September 1958, Madagascar overwhelmingly voted for the new French constitution and became an autonomous republic in the new French Community. As the Malagasy Republic, it became a sovereign independent nation on 26 June 1960 and on 20 September 1960 was elected to UN membership.

The constitution that was adopted in October 1958 and amended in June 1960 provided Madagascar with a strong presidential form of government. The president, Philibert Tsiranana, remained in power until May 1972, when there were riots throughout Madagascar. The protests were led by a nationalist, leftist coalition of students, teachers, laborers, and urban unemployed. The repression that followed these demonstrations led to the fall of the Tsiranana government on 18 May. Gen. Gabriel Ramanantsoa was immediately asked to form a nonpolitical "government of national unity," which was composed of 11 ministers (5 military and 6 civilian). Ramanantsoa effectively destroyed the coalition by raising the minimum wages, providing strike pay, annulling the head and cattle taxes, prosecuting corrupt officials, and introducing price and currency controls. The new government also broke diplomatic ties with South Africa, established relations with the Communist bloc, withdrew from the franc zone, and arranged for the withdrawal of French military forces under new cooperation agreements with France.

On 5 February 1975, following a period of social and ethnic unrest, Ramanantsoa was replaced as head of state by Col. Richard Ratsimandrava, who was assassinated in an attempted coup six days later. A military Directorate composed of 18 officers was immediately formed and assumed all governmental authority. The Directorate was superseded on 13 June by the all-military Supreme Council of the Revolution, headed by Didier Ratsiraka, who had been minister of foreign affairs in the Ramanantsoa government.

In December 1975, a draft constitution was approved in a referendum by 95% of the voters and the Second Malagasy Republic, to be called the Democratic Republic of Madagascar, was proclaimed. Ratsiraka was installed as president on 4 January 1976, thus remaining head of state.

The new regime accelerated growing state control of the economy, and Madagascar turned to the former USSR and the Democratic People's Republic of Korea for military aid. By 1979, however, growing economic difficulties forced Ratsiraka to develop closer ties with the West. Unemployment, inflation, and scarcities of basic foodstuffs caused serious rioting and social unrest in the early 1980s. Ratsiraka was elected to a new term as president on 7 November 1982. During 1986–87, the government was shaken by student protests against educational reforms, rioting in the port of Toamasina, attacks on Indo-Pakistani enterprises in four major urban centers, and famine in the south because of food-supply problems. By early 1987, the governing coalition appeared to be unraveling. On May Day, four of the parties called for the resignation of the government and early elections.

Democratization Unleashed

In July 1992, after seven weeks of pro-democracy protests, Ratsiraka finally agreed to dissolve the cabinet and begin talks with the opposition. He also offered to hold a referendum on a new constitution by the end of 1992. Although he rejected demonstrators' demands that he resign, Ratsiraka released Albert Zafy, a popular opponent, and offered to form a coalition government with opposition leaders. Protests continued, and government troops fired on demonstrators in Antananarivo, killing as many as 50. In August, Ratsiraka asked his prime minister, Guy Willy Razanamasy, to form a new government and to "install democracy." By November, Ratsiraka agreed to share power with a transitional government headed by Zafy, his main rival. Ratsiraka's Revolutionary Supreme Council stepped down from power.

The democratization process survived an attempted coup on 29 July 1992, led by a faction of the Active Forces known as the Lifeblood Committee. On 19 August 1992, a new constitution was approved by national referendum. Ratsiraka's supporters interfered with the voting, seeking greater provincial autonomy. However the interior peoples, especially the Merina, strongly supported the new constitution. This was followed on 25 November by a presidential election, which a team of foreign observers deemed free and fair. Zafy defeated Ratsiraka, but without an absolute majority. In a runoff election on 10 February 1993, Zafy got 67% of the vote to Ratsiraka's 33%. The president was installed in March, amid violent confrontations between Ratsiraka's supporters and government forces.

Parliamentary elections were held in June 1993 for the new National Assembly. Twenty-five parties won representation with Zafy's Forces Vives (FV) taking the largest block of seats—48. Eight parties had more than five seats. The National Assembly elected Francisque Ravony prime minister—55 votes to 45 for Roger Ralison (FV), and 35 for former Maoist leader, Manandagy Rakotonirina.

Communal (territorial) elections, the first step in creation of the Senate, were held in November 1995, but President Zafy's day in the sun was short-lived. He was impeached in September 1995, and then defeated by Ratsiraka in competitive elections in December 1996. On February 10, 1997, Ratsiraka became the second African head of state, after Mathieu Kérékou of Benin, to have lost and then reclaimed the presidency via competitive elections.

An extensive revision of the 1992 constitution was approved narrowly in a March 1998 constitutional referendum. International observers found the conduct of the referendum generally free and fair, but problems involving the compilation of voter lists, distribution of electoral cards, and other issues led to charges of fraud and manipulation. The revised constitution reduced checks and balances and strengthened the presidency at the expense of the National Assembly. Parliamentary elections held in May 1998 generally were free and fair, but there were credible complaints of electoral fraud. In November 1999, municipal elections were held for 1,392 mayoral posts and 20,000 council seats.

After 29 years of dormancy, the Senate reconvened in May 2001. However, a national crisis ensued following the 16 December 2001 presidential election when challenger Marc Ravalomanana claimed to have won the election outright over incumbent Didier Ratsiraka, thereby eliminating the need for a run-off. The official results gave Ravalomanana 46.2%, forcing him into a runoff with Ratsiraka (40.9%). Albert Zafy (Rasalama) claimed 5.4%, Herizo Razafimahaleo 4.2%, D. Rajakoba 1.8%, and P. Rajaonary 1.6%. With Ratsiraka refusing to step down, Ravalomanana and his supporters mounted strikes and protests culminating in Ravalomanana's siezure of the presidency in February 2002. Operating from his provincial fiefdom, Toamasina, Ratsiraka commanded his armed forces to lay siege to the capital, blowing up key bridges and cutting off foodstuffs and other critical supplies. The violence resulted in more than 70 deaths. US recognition of Ravalomanana in June 2002 was followed by international approval, forcing Ratsiraka in July 2002 to seek exile in France ending seven months of political and economic chaos in the country.

Ravalomanana's first 18 months in power were marked by his consolidation of power, which was countered by a reorganization of opposition parties. None of the opposition parties, however, presented a serious challenge to Ravalomanana's power. Indeed, the president's first moves were to punish supporters of the old government including the last prime minister, Andrianarivo, who was detained and put on trial. However, under pressure from Zafy's forces, Ravalomanana pardoned those serving sentences of less than three years and invited others to apply for amnesty. The influential Madagascar Council of Churches led the movement for reconciliation resulting in broad support for compromise.

In December 2002, the president's party, Tiako-I-Madagasikara (TIM) dominated national assembly elections, but in the November 2003 municipal polls, TIM's opponents gained 18 of 45 of the most important mayoral posts up for election. The results speak to the importance of local power bases in Madagascar.

Internationally, Ravalomanana was able to restore donor confidence in the economy, largely through the leadership of his prime minister, Jacques Sylla. Gradually, the administration established productive relations with African states that were expected to lead to Madagascar's admission to the Southern Africa Development Community (SADC). Moreover, Madagascar qualified as one of the first African states to be eligible for funding under the US Millennium Challenge Account (MCA). The MCA agreement was signed in early 2005. France and the United Kingdom have also been supportive of the Ravalomanana government.

Although Ravalomanana remained politically strong going into 2006, he was expected to face stiff challenges led by Albert Zafy, Richard Andriamanjato, a former parliamentary speaker, and the former chairman of the national council of churches, Edmond Razafimahefa. Nevertheless, the president rejected demands for a transition government leading into the presidential elections scheduled for late 2006, and also resisted European calls for a new electoral law and more independent elections commission. Analysts predicted that the president's party, TIM also could be vulnerable in the 2007 legislative elections because of its weak grassroots base that other parties have shown themselves capable of organizing.

GOVERNMENT

The constitution of 21 December 1975, like that of the First Republic, provided for a strong presidential system of government. The president was elected for a seven-year term and was both chief executive and head of state. The president was assisted by the Supreme Council of the Revolution (Conseil Supreme de la Révolution—CSR), which was to be "the guardian of the Malagasy Socialist Revolution." The president, as chairman of the CSR, named two-thirds of its members outright and chose the other third from a list submitted by the National People's Assembly. The premier, the designated head of government, was appointed by the president and assisted by a cabinet.

The 19 August 1992 constitution of the Third Republic provides for a head of state, the president, who is elected by universal suffrage to serve a five-year term. The president chooses a prime minister from a list of candidates nominated by the national assembly. The prime minister appoints the Council of Ministers.

The constitution provides for a two-chamber legislature—a 160-member national assembly and a senate. Members of the national assembly are elected by universal suffrage—82 by single-member and 34 by two-member constituencies—to serve four-year terms. The president appoints the remaining one-third. Regional assemblies elected by direct suffrage select two-thirds of the members of the 90-seat senate with the remaining one-third appointed by the president for a four-year term. Suffrage is universal at age 18.

POLITICAL PARTIES

Following World War II, the Democratic Movement for Malagasy Renewal (Mouvement Démocratique de la Rénouvation Malgache—MDRM), founded by several prominent nationalists, demanded that Madagascar be declared a free state within the French Union. The French, however, organized the island as an overseas territory, granting the vote to few Malagasy. In the wake of the 1947 rebellion, the leaders of the MDRM, whom the French accused of planning and leading the revolt, were convicted of treason and sentenced to death (later commuted to life imprisonment). Charges of French brutality in the suppression of the revolt, however, gained considerable sympathy for the nationalist cause.

After independence, the Social Democratic Party of Madagascar and the Comoros (Parti Social Démocrate de Madagascar et des Comores—PSD) became the dominant political organization in the Malagasy Republic. It was organized in 1957 under the leadership of Philibert Tsiranana, the son of a Tsimihety peasant, and advocated a gradual approach to independence. In the Assembly elections of September 1960, the PSD won 75 seats out of 107. In the 1965 and 1970 elections, it increased its representation to 104 seats. The PSD was supported principally by peasants and other conservative elements, and favored strong ties with France. Tsiranana, who became president in 1960, was reelected in 1965 and again in 1972, just prior to his overthrow. The only real alternative during this period was the pro-Soviet Party of the Congress of Independence (Ankoton'ny Kongresi'ny Fahaleorantenan Madagaskara—AKFM), founded in 1958.

Other parties represented regions, provinces, tribes, or religious groups, but displayed little national strength. The most significant of the regional parties was the Movement for the Independence of Madagascar (Mouvement National pour l'Indépendance de Madagascar—MONIMA) which was led by Monja Jaona from Toliara. It represented the more radical intellectuals and landless peasants of the south. As a result of its armed opposition to the central government in April 1971, which was quickly and harshly suppressed, MONIMA became a truly left-wing opposition movement with support among students and urban radicals. Though MONIMA was banned, these elements led the series of demonstrations against the Tsiranana regime that resulted in its fall in May 1972. The ban on MONIMA was lifted in June.

After the assassination of the new head of state, Richard Ratsimandrava, in February 1975, all political parties were banned. The new constitution institutionalized the ban by providing for the creation of a sole party, to be called the National Front for the Defense of the Révolution (Front National pour la Defense de la Révolution—FNDR).

In effect, however, the FNDR became an umbrella group under which parties survived as "revolutionary associations." MONIMA withdrew from the FNDR in 1977 but returned in 1981, bringing to seven the number of parties in the FNDR. The chief party was Ratsiraka's Vanguard of the Malagasy Revolution (Avant-garde de la Révolution Malgache—AREMA). On 29 May 1977, it won control of almost all provincial and local bodies, and on 30 June 1977, in an election in which voters were presented with a single FNDR list, AREMA won 112 Assembly seats to 16 for the PCI and 9 for two other parties.

In the presidential election of 7 November 1982, President Ratsiraka won reelection with 80.17% of the vote. His sole opponent, Monja Jaona, leader of MONIMA, was removed from the CSR and temporarily placed under house arrest after he called for a general strike to protest the election results. In elections in August 1983, AREMA again won a commanding majority in the Assembly. MONIMA left the FNDR in 1987.

Since the democratic changes of 1992 and 1993, numerous political organizations have operated in Madagascar. In 1991, Albert Zafy founded the National Union for Development and Democracy (UNDD). Zafy was supported in the 1993 elections by Forces Vive (FV), an informal alliance that included the UNDD and the AKFM–Fanavaozana, a breakaway group from the MFM (Mouvement pour le pouvoir prolétarien).

Following his defeat in the presidential elections of February 1993, Didier Ratsiraka created a new party, the Vanguard for Economic and Social Recovery (ARES—Avant Gardes pour le Redressement Économique et Social). Ratsiraka turned on his former policies by proposing a federalist arrangement that would give more autonomy to the provinces. In the elections of 17 May 1998, which were credibly free and fair, Ratsiraka was leading AREMA, now named the Association for the Rebirth of Madagascar, which took 62 seats, LEADER/Fanilo 15, AVI 14, RPSD 11, AFFA 6, MFM 3, AKFM/Fanavaozana 3, GRAD/Iloafo 1, Fihaonana 1, independents 34.

In the municipal elections on 14 November 1999, AREMA captured three of the six regional capitals, having previously held just one. The biggest losers were established opposition party candidates such as former president Albert Zafy, who was beaten in his own political stronghold of Antsiranana. Marc Ravalomanana, a 50-year-old businessman and a principal donor of funds to the AVI centrist party, won the mayorship of Antananarivo, the capital city. Although the vote was marred by poor organization, almost all the 1,392 mayorships and 20,000 council seats were contested by at least two candidates. Many these were independents, which seemed to signal that local elections were no longer being run from national party headquarters in the capital.

In the 15 December 2002 parliamentary elections, Ravalomanana's I Love Madagascar (TIM), captured a combined total of 125 out of 160 seats in parliament. The election results (minus presidential appointments) were as follows: TIM 103, FP 22, AREMA 3, LEADER/Fanilo 2, RPSD 5, TTS 2, HBM 1, and independents 22. The opposition criticized the poll as manipulated by the president's party.

In the early run-up to the national assembly elections expected in early 2007, AREMA appeared fractured by Toamasina major, Roland Ratsiraka, nephew of former president Didier Ratsiraka, who has led a youthful wing of the party to reconciliation with the Ravalomanana administration. The most concerted opposition to TIM was expected from the Three National Forces (3FN) alliance, under the leadership of former president, Albert Zafy. The opposition was expected to make gains in the national assembly elections scheduled for 2007, however, Mr. Ravalomanana was expected to retain the presidency given that no opposition figure appeared to have the national appeal sufficient to unseat him.

LOCAL GOVERNMENT

Prior to the Ravalomanana regime, Madagascar was divided into six provinces, subdivided into 28 regions comprising 148 departments, and further divided into nearly 1,400 communes. At the local level were some 11,393 fokontany (village or urban neighborhood organizations) with an elected president and council. All levels of the Malagasy state were organized in hierarchical fashion within the jurisdiction of the Ministry of the Interior.

During the 1996 campaign, former president Didier Ratsiraka promised to draft laws that would make provinces autonomous. He subsequently sponsored workshops to gather input and share ideas with regional leaders. This controversial plan transfered power from the central government to the provinces and municipalities, and to administrative subdivisions for tax collection, service provision, and development planning. However, it was widely feared that provincial autonomy would threaten Madagascar's political unity.

Ravalomanana introduced a new structure that makes 22 new regions the main administrative units. Consequently, the power of the six autonomous provinces was greatly reduced, which was reflected in their shrinking budgets. While the regional leaders are centrally appointed, the municipal mayors, who exercise considerable power, are elected by direct popular vote.

JUDICIAL SYSTEM

The Malagasy judicial system is based on the French tradition. During the 1960s and 1970s the nation began a move from a bifurcated judicial system (customary courts for most Malagasy and local courts for foreign residents and urbanized Malagasy) to a single judicial system. At the top of the judicial system is the Supreme Court in Antananarivo. Other courts include the Court of Appeal, also in Antananarivo; courts of first instance for civil and criminal cases; ordinary and special criminal courts; and military courts. There are also a High Court of Justice to try high officials and a High Constitutional Court. Military courts presided over by civilian magistrates hear cases involving national security.

The traditional courts (dina ) continue to handle some civil disputes and recently have been used in criminal cases because of inconvenience and inadequacy of the formal court system. Decisions by dina are not subject to the formal procedural protections of the formal court system. In some cases, however, they may be challenged at the appeals court level. Dina's authority depends upon the mutual respect and consensus of the parties to abide by the ruling. Dina punishments are sometimes severe and include capital punishment.

The 1992 constitution guarantees an independent judiciary, and in practice the judiciary appears to be independent from the executive. In April 2002, a critical test of the judicial system occurred. With both Ratsiraka and Ravalomanana agreeing to a recount of the December 2001 polls, the High Constitutional Court declared Ravalomanana the winner. Ratsiraka defied the verdict, but Ravalomanana was sworn in for the second time on 6 May 2002 as Madagascar's fourth head of state.

ARMED FORCES

As of 2005, the armed forces of Madagascar were composed of 13,500 active personnel, of which the Army accounted for over 12,500, the Navy 500 (including around 100 Marines), and the Air Force 500. The Army's equipment included 12 light tanks and over 37 artillery pieces. The Air Force operated 14 transport and 5 utility fixed wing aircraft, and 6 support helicopters. There were no combat aircraft. The Navy operated one amphibious landing craft and one logistics/support vessel. The paramilitary Gendarmerie National, which had a strength of 8,100, is the main force for the maintenance of public order and internal security. In 2005, the defense budget totaled $275 million.

INTERNATIONAL COOPERATION

Madagascar was admitted to the United Nations on 20 September 1960 and is a member of ECA and several nonregional specialized agencies, such as the FAO, IAEA, the World Bank, UNESCO, UNHCR, UNIDO, and WHO. It is also a member of the WTO, the African Development Bank, the ACP Group, the Arab Bank for Economic Development in Africa, G-77, the African Union, Indian Ocean Commission, and COMESA. Madagascar is a member of the Nonaligned Movement. In environmental cooperation, the country is part of the Basel Convention, the Convention on Biological Diversity, Ramsar, CITES, the Kyoto Protocol, the Montréal Protocol, the Nuclear Test Ban Treaty, and the UN Conventions on the Law of the Sea, Climate Change, and Desertification.

ECONOMY

Madagascar is a poor country, with over 70% of the population falling below the poverty level of $50 a year. Its agriculture-based economy supports a majority of the labor force. There are substantial mineral deposits; and industry, which accounted for 11% of GDP in 1999, is centered on food processing. Madagascar sponsored an Export Processing Zone in 1991 and important investments have been made in tourism. Government efforts to strengthen the market economy have been erratic, while corruption and political instability continue to constrain growth. The country's infrastructure remains poor, with inadequate roads preventing the transportation of agricultural products from farm to market. Railroads and the port system are also undeveloped, although the telecommunications system is being revamped. The IMF and World Bank in 2000 released tranches of the Poverty Reduction and Growth Facility, and Structural Adjustment Credit, respectively, to assist the country in reducing poverty and implementing market reforms conducive to private sector development. Also in 2000, Madagascar was approved to receive debt relief under the IMF/World Bank Heavily Indebted Poor Countries (HIPC) initiative.

The agricultural sector, which accounted for 34% of GDP in 1999, is prone to cyclone damage and drought. Rice is the staple crop although Madagascar has sought to diversify crop production by promoting maize and potatoes. Cassava, bananas, and sweet potatoes are also important. Export crops are coffee, vanilla, and cloves, with coffee the most important. A decline in world coffee prices by 2003 had stifled growth. The sugar sector has been revived with the help of French investments.

Economic growth has been very instable in recent years, dropping from 6.0% in 2001 to -12.6% in 2002, and up to 9.7% in 2003, and 5.3% in 2004. Inflation has followed a similar pattern, growing from 6.9% in 2001 to 16.1% in 2002, dropping to -1.2% in 2003, and surging up again to 13.8% in 2004. There are no available figures for unemployment.

Though Madagascar has a considerable diversity of minerals, their remote locations have discouraged extraction. Chromite, graphite, and mica are exported along with gems such as topaz, garnets, and amethysts. Private mining interests have been invited to develop Madagascar's gold deposits, as well as ilmenite, zircon, rutile, nickel, platinum, and bauxite. There has also been renewed interest in Madagascar's oil potential. Madagascar is rich in biodiversity, and many plants and animals found there exist nowhere else in the world. Hence, ecotourism is a sector of the economy with great potential for development.

INCOME

The US Central Intelligence Agency (CIA) reports that in 2005 Madagascar's gross domestic product (GDP) was estimated at $15.8 billion. The CIA defines GDP as the value of all final goods and services produced within a nation in a given year and computed on the basis of purchasing power parity (PPP) rather than value as measured on the basis of the rate of exchange based on current dollars. The per capita GDP was estimated at $900. The annual growth rate of GDP was estimated at 6.5%. The average inflation rate in 2005 was 10%. It was estimated that agriculture accounted for 28.7% of GDP, industry 16.5%, and services 54.8%.

According to the World Bank, in 2003 remittances from citizens working abroad totaled $16 million or about $1 per capita and accounted for approximately 0.3% of GDP. Foreign aid receipts amounted to $539 million or about $32 per capita and accounted for approximately 10.0% of the gross national income (GNI).

The World Bank reports that in 2003 household consumption in Madagascar totaled $4.54 billion or about $269 per capita based on a GDP of $5.5 billion, measured in current dollars rather than PPP. Household consumption includes expenditures of individuals, households, and nongovernmental organizations on goods and services, excluding purchases of dwellings. It was estimated that for the period 1990 to 2003 household consumption grew at an average annual rate of 2.4%. In 2001 it was estimated that approximately 61% of household consumption was spent on food, 4% on fuel, 2% on health care, and 2% on education. It was estimated that in 2004 about 50% of the population had incomes below the poverty line.

LABOR

The labor force in 2000 (the latest year for which data was available) was estimated at 7.3 million persons. As of 2002, agriculture employed 78% of the workforce, with industry employing 6.7% and services 15.3%. Although a 2002 survey put Madagascar's unemployment rate at 4.5%, the country's actual rate may be far higher.

Both public and private sector workers have the right to establish and join labor unions of their choice. However, only 5% of the total force was unionized in 2002. Unions are required to register with the government, but authorization is customarily given. The law provides for collective agreements between employers and trade unions. Strikes are legally permitted.

Working conditions are regulated by the constitution and the labor code. The law sets the minimum working age at 14 (18 where the work is hazardous) but this minimum is enforced only in the small formal sector of the economy. In the large agricultural sector, many children work with their parents on family farms. The minimum wage was $25 per month in 2002, but this is not regularly enforced due to harsh economic realities. The standard legal workweek is 40 hours in industry, and 42.5 hours in agriculture.

AGRICULTURE

Although Madagascar's economy is essentially agricultural, much of the land is unsuitable for cultivation because of its mountainous terrain, extensive laterization, and inadequate or irregular rainfall. Only about 5% of the land area is cultivated at any one time. Despite these figures, agriculture accounts for 25% of GDP and employs about 75% of the work force. Large-scale plantations dominate the production of sisal, sugarcane, tobacco, bananas, and cotton, but, overall, Malagasy agriculture is dependent mainly on small-scale subsistence farmers cultivating less than one hectacre (2.47 acres) of land.

A wide variety of food crops is grown. Rice is the staple of the Malagasy diet; production was an estimated 3,030,000 tons in 2004. Nevertheless, the yield is insufficient to meet the country's needs and in 1982, 1984, and 1990 cyclones severely damaged the rice crop. Cassava, bananas, and sweet potatoes are also important. Madagascar has sought to diversify staple crop production by promoting maize and potatoes. Other important food crops (with 2004 production figures) include cassava, 2,191,000 tons; sugarcane, 2,180,000 tons; sweet potatoes, 542,000 tons; potatoes, 280,500 tons; bananas, 290,000 tons; corn, 350,000 tons; and oranges, 83,000 tons.

In the 1980s, coffee regularly earned about 24% of total export revenues. After the collapse of the International Coffee Organization in 1989, however, coffee exports accounted for only 8.6% of Malagasy foreign trade earnings in 1992 (down from 35% in 1985); in 2004, it accounted for less than 1% of exports. Production was 85,000 tons in 1991 and about 65,000 tons in 2004.

Vanilla is the leading agricultural export, with production of 3,000 tons in 2004 and exports of 658 tons of extract (for a value of $64.2 million, 16% of total exports). International trade in natural vanilla is determined by agreements between producers (mainly Madagascar and the Comoros) and the principal importers by which export prices and traded volumes are fixed. The government does not encourage overproduction, since the international market demand is very sensitive because of competition from synthetic vanilla (vanillin). Madagascar is the world's major natural vanilla producer, accounting for about 75% of production.

Cloves are another main export crop, grown mostly by smallholders. Production follows a four-year cycle with two–three years of high output followed by one year of low production. Clove production amounted to 1,500 tons and exports totaled 12,585 tons in 2004, valued at $14.6 million. Other 2004 production figures for cash crops were seed cotton, 12,500 tons; peanuts, 39,000 tons; sisal, 17,000 tons; and cocoa, 4,500 tons. Pepper and cinnamon are other important export crops. Pepper and cinnamon exports in 2004 together amounted to 1,732 tons, valued at $1.1 million. The sugar sector has been revived with the help of French investments. The needs of the domestic market are served by five sugar refineries.

Production of cash crops has been discouraged by the low prices paid by state agencies, which sometimes have failed to collect crops or pay for them on time. In 2004, Madagascar's agricultural trade surplus was $28.5 million.

ANIMAL HUSBANDRY

More than half the land is used for raising livestock. Cattle occupy an important place in the Malagasy economy. They are, however, more important as evidence of wealth than as sources of meat and dairy products. Only since the end of World War I has the consumption of meat become widespread among Malagasy, and now beef consumption is relatively high compared with other African countries. Cattle are employed to trample the rice fields and to draw plows and small carts. Most cattle are of the humped zebu type. Madagascar has vast natural pastures (60% of total land area) and is free of cattle diseases; there is, therefore, considerable potential for increasing production.

Estimates of the size of livestock herds vary considerably. Estimates for 2005 were cattle, 10.5 million head; hogs, 1.6 million; sheep, 650,000; and goats, 1.2 million. Total meat production was about 297,000 tons. Beef and live animals are exported. The population of cattle has remained steady because of a high young animal mortality rate resulting from traditional livestock-raising techniques.

FISHING

Despite the island's long coastline, fishing is relatively undeveloped as an industry in Madagascar. On the east coast, with its stormy seas and absence of harbors, fishing is restricted mainly to the coastal lagoons and has been aptly characterized as virtually an extension of inland freshwater fishing. In the northwest, sardine and tuna are caught, and dried fish find a ready market. Dried fish also are prepared in the southwest. Lobsters, prawns, and shrimps are exported. Commercial maritime fishing is carried out by four joint-venture companies that operate along the northwest coast and account for most exports. The catch in 2003 was estimated at 152,238 tons, of which 32,500 tons were caught in inland waters. Vessels from European Union nations are allowed to take up to 11,000 tons of tuna and prawns a year. French investment has helped establish a tuna cannery.

FORESTRY

The forested area of Madagascar is estimated to cover more than 11.7 million hectares (about 28.9 million acres), or about 20% of the land. The main objectives of forestry policy have been to arrest further destruction of the woodlands, to pursue a systematic reforestation program in the interests of soil conservation and the domestic demand for construction timber, and to continue to meet the domestic need for firewood, of great importance in view of the absence of petroleum or exploited coal deposits. Eucalyptus, introduced at the end of the 19th century, acacias (especially mimosa), and various kinds of pine have been extensively used in reforestation. Raffia is the only forest product exported in any quantity. Roundwood removals were estimated at 10,867,000 cu m (384,000,000 cu ft) in 2003; 99% was used for fuel.

MINING

Madagascar's mining sector is primarily known for its production of chromite (chemicaland metallurgical-grade), as well as for the production and export of phlogopite mica and high-quality crystalline flake graphite.

In 2003, output of chromite (marketable lumpy ore and gross weight concentrate) was 45,040 metric tons, up from 11,000 metric tons in 2002, but down significantly from the 131,293 metric tons produced in 2000, as a result of competition from South Africa. Graphite shipments (all grades) in 2003 totaled 2,000 metric tons. Output of mica (phlogopiute) in 2003 totaled 90 metric tons.

Deposits of gems (amazonite, amethyst, beryl, citrine, cordierite, garnet, sapphire, and tourmaline) have been exploited, as have those of ornamental stones (agate, apatite, and aragonite—69% of total ornamental stone production—calcite, jasper, and labradorite) and stones for electrical geodes (quartz—industrial, rose, and smoky—and celestine). In 1999, Madagascar exported gemstones worth $15.18 million, a 212% increase over 1999, and 270% over 1995—74% were exported to Thailand. In 2003, amethyst, emerald, ruby and sapphire production totaled 100 kg, 15 kg, 1,000 kg and 6,000 kg, respectively.

Madagascar in 2003 also produced mine gold (almost all was produced by artisanal miners and smuggled out of the country), natural abrasives, feldspar, kaolin, marble, marine salt, and dimension stone. Industrial calcite, clays, sand and gravel, and stone were presumably produced as well. Bastnaesite and monazite were not produced after 1996, although large deposits occurred of both, as well as of pyrochlore, and contained fergusonite, xenotine, euxenite, and uranium.

Extensive prospecting has led to the discovery of recoverable deposits of iron ore (910 million tons of resources; the 360-million-ton deposit near Soalala was the most valuable), bauxite (330–335 million tons in resources, in the southeastern part of the country), nickel (168 million tons; the largest resources were in the Ambatovy lateritic deposit), coal, copper, lead, manganese, platinum, tin, titanium, zinc, and zirconium. Madagascar's considerable mineral potential has remained unexploited; the main factors were the need for major infrastructure repairs, its poor power distribution systems, underfunded health and education facilities, and the inability to reform the economy and deal with chronic malnutrition, deforestation, land erosion, and population growth. One potentially positive development was the decision of the International Monetary Fund and the World Bank in 2000 to grant Madagascar $1.5 billion in debt relief. In 2000, the Bureau du Cadastre Minier de Madagascar (BCCM) was established, to serve as a one-stop service for mining operators. An overhaul of mining regulations created a new system of strictly defined licenses and mining concessions. All mineral resources, except graphite and mica, were nationalized, and prospecting and exploitation was under state control.

ENERGY AND POWER

Madagascar had no known reserves of oil, or natural gas as of 1 January 2005. Nor does the country have any recoverable coal reserves. As a result, Madagascar must rely upon imports to meet its fossil fuel needs, although the country does have a small refining capacity.

Madagascar's demand and imports of petroleum products in 2004 averaged 12,000 barrels per day. Petroleum refining capacity, as of 1 January 2005 averaged 15,000 barrels per day. In 2003, Madagascar had no imports or consumption of natural gas. However, it did import 0.01 million short tons of coal. Madagascar's only oil refinery was established at Toamasina in 1966.

Installed electrical capacity, as of 1 January 2003, amounted to 0.284 million kW, of which 63% in 2002 relied upon conventional fossil fuels. The remaining capacity in 2002 was hydroelectric. In 2003, electric power output came to 0.83 billion kWh, with consumption that year at 0.77 billion kWh. However, in 2002, hydropower accounted for 66% of the power produced.

INDUSTRY

Industry consists largely of processing agricultural products and textile manufacturing. The industrial centers are in the high plateau and near the Toamasina port. Industrialization has been severely hampered by inadequate internal transportation and a restricted local market. Industry accounted for 11% of GDP in 1999. Most plants operated at less than one-third of full capacity.

The majority of industrial enterprises process agricultural products: rice, sugar, flour, tobacco, tapioca, and sisal. In addition, there are some meat-packing plants. Urea- and ammonia-based fertilizers are produced in a plant that opened in 1985. Madagascar produces pulp for paper and cement. Other industrial enterprises include cotton spinning and weaving mills and three automobile assembly plants.

The government-owned petroleum refinery at Toamasina has a capacity of 15,000 barrels per day, but it has been operating at reduced capacity since it was hit by a hurricane in 1994. The petroleum sector was liberalized in 1996, and the state oil company SOLIMA was privatized in 2000. Oil and gas exploration holds great potential for the country.

The share that industry contributed to the GDP grew to 16.7% by 2004; agriculture contributed only 29.3%, but was the main employer in the country; services held a 54% share in the GDP. Other industries include meat processing, soap, breweries, tanneries, sugar, textiles, glassware, cement, automobile assembly plant, paper, petroleum, and tourism.

SCIENCE AND TECHNOLOGY

France is the leading supplier of scientific and technical aid to Madagascar, and there are French research institutes in the country to study geology, hydrology, tropical forestry, and veterinary medicine.

The National Center of Applied Research in Rural Development, founded in 1974 at Antananarivo, conducts research into agriculture, forestry, fisheries, zoology, and veterinary studies. Also in the capital is a government department of agronomical research, the National Institute of Geodesy and Cartography, and the Pasteur Institute, which is devoted to biological research. The University of Antananarivo, founded in 1961, has departments of sciences, agriculture, polytechnics, and health sciences, and an Institute and Geophysical Observatory. The University of Fianarantsoa, founded in 1988, has departments of mathematics, physics-chemistry, engineering, and computer science. The University of Mahajanga, founded in 1977, has faculties of natural sciences, medicine, and dentistry and stomatology.

In 1987–97, science and engineering students accounted for 25% of college and university enrollments. In 2000 (the latest year for which there is data available), research and development (R&D) expenditures totaled $15.332 million, or 0.12% of GDP. In that same year, the country had 47 technicians and 15 scientists and engineers per million people that were engaged in R&D.

DOMESTIC TRADE

Antananarivo, the capital and largest city, is the principal distribution center for the island. Toamasina, Mahajanga, Antsiranana, Toliara, and Tolänaro are the commercial centers for the provinces in which they are located. Distribution and packaging are being gradually modernized. Most general merchants in the small eastern communities are Chinese; most on the west coast are Indian. Domestic trade is small due to low-incomes of most residents and relatively high prices. Business is conducted in French and Malagasy. Advertising and marketing are not common.

Business hours vary, but generally are from about 8 am to noon and 2 to 5:30 pm on weekdays and from 8 am to noon on Saturdays. Banks are open 8 to 11 am and 2 to 4 pm Monday through Friday.

FOREIGN TRADE

Madagascar consistently runs a trade deficit. Exports consist mainly of unprocessed agricultural products and some extracted minerals. Textiles are Madagascar's major export commodity (29%), followed by spices (14%), coffee (7.1%), and gemstones (6.5%). Other exports include preserved fruit (4.4%) and shellfish (4.1%).

Refined petroleum products were formerly imported in large quantities, but development of domestic refinery capacity altered this pattern. Madagascar now exports a small amount of petroleum products to East Africa and to other Indian Ocean islands. Crude petroleum still must be imported.

In 2004, exports reached $868 million (FOB—free on board), while imports grew to $1.1 billion (FOB). The bulk of exports went to the United States (35.8%), France (30.8%), Germany

(7.7%), Mauritius (4.6%), and Italy (3.4%). Imports included capital goods, petroleum, consumer goods, and food, and mainly came from France (17.2%), China (9.7%), Hong Kong (6.6%), Iran (6.4%), Mauritius (6.2%), and South Africa (5.6%).

BALANCE OF PAYMENTS

Madagascar's payments balance is chronically negative. Since private investment has been limited, the deficits have been covered by foreign aid grants, official loans, and the use of central bank reserves from good years. In 1981 Madagascar was refused credit by its suppliers because of worsening deficits. The IMF provided a standby loan in 1982, conditional on devaluation of the currency, increased agricultural sector investments, producer price increases for rice and cotton, and the imposition of a ceiling on the minimum wage. These measures had a positive effect, although export production continued to decline. Consequently, further standby credits were negotiated and, in the late 1980s, Madagascar's debt was periodically rescheduled conditional on further trade liberalization, tighter government spending controls, privatization of the state's banks, improvement of credit access, and the opening up of financial markets to foreigners. France and Germany canceled significant portions of Madagascar's debt at that time.

In 1997, the Paris Club approved a 67% debt reduction, but since the majority of the country's debt did not lie with the Paris Club, it retained an external debt of over $4.5 billion. In 2000, Madagascar qualified for $1.5 billion in debt service relief from the IMF/World Bank Heavily Indebted Poor Countries (HIPC) initiative. In 2001, the IMF approved a three-year $103 million loan to Madagascar.

The US Central Intelligence Agency (CIA) reported that in 2000 the purchasing power parity of Madagascar's exports was $680 million while imports totaled $919 million resulting in a trade deficit of $239 million. The International Monetary Fund (IMF) reported that in 2001 Madagascar had exports of goods totaling

$111 million and imports totaling $114 million. The services credit totaled $42 million and debit $61 million.

Exports of goods and services reached $1.3 billion in 2004, slightly increasing from the 2003 value. Imports grew from $1.8 billion in 2003, to $1.9 billion in 2004. The resource balance was consequently negative in both years, reaching -$491 million in 2003 and -$680 million in 2004. The current account balance was also negative, decreasing from -$268 million in 2003, to -$411 million in 2004. Foreign exchange reserves (including gold) grew to $467 million in 2004, covering around three months of imports.

BANKING AND SECURITIES

Upon leaving the franc zone in June 1973, the government established the Central Bank of the Malagasy Republic (Banque Centrale de la République Magache). Also organized at that time were the Malagasy National Development Bank, an agricultural credit institution, and the National Investment Co., an industrial investment bank. In June 1975, the Ratsiraka government nationalized all private financial institutions. In December 1976, Bankin'ny Tantsaha Mpamokatra (BTM) was established as the national rural development bank, Bankin'ny Indostria (BNI) as the national industrial development bank, and Banky Fampandrosoana ny Varotra (BFV) as the national bank for commerce. There was also a savings bank and a postal checking account system.

Economic reforms in 1988 allowed private foreign investment in the banking sector for the first time since the banks were nationalized. In 1989, the Banque Nationale de Paris was the first French bank to open a private bank, the BMOI, since 1975. Financial sector liberalization has been a key condition of adjustment support.

In 2001, there were six commercial banks in Madagascar, including Banque Malgache de l'Océan Indien (BMOI) and BNI-Credit Lyonnais (BNI-CL), both controlled by European banking institutions; Union Commercial Bank (UCB) and State Bank of Mauritius (SBM), both controlled by Mauritian companies; BTM, controlled by the Bank of Africa; and the Bank of New York (BFV/SG). Total assets of the biggest bank, BNI-CL, were approximately $200 million in 1999. The International Monetary Fund reports that in 2001, currency and demand deposits—an aggregate commonly known as M1—were equal to $794.4 million. In that same year, M2—an aggregate equal to M1 plus savings deposits, small time deposits, and money market mutual funds—was $1.0 billion. The discount rate, the interest rate at which the central bank lends to financial institutions in the short term, was 11%. There are no securities exchanges in Madagascar.

INSURANCE

In June 1975, as part of the government's Malagasization program, all insurance companies were nationalized. Most of these had previously been French. Foreign companies now operate only as coinsurers. Some of the insurance companies doing business in Madagascar included, in 1998: Avotra Mutuelle Générale d'Assurances Malagasy, Caledonian Insurance Co., Compagnie

Malgache d'Assurances et de Reassurances, and Mutuelle d'Assurances Malagasy.

PUBLIC FINANCE

In 2000, Madagascar started the preparation of a Poverty Reduction Strategy Paper (PRSP) under the Heavily Indebted Poor Countries (HIPC) initiative. By the end of the year, the IMF and the World Bank agreed that Madagascar had filled the requirements of the HIPC and together they reached a decision point for debt relief. As a result, various organizations, including the IMF, the Paris Club, and the African Development Bank awarded Madagascar grants or debt cancellations worth a total of $355 million dollars in 2001.

The US Central Intelligence Agency (CIA) estimated that in 2005 Madagascar's central government took in revenues of approximately $703.6 million and had expenditures of $853 million. Revenues minus expenditures totaled approximately -$149.4 million. Total external debt was $4.6 billion.

The International Monetary Fund (IMF) reported that in 2002, the most recent year for which it had data, central government revenues were fmg2,895 billion and expenditures were fmg4,283.5 billion. The value of expenditures in US dollars was less than us$1 million, based on a official exchange rate for 2002 of us$1 = fmg 6,832.0 as reported by the IMF. Government outlays by function were as follows: general public services, 41.5%; public order and safety, 8.6%; economic affairs, 14.9%; environmental protection, 3.9%; health, 8.0%; recreation, culture, and religion, 0.5%; education, 20.7%; and social protection, 1.9%.

TAXATION

Indirect taxes produce much more revenue than direct taxes. The most important indirect taxes are import duties (ranging from 0–25%), a value-added tax (20%), customs fees (0–25%), and consumption taxes (from 0–10%). Import licenses are not necessary, and exports have been liberalized. Direct taxation consists of a graduated personal income tax with a maximum rate of 35%, a corporate profits tax at a flat rate of 35%, and a tax on income from transferable capital.

CUSTOMS AND DUTIES

Between 1960 and 1972, most Malagasy production went to France, where it was sold at subsidized prices. In return, preferential treatment was given to French imports. This reciprocal arrangement guaranteed the Malagasy a reliable return for their exports and enabled the French to pay low import duties and virtually monopolize the Malagasy market. Similar trade agreements were arranged with some European Community countries.

Beginning in 1972, however, the government restricted imports as much as possible and began the progressive cancellation of preferential arrangements to ensure greater diversity in supply sources. Import constraints were tightened during the early 1980s because of a severe shortage of foreign exchange but were liberalized in 1986. In 1988, Madagascar began a three-stage comprehensive tariff reform to simplify and reduce rates. Imported goods were divided into five categories and taxed at rates of 10–50%.

Customs duties continue to be an important source of revenue for Madagascar, as they are for many developing countries. The current tariff system, under a 2000 financial law, consists of four kinds of duties: an import tax (5% for crude materials, spare parts and inputs; 5-15% for capital goods; 25-30% for consumer goods; and up to 100% for some luxury items); custom fees of 0-25%; a consumption tax of 1–10%; and a value-added tax (VAT) of 20%.

FOREIGN INVESTMENT

Prior to independence, nearly all private investment was French. The investment code of 1973 required that the Malagasy government own at least 51% of most new foreign projects, especially those involving strategic sectors of the economy. Import duties on equipment, excise on products, and taxes on profits were reduced or waived. Priority was given to enterprises in the allocation of foreign exchange and in the sale of goods and services to the state and its enterprises. In 1974, the government embarked on a socialist course, nationalizing large foreign enterprises without compensation and imposing strict controls on imports, prices and foreign exchange. There was little private foreign investment under these restrictive policies. The economy contracted and productivity declined. In 1994, under the pressure and guidance of the IMF, the World Bank, and donor states, a new liberalized policy framework was instituted. In 1997, the government announced that 45 state enterprises were set for privatization by the end of 1998, but only two companies had been privatized by mid-1999. Nonetheless, public foreign investment is encouraged.

A new code that became operational in 1986 allowed some exporters tax holidays of up to eight years, and there were special incentives for small enterprises. Foreign investors had the right to transfer dividends freely. The investment code of 1990 provided further incentives to foreign private investors and was opposed by local businesses for that reason. Rules covering foreign exchange and the number of foreign employees were relaxed. Small- and medium-size companies were provided tax exemptions through the first ten years of operation.

A number of export processing zones were set up in Madagascar. These have attracted investors from Europe (50%, mainly French, and Germany and Italy), Mauritania (30%), and Asia (10%, mostly Hong Kong and Singapore). Between 1990 and 1992, 69 new foreign-financed businesses were established in Madagascar. Investment during 1999 focused on the telecommunications, petroleum, and mining sectors. The value of foreign direct investment in 1998 was around $16 million.

In 2005, the discovery of two kimberlites by a Canadian diamond exploration company may set the stage for major future investments in mining, and they might lead to the emergence of Madagascar as a major diamond producer.

ECONOMIC DEVELOPMENT

The 1982–1984 development plan, more modest than the previous one owing to limited resources, called for a shift from social investments (especially education and health) to agriculture, industry, and infrastructure. The following 1984–87 plan called for spending centered mainly on transport improvements and agricultural development. The 1986–90 plan, which superseded the 1984–87 plan, had 30% of the budget coming from private sources and 40% from foreign sources. The plan called for investments of 47% in agriculture in the ongoing effort to achieve food self-sufficiency and crop diversification.

Antigovernment strikes, corruption, and a lack of commitment have limited progress on the reforms since the early 1990s. In March 1997, a World Bank structural adjustment credit of $70 million was approved; in July 1999, a $100 million credit, and $40 million from the International Monetary Fund (IMF). The GDP growth rate increased steadily since these credits were allocated to Madagascar. However, external debt remained at $4 billion throughout the decade. One good sign during this period was a decrease in inflation, from 45% in 1993 to 6.2% in 1998.

In 2000, Madagascar was approved for $1.5 billion in debt service relief under the IMF/World Bank Heavily Indebted Poor Countries (HIPC) initiative. In 2001, it negotiated a $111.3 million three-year Poverty Reduction and Growth Facility (PRGF) Arrangement with the IMF. The PRGF was due to expire in November 2004. Also in 2001, the Paris Club approved a debt cancellation of $161 million, and the African Development Bank (AfDB) approved a debt cancellation of $71.46 million and granted an additional credit of $20 million to fight HIV/AIDS and poverty. Foreign direct investment in Madagascar's export processing zone strengthened the country's balance of payments position from 1997–2001, real GDP growth rate averaged 4.75%, and inflation was limited. The government embarked on an agenda of regulatory reform and public enterprise in 2002. Poverty, however, remained a constraint on growth and development.

Economic growth in 2005 was expected to reach around 5.1%, lower than initial estimates predicted. This trend was the result of high energy costs, frequent power cuts, and reduced consumer spending. By 2006, the economy was predicted to make slow but steady progress. The expansion of the economy will likely be fueled by a good performance in a series of key sectors: agriculture, tourism, and mining.

SOCIAL DEVELOPMENT

Old age, disability and survivor's pensions are funded by 1% contributions by employees and 3.5% by employers. There is a National Social Security Fund that provides family allowances and workers' compensation for wage earners. Employed women receive 14 weeks of maternity leave at 50% of pay. An employment-related system for family allowances is available to residents of Madagascar or France.

Women enjoy a highly visible and influential position in society, occupying some important posts in business and in the public sector. Domestic abuse is not widespread and women have recourse when reporting abuse to authorities. A 2003 amendment to the penal code specifically prohibits domestic violence. Child labor persists.

Human rights are generally respected. Excessive pretrial detention is a problem in Madagascar, sometimes extending for periods that surpass the maximum sentence for the alleged offense.

HEALTH

All medical services in Madagascar are free. Each province has a central hospital and local clinics, dispensaries, and maternity-care centers are supplemented by mobile health units. The main hospitals are the Hospital Befelatnana (1,300 beds) and Fort Dauphin Hospital (80). Total health care expenditure was estimated at 2.1% of GDP. As of 2004, there were an estimated nine physicians, 19 nurses, and nine midwives per 100,000 people.

Malaria remains one of the major health problems. The strategies of the fight against malaria consist of early care of malaria cases, drug interaction for pregnant women, and eradication of adult insects in the central highlands where malaria is common. The major endemic diseases are malaria, leprosy, and schistosomiasis. Tuberculosis is also prevalent. approximately 47% of the population had access to safe drinking water and 42% had adequate sanitation.

As of 2002, the crude birth rate and overall mortality rate were estimated at, respectively, 42.4 and 12.2 per 1,000 people. The fertility rate in 2000 was 5.4. Only 19% of married women (ages 15 to 49) used contraception. The infant mortality rate in 2005 was 76.83 per 1,000 live births. The maternal mortality rate was 490 per 100,000 live births. Immunization rates for children up to one year old were: tuberculosis, 87%; diphtheria, pertussis, and tetanus, 73%; polio, 73%; and measles, 68%. Approximately 48% of children under five years of age were considered malnourished. Nearly 22.8% of schoolchildren suffered from goiter. The average life expectancy was 56.95 years in 2005.

The HIV/AIDS prevalence was 1.70 per 100 adults in 2003. As of 2004, there were approximately 140,000 people living with HIV/AIDS in the country. There were an estimated 7,500 deaths from AIDS in 2003.

HOUSING

Malagasy houses, although constructed of varying materials in different parts of the island (brick and wood in the plateau, thatch and leaves in the west, and often on stilts in the east), are always rectangular, sited north–south, with the doorway opening to the west. In the central plateau, they are often two stories high and have outside terraces.

The rapid growth of towns after World War II created grave problems of housing and sanitation, especially in Antananarivo, whose situation on a rocky promontory aggravates the difficulties of overcrowding. In the late 1980s, the latest period for which information is available, the housing stock totaled 2,350,000 with 4.5 people per dwelling. According to a 1993 survey, about 59% of all households lived in a one-room dwelling. About 83% of all dwellings were owner occupied. Only about 4% of all households had modern toilet facilities.

EDUCATION

Education is free and compulsory for five years. This is followed by four years of lower secondary education. Students may then attend a three-year program in either general upper secondary studies or technical school studies. The academic year runs from October to July.

In 2001, about 3.4% of children between the ages of three and five were enrolled in some type of preschool program. Primary school enrollment in 2003 was estimated at about 79% of age-eligible students. In 1999, secondary school enrollment was about 11% of age-eligible students. It is estimated that about 46.8% of all students complete their primary education. The student-to-teacher ratio for primary school was at about 50:1 in 2000; the ratio for secondary school was about 17:1.

The University of Madagascar in Antananarivo, established in 1961, also has campuses at Antsiranana, Fianarantsoa, Mahajanga, Toamasina, and Toliara. Also in Antananarivo are the Rural College of Ambatobe and the National Institute of Telecommunications and Posts. In 2003, about 2% of the tertiary age population were enrolled in some type of higher education program. The adult literacy rate for 2004 was estimated at about 70.6%, with 76.4% for men and 65.2% for women.

As of 2003, public expenditure on education was estimated at 2.9% of GDP, or 10.2% of total government expenditures.

LIBRARIES AND MUSEUMS

The principal libraries are the National Library in Antananarivo, with 236,000 volumes, and the university library, with 195,000 volumes. Other important libraries include the National Archives (30,000 volumes), the Antananarivo municipal library (23,000), and the Albert Camus Cultural Center Library (35,000).

The palace of the queen in Antananarivo contains important art, archaeological, and historical exhibits, especially concerning the Merina kingdom. Other museums in the city are the Gallery of Fine Arts; the University of Madagascar's Museum of Art and Archaeology; the Folklore, Archaeology, Paleontology, and Animal Museum; the Historical Museum, and a natural history museum. There is also an oceanographic research museum in Nosy Be, a regional museum in Toamasina, and university museums in Fianarantsoa and Tuléar.

MEDIA

In 2003, there were an estimated 4 mainline telephones for every 1,000 people; about 1,800 people were on a waiting list for telephone service installation. The same year, there were approximately 17 mobile phones in use for every 1,000 people.

The government-owned Radio-Télévision Malagasy broadcasts in French, Malagasy, and English, and telecasts in French and Malagasy; Radio Madgasi Kara, also state-owned, broadcasts in French and Malagasy. There are a few privately operated stations for both radio and television. As of 2001, there were 2 AM and 9 FM radio stations and 1 television station. In 2003, there were an estimated 216 radios and 25 television sets for every 1,000 people. The same year, there were 4.9 personal computers for every 1,000 people and 4 of every 1,000 people had access to the Internet. There was one secure Internet server in the country in 2004.

In 2004, there were eight major daily newspapers. The largest (with 2002 circulation figures) were: Atrika (circulation 13,000), Imongo Vaovao (10,000), Madagascar Tribune (12,000), Maresaka (5,000), and Midi-Madagasikara (25,000). All are published in Antananarivo. Despite prior censorship of all print media, the press is independent and quite outspoken.

ORGANIZATIONS

There are hundreds of cooperatives, and the Ratsiraka government has been encouraging fokonolona, or village organizations, to stimulate planned agricultural undertakings. Chambers of commerce, originally established in 1902, are located in a dozen towns. The national branch is the Chamber of Commerce, Industry, Art and Agriculture of Antananarivo, which serves as a multipurpose group for tourism and trade. There are also seven major employers' organizations.

Tanora Tonga Saina is the government-sponsored youth movement. There are also scouting programs and a number of religiously and/or politically affiliated groups for youth. There are branches of Junior Chamber and YMCA/YWCA. A variety of sports associations are also active.

There are national chapters of the Red Cross Society, UNICEF, and Habitat for Humanity.

TOURISM, TRAVEL, AND RECREATION

Tourism has been encouraged by the government as a source of foreign exchange since the mid-1980s, with an exception for the years 1991 and 2002, when the industry suffered due to civil unrest. There has been renewed growth in tourism, however, and in 2003, Madagascar had 139,000 foreign visitors, a 125% increase from 2002. Hotel rooms numbered 9,325 with 16,700 beds and an occupancy rate of 40%. The average length of stay was four nights. Tourist expenditure receipts totaled $118 million.

Tourists are attracted to the city of Antananarivo, home to the largest open air market in the world. The hot springs town and resort of Antsirabe is also popular to visitors who enjoy boating and swimming.

Valid passports and visas are required. Certificates of vaccination against cholera and yellow fever are necessary of persons arriving from an infected area. Precautions against malaria are strongly advised.

In 2004, the US Department of State estimated the daily cost of staying in Antananarivo at $217. Daily costs of visits to towns and villages were estimated at $95.

FAMOUS MALAGASY

The poet Jean-Joseph Rabéarivelo (1901–37) published several volumes of poetry (Volumes, Presques Songes, Sylves). Jacques Rabémananjara (b.1913), a founder of the MDRM, is well known for his verse play, Les Dieux Malgaches. Philibert Tsiranana (1910–78), a Tsimihety teacher, founded the PSD, and became Madagascar's first president in May 1959. Gen. Gabriel Ramanantsoa (1906–79) was head of state from May 1972 to February 1975. Adm. Didier Ratsiraka (b.1936) became head of state in June 1975 and president of the republic in January 1976. He served in that position until 1993, when he lost an election to Albert Zafy (b.1927), who was president until 1996. Ratskiraka was elected president once again in 1997, and served until 2002. That year, he and Marc Ravalomanana (b.1949) both claimed the presidency during an election controversy; Ratsiraka fled the country and Ravalomanana became president.

DEPENDENCIES

Two offshore islands, Nosy Boraha and Nosy Be, are considered by Madagascar as integral parts of the country.

BIBLIOGRAPHY

Allen, Philip M. and Covell, Maureen. Historical Dictionary of Madagascar. Lanham, Md.: Scarecrow Press, 2005.

American University. Indian Ocean: Five Island Countries. 3rd ed. Washington, D.C.: Government Printing Office, 1995.

Campbell, Gwyn. An Economic History of Imperial Madagascar 1750–1895: The Rise and Fall of an Island Empire. New York: Cambridge University Press, 2005.

Covell, Maureen. Historical Dictionary of Madagascar. [computer file] Boulder, Colo.: netLibrary, Inc., 2000.

Feeley-Harnik, Gillian. A Green Estate: Restoring Independence in Madagascar. Washington, D.C.: Smithsonian Institution Press, 1991.

Harmon, Daniel E. Southeast Africa: 1880 to the Present: Reclaiming a Region of Natural Wealth. Philadelphia, PA: Chelsea House Publishers, 2002.

Roberts, Jonathan. Mythic Woods: The World's Most Remarkable Forests. London: Weidenfeld and Nicolson, 2004.

Stevens, Rita. Madagascar. Philadelphia, Pa.: Chelsea House, 1999.

Zeilig, Leo and David Seddon. A Political and Economic Dictionary of Africa. Philadelphia: Routledge/Taylor and Francis, 2005.