Madagascar: An Agenda for Growth and Poverty Reduction (World Bank Country Study) PDF
Preview Madagascar: An Agenda for Growth and Poverty Reduction (World Bank Country Study)
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 World Bank Country Studies are among the many reports originally prepared for internal use as part of the continuing analysis by the Bank of the economic and related conditions of its developing member countries and of its dialogues with the governments. Some of the reports are published in this series with the least possible delay for the use of governments and the academic, business and financial, and development communities. The typescript of this paper therefore has not been prepared in accordance with the procedures appropriate to formal printed texts, and the World Bank accepts no responsibility for errors. Some sources cited in this paper may be informal documents that are not readily available. The findings, interpretations, and conclusions expressed in this paper are entirely those of the author(s) and should not be attributed in any manner to the World Bank, to its affiliated organizations, or to members of its Board of Executive Directors or the countries they represent. The World Bank does not guarantee the accuracy of the data included in this publication and accepts no responsibility for any consequence of their use. The boundaries, colors, denominations, and other information shown on any map in this volume do not imply on the part of the World Bank Group any judgment on the legal status of any territory or the endorsement or acceptance of such boundaries. The material in this publication is copyrighted. The World Bank encourages dissemination of its work and will normally grant permission promptly. Permission to photocopy items for internal or personal use, for the internal or personal use of specific clients, or for educational classroom use, is granted by the World Bank provided that the appropriate fee is paid directly to Copyright Clearance Center, Inc., 222 Rosewood Drive, Danvers, MA 01923, U.S.A., telephone 978 750 8400, fax 978 750 4470. Please contact Copyright Clearance Center prior to photocopying items. For permission to reprint individual articles or chapters, please fax your request with complete information to the Republication Department, Copyright Clearance Center, fax 978 750 4470. All other queries on rights and licenses should be addressed to the World Bank at the address above, or fax no. 202 522 2422. 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
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