Madagascar

This document is hence organized not around the three types of challenges, but around five themes of governance, public finance issues, private sector-led economy, poverty and environment, and human capital, all crucial to achieving faster, more inclusive and sustainable growth. Chapter one provides the country context. Chapter two discusses the quality of governance, an overarching issue in Madagascar. It has a direct bearing on the pace, the inclusiveness and sustainability of growth. While acknowledging the importance of improving governance for Madagascar, which is a difficult, medium term undertaking, this Systematic Country Diagnostic argues that progress is also possible. Chapter three discusses how amelioration in managing public finances, and increasing revenue in particular, could be used as a lens for improved governance. Chapter four discusses the role and challenges of the private sector, the main driver of growth. Chapter five discusses the challenges for achieving higher human capital in a country with a very young population and some of the highest infant stunting and malnourishment rates in the world. Chapter six discusses the faces of poverty, which are predominantly rural, agricultural and informal. A structural transformation has not started in Madagascar and poverty and environment are closely intertwined. The chapter also discusses the challenges to enhancing the management of natural resources and protecting the poor from natural disasters and impacts of climate change. Chapter seven summarizes the challenges and prioritizes the reforms.