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Madagascar Economic Update

Jacques Morisset's picture

In Madagascar, donors have traditionally counted for almost half of the Government’s budget and have been, by far, the main source of funding in social sectors. 

Since the beginning of the crisis, official aid toward education, health and social protection surged, reaching almost US$260 million in 2010 against US$180 million in 2008.  Nonetheless, this increase failed  to improve significantly social indicators. 

Does it mean that (i) aid works but the country did not get enough of it to counterbalance the effects of the current political and economic crisis, or (ii) aid effectiveness has been limited and there is a need to improve its quality rather than its quantity?  

The attached economic update provides some preliminary answers.