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MADAGASCAR: Donors pledge US $2 billion in aid

JOHANNESBURG, 29 July (IRIN) - In a show of support for the country's new administration, international donors at the weekend pledged US $2.3 billion in aid to Madagascar over four years.

The Indian Ocean island received the economic boost following the approval of an economic recovery programme by the so-called Friends of Madagascar Group, which includes France, the European Union, the G-8 countries, as well as the World Bank and the International Monetary Fund.

Although details remained sparse on how the money would be used, the programme focused on emergency aid to help the poorest, good governance, and promotion of the private sector.

At the conclusion of the meeting in Paris, the World Bank outlined some of the key points of the recovery programme.

"First, and most important, are emergency programmes to assist the poorest in the country. These activities include urgent nutritional support to the neediest, temporary employment creation through public works programmes for those having lost their jobs, and measures to improve the delivery of basic education and health services," a World Bank statement said.

Madagascar's economy was brought to its knees by a power struggle between former president Didier Ratsiraka, and Marc Ravalomanana, his challenger, in the 16 December presidential election.

The eight months of political upheaval resulted in the loss of thousands of jobs forcing many people onto the streets. In May, the World Food Programme had to extend its feeding scheme to the country's urban centres, and NGOs reported a sharp rise in malnutrition in children under five.

Meanwhile, the government has promised to improve and control the use of public finances, reduce corruption, and increase transparency in public decision-making. In a move to curb alleged widespread corruption in the public sector, Ravalomanana increased civil servant salaries.

Government authorities also announced their intention to renew their work on designing a comprehensive strategy to reduce poverty in the country. Such a Poverty Reduction Strategy Paper (PRSP), a condition for further donor support, is expected to be completed in 2003.

The government also confirmed its intention to organise parliamentary elections, the World Bank statement said.
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