Madagascar’s 2009 Political Crisis
Lauren Ploch
Analyst in African Affairs
May 18, 2009
Congressional Research Service
7-5700
www.crs.gov
R40448
CRS Report for Congress
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repared for Members and Committees of Congress
Madagascar’s 2009 Political Crisis
Summary
Political tensions on the Indian Ocean island of Madagascar between President Marc
Ravalomanana and Andry Rajoelina, the former mayor of the capital city, escalated in early 2009,
culminating in the President’s forced removal from office. In preceding weeks, over 135 people
had been killed in riots and demonstrations. Under intensifying pressure from mutinous soldiers
and large crowds of protestors, Ravalomanana handed power to the military on March 17, 2009.
The military then transferred authority to Rajoelina, who has declared a transitional government.
Days prior to President Ravalomanana’s resignation, the U.S. Ambassador to Madagascar had
expressed concern that the country could face civil war; some believe that may still be a
possibility. Rajoelina’s “inauguration” as president of the transitional authority was followed by
days of protests by thousands of supporters of Ravalomanana. Several more recent
demonstrations have led to violent clashes with security forces.
The political uncertainty has strained relations between international donors and Madagascar,
which was the first country to sign a U.S. Millennium Challenge Account compact, worth an
estimated $110 million. Following coups in Mauritania and Guinea in 2008, the African Union,
the United States, and the European Union, among others, warned against an unconstitutional
transfer of power on the island nation and have threatened sanctions and a suspension of foreign
aid. The African Union and the Southern African Development Community have suspended
Madagascar until constitutional order is restored.
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Contents
Overview .................................................................................................................................... 1
Recent Developments.................................................................................................................. 1
The Military Takes Sides....................................................................................................... 2
The Transitional Authority Plans New Elections.................................................................... 4
Mediation Efforts and International Reactions ....................................................................... 4
Background ................................................................................................................................ 5
Politics........................................................................................................................................ 5
The Ratsiraka Government .................................................................................................... 5
The 2001 Election and the Post-Election Crisis of 2002......................................................... 5
The Ravalomanana Government ........................................................................................... 6
Tensions between Ravalomanana and Rajoelina Build........................................................... 7
The Economy.............................................................................................................................. 7
U.S. Relations with Madagascar.................................................................................................. 8
Figures
Figure 1. Map of Madagascar...................................................................................................... 2
Contacts
Author Contact Information ...................................................................................................... 10
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Madagascar’s 2009 Political Crisis
Overview
Political tensions on the Indian Ocean island of Madagascar between President Marc
Ravalomanana and Andry Rajoelina, the former mayor of the capital city, escalated in early 2009,
culminating in the President’s forced removal from office. In preceding weeks, over 135 people
had been killed in riots and demonstrations. Under intensifying pressure from mutinous soldiers
and large crowds of protestors, Ravalomanana handed power to the military on March 17, 2009.
The military then transferred authority to Rajoelina, who has declared a transitional government.
Days prior to President Ravalomanana’s resignation, U.S. Ambassador to Madagascar Niels
Maquardt had expressed concern that the country could face civil war; some believe the unrest
may continue. 1 The political uncertainty has strained relations between international donors and
Madagascar, which was the first country to sign a U.S. Millennium Challenge Account compact,
worth an estimated $110 million. 2 Following coups in Mauritania and Guinea in 2008, the
African Union (AU), the United States, and the European Union, among others, warned against
an unconstitutional transfer of power on the island nation and have threatened sanctions and a
suspension of foreign aid. The AU has suspended Madagascar from the regional body until
constitutional order is restored, as has the Southern African Development Community (SADC).
Recent Developments
In December 2008, the Ravalomanana government closed a television station owned by
Antananarivo Mayor Andry Rajoelina after it aired a speech by former President Didier Ratsiraka,
who lives in exile in France. When Rajoelina’s radio station was closed a month later, he
convened a public demonstration to demand the stations’ reopening, accusing President
Ravalomanana of corruption and authoritarianism. According to press reports, as many as 40,000
people may have attended the rally, which was followed by several days of rioting. The 34-year-
old Rajoelina, a former disk jockey, has claimed that his stations were closed as part of a
politically-motivated campaign against him by the President. Rajoelina, widely known as “Andry
TGV,” after the high-speed rail service in France, is a successful media entrepreneur. TGV also
stands for the politician’s movement, Tanora malaGasy Vonona (Young Malagasies Determined).
Rajoelina defeated President Ravalomanana’s candidate in the December 2007 mayoral elections
with 63 percent of the vote.
1 “Madagascar on the Verge of Civil War, U.S. Ambassador Warns,” The Guardian (London), 12 March 2009.
2 Established in 2002, the Millennium Challenge Account (MCA) is a major U.S. foreign assistance initiative managed
by the Millennium Challenge Corporation (MCC). It provides assistance, through a competitive selection process, to
developing nations that are pursing political and economic reforms in three areas: ruling justly, investing in people, and
fostering economic freedom.
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Figure 1. Map of Madagascar
Source: LOC
Ravalomanana removed Rajoelina from office on February 3, 2009, after the mayor declared that
he was taking over the government and announced a parallel cabinet.3 His bid to impeach
Ravalomanana was rejected by the constitutional court.4 Rajoelina has proposed a transitional
government to lead the country until the constitution can be rewritten and elections held, within
two years. He reportedly took refuge at the French Embassy in February to avoid arrest but
continued to call for the President’s impeachment and arrest. In response, Ravalomanana, who
was expected to run for re-election when his term expired in 2011, publicly acknowledged that
his government had made mistakes during the crisis and proposed a nationwide referendum to
determine whether he would stay in office. Rajoelina rejected the proposal.
The Military Takes Sides
Madagascar’s military has historically maintained its neutrality during political confrontations.
During the latest tensions, the armed forces repeatedly pledged to protect the civilian population
and maintain the rule of law, but in early 2009 appeared to increasingly support Rajoelina. The
3 Under Malagasy law, the President can dismiss elected officials who fail to fulfill their mandate.
4 The court ruled that the power to impeach the President lay with the legislature rather than the judiciary.
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military police have actively supported the former mayor and several army units mutinied in early
March.5 On March 10, a group of soldiers reportedly forced the resignation of the defense
minister, who had only been in office one month. His predecessor resigned in protest in February
2008 after security forces fired on demonstrators at an opposition rally. At least 28 people were
reportedly killed in the incident, and as many as 200 were wounded. Rajoelina’s supporters took
to the streets at the end of the month in an effort to take control of government offices, throwing
bricks and stones at security forces. On March 11, an army colonel, Andre Ndriarijaona, ousted
the Army Chief of Staff after he allegedly warned that the army would intervene in the crisis if it
were not resolved in 72 hours. Media reports of tanks deployed on March 13 in and around the
capital city, allegedly to prevent the President from employing mercenaries to protect his regime,
heightened concerns of a possible military coup d’état.6
Rajoelina emerged from hiding to speak at a rally on March 14, again calling for President
Ravalomanana’s arrest. He was joined by National Assembly president Jacques Sylla, a former
ally of Ravalomanana, who declared his support for the deposed mayor. On March 16, soldiers
seized a presidential palace and the central bank. President Ravalomanana was not at the palace
during the attack. Hundreds of supporters reportedly camped outside his residence, on the
outskirts of the capital, to protect him. Rajoelina supporters began to take control of other
government offices, including that of the Prime Minister, and Rajoelina reportedly installed
himself in the presidential offices on March 17. President Ravalomanana announced that he was
stepping down and transferring authority to a military directorate led by the military’s most senior
officer, navy admiral Hyppolite Ramaroson. Ramaroson later announced that the military was
transferring authority to Rajoelina as president of a “high transitional authority.”7 The country’s
highest court publicly proclaimed Rajoelina’s legitimacy the following day, and he was
inaugurated as “president of the high transitional authority” on March 21.8 Rajoelina has
suspended the parliament, which is dominated by Ravalomanana’s party.
Demonstrations by Ravalomanana supporters in the wake of Rajoelina’s inauguration suggest that
the political tensions on the island may continue. On multiple occasions, security forces have
reportedly used tear gas to disperse protestors, and several demonstrators have reportedly been
killed or injured. Ravalomanana, in a pre-recorded message, reportedly urged his supporters in
late March to “save the nation,” accusing Rajoelina and his allies of “destroying our country with
their coup.”9 Some reports suggest that elements of the military oppose the transitional authority
and have demanded Rajoelina’s resignation.10 A Malagasy journalist was arrested in early May
and charged with "inciting revolt against the republic's institutions," defamation and
disseminating false information. His radio station, Radio Mada, has been taken off the air.11
5 “Madagascar Officers Launch Mutiny,” BBC, 8 March 2009.
6 Scott Bobb, “Mutinous Troops in Madagascar Say They Control Army Tanks,” Voice of America, 13 March 2009.
7 “Madagascar President Forced Out,” BBC, 17 March 2009.
8 The court announced in a radio address that Rajoelina “is serving as president of the republic,” according to “Top
Court Endorses Army-Supported Opposition Leader to Replace Toppled President,” Associated Press, 18 March 2009.
9 “Ousted Madagascar Leader Defiant,” BBC, March 25, 2009.
10 “Madagascar Navy Troops Order Rajoelina to Leave Power in Seven Days,” Xinhua News Agency, 21 March 2009.
11 Press Release by Reporters Without Borders, “Madagascar: Detained Radio Mada Reporter is Charged And
Transferred to Prison,” May 7, 2009.
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The Transitional Authority Plans New Elections
A national conference held in early April was boycotted by Ravalomanana supporters. The
deposed president subsequently announced the creation of a new government, to be led by
Manandafy Rakotonirina as prime minister. He was subsequently arrested and accused of
coordinating anti-government protests. Several other senior opposition officials have likewise
been detained.
Rajoelina and his High Transitional Authority have presented a timetable for new presidential
elections, to be held in October 2010. The elections are expected to be preceded by a referendum
on constitutional changes in September 2009 and by parliamentary elections in March 2010.
Although initial reports suggested that Rajoelina might not run in the 2010 elections, recent
government statements suggest that he plans to run unless all former heads of state agree not to
run as well. The African Union has expressed its opposition to the 19-month delay before
elections.
Mediation Efforts and International Reactions
Envoys from the United Nations, the AU, and SADC, in concert with the influential Madagascar
Council of Christian Churches, have made numerous attempts to mediate between Ravalomanana
and Rajoelina. The two rivals met in February, but Rajoelina later suggested that he would not
participate in further talks until the President stepped down. Negotiations planned for March 12
and 13 were postponed. The AU condemned the events of March 16 as an attempted coup d’état,
and AU Commission Chairman Jean Ping warned the military against handing power to
Rajoelina. 12 According to Madagascar’s current constitution, in the event of a presidential
vacancy, the President of the Senate should assume the office and hold new elections within two
months, rather than the two years Rajoelina has proposed. Constitutionally, the President also
must be at least 40 years of age; Rajoelina is only 34. On March 20, the AU Peace and Security
Council, citing an unconstitutional change of government, announced its decision to suspend
Madagascar from participation in AU activities. Southern African leaders suspended the country
from SADC at a March 30 regional summit in Swaziland, following a briefing from
Ravalomanana. The U.S. State Department declared the power transfer “tantamount to a coup
d’état.”13 EU officials have taken a similar stance. Foreign envoys did not attend Rajoelina’s
inauguration, and no government has recognized his administration. The United States has
suspended all non-humanitarian assistance, as have several other international donors, including
the International Monetary Fund (IMF), which announced a suspension of aid programs in May
2009. The islands’ churches have continued to press Rajoelina to negotiate with Ravalomanana
and his party, and the Catholic Church has called for Rajoelina and his administration not to stand
in the next elections. Ravalomanana insists he will only participate in talks organized by the U.N.
or one of the regional organizations.
12 “Madagascar Opposition Calls for President’s Arrest,” Reuters, 16 March 2009.
13 Statement by Acting State Department Spokesman Robert Wood, Daily Press Briefing, 20 March 2009.
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Background
Madagascar, a former French colony, is the world’s fourth-largest island. Located in the Indian
Ocean approximately 280 miles off eastern continental Africa, it is about 30 percent larger than
California. Its 20 million people are a unique product of historical migrations from Africa,
southeast Asia, Arab countries, and Polynesia. They speak a Malayo-Polynesian language,
Malagasy, which functions as an official national language, along with French, and serves as the
noun and adjective for Madagascar’s people. The use of English is growing. Almost three-
quarters of the population live in rural areas, making a living through small scale commercial and
subsistence farming. Two-thirds of the Malagasy people live on less than $2 a day.
Madagascar is extremely biologically diverse and is unique in many ways; over 85 percent of its
species are estimated to be endemic. Its ecosystems include tropical forests, sandy coastal plains
with vegetation, river ecosystems, mangroves, large marshes, and coral reefs. Along with some
neighboring islands, it is famed as the exclusive home of lemurs, a unique and ancient suborder of
primates. Madagascar is estimated to have as many as 150,000 species of flora and fauna that are
unique to the island. In part due to a high population growth rate, Madagascar faces
environmental pressures, and flora, fauna, and habitat loss from soil erosion associated with
deforestation, agricultural production, and overgrazing; desertification; and water pollution. The
country regularly suffers massive economic losses, physical destruction, and loss of life during
the annual cyclone season, and from cycles of drought and floods.
Politics
Following independence in 1960, Madagascar was ruled by a succession of Soviet-leaning
socialist regimes, and the country suffered periodic political instability. In the late 1980s, support
from the collapsing Soviet Union waned and popular demands for democratization mounted. A
democratic transition marked by considerable unrest began in 1989, leading to the approval of a
new constitution after a 1992 referendum and presidential elections. The new government made
little headway against Madagascar's extreme poverty, and faced strikes, student unrest, and
diverse political problems, including the impeachment of President Albert Zafy in July 1996.
The Ratsiraka Government
Didier Ratsiraka, a former military ruler, won presidential elections in November 1996. While he
generally maintained a public commitment to democracy, he also attempted to centralize control
over political institutions, administrative organs, and electoral processes. In 1998, he backed
constitutional reforms that weakened the legislature and gave him appointment powers over a
third of Senate seats. Ratsiraka’s actions gradually weakened the opposition parties, but also
engendered opposition to his rule, as did widespread allegations of corruption within his
administration.
The 2001 Election and the Post-Election Crisis of 2002
Many Ratsiraka opponents rallied to the reform message of the then-mayor of Antananarivo,
businessman Marc Ravalomanana, and his Tiako I Madagasikara (TIM, or “I Love Madagascar”)
party. In December 2001, he faced Ratsiraka in a bitterly contested presidential election. The
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election led to a tense half year stand-off between the two candidates and their parties after
Ravalomanana, citing electoral irregularities, refused to participate in a postponed runoff poll,
and in February 2002 declared himself the winner of the election. His election was sanctioned by
the Malagasy High Constitutional Court, which rejected the need for a run-off.14 He was sworn
into office in May, but Ratsiraka continued to reject his opponent’s election. The two sides each
marshaled their supporters and engaged in limited armed confrontations, which threatened at
times to escalate into civil war. Communications, roads, and bridges were cut by Ratsiraka’s
followers, leaving the capital with no access to the sea or to basic supplies. Nationwide economic
disruptions – which included widespread job loss and sharp rises in malnutrition rates, aggravated
by a devastating cyclone – ensued. In June 2002, the United States formally recognized the
Ravalomanana government. It was the first government to do so; France, China, the U.K. and five
African governments soon followed suit. The African Union, however, declined to do likewise,
and suspended Madagascar from the regional body. In early July, Ratsiraka fled to exile in
France. His departure was preceded by rumors that he had been planning to sponsor a mercenary
attack on Ravalomanana, but by that time allies of Ravalomanana had consolidated political
control of much of the island.
The Ravalomanana Government
Madagascar was re-admitted to the AU nearly seven months after Ravalomanana’s TIM party
won 102 of the 160 seats in the National Assembly during legislative elections in December 2002,
a poll seen as a test of his administration’s legitimacy. Ravalomanana faced significant economic
challenges after the extended political crisis and related economic disruptions, but received
pledges of substantial support from Western donors, a trend that continued throughout his tenure.
His administration pursued an agenda that sought to reduce poverty; improve governance and
adherence to the rule of law; and increase economic growth and market liberalization.
Many former officials in the Ratsiraka government have been tried and sentenced on charges of
corruption or political abuses. The court cases were viewed by many as a signal that the
Ravalomanana administration was serious about addressing past political abuses and had
consolidated political power. However, the government also pursued efforts to bring about
political reconciliation and to demonstrate moderation in dealings with its former foes. It
provided amnesties for many alleged offenses associated with the Ratsiraka government and the
2002 crisis, and several former Ratsiraka supporters were made members of Ravalomanana’s
cabinet. Ravalomanana did not seek the extradition of Ratsiraka. These actions broadened the
President’s regional base of support during his first term, and alleviated concerns that he might
promote his own ethnic and political bases at the expense of other constituencies.
Ravalomanana was reelected in December 2006 with almost 55 percent of the vote, and
legislative, provincial, and regional elections were held in late 2007 and early 2008.15 In an April
2007 referendum, President Ravalomanana received 70 percent approval for a series of
constitutional changes, including a controversial proposal to give the President greater power
during a state of emergency and a proposal to abolish the provinces and allow municipal and local
14 In the first vote count, Ravalomanana garnered less than the 50 percent needed to avoid a run-off, but African leaders
facilitated a recount that gave the candidate 51.5 percent of the vote.
15 TIM candidates won 105 of 127 seats in the National Assembly, and victories in most of the provincial elections. The
party won all seats in the 2008 regional and senatorial elections.
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governments more authority.16 The U.S.-based Freedom House has ranked Madagascar “partially
free” in its Freedom in the World 2008 index, noting that the referendum increased the President’s
power. The referendum also approved English as a third official language. According to the State
Department, elections under the Ravalomanana government were generally free and fair. The
ruling party’s overwhelming victory at the polls in 2006-2008, despite growing public
dissatisfaction with slow improvements in living standards, significantly eroded the opposition
parties’ credibility. Voter turnout for March 2008 regional elections was low, and many analysts
suggest that the lack of a credible opposition engendered public disenchantment with politics.
Tensions between Ravalomanana and Rajoelina Build
President Ravalomanana’s popularity, while considerable, failed to help his party’s candidate win
the 2007 mayoral election in his former stronghold, Antananarivo. Tension between the central
government and Mayor Rajoelina’s administration subsequently mounted. In 2008, the
Ravalomanana government allegedly delayed the disbursal of government funds for various local
government infrastructure projects in the capital and diverted investment away from the capital.
Rajoelina’s supporters claim these efforts were intended to undermine the mayor.17
Some observers have drawn comparisons between the 2009 political crisis and the events of
2001-2002, when Ravalomanana used his mayoral office to rally public support for the ouster of
the incumbent president. The marked difference between the two conflicts lies in Ravalomanana’s
electoral mandate. In 2002, the country’s judiciary determined that Ravalomanana had defeated
Ratsiraka, who had ruled Madagascar intermittently for over two decades, in nationwide
elections, but the latter refused to relinquish power. Andry Rajoelina, on the other hand, has never
faced Ravalomanana in an electoral contest, and he lacks the constitutional mandate that
Ravalomanana was able to claim in 2002. The capital city has traditionally been an opposition
stronghold, although Rajoelina’s level of support outside the capital is unknown. The nephew of
former President Ratsiraka has allied himself with Rajoelina, but the public influence of the
country’s opposition parties has been questioned.18
The Economy
Madagascar’s economy, which was significantly damaged by the 2002 crisis, recovered quickly
after Ravalomanana came to power and was seen as a sign of public and foreign investor
confidence in his government. Growth was spurred, in part, by economic liberalization policies.
Madagascar reached the completion point under the Heavily Indebted Poor Countries Initiative
(HIPC) in 2004 and received cancellation of almost $2 billion in sovereign debt. The
Ravalomanana administration sought to diversify the country’s bilateral ties, and reduce its
reliance on traditional business partners, such as France, which remains its largest trading partner.
16 Following the 2002 crisis, Ravalomanana fired the country’s provincial governors and replaced them with
presidential appointees. Improving the effectiveness of local administration was a key goal of his administration.
17 “Madagascar Politics: High-Speed TGV,” The Economist Intelligence Unit,30 January 2009.
18 Ratsiraka’s nephew, Roland Ratsiraka, was convicted on corruption charges in 2007. He received a suspended
sentence.
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Under Ravalomanana, Madagascar attracted several high-profile foreign investment projects,
including a titanium dioxide mine developed by Australia’s Rio Tinto estimated at over $800
million and a tar sands project by France’s Total. Several oil companies have begun offshore
exploration. A major investment proposal by South Korea’s Daewoo Logistics became a rallying
point for Rajoelina in late 2008. Ravalomanana critics like Rajoelina questioned the government’s
offer to Daewoo of a 99-year lease for 3.2 million acres of land for large corn and palm oil
plantations. The Ravalomanana government claimed that the projects would bring infrastructure
investments and create hundreds of jobs for Malagasy farm workers, but Rajoelina argued that the
plantations would displace too many farmers from their land. The proposed deal also raised
ethical concerns about allocating almost half of the country’s arable land for export crops while
the country continues to import rice, a basic staple of the Malagasy diet.19
Despite its economic growth in the last decade, the majority of Madagascar's people remain poor.
The percentage of those living in extreme poverty has declined, from 74 percent in 2003 to 66
percent in 2007, but the rate of decline has not met government expectations. The World Bank
estimates that per capital income is only approximately $300 per year. Food prices have increased
significantly since 2007, while purchasing power has decreased. Chronic food insecurity affects
approximately 65 percent of the population. The recent collapse of the world market for
Madagascar’s primary export crop, vanilla, has adversely affected Malagasy farmers.20 The
government has distributed coffee, clove, and pepper plants in an effort to diversify cash crops.
The country’s shellfish industry suffers from declining fish stocks. Madagascar’s economy is also
heavily reliant on the tourism industry, which draws an estimated $390 million annually. The
global economic downturn, combined with months of political unrest, has damaged the industry
considerably.
Ravalomanana, 59, owns Madagascar’s largest indigenous corporation, Tiko Group, a food and
retail conglomerate. His business background is thought to have contributed significantly to his
liberal economic policies and ability to attract foreign investment, but his business interests have
also drawn allegations of corruption and favoritism in government deals. These allegations,
combined with rising popular discontent, appear to have gradually undermined his domestic and
international legitimacy. International donors suspended over $20 million in aid disbursements in
December 2008, citing concerns over budget transparency and possible conflicts of interest in the
President’s business investments. In particular, some donors have reportedly urged greater
scrutiny of the mining and energy sectors.
U.S. Relations with Madagascar
The United States maintained good diplomatic relations with the Ravalomanana government. The
State Department warned in March 2009 that the political situation in the country had entered a
“dangerous phase” and that an “extra-legal assumption of power by civilians or the military is
unacceptable.”21 Following Rajoelina’s assumption of power on March 17, a State Department
spokesman reiterated that “any extra-constitutional resolution” of the crisis would result in a
suspension of non-humanitarian U.S. assistance.22 The United States has supported the efforts of
19 Vivienne Walt, “The Breadbasket of South Korea: Madagascar,” Time, 23 November 2008.
20 The country accounts for two-thirds of the world’s vanilla exports.
21 Statement by State Department Deputy Spokesman Gordon Duguid, “Madagascar’s Political Crisis,” 13 March 2009.
22 Statement by Acting State Department Spokesman Robert Wood, Daily Press Briefing, 17 March 2009.
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the United Nations to facilitate a national conference to discuss a peaceful resolution of the crisis,
and has issued a warning against all non-essential travel to the country. The U.S. Embassy has
ordered the evacuation of all non-essential personnel and the Peace Corps announced on March
16 that it was suspending operations and pulling its 112 volunteers out.
U.S. bilateral assistance to Madagascar has supported democratic governance; economic growth
and socio-economic development efforts; and environmental protection. Assistance provided by
the State Department and the U.S. Agency for International Development totaled $47.7 million in
FY2007 and an estimated $58.2 million in FY2008. Much of these funds have been directed
toward health programs. Madagascar is a target country for the President’s Malaria Initiative,
which aims to cut malaria deaths by 50 percent. It received $16.9 million in prevention and
treatment assistance in FY2008. U.S. assistance has also supported the Ravalomanana
government’s environmental preservation efforts to increase the amount of protected land from
1.7 million to 6 million hectares from 2003 to 2008.
Madagascar has reportedly helped support U.S. counter-terrorism goals through law enforcement
and financial tracking cooperation, and the country has received limited U.S. security assistance
focused on border and maritime security through the International Military Education and
Training (IMET) program. The Bush Administration’s FY2009 budget request included $1.5
million for democracy programs, an increase from the requests for previous years.
Madagascar is African Growth and Opportunity Act (AGOA)-eligible, including for special
AGOA apparel benefits. Its 2007 exports under AGOA were valued at $284 million. AGOA has
reportedly helped Madagascar to increase job growth and attract foreign investment, and the
country’s nascent textile industry has expanded dramatically in the last decade.
Madagascar signed the first Millennium Challenge Account compact, worth almost $110 million
over four years, in April 2005. The award roughly doubled U.S. assistance to the country. The
program, developed by the Malagasy government in consultation with the public, aims to raise
incomes nationwide by assisting the transition from subsistence agriculture to a market economy.
It complements Madagascar’s poverty reduction strategy, which also focuses on agricultural
development. MCC assistance has focused on securing property rights for land ($36 million),
improving citizens access to credit through financial sector reform ($36 million), and improving
agricultural production technologies and market capacity in rural areas ($17 million). MCC
operations in Madagascar were suspended on March 20, 2009.23
23 MCC has suspended compact programs in countries like Nicaragua, after flawed elections in 2008. As of January
2009, MCC had made just over $80 million in contract commitments and disbursed $56.3 million.
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Author Contact Information
Lauren Ploch
Analyst in African Affairs
lploch@crs.loc.gov, 7-7640
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