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September 2005

Background Note: Madagascar

Madagascar flag is two equal horizontal bands of red - top - and green with a
vertical white band of the same width on hoist side.

PROFILE

OFFICIAL NAME:
Republic of Madagascar

Geography
Area: 592,800 sq. km. (228,880 sq. mi.).
Cities: Capital--Antananarivo (pop. about 1,300,000). Other cities--Antsirabe
(about 500,000), Mahajanga (about 400,000), Toamasina (about 450,000).
Terrain: Mountainous central plateau, coastal plain.
Climate: Moderate interior, tropical coasts.

People
Nationality: Noun and adjective--Malagasy.
Population (mid-2003, World Bank estimate): 16,900,000.
Annual population growth rate (1997-2003, World Bank): 3.0%.
Ethnic groups: 18 Malagasy tribes; small groups of Comorians, French,
Indians, and Chinese.
Religions: Traditional beliefs 47%, Christian 45%, Muslim 7%.
Languages: Malagasy (official), French.
Education: Years compulsory--5. Attendance--65%. Literacy--53%.
Health: Infant mortality rate--84/1,000. Life expectancy--55 yrs.
Work force (2000): 8 million. Agriculture--80%; industry--7%.

Government
Type: Republic.
Independence: June 26, 1960.
Constitution: Entered into force in March 1998.
Branches: Executive--president, prime minister, cabinet.
Legislative--National Assembly and Senate. Judicial--Supreme Court, High
Court of Justice, Constitutional High Court.
Subdivisions: Six autonomous provinces (faritany).
Political parties: Eight parties won seats in the December 2002 National
Assembly elections. The ruling party I Love Madagascar (TIM) holds a solid
majority of seats; others holding seats include Be Judged by Your Work (AVI),
Rally for Social Democracy (RSPD), Pillar and Podium for the Development of
Madagascar (AREMA), Militants for the Development of Madagascar (MFM),
Reflection and Action Group for Development in Madagascar (GRAD-Iloafo),
Economic Liberalism and Democratic Action for Reconstruction Party
(LEADER-Fanilo), and the regional party For A Mature Tamatave. There also
dozens of minor parties.
Suffrage: Universal at 18.
National holiday: June 26.

Economy
GDP (U.S.$, 2003): $5.5 billion.
GDP per capita (World Bank Country Assistance Strategy): $240.
Unemployment: no reliable data available.
Natural resources: Graphite, chrome, coal, bauxite, ilmenite, nickel, gold,
tar sands, semiprecious stones, and hardwoods.
Agriculture (29.2% of GDP, 2003, World Bank data): Products--rice, livestock,
seafood, coffee, vanilla, sugar, cloves, cotton, sisal, peanuts, and tobacco.
Industry (15.4% of GDP, 2003, World Bank data): Types--processed food,
clothing, textiles, mining, paper, refined petroleum products, glassware,
construction, soap, cement, tanning.
Trade: Exports (2003, f.o.b. $852 million): apparel, shrimp, vanilla, coffee,
cloves, graphite, essential oils, industrial minerals and gemstones. Major
export markets--U.S., France, Germany, Italy, Japan, EU. Imports (2003,
c.i.f.) $1,3 billion--$1,464 million: foodstuffs, fuel and energy, capital
goods, vehicles, consumer goods and electronics. Major suppliers--France,
China, Hong Kong, Belgium, U.S.

PEOPLE AND HISTORY
Madagascar's population is predominantly of mixed Asian and African origin.
Recent research suggests that the island was uninhabited until Indonesian
seafarers arrived in roughly the first century A.D., probably by way of
southern India and East Africa, where they acquired African wives and slaves.
Subsequent migrations from both the Pacific and Africa further consolidated
this original mixture, and 18 separate tribal groups emerged. Asian features
are most predominant in the central highlands people, the Merina (3 million)
and the Betsileo (2 million); the coastal people are of more clearly African
origin.

The largest coastal groups are the Betsimisaraka (1.5 million) and the
Tsimihety and Sakalava (700,000 each).

The Malagasy language is of Malayo-Polynesian origin and is generally spoken
throughout the island. French is spoken among the educated population of this
former French colony. English is becoming more widely spoken, and in 2003 the
government began a pilot project of introducing the teaching of English into
the primary grades of 44 schools, with hopes of taking the project
nationwide.

Most people practice traditional religions, which tend to emphasize links
between the living and the dead. They believe that the dead join their
ancestors in the ranks of divinity and that ancestors are intensely concerned
with the fate of their living descendants. The Merina and Betsileo reburial
practice of famadihana, or "turning over the dead" celebrate this spiritual
communion. In this ritual, relatives' remains are removed from the family
tomb, rewrapped in new silk shrouds, and returned to the tomb following
festive ceremonies in their honor.

About 45% of the Malagasy are Christian, divided almost evenly between Roman
Catholic and Protestant. Many incorporate the cult of the dead with their
religious beliefs and bless their dead at church before proceeding with the
traditional burial rites. They also may invite a pastor to attend a
famadihana. While many Christians continue these practices, others consider
them to be superstitions that should be abandoned. Many of the Christian
churches are influential in politics. In the coastal regions of the provinces
of Mahajanga and Antsiranana (Diego Suarez), Muslims constitute a significant
minority. Muslims are divided between those of Malagasy ethnicity,
Indo-Pakistanis, and Comorians.

The written history of Madagascar began in the seventh century A.D., when
Arabs established trading posts along the northwest coast. European contact
began in the 1500s, when Portuguese sea captain Diego Dias sighted the island
after his ship became separated from a fleet bound for India. In the late
17th century, the French established trading posts along the east coast. From
about 1774 to 1824, it was a favorite haunt for pirates, including Americans,
one of whom brought Malagasy rice to South Carolina.

Beginning in the 1790s, Merina rulers succeeded in establishing hegemony over
the major part of the island, including the coast. In 1817, the Merina ruler
and the British governor of Mauritius concluded a treaty abolishing the slave
trade, which had been important in Madagascar's economy. In return, the
island received British military and financial assistance. British influence
remained strong for several decades, during which the Merina court was
converted to Presbyterianism, Congregationalism, and Anglicanism.

The British accepted the imposition of a French protectorate over Madagascar
in 1885 in return for eventual control over Zanzibar (now part of Tanzania)
and as part of an overall definition of spheres of influence in the area.
Absolute French control over Madagascar was established by military force in
1895-96, and the Merina monarchy was abolished.

Malagasy troops fought in France, Morocco, and Syria during World War I.
After France fell to the Germans, the Vichy government administered
Madagascar. British troops occupied the strategic island in 1942 to preclude
its seizure by the Japanese. The Free French received the island from the
United Kingdom in 1943.

In 1947, with French prestige at low ebb, a nationalist uprising was
suppressed after several months of bitter fighting. The French subsequently
established reformed institutions in 1956 under the Loi Cadre (Overseas
Reform Act), and Madagascar moved peacefully toward independence. The
Malagasy Republic was proclaimed on October 14, 1958, as an autonomous state
within the French Community. A period of provisional government ended with
the adoption of a constitution in 1959 and full independence on June 26,
1960.

GOVERNMENT
In March 1998, Malagasy voters approved a revised Constitution. The principal
institutions of the Republic of Madagascar are a presidency, a parliament
(National Assembly and Senate), a prime ministry and cabinet, and an
independent judiciary. The president is elected by direct universal suffrage
for a 5-year term, renewable twice.

The National Assembly consists of 160 representatives elected by direct vote
every 5 years. The last election was held in December 2002. The Senate
consists of 90 senators, two-thirds elected by local legislators and other
Grand Electors and one-third appointed by the president, all for 6-year
terms. A prime minister and council of ministers carries out day-to-day
management of government. The president appoints the prime minister.

The prime minister and members of Parliament initiate legislation, and the
government executes it. The president can dissolve the National Assembly. For
its part, the National Assembly can pass a motion of censure and require the
prime minister and council of ministers to step down. The Constitutional
Court approves the constitutionality of new laws.

Territorial administration is to be determined by legislation. In an effort
to decentralize administration, the Constitution calls for the six provinces
(faritany) to become autonomous. The six provinces are Antananarivo,
Mahajanga, Antsiranana, Toamasina, Fianarantsoa, and Toliary.

Principal Government Officials
President--Marc Ravalomanana
Prime Minister--Jacques Sylla
President of the Senate--Guy Rajemison Rakotomaharo
President of National Assembly--Jean Lahiniriko
Minister of Defense--General Petera Behajaina
Minister of Economy, Finance and Budget--Benjamin Radavidson Andriamparany
Minister of Foreign Affairs--Marcel Ranjeva
Minister of Transport and Public Works--Roland Randimampionona
Minister of Decentralization and Territorial Administration--Angelin
Randrianarison
Minister of Justice--Lala Henriette Ratsiharovala
Ambassador to the U.S.--Narisoa Rajaonarivony
Ambassador to the UN--Zina Andrianarivelo-Razafy

Madagascar maintains an embassy in the United States at 2374 Massachusetts
Avenue NW, Washington, DC 20008 (tel. 202-265-5525).

POLITICAL CONDITIONS
Madagascar's first President, Philibert Tsiranana, was elected when his
Social Democratic Party gained power at independence in 1960 and was
reelected without opposition in March 1972. However, he resigned only 2
months later in response to massive antigovernment demonstrations. The unrest
continued, and Tsiranana's successor, Gen. Gabriel Ramanantsoa, resigned on
February 5, 1975, handing over executive power to Lt. Col. Richard
Ratsimandrava, who was assassinated 6 days later. A provisional military
directorate then ruled until a new government was formed in June 1975, under
Didier Ratsiraka.

During the 16 subsequent years of President Ratsiraka's rule, Madagascar
continued under a government committed to revolutionary socialism based on
the 1975 Constitution establishing a highly centralized state. National
elections in 1982 and 1989 returned Ratsiraka for a second and third 7-year
presidential term. For much of this period, only limited and restrained
political opposition was tolerated, with no direct criticism of the president
permitted in the press.

With an easing of restrictions on political expression, beginning in the late
1980s, the Ratsiraka regime came under increasing pressure to make
fundamental changes. In response to a deteriorating economy, Ratsiraka
relaxed socialist economic policies and instituted some liberal,
private-sector reforms. These, along with political reforms like the
elimination of press censorship in 1989 and the formation of more political
parties in 1990, were insufficient to placate a growing opposition movement
known as Hery Velona or "Active Forces." A number of already existing
political parties and their leaders, among them Albert Zafy and Rakotoniaina
Manandafy, anchored this movement which was especially strong in Antananarivo
and the surrounding high plateau.

In response to largely peaceful mass demonstrations and crippling general
strikes, Ratsiraka replaced his prime minister in August 1991 but suffered an
irreparable setback soon thereafter when his troops fired on peaceful
demonstrators marching on his suburban palace, killing more than 30.

In an increasingly weakened position, Ratsiraka acceded to negotiations on
the formation of a transitional government. The resulting "Panorama
Convention" of October 31, 1991, stripped Ratsiraka of nearly all of his
powers, created interim institutions, and set an 18-month timetable for
completing a transition to a new form of constitutional government. The High
Constitutional Court was retained as the ultimate judicial arbiter of the
process.

In March 1992, a widely representative National Forum organized by the
Malagasy Christian Council of Churches (FFKM) drafted a new Constitution.
Troops guarding the proceedings clashed with pro-Ratsiraka "federalists" who
tried to disrupt the forum in protest of draft constitutional provisions
preventing the incumbent president from running again. The text of the new
Constitution was put to a nationwide referendum in August 1992 and approved
by a wide margin, despite efforts by federalists to disrupt balloting in
several coastal areas.

Presidential elections were held on November 25, 1992, after the High
Constitutional Court had ruled, over active forces objections, that Ratsiraka
could become a candidate. Runoff elections were held in February 1993, and
the leader of the Hery Velona movement, Albert Zafy, defeated Ratsiraka. Zafy
was sworn in as President on March 27, 1993. After President Zafy's
impeachment by the National Assembly in 1996 and the short quasi-presidency
of Norbert Ratsirahonana, the 1997 elections once again pitted Zafy and
Ratsiraka, with Ratsiraka this time emerging victorious. A National Assembly
dominated by members of President Ratsiraka'a political party AREMA
subsequently passed the 1998 Constitution, which considerably strengthened
the presidency.

In December 2001, a presidential election was held in which both major
candidates claimed victory. The Ministry of the Interior declared incumbent
Ratsiraka of the AREMA party victorious. Marc Ravalomanana contested the
results and claimed victory. A political crisis followed in which Ratsiraka
supporters cut major transport routes from the primary port city to the
capital city, a stronghold of Ravalomanana support. Sporadic violence and
considerable economic disruption continued until July 2002 when Ratsiraka and
several of his prominent supporters fled to exile in France. In addition to
political differences, ethnic differences played a role in the crisis and
continue to play a role in politics. Ratsiraka is from the coastal
Betsimisarka tribe and Ravalomanana comes from the highland Merina tribe.

After the end of the 2002 political crisis, President Ravalomanana began many
reform projects, forcefully advocating "rapid and durable development" and
the launching of a battle against corruption. December 2002 legislative
elections gave his newly formed TIM (Tiako-i-Madagasikara--I Love Madagascar)
Party a commanding majority in the National Assembly. November 2003 municipal
elections were conducted freely, returning a majority of supporters of the
president, but also significant numbers of independent and regional
opposition figures.

Following the crisis of 2002, the President replaced provincial governors
with appointed PDSs (Presidents des Delegations Speciales). Subsequent
legislation established a structure of 22 regions to decentralize
administration. In September 2004, the government named 22 Regional Chiefs,
reporting directly to the President, to implement its decentralization plans.
Financing and specific powers for the regional administrations remain to be
clarified.

ECONOMY
Structural reforms began in the late 1980s, initially under pressure form
international financial institutions. An initial privatization program
(1988-1993) and the development of an export processing zone (EPZ) regime in
the early 1990s were key milestones in this effort. A period of significant
stagnation from 1991-96 was followed by 5 years of solid economic growth and
accelerating foreign investment, driven by a second wave of privatizations
and EPZ development. Although structural reforms advanced, governance
remained weak and perceived corruption in Madagascar was extremely high.
During the period of solid growth from 1997 through 2001, poverty levels
remained stubbornly high, especially in rural areas. A six-month political
crisis triggered by a dispute over the outcome of the presidential elections
held in December 2001 virtually halted economic activity in much of the
country in the first half of 2002. Real GDP dropped 12.7% for the year 2002,
inflows of foreign investment dropped sharply, and the crisis tarnished
Madagascar's budding reputation as an AGOA standout and a promising place to
invest. Following resolution of the crisis, the economy rebounded with GDP
growth of over 9% in 2003. Currency depreciation and rising inflation in 2004
hampered economic performance; although final figures are not yet available,
growth for the year is estimated to be 5%, with 15% inflation.

Following the 2002 political crisis, the government attempted to set a new
course and build confidence, in coordination with international financial
institutions and the donor community. Madagascar developed a recovery plan in
collaboration with the private sector and donors and presented it at a
"Friends of Madagascar" conference organized by the World Bank in Paris in
July 2002. Donor countries demonstrated their confidence in the new
government by pledging $1 billion in assistance over five years. The Malagasy
Government identified road infrastructure as its principle priority and
underlined its commitment to public-private partnership by establishing a
joint public-private sector steering committee.

In 2000, Madagascar embarked on the preparation of a Poverty Reduction
Strategy Paper (PRSP) under the Heavily Indebted Poor Countries (HIPC)
Initiative. The boards of the IMF and World Bank agreed in December 2000 that
the country had reached the decision point for debt relief under the HIPC
Initiative and defined a set of conditions for Madagascar to reach the
completion point. In October 2004, the boards of the IMF and the World Bank
determined that Madagascar had reached the completion point under the
enhanced HIPC Initiative.

The Madagascar-U.S. Business Council was formed in Madagascar in 2002. The
U.S.-Madagascar Business Council was formed in the United States in May 2003,
and the two organizations continue to explore ways to work for the benefit of
both groups.

The government of President Ravalomanana is aggressively seeking foreign
investment and is tackling many of the obstacles to such investment,
including combating corruption, reforming land-ownership laws, encouraging
study of American and European business techniques, and active pursuit of
foreign investors. President Ravalomanana rose to prominence through his
agro-foods TIKO company, and is known for attempting to apply many of the
lessons learned in the world of business to running the government.

FOREIGN RELATIONS
Madagascar, which has historically been perceived as on the margin of
mainstream African affairs, eagerly rejoined the African Union in July 2003
after a 14-month hiatus triggered by the 2002 political crisis. From 1978
until 1991, then-President Ratsiraka emphasized independence and nonalignment
and followed an "all points" policy stressing ties with socialist and radical
regimes, including North Korea, Cuba, Libya, and Iran. Taking office in 1993,
President Albert Zafy expressed his desire for diplomatic relations with all
countries. Early in his tenure, he established formal ties with South Korea
and sent emissaries to Morocco.

Starting in 1997, globalization encouraged the government and President
Ratsiraka to adhere to market-oriented policies and to engage world markets.
External relations reflect this trend, although Madagascar's physical
isolation and strong traditional insular orientation have limited its
activity in regional economic organizations and relations with its East
African neighbors. It enjoys closer and generally good relations with its
Indian Ocean neighbors--Mauritius, Réunion, and the Comoros Islands. Active
relationships with Europe, especially France, Germany, and Switzerland, as
well as with Britain, Russia, Japan, India, and China have been strong since
independence.

President Ravalomanana has stated that he welcomes relations with all
countries interested in helping Madagascar to develop. He has consciously
sought to strengthen relations with Anglophone countries as a means of
balancing traditionally strong French influence.

U.S.-MALAGASY RELATIONS
Relations with the United States date to the middle 1800s. The two countries
concluded a commercial convention in 1867 and a treaty of peace, friendship,
and commerce in 1881. Traditionally warm relations suffered considerably
during the 1970s, when Madagascar expelled the U.S. ambassador, closed a NASA
tracking station, and nationalized two U.S. oil companies. In 1980, relations
at the ambassadorial level were restored.

Throughout the troubled period, commercial and cultural relations remained
active. In 1990, Madagascar was designated as a priority aid recipient, and
assistance increased from $15 million in 1989 to $40 million in 1993. Recent
U.S. assistance has contributed to a population census and family planning
programs; conservation of Madagascar's remarkable biodiversity, private
sector development, agriculture, democracy and governance initiatives; and
media training. The Ravalomanana government is especially positive about ties
with the United States.

U.S. Embassy Officials
Ambassador--James D. McGee
Deputy Chief of Mission--George Sibley
USAID Director--Stephen M. Haykin
Defense Attache--Catherine Ripley
Public Affairs Officer--William Cook
Consular Officer--David Jea
Political/Economic/Commercial Officer--Brian Neubert
Management Officer--Vera Pauli-Widenhouse
Peace Corps Director--William Bull

The U.S. Embassy in Madagascar is located at 14, rue Rainitovo, Antsahavola,
Antananarivo (tel. 261-20-22-212-57, 033-44-22.000; fax 261-20-345-39. The
postal address is Ambassade Americaine, B.P. 620, Antananarivo, Madagascar.