CONTEXT
The negative impacts of the crisis in Madagascar on the macro-economic and social conditions continue to increase, adding to the effects of the global financial crisis. Local currency (Ariary) remains stable against the US dollar and Euro. However, tourism and foreign investments have declined, depriving the economy of two major revenue sources. Second, the discontinuation of aid by the international community is leading to a sharp decline in public spending and investments which will affect employment and future growth prospects. Third, the political crisis and the overall deterioration of the governance environment casts doubts about the outcome of the AGOA membership and the future of textile exports (down by almost half in the second quarter of 2009). Fourth, the slowdown in public spending has reduced the volume of business going to local firms, notably in the construction sector, with attendant negative multiplier impacts throughout the economy. Facing severe resource constraints, the Government may be challenged to deliver social goods and services and its capacity to respond to exogenous shocks such as cyclones will also be seriously undermined.
According to a joint FAO/WFP Rapid Food Situation Assessment published in August in twelve agricultural areas across the country , despite an overall increase in national production of rice (concentrated in the northern-eastern part of the country), the drought in the South has caused a substantial reduction in maize, sweet potato and manioc production.
In the education sector, exams have now been completed for 2008/2009 school year and currently the main concern is the preparation for the next school year, which is due to start on 12 October 2009. Madagascar's technical and financial partners organized a technical meeting with the Ministry of Education on 21 August 2009 to get clarity on the Ministry's policies and capacity with regard to the continuation of the education reform and the organization of the school year as well as basic resources such as teachers' salaries, school grants and school kits for new students. Concerns are raised over the risk of a possible lack of school kits and the negative impact this could have on enrolment and dropout rates.