Madagascar - Economic memorandum on current position, prospects, and selected development issues

Report No. 1099a-MAG Madagascar: Economic Memorandum on Current Economic Position and Prospects and Selected Development Issues December 20, 1976 Eastern Africa Country Programs II FOR OGFICOAL USE ONLY Document of the World Bank This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization.  CURRENCY EQUIVALENTS 1970 US$1.00 - FMG 277.71 FMG 1 - US$0.0036 1971 US$1.00 - FMG 277.03 FMG 1 - US$0.0036 1972 US$1.00 - FMG 252.21 FMG 1 - US$0.0040 1973 US$1.00 - FMG 222.70 FlMG 1 - US$0.0045 1974 US$1.00 - FMG 240.50 FlMG 1 - US$0.0042 1975 US$1.00 - FMG 214.32 FMG 1 - US$0.0047 Fiscal Year January 1 to December 31  FOR OFFICIAL USE ONLY Foreward This report is based on the findings of a mission to Madagascar in October/November, 1975 consisting of Mr. P. Landell-Mills (Chief of Mission), and Messrs. L. Currat (industrial economist), F. Gamble (educator), M. Purvis (agri- cultural economist), J.F. Rischard (general economist), G. Schreiber (national accounts economist), G. Sciolli (public finance economist)'. The draft report was discussed with the Government in August, 1976 and it has been subsequently updated and revised. This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be discklsed without World Bank authorztion.   MADAGASCAR ECONOMIC MEMORANDUM ON THE CURRENT ECONOMIC POSITION AND PROSPECTS AND SELECTED DEVELOPMENT ISSUES TABLE OF CONTENTS Page No. MAP BASIC DATA SUMMARY AND CONCLUSIONS ...........................i - vi I. INTRODUCTION ......................................... I Background .......... ............................................. 1 The Plan and the Charter ............... ...1...... II. PRODUCTION AND INCOME ........... ..................... 4 Overall Growth .................................. 4 Uses of Resources ................................... 7 Prices ....... .................. 8 III. PUBLIC FINANCE ...... ................................. 11 Overview ........................................ 11 Current Expenditure ..... ........................ 12 Current Revenue ..... ............................ 14 Central Government Investment and its Financing ..... ........................ 16 The 1976 Budget ................................. 17 IV. MONEY, CREDIT AND THE BALANCE OF PAYMENTS ............ 18 Money and Credit . ...... .............................*. 18 Balance of Payments ............. .. .............. 21 V. MAIN ISSUES ................................ .......... 25 Agricultural Planning ........................... 26 The Parastatal Sector ........................... 28 Industrial Development ..... ..................... 29 Manpower .......................... ........... . 30 Statistics ......PECTS......................... 31 VI. FUTURE PROSPECTS ...................................................... 32  TABLE OF CONTENTS (Continued) VII. ANNEXES Annex I - Agriculture: Recent Developments and Prospects Annex II - Manufacturing: Past Performance and Future Prospects Annex III - The Parastatal Sector Annex IV - Human Resources' Planning Annex V - Statistical Tables  IBRD 10331 FEBRUARY 1973 MALAGASY REPUBLIC f 0-SUAREZ POPULATION DISTRIBUTION - 1971 dosumo Each dot represents 2,000 inhabitants Hell-VIIe, * Over 60,000 Inhabitonts * 20000 - 60,000 Inhabitonts a o l0,000 - 20,00 Inhabitonts * . ~~~~~~~AntaIahOW MAJUNGA? t Li~~~~~~~~jL M Amboton*d,azakaTAMATAVE siroanomond "'y t,Mormna Q0 mEIIrrr JJ k -; -+;#O~~~~~~~~~~~~Anissraeth N4 norandavo, * * * . 5 v -./Manonjary IhOtO0 ' .n oln k0ra \ *.I C *'