Experiment Title

Fast-growing joint solution for the development of Madagascar's economy

Synopsis = Arly Cedric Andrianavalona RANAIVOSON

Abstract
This paper explores what could be the reason of Madagascar's economic problem and the
main reason of poverty, after many aids from many international institutions, the economy is
still slow and difficult to stand and be among the fast growing economies in the world, as we
know that Madagascar is very rich in natural resources, and the people who own them are
still poor. The analysis concludes that this could be due to poor governance or bad plan or
lack of investment in the territory and inaction or irresponsibility of the citizens due to lack of
awareness, as we know that Madagascar lacks infrastructure that could help reduce the
unemployment rate and lack of prompt action in decision making, compared to those BRICS
countries like India, that are described in this paper. The case study shows that the
government has done what is necessary for the development of the economy by providing
the necessary infrastructure and injecting investments in certain sectors such as tourism, but
this is still not enough. In this context, the development of the country is not only the
business of the government, but of every citizen. Moreover, it is the responsibility of the
government to take the first step and find the right solution and plan to get the economy
moving.

Introduction
Madagascar's economy is a market economy and is supported by the agricultural industry
and the emerging industries of tourism, textiles and mining.
An island in the Indian Ocean off the coast of southern Africa, is the fifth largest island in the
world, with an area of 587,000 km² and a population of 25.6 million. Despite having
considerable natural resources, Madagascar's poverty rate is one of the highest in the world.

While Madagascar is rich in diversity in all areas, it remains difficult to establish the basis for
solid and dynamic development. Natural resources are abundant, but insufficient in quantity.
The ecological equilibrium, fragile, is compromised by deforestation. The underground
contains a wide variety of minerals, from graphite to gold and semi-precious stones, but the
deposits are small and seldom exploitable. The industry is composed of small and
medium-sized enterprises mainly oriented towards the domestic market, and concentrated
for more than half in Antananarivo (the capital). It represents about one out of the fifth of the
gross domestic product (GDP).The country's second handicap is the weakness of internal
communications, which limits economic integration. Madagascar is far from the major
consumer areas of Europe and North America. This location has a heavy impact on
transport costs. Tourism, on which great hopes are based, requires significant hotel
investments and the establishment of a charter network for its development. The trade
balance remains in deficit and underemployment is high. The Malagasy economy depends
primarily on exported agricultural products (coffee, vanilla, cloves). Nearly half of
Madagascar's exports go to France, and France supplies nearly 15% of the country's
imports. The objective of the research is to propose a resolution to the economic problem of
Madagascar because we are actors of development and responsible, not only the
responsibility of the government, but also of each citizen as we

Review of Literature
After studying various research papers and articles, I found that the development of current
economic models is mainly criticised for its lack of solutions to contribute to development.
And there could be a solution for the general problems, but it needs some direction, a good
plan and a choice on the priority of the action to be taken. That is to say, a decisive and
impactful plan for development without compromise but by pure independence of will

Bruno Sarrasin, 2012 : Ecotourism is not enough to increase local income

https://www.tandfonline.com/doi/abs/10.1080/14616688.2012.675512

Gerald Epstein, James Heintz, Léonce Ndikumana, and Grace Chang, 2010: Improving
access to the credit by infrastructure development
https://ideas.repec.org/p/ilo/ilowps/994554463402676.html

Nadia Rabesahala Horning, 2008 : failure to effectively align donor and government
incentives with development performance.
https://academic.oup.com/afraf/article-abstract/107/428/405/12691

Saraha T. N. Ramanase; Elisé Raveloson; Jean-Jules Harijaona, Olivier H. Rakotomalala,

2012 : E learning is a solution , reducing the internet cost required government involvement.
https://ieeexplore.ieee.org/abstract/document/6304204

Shaohui Wang 2021 : Biomass energy a solution

https://www.hindawi.com/journals/complexity/2021/5822568/

Research Gap
The above studies discuss the misconception that eco-tourism is the only pillar of
development, the failure to improve access to credit, the failure to align donor support to the
government to meet development performance needs, the cost of the internet which blocks
much communication about the country and business development, and the inadequacy of
energy. And all this shows the result of problems in the country such as the unemployment
rate which is very high, very poor working conditions, lack of development infrastructure for
the welfare of the society and a big problem on tourism which is still blocked by insecurity,
high cost of living and destruction of the ecology and, in a word, poverty.
Aims and objective
● Study a new model of economic development
● Study the Indian model of economic development and the BRICS and developed
country models.
● Study each sector that could have an impact on the economy
● Study a fast growth strategy that could have a rapid impact on development.

Research methodology
Several methods of data collection may be relevant, and both quantitative and qualitative
methods may be used in the same study.

Data collection will be used as relevant information for context analysis

From data collection in Madagascar, such as
● The state of economic data
● The state of political data
● The state of social data
● Economic perspective
● The state of medical data
● Historical analysis
Mainly secondary data from reports of international organisations and social media to know
the needs and voice of people. and Primary data from a sample of workers, businessmen,
from different regions.

Then, analysis of the data from India,

● As the state of economic data
● The state of political data
● The state of social data
● Economic perspective
● The state of medical data
● Historical analysis
Secondary data mainly from company visits and business models on the Internet.
Primary data, from societal analysis, on-site business analysis, on-site medical analysis,
infrastructure analysis.

And finally
● Analysis of a developed country's statement on
● The state of economic data
● The state of political data
● The state of social data
● Economic outlook
● The state of medical data
● Analysis of history
I am trying to fill the gap by understanding the global economy, especially the BRICS
models, including India as a fast growing economy, and what could be the opportunities for
Madagascar, for sustainable development and human resource development. And what
could be the solution to the economic and social problem in Madagascar by trying to find an
action plan or strategy for rapid development.

References
Bruno Sarrasin 2012, Ecotourism, Poverty and Resources Management in Ranomafana,
Madagascar. Available on
https://www.tandfonline.com/doi/abs/10.1080/14616688.2012.675512

The International Ecotourism Society, availble on

https://ecotourism.org/what-is-ecotourism/

Andry Rajoelina, 2018, Initiative Emergence Madagascar

http://iem-madagascar.com/ressources-naturelles/

Madagascar, economical activity, encyclopedie

https://www.larousse.fr/encyclopedie/divers/Madagascar_activit%C3%A9s_%C3%A9conomi
ques/187013

Economy Study, 2022. Risk evaluation and main economic indicators

https://www.coface.com/fr/Etudes-economiques-et-risque-pays/Madagascar

African Development Bank, 2021 Economy Persepctive

https://www.afdb.org/fr/countries/southern-africa/madagascar/madagascar-economic-outlook

Wikipedia, Madagascar Economy

https://en.wikipedia.org/wiki/Economy_of_Madagascar

World Bank: Madagascar Economy

https://tcdata360.worldbank.org/countries/MDG?indicator=1541&countries=BRA&viz=line_ch
art&years=1970,2019&country=MDG

Jayati Ghosh, Peter Havlik, Marcos Poplawski-Ribeiro and Waltraut Urban, 2009, Model of
BRICS economy
https://wiiw.ac.at/models-of-brics-economic-development-and-challenges-for-eu-competitive
ness-p-1969.html

Mamy Ravatomanga, Business Man profile Madagascar

https://www.facebook.com/RealTVcanal30UHF543.25MHz/videos/523488419148236
Conclusion
We have seen that it is very difficult for Madagascar to get out of poverty and position itself
economically, facing many circumstances, such as the inability to get people access to
credit, the inability to align donor support to the government to meet development
performance needs, the digital challenge and difficulties, the infrastructure and tourism
problem and resulting in very high unemployment, hence Madagascar is among the poorest
countries in the world.
However, there is a solution for every problem, and it is only from long research and studies,
and experience on international economics and international business. And this is the
subject of this research paper, trying to suggest a solution for a fast growing and booming
economy for the welfare of the society, respecting any context on democracy and politics,
and pointing out that it is not only the job of the government to develop the countries, it is the
duty of all citizens.

Limits
We have gone through economic concepts in particular, and everything about the sector to
impact and try to find a solution and propose a sustainable solution, by the way, on political
concepts, which is out of our control according to our limitations is only on the concern of
business, we can create business for our country, but the policy and decision of the
government is out of control, we just have to align with the rules of the government, no
matter what we are doing or what I am trying to propose for a solution. As a development
actor, I cannot remain silent, I have to study, research and share for the welfare of the
society.