Although very little attention comes the way of Madagascar, recent U.N. aid has placed a much-needed spotlight on its problems. The small island nation off the east coast of Africa has one of the highest poverty rates in the world, with more than 75% of the population living on under $1.90 a day. Looking to address this issue within Madagascar’s institutions, the U.N. worked with local officials to create the ‘Fagnavotse’ social protection program. Fagnavotse provides a mix of health insurance, cash transfers and training services to the poorest Malagasies, reaching more than nine thousand households during its three-year existence. Here is some information about Madagascar’s social protection programs.

Drawbacks

A critical part of Fagnavotse is its emphasis on training and protection. Madagascar suffers from extremely low rates of human capital, meaning that despite its abundant natural resources, poor health, education and food access limit long-term growth. Meanwhile, pandemic shocks and the war in Ukraine have raised fuel prices and hampered growth. Madagascar’s social protection program educates farmers on proper practices, providing them with tools and equipping them for the country’s long drought periods. In addition, it offers women affected by gender-based violence and abuse counseling and community support. Over time, the U.N. hopes the program will boost the productivity of Madagascar’s poorest citizens.

Although Fagnavotse was a necessary step in the right direction, access to social protection programs continues to hamper economic growth. Originally conceived for Madagascar’s three most poverty-stricken communes, social protection programs like Fagnavotse only affect 6% of the population and take up around 1% of the budget, suggesting there is room for improvement. A World Bank Study in 2018 found that $50 cash transfers like those in Ethiopia could reduce the poverty rate by as much as 40%. Rather than a sign of defeat, the U.N. chose to treat this as an opportunity to expand its program.

Recent Developments

On February 6, 2023, the World Bank earmarked $250 million in loans for social protection programs in Madagascar. Over the next four years, the aid will target the 3 million poorest Malagasies, more than 13% of the population. The World Bank intends to merge many of the existing social protection programs into a more cohesive system, affecting more people more efficiently. As Marie-Chantal Unwanyiligara, the program’s country manager, stated, “We are very pleased to support a scale-up of Madagascar’s social protection programs … supported by a national social registry that other sectors will use to target the most vulnerable.”

Madagascar’s new social protection program, like Fagnavotse, focuses on immediate aid and long-term growth to reduce the country’s poverty count. The two key aspects of the new program are increased cash transfers to female heads of households and improved access to economic safety nets. This will provide immediate security to the many millions of Malagasies living in extreme poverty while working towards the U.N.’s goal of female empowerment. The World Bank hopes that these cash transfers will disperse themselves throughout the economy, multiplying their positive effect.

In addition, Madagascar’s new social protection program aims to spur growth and tackle the root of the country’s problems. Julia Ravelosa, an economist working with the World Bank, noted that one of the program’s primary objectives is to “encourage girls’ school attendance, promote access to reproductive and health care services, and encourage women’s participation in a package of accompanying measures including financial and economic inclusion.” Madagascar can significantly bolster the country’s overall productivity by improving women’s education and entry into the workforce.

The Road Ahead

Madagascar’s social protection programs still face the challenge of their implementation. For a struggling nation like Madagascar, these reforms are pivotal in reducing extreme poverty and present the quickest opportunity for growth. In the past, low funds and reach hindered the full implementation of these programs, but the World Bank’s support comes as a positive sign in a country that desperately needs one.

– Samuel Bowles
Photo: Pixabay