Social and Economic context

Situated between the Indian Ocean and Africa, Madagascar is one of the largest island countries in the world. It is slightly larger than France and it has a population of 21 billion Malagasy people. The Human Development Index (HDI) that measures literacy, education, life expectancy and standards of living for countries worldwide ranked Madagascar 145th out of 181 countries in the world.
The strong presence of NGOs and public support in many areas of economic life (health, education, ...) sometimes proves to be a last resort for isolated populations, but appears to have a perverse effect on Madagascar’s development in the long term as they should not substitute indefinitely the essential functions of the government.

Today Madagascar’s economic growth is dependent on the return of political stability. Still, there are a number of people in need of financial aid just to be able to survive the hardships that surround them.

History

Madagascar began to colonise late when humans arrived and settled there between 200BC and 500AD. The island continued to colonise until the time when European settlers came during the 15th century. Some settlers originated from West Africa.

Although Madagascar is off the African coast, the Malagasy population came to be of Austronesian origin following the arrival of people from the West Coast. The Austronesian population is made up of people who come from Oceania and Southeast Asia. There are two ways of living that the first inhabitants developed. “Those of the forest,” the Vazimba way of life and “those of the coast” the Vezo way of life. The Vazimba people settled on high plains and plateaus and made a living from hunting and the Vezo people settled on the coast and made a living from coastal fishing. The Malagasy language, and certain religious rites and ways of organizing society are direct legacies of the Austronesian origin of the Malagasy people.

In the second half of the second millennium the island saw ethnic groups come together and form kingdoms. During the same period, they had their first contact with the Europeans. These Europeans were the first French settlers who settled in Madagascar. They established their colony, Fort Dauphin. Fort Dauphin is now known as Tôlanaro. This European presence permanently changed the course of the Kingdom’s history with the beginning of slave trade, the introduction of firearms and the Latin alphabet and the construction of schools by protestant missionaries.

There was a period of peace during the 19th century when there was an endorsement of agreement between the kingdom of Madagascar and France. However, the peace did not last. In 1896, General Joesph Gallieni who was a French soldier, military commander and administrator in the French colonies lead an army of 50,000 soldiers who conquered an colonised what we now know as Madagascar.

The French colonial period lasted until 1960. There were many things, which marked this specific period’s infrastructure. They include, roads, an embryonic industry, institutions, violent repression against nationalist movements and resistance towards colonial domination.

Madagascar gained its independence on the 26TH of June 1960. A period of instability followed until Didier Ratsiraka was elected president in 1975. This led Madagascar to be a socialist country as its political position came to be part of the soviet bloc.
Towards the late 1990s there were disputes of power between different groups because elections were often contested and there were reversals of government by the army or revolution.
The state of political instability has not allowed the country to address sustainability with major economic development challenges in its path. These challenges are

• A deficit in its trade balance
• The high poverty rate. This is due partly to the isolation of population
• The strong dependence of the agricultural sector and raw material prices
• The energy dependence of oil
• The development of new, high potential sectors such as, light industry, textile, tourism, etc.

Culture in Madagascar

More than 50% of the Malagasy population is made up of Christians. Most of the population still practice ancestral rites from the Austronesian culture. Events allow families and communities to practice ancestral rites even today.

In the music industry, contemporary and modern genres were very popular and because of the popularity, Madagascar had received international recognition in this industry.
Madagascar is specifically known for its craft of wood that the Vazimba culture “those of the forest” originated. There are many species of precious wood that Madagascar is home to. Two of these species include rosewood and ebony. Today, wood craft is still an important economic activity on the island.

The local cuisine is influenced by European, Chinese, African, Indian and Southeast Asian migrants who settled on the island. But what they use in many traditional dishes is Zebu meat, Zebu being a type of domestic cattle that originated in Southeast Asia.

Microfinance in Madagascar

Microfinance is still in its prime on the island and the needs and development of the island are still a big challenge for the people living there. Two