"I am a man of action," Madagascar's President Mark Ravalomana told his audience at the Johns Hopkins' School of Advanced International Studies today. Ravalomana was in Washington DC, for the signing of a $110 million poverty reduction compact between his country and the United States.Madagascar is the first country to receive funds from the Millennium Challenge Account (MCA). The compact is cause for celebration not only for Madagascar, but also for the Millennium Challenge Corporation (MCC), the grant-making institution. Currently, seventeen developing nations meet the eligibility criteria for the fund. But, only Madagascar has qualified for a grant.A self-made businessman, Ravalomana became president in 2002, after a stint as a mayor of the capital city of Antananarivo. As a mayor, he rehabilitated public services and restored efficient city management.Drawing on his entrepreneurial skills that served him well as a businessman and mayor, Ravalomana has implemented sweeping political and economic reforms, fighting corruption and increasing transparency in government. The result has been remarkable. According to the Wall Street Journal-Heritage Foundation's 2005 Index of Economic freedom, Madagascar registered the greatest increase in economic freedom in 2004.
"I am a man of action," he said. "I want to see results instead of reports."
Results, and only results, drive the Millennium Challenge Corporation. Accountability in public administration is the foundation of economic progress, an important driver of poverty reduction. Madagascar is on the right track.In March 2002, President Bush called for a
"new compact for global development,"
which would link greater contributions from developed nations to greater responsibility from developing nations. Congress set the MCA, providing $2.5 billion to support Bush's initiative. In January 2004, the U.S. government established the MCC to administer the account. MCA funds would be provided to those countries that rule justly, invest in their people, and encourage economic freedom.Madagascar needs a lot of action. Eighty percent of the population lives in poor rural areas, surviving on 41 cents a day. With a staggering 47 percent illiteracy rate, Ravalomana can only ask for results.His leadership helped Madagascar secure $110 million to support national development programs that aim to reduce poverty and create economic growth. The funds will be invested in land titling, financial sector reforms and the agricultural sector.
"We have a lot of confidence in this development program," said Paul Applegarth, CEO of the Millennium Challenge Corporation. "It will create ways for the rural poor to generate income by giving them the opportunity to obtain title to their land, improve their access to credit, and get assistance in identifying market opportunities and production management and marketing techniques."
President Bush's new compact for global development calls for greater responsibility from developing nations in the fight against poverty. As he contemplated the development challenges facing Africa, Ravalomana echoed that message.
"We should be proud and self-confident, ready to shape our future, taking destiny in our hands," he said. "It is up to us to lead and accomplish prosperity. Africa should stand up to meet that challenge. We have to take on leadership and responsibilities."
Topics
DISCLAIMER & PERMISSIONS
CGD's publications reflect the views of the authors, drawing on prior research and experience in their areas of expertise. CGD is a nonpartisan, independent organization and does not take institutional positions. You may use and disseminate CGD's publications under these conditions.