A nglo-Malagasy Society

Newsletter No. XLIX - December 2003

SOCIETY ACTIVITIES The film, impressively presented by Hanitra herself. On 12 March a meeting of the Society was held at also gave us glimpses of the lives of the band our usual venue of the New Cavendish Club. Mr Joe members as well as visits to a street market in Isotrv. Gomme, who had recently returned from a spell in an instrument maker and the new Antshow Arts as the representative of the charity Centre established last year by Hanitra (see WaterAid, gave an inspiring talk entitled Highland Newsletter No.XLVIII). Quite outstanding and well Springs and Desirable Toilets. WaterAid, as its worth looking out for if it is shown again on name implies, works to develop and improve the television. supply of water, the most essential ingredient for Future meetings - dates for your diary. On human survival and economic development, both 10 March Christina Dodwell will give a talk on her agricultural and industrial, and also sanitation, in community radio project (see enclosed notice). The Third World countries. In Madagascar, working AGM will be held on 27 May when Alison Jolly will with local NGOs, WaterAid supports projects in talk about her new book, due to be published in four of the six provinces to provide rural water April, entitled Lords and Lemurs. For the autumn supplies, through both gravity-fed pipe schemes and meeting we are planning to have a talk by Paddy well construction. It has also introduced the closely Bush on Malagasy music with the support of the related problem of sanitation and hygiene promotion celebrated valiha player Justin Valli. into its programmes, working with local partners to overcome local taboos in the rural south against the EVENTS IN MADAGASCAR building of latrines, and operating also in urban The new government formed by on 16 areas. WaterAid's projects, which cost relatively January consisted mainly of technocrats and was little, can make a major difference to the quality of reduced in numbers from the 30-32 common during life of the people concerned. Members wishing to the Third Republic to a more appropriate 22 support their work should contact WaterAid at its ministers. However this made it more difficult to headquarters at Prince Consort House, 27-29 Albert reward with ministerial posts all the parties who had Embankment, London SE1 7UB or E-mail them on supported Ravalomanana' s presidential campaign as wateraid(awateraid.oru.uk. members of KMMR (Committee for the Support of On 15 July the Annual General Meeting of ). A number of disappointed the Society was held, at which the present officers ministerial hopefuls, mainly from MFM and RPSD, and committee members were re-elected. After the set up a new group KMMR/Nouveau, which now meeting there was a showing of a new television forms an unofficial opposition along with ex- documentary entitled "The Mad Rhythms of President Zafy's CRN ( Commission de Madagascar" and featuring the well-known group Reconciliation Nationale). In his campaign for an Tarika and its leader Hanitra Rasoanaivo Anderson. amnesty for crimes committed during the 2002, Zafy The film traced the roots of the group's style in the has continued to denigrate Ravalomanana's traditional music of the island in a spectacular 1000 government (which he does not recognise as kilometre road trip from to Tulear and legitimate) and to stir up regional and tribal beyond. On the way we encountered musicians differences, with the result that CNR is increasingly playing for afamadihana, roadside kabosv bands, a marginalised. capella village choirs, Antandroy and Vezo bands With little or no representation in Parliament and a hiragasv troupe. and no plausible programme for dealing with the

1 country's urgent problems, these opposition groups or release them for lack of evidence. have expressed themselves mainly in public The trial of was post- demonstrations which have tended to turn violent. poned for some time: his lawyers claimed that as a On 13 May KMMR/N held a demonstration at former Prime Minister he can be tried only by the Mahamasina stadium to commemorate "the popular Haute Cour de Justice, which does not yet exist. struggle of 2002". But this was seen as an attempt to However on 22 December he was brought to trial in destabilise the government and overthrow the the ordinary criminal court at Anosy in Antananarivo President, and was strongly opposed by the on seven counts, including misappropriation of population of the capital: when a KMMR/N banner public funds, offence against public security and appeared calling for the dismissal of Jacques Sylla usurpation of functions. On the previous day the (who has been the target of an abusive press press published a lengthy report by Amnesty campaign) the crowd intervened to seize and burn International denouncing numerous irregularities in all the banners. Zafy's CRN has organised a series his treatment while in custody during eighteen of anti-Government demonstrations in Tamatave months, including lack of contact with his family and and other provincial capitals which have ended in his lawyers, who were given insufficient time and violence and vandalism. In June it also published a information to prepare his defence. In court he pamphlet Un roublard (foxy person) au pouvoir appeared emaciated and ill as a result of his directly attacking the President, challenging his treatment. The Amnesty report also pointed out that legitimacy and criticising his Government for during the crisis of 2002 supporters ofRavalomanana cronyism in favouring members of his party TIM in had also committed crimes of violence against the making public appointments. persons and property of members of the former These opposition groups do not appear to regime, but not one of them had been brought to pose any serious threat to President Ravalomanana, justice. whose continuing popularity was confirmed by an On 23 December Andrianarivo was unusual and possibly unprecedented standing condemned to 12 years' forced labour and a fine of ovation at the Independence Day parade on 26 June. fmg 42 billion (£4.5 million). The result of what is In the longer term a more effective opposition might perceived as a political trial has been generally be provided by ex-President Ratsiraka's party denounced in the press. It has strengthened a AREMA, which polled a respectable number of growing campaign for an amnesty and appeals for votes in the legislative elections, though winning reconciliation between partisans of the President and only three seats. However it has split into two the ex-President. However early in the New Year the wings - moderates led by Pierre Raharijaona and un- President in effect overruled the court by authorising repentant hard-liners led by Benjamin Vaovao. The Andrianarivo to go abroad for medical treatment thus National Secretary of AREMA, Pierrot commuting his sentence to exile. Rajaonarivelo, remains in exile in France and has Ratsiraka himself, in exile in Paris, is now been condemned in absento to five years in prison almost blind from his diabetes, while his wife is on charges of peculation. Other AREMA leaders, paralysed following a stroke. He was granted asylum including Ampy Portos and the ex-Governors of with a visa de long sejour on condition that he Toliara and Fianarantsoa, have been condemned to avoided public statements. Interviewed by Jeune five years in prison for activities during the crisis, Afi•ique in July he said only "Je viellis et je ferme la but the first two are also safe in exile. . gueule ". However he broke his silence when on 6 Meanwhile Colonel Coutiti, Ratsiraka's August the Ordinary Criminal Court of Antananarivo "strong man" in the north during the crisis, has been (in between two cases of vols de boeufs) condemned condemned on successive counts to many years in him to 10 years forced labour and permanent prison. In October the death of Colonel Norbert exclusion from public office for misappropriation of Botomora while in preventive detention increased public funds, specifically the withdrawal of some S8 the pressure on the Ministry of Justice to accelerate million from the Toamasina branch of the Central the trials of the still numerous "detainees of 2002" Bank shortly before his departure to exile. Two

2 junior lawyers had been appointed to defend him, established as a proper political party with a but as they did not have access to the dossier programme, a party congress and elected officers, d 'instruction or any contact with their client they and remains largely dependent on the popularity of did not offer any defence. In Paris, Ratsiraka the President. Another problem is the "band- denounced the court's action and pointed out that waggon" tendency prevalent in Malagasy politics while his government was based in Toamasina since independence, under which many politicians. during the crisis he withdrew much larger sums lacking serious political convictions, adhere to the from the Central Bank to pay the officials of the five dominant party in the hope of sharing the spoils of provinces that remained loyal to him and also to office. make the payments due on the country's debt to the In his first year in power President IMF and the World Bank. This case, which Ravalomanana concentrated on consolidating attracted a lot of publicity in the French press, may international recognition of his regime, attending have won some sympathy for Ratsiraka and summit meetings of the United Nations, damaged the reputation of the Malagasy Francophonie, the Non-Aligned Nations, Government. Afrique/France and finally the African Union at Another formerly prominent party the RPSD Maputo in July, ending a period of over a year during (Rassemblement Populaire Social Democrate) has which Madagascar's membership was suspended. been split since the National Assembly elections He also paid official visits to France, Germany, the when its President Evariste Marson joined the FP Vatican and, after the AU meeting, various West alliance which supported Ravalomanana, while the African countries including Senegal, whose President bulk of the party led by the Secretary-General Jean- Abdoulaye Wade has been a staunch supporter of Eugene Voninahitsy campaigned separately. Ravalomanana (he was the principal guest at the Marson believes that RPSD will be marginalised National Day celebrations on 26 June). Internally, unless it joins the mouvance presidentielle, while apart from embarking on the enormous task of Voninahitsy, fears that it will be swallowed up by reviving the economy, the Government has restored TIM . The split was confirmed in September when its authority over the whole island and revived the Voninahitsy formally broke away and set up administration after the months of stagnation during RPSD/Nouveau to campaign as a separate party in the crisis. In January, four of the six Presidents de the communal elections (see below). There is a risk Delegations Speciales (appointed to replace the that the split will lead to the disappearance of elected AREMA provincial governors during the RPSD, which is the last significant remnant of the crisis) were replaced, three of them by soldiers. This social democratic current initiated by President preponderance of soldiers was justified by the need Tsiranana' s PSD Parti Social Democrate at the time to restore security in the rural areas. The of independence. controversial PDS of Fianarantsoa, Pety Rakoto- The lack of an effective opposition is a threat niaina, complained loudly about his dismissal and to hopes of a return of political stability and genuine has since been an active member of KMMR/N. The democracy. As happened with AREMA, the total dismissal of the PDS ofMahajanga, Pierre Tsiranana, dominance of TIM tends to encourage arrogant son of the former President and leader of the rump of behaviour and a blurring of the distinction between the original PSD, was more unexpected. government and party, and there have been cases of Communal and municipal elections. deputies from certain provinces giving orders to Elections to the rural communes took place on 9 local authorities in those provinces. There is no November, followed by the urban communes on 23 reason to doubt President Ravalomanana's November. They aroused little enthusiasm and were commitment to democracy, but it will take time to marked by a high degree of abstention. The eliminate the bad practices of previous regimes, President's party TIM fielded candidates in 95% of especially as a number of former members of the constituencies. TIM's allies, the AVI of Norbert AREMA have managed to infiltrate TIM. One of Ratsirahonana and the "official" RPSD of Evariste the problems is that TIM has not yet been Marson, campaigned as separate parties rather than as members of the FP alliance.. They remained suspending the obligation for magistrates to declare committed to supporting the President, but AVI in their assets after a number of magistrates had particular, presenting candidates in 1007 of the objected. This decision was later reversed, but it was 1513 rural communes and 20 of the 45 urban damaging to the reputation of the magistrates. An communes constituencies, opposed TIM candidates incorruptible justice system is of course essential in in most places. However, Ratsirahonana acceded to the war against corruption, but the former high a request from the President not to put up a reputation of Malagasy judges and lawyers has candidate for mayor of Antananarivo, which is suffered in recent years. In particular a series of AVI's stronghold, leaving the field clear for the legally dubious decisions, resulting from TIM candidate Patrick Ramiaramanana, who has incompetence, corruption or political pressure, have been PDS (acting Governor) of Antananarivo destroyed confidence in the commercial courts and province over the last year. discouraged potential investors, both Malagasy and AREMA presented candidates under its own foreign. An opinion poll among the readers of name only in Toamasina province, the fief of ex- L Express showed that the judiciary, followed by the President Ratsiraka. However, AREMA officials police and the medical establishment, were perceived admitted that elsewhere many AREMA members as the most corrupt state bodies. This muted the had infiltrated TIM and stood either as candidates of magistrates' criticism when the highly regarded that party or as Independents. This was done Justice Minister Alice Rajaonah suspended 12 because they feared that as AREMA candidates they magistrates in Toamasina, prosecuting one of them. would be subjected to threats, intimidation and Like other branches of government, justice unfair treatment by the administration. Ironically, suffers from many difficulties and lack of resources, during the communal electoral campaign, AREMA and reform is likely to take some time. Conditions in leaders complained bitterly of electoral fraud, the overcrowded prisons, where 67% of the adult intimidation and improper use of government media prisoners and 88% of the minors are in fact on by TIM - the same kind of behaviour of which remand awaiting trial, are a particularly serious AREMA was notoriously guilty when it was in problem. power. In July a woman, Bakolalao Ramanandraibe The official promulgation of the results was Ranaivoarivony, was appointed as head of the delayed while the National Electoral Commission Conseil Superieur de la Lutte contre de la investigated no less than 700 complaints of Corruption. Madame Ranaivoarivony is a irregularities. Unofficial counts indicated that in a distinguished senior lawyer who before her new low turnout TIM had performed poorly and that appointment was Directeur-General de 1 Ecole many independent candidates were elected. This Nationale de la Magistrature et des Greffes. confirms the general mistrust of politicians and the Parliament. At its first session in January the growing maturity of the electorate, which no longer National Assembly elected Jean Lahariniko, votes automatically for the party of the sitting previously Minister for Public Works, as its president. In Toamasina the TIM candidate for President. In the subsequent elections to the Bureau mayor lost to Roland Ratsiraka, nephew of the ex- of the Assembly, all posts went to members of TIM. President; and in Fianarantsoa Pety Rakotoniaina The imbalance in the Assembly creates problems for was elected mayor, partly because of resentment at the smaller parties. Assembly Committees are the `brutal and cavalier' manner of his dismissal as supposed to represent proportionally the different PDS (see above). Parliamentary groups, but only TIM and its allies in Corruption. The elimination of corruption FP qualify under the Assembly rules which state that is one of the major aims of the government. you need at least 8 Deputies to foun a parliamentary However the requirement that all government group, employees should declare their assets has met with The new Assembly has been a considerable some opposition. In February the Administrative improvement on its predecessors of the Third Chamber of the Supreme Court issued a decree Republic, which were noted mainly for absenteeism

4 and their preoccupation with improving Deputies' BFV are' also threatening legal action. All the staff emoluments. During its first session it has, along of the enterprises due to be privatised, including with the Senate, discussed and adopted fifteen Toamasina port, SECREN (naval dockyards) and parliamentary bills, including ratification of the SIRAMAMA (sugar) are worried about losing their Charter of the African Union (a necessary jobs. This is a legacy of the Second Republic when preliminary to Madagascar's reintegration into the nationalised public enterprises were used to create Union), a new General Statute for Government jobs, and nepotism and political clientelism led to Employees and the (belated) ratification of the 2003 extra staff being recruited regardless of the effect on Budget, introduced by Presidential decree at the end profitability. In today's competitive atmosphere the of last year. Also, for the first time since the new owners ofthe enterprises, many ofthem foreign, establishment of the Third Republic in 1993, the cannot afford any feather-bedding of staff. constitutional provision that one session a month In October a strike at the refinery at should be reserved for "parliamentary questions" to Toamasina and the resultant shortage of fuel brought ministers has been actually applied., with the back memories of last year's blockade of the capital, Government's full cooperation. Sadly, old habits and panic buying started immediately. Although the seemed to be returning towards the end of the year, strike was technically an issue for the refinery's when only 57 deputies turned out for the private management to settle, the Government could government's presentation of the 2004 Budget. not tolerate any disruption in the fuel sector and Surprisingly, in view of the generally high moved swiftly to defuse the situation. level of educational achievement among women, The Churches. The Council of Christian Madagascar ranks the fourth lowest country in the Churches in Madagascar (FFKM), which openly world in terms of female representation in supported Ravalomanana during the 2002 crisis, on Parliament, with only 6 Deputies out of 160 (3.8%). 20 May issued a communique accusing KMMR/N of Only Nigeria, Swaziland and Niger rank lower. usurping the name KMMR to deceive the people. However representation in the Government is much Journalists were also admonished for irresponsible higher, with four women ministers among 22, or 18.2%. behaviour. The days when the churches kept aloof Student riots. On 17 March student rioters from politics, and so were able to act as impartial at Antananarivo University burned three buildings arbiters in major crises, appear to be over. and three vehicles before the police restored order. FJKM, the federation ofProtestant churches, The underlying cause was resentment at a cleaning- of which Ravalomanana is Vice-President, appears up operation to remove market stalls in the to be flourishing. It claims to have two million University area and evict illegal occupants of living worshippers in 5,000 parishes and 35 regional quarters - perpetual students and families of synods. It has opened 400 places of worship in students. The riots began with a confrontation remote corners of the island in the last four years, and between the police and gendarmes and students of hopes to open its first Protestant University in a group called Toliara Mivoro, described as Antananarivo later this year. malcontents belonging to KMMR/N and Zafy's Population and environment. A census CRN, who were angry when a political meeting they carried out in 2001 estimates the present population were planning was banned. at 15,660,000, or almost double the population of Labour troubles. Loss of jobs resulting cattle, estimated at 8 million, whereas the numbers of from privatisation of state enterprises has people and cattle used to be about the same at 10 predictably led to labour unrest. There have been million. Another study put the population in 2002 at strikes of railway workers on the northern network, 16.9 million and estimated that by 2047 it will be 47 now owned by Madirail, a subsidiary of the South million, an increase of 178%, based on a fertility African company COMAZAR; former employees of index of 5.7. With no sign of any serious attempt to SOLIMA (the state petroleum company) have taken limit population growth, the implications for the the company to court for breach of contract; and environment are grim. staff dismissed from the ex-state banks BTM and A study of 1999 stated that every year

5 160,000 hectares of forest are burned to create new result of the distribution of many AK47s to pro- pasturage or rice-fields. Four years later little has Ratsiraka militia during the 2002 crisis. This makes been done to preserve the forest, despite the the campaign almost a war rather than a police allocation of $100 million from the World Bank to matter, and it is difficult to see how the government protect the environment, and the devastation caused can win without a major investment in increased by feux de brousse is almost forgotten. The ONE numbers and equipment of the g endarmerie or the (Office National de l Environnement) has been involvement of the army. But rural insecurity is a criticised for spending money on costly studies serious obstacle to development and the President instead of concentrating on effective practical needs to achieve some success in the "war". In measures. However one hopeful initiative by the October he donated a helicopter for an anti-bandit Government has been pilot studies in which operation that recovered a `cache' of stolen cattle and ownership of land and forests is given to the captured the thieves. peasants, resulting in a sense of responsibility for Cyclones. In January cyclone Fari destroyed preserving the environment. Although lack of 80-90% of the towns of Nosy Varika and Mananjary Government money has prevented any extension of on the east coast. It then travelled slowly across the this scheme, it has been taken up by WWF country to the south-west, bringing stormy weather, (Worldwide Fund for Nature) which has signed heavy rains and flooding to many parts, especially contracts with traditional chiefs to control the provinces of Antananarivo and Fianarantsoa, deforestation and feux de brousse, with some causing 35 deaths, damaging 2,000 houses and spectacular results. But such schemes are likely to leaving 45,000 homeless. Rice production in the two be too little and too late to prevent the disappearance plateau provinces also suffered severe damage. of most of the forest and its associated wildlife in At the end of April cyclone Manou hit the the next few decades. Apart from the losses due to east coast, destroying 90% of Vatomandry and deforestation, thousands of lemurs are killed and leaving 56 dead, 7 missing and thousands homeless. eaten or sold to the illegal trade every year. It also inflicted considerable damage in the region of The environment has also suffered from Brickaville and Andevoranto. sapphire mining which threatens substantial areas of Drought and famine in the South. This the Isalo and Ankarana national parks; and from the other perennial feature of the climatic scene has again expansion of sisal plantations in the south at the been attracting attention. Lack of rain over the last expense of the forest, because of the strong local two years has affected both food and cash crops and and world demand for sisal. has caused an increase in the number of children Banditry. In October the President suffering from malnutrition. Shortage of food and an announced a major campaign against the dahalo increase in the price of essential goods has led to (bandits) responsible for most of the thefts of cattle increased migration to the towns, with husbands (vols de boeufs) which continue to be a serious often leaving their families behind. With their crops problem. Punishment of cattle thieves is already failing and with no money to buy food, families have severe but this has not prevented the steady growth been selling their possessions including plates and of cattle-thieving over the last fifteen years. cooking pots. In November 2002 the World Food Formerly it was mainly almost a form of sport, a Programme issued an urgent appeal for food aid of traditional proof of manhood among the Bara and $8.2 million to feed the 400,000 people thought to be other cattle-owning southern people. Now it is a at risk of starvation. By June 2003 only 57% of this national criminal network controlled by `big men' in had been received and the WFP issued a further Antananarivo, alleged to be highly-placed persons urgent appeal resulting in additional aid, but the in the administration and powerful businessmen, situation remains serious. The Government and with elected officials often involved at the local various non-governmental organisations have been level. distributing maize and beans free in exchange for A number of the bands of dahalo are now work . armed with AK 47 automatic rifles, probably the

6 AIDS. The incidence of AIDS is still new restaurants are constantly appearing. very small compared with most African The standards of a number of hotels are countries, but it is steadily increasing. Ten improving as tourists are returning in years ago one Malagasy in 5,000 was HIV growing numbers. Another change, seropositive. Now the figure is one in 95. demonstrating higher disposable incomes for The authorities are aware of the threat and are more people, is that shops and supeimarkets seeking help in dealing with it from various have realised that is in their interest to sell quarters, both domestic and international. improved products at moderate prices to However the response of the Catholic Church `ordinary' people, rather than catering in Madagascar has been to re-affirm its ban on mainly for the small wealthy class and the the use of condoms, which it claims foreign community. contributes to the spread of AIDS by Reduction of poverty. The new encouraging `debauchery'. Government's declared aim is rapid and Chinese `invasion'. There is durable development to achieve a reduction continuing concern over the steady influx of of poverty by 50% in ten years, i.e. by 2013. Chinese immigrants, who seem to have little This will require an average annual growth difficulty in obtaining long-term or permanent of no less than 9.9% and, in the short term visas. Newsletter XLI (May 1999) reported between 2004 and 2006, public investment the building of a `Chinatown' at Ivato with of $3.187 billion: of this $1.656 billion had 200 shops and plans for 3,000 houses. A new been assured by March this year, leaving `Chinatown' is now emerging in the district of $1.531 bn. still to be found. It will also Behoririka (NE of the railway station) with require massive private investment, mostly many small luxury shops reminiscent of from abroad, which will be slow in Singapore. Old traditional houses in the area forthcoming because of the disastrous effect are much sought after and are bought, some on business confidence of last year's crisis, by Malagasy but most by Chinese, for when many fines, especially foreign upwards of FM€ 10 billion (£1 million) and companies operating in the tax-free zones then converted into luxury shops. (ZFIs), were forced to close. China has recently been paying special Foreign aid. In October a delegation attention to its relations with Madagascar, led by Prime Minister Sylla held a meeting with no less a person than the present Chinese in Paris with "Les Amis de Madagascar " to leader Hu Jintao visiting Antananarivo in review Madagascar' economic programme 1999. In April 2003 the Malagasy Minister of and the contribution of inter-nati onal aid. Of the Economy, Finance and the Budget, the $2.4 billion promised at the first meeting Benjamin Radavidson Andriamparany, paid of Les Amis in July 2002, $1.9 billion had an official visit to China. He had previously already been committed and allocated to signed an agreement with the Chinese programmes and projects, and $674 million Ambassador for the financing of the hade actually been disbursed. 90% of the rehabilitation of 67 Hectares, the area behind aid was in the form of grants, the remainder the Hilton Hotel where the British Embassy as loans on favourable terms. 94% was used to be located. multilateral, with the European Union the largest donor followed by the World Bank, ECONOMIC the IMF and the African Development Bank. General. The recovery in the economy from France remains by far the largest bilateral the low point of post-crisis 2002 is evident in donor with 73% of bilateral aid, followed by the more relaxed atmosphere and mood of Germany with 13%, China and USA. confidence in Antananarivo. One visible sign Britain's support for Madagascar is mainly of the improved economic climate is that good through its substantial contributions to the

7 EU and the international agencies. Its other sectors of the economy. The bilateral programme is relatively small but Government is accordingly giving top highly effective in supporting small projects at priority to road building, regarded as central the grass-roots level (see under Anglo- to development plans. Its programme, Malagasy relations below). announced in May, envisages the Cornell study. A recent study by rehabilitation of 14,000 kms. of roads over Cornell University identified four key motors the next six years. 45% of this year's budget to drive economic recovery: for public investment, or S400 million, will 1. An increase in agricultural productivity, be allocated to roads. The Government will especially in rice and manioc; be looking for substantial funding from 2. Major investment in roads; China and Switzerland, who have already 3. An increase in private investment in ZFI done a great deal in this area, as well as from (tax-free zone) industries. the European Union, the World Bank and 4. An increase in private investment in the African Development Bank. tourism. ZFI Investment. After the heavy Agricultural productivity. While losses sustained because of the crisis foreign countries such as Thailand and Vietnam have investors will need some assurance of long- greatly increased their yield of rice, in term stability before risking their capital Madagascar productivity and production have again. Businesses in general, and ZFI remained stagnant, increasing more slowly companies in particular, face a number of (1.2% per annum over the past 20 years) than serious problems. Local labour, the the population (2.8 to 3%). There are many cheapness of which was a major attraction, reasons:: poor use of water, old seed stock, is no longer so cheap, wages having risen by little use of fertiliser and insecticide, reduced 30% in less than three years. Electricity is fertility of soil due to floods, and the absence expensive, costing nearly twice as much as of a proper system of rural credit. Because of in neighbouring competitors South Africa the poor state of the roads and inefficient and Mauritius. The cumbersome collecting there is little incentive for the bureaucracy, the problems with commercial farmer to grow a surplus for sale, and only law (see above) and the poor state of the 11% of the crop is sold outside local infrastructure are also deterrents. According consumption. In consequence there is excess to a press report in November, exports of capacity in the rice mills; and major rice textiles to USA from ZFI companies were dealers prefer to import, which is more being handicapped by excessive and costly profitable than collecting and milling local inspection by customs, who were insisting rice. Imports have risen in recent years to on opening nearly every consignment around 300,000 tons a year (more in 2002 Investment in tourism. The well- because of the crisis), amounting to a major known Hotel Colbert has just completed a drain on the country's foreign exchange. major refurbishment and expansion. It now The second most important food crop has a new luxury building of 8 storeys with after rite is manioc, especially in the south. 42 rooms, 7 suites and a heated swimming The average yield per hectare has improved pool and has overtaken the Hilton as the somewhat - 6% over the last five years. But largest hotel in Madagascar. Many of the in the same period the acreage has been hotels and restaurants which closed down reduced from 360,000 hectares to 352,000 because of the crisis have re-opened, but hectares, so total production has increased tourist numbers have not yet fully recovered. only slightly, from 2.4 to 2.5 million tons. As with other businesses, the experience of Improved roads should provide a last year has made investors cautious about boost to agricultural production as well as to committing new money. A report in August

8 said that in Nosy Be hotels were on average shown in smaller print). There were red only 30% full. However the largest hotel, the faces in the government when the 10,000 Vanilla, was planning to spend approximately ariary note was found to bear the logo of the £1 million on new rooms and facilities. The president's party - and was promptly French hotel group Assor has also announced christened `TIM'. Interestin g ly these notes plans to construct four or five hotels in were printed in Germany and the Secretary- Madagascar over the next two years, starting General of the Central bank went out of his with a Novotel on the Avenue de way to explain that they were of better l'Independance in Antananarivo. quality and cheaper than those printed by the A continuing handicap for the Banque de France. Government and private industry is the relatively high cost of air fares enterprise accounting will switch to the new from Europe: for the price of a return flight to system at the beginning of 2005, but most Madagascar, comparable destinations such as large shops already price their goods in the Mauritius or South Africa will throw in a two currencies. Visitors to Madagascar will fortnight's holiday in a good hotel. It is hoped for some time need to be alert to ensure that that increasing competition will bring about they do not pay a bill priced in FMG with some reduction in fares. Corsair, which ariary notes, worth five times as much. hitherto has been limited to charter flights, is Tax holiday. In a speech at now authorised to operate scheduled flights, Antsirabe on 26 July the President offering lower fares than Air France or Air announced various measures to speed up Madagascar. Availability of seats has also development. The big surprise was the improved as Air France has increased its suspension, for two years from September, weekly flights from three to four. of all taxes (customs, import, excise and In another move to encourage tourism, VAT) for a wide range of products: customs regulations have been eased. Non- agricultural and industrial equipment, trucks, residents can now take out of the country 1 vans, utility vehicles, tractors and public kilo of jewels, and residents 250gms - the transport vehicles; equipment for public allowance for both was previously 50gms. works and buildings, cement, household The amount of local currency that can be goods (freezers, refrigerators, ovens); and taken out has been increased from 25,000 fmg computer and audio-visual equipment. The to 2 million. A currency declaration on arrival inclusion of commercial vehicles should go is now only necessary if the sum is in excess some way to reducing the imports of worn- of 7,500. Attempts are also being made to out vehicles from Europe, and a ban has improve the reception of international been imposed on the import of lorries more passengers at Ivato airport, but it is proving than 10 years old. There was concern, difficult to eradicate the spirit of moraniora, highlighted by the opposition, about the and lengthy waits while baggage is being resultant shortfall in government revenue systematically searched are still common. and the adverse effect on local Change of currency. In May the manufacturers. But it was soon realised that, President announced the replacement of the as most of these goods were already being Malagasy franc (fmg) by the traditional corruptly imported without payment of ariary, which was still in use in rural areas customs duty, the fiscal effect would not be throughout the last century. This effectively very great. One group that will be worse off divides the currency by a factor of five - i.e. will be customs officers, whose scope for one million fmg (£100) is now 200,000 ariary. corrupt enrichment will be severely reduced. Two new notes were issued in August - 5,000 (Customs officers are resisting the ariary equivalent to 25,000 fmg and 10,000 introduction of computers which inter alia ariary = 50,000 fmg (the fmg figure being will make fraud easier to detect)..

9 Land for foreigners. In the same 14.8m. It will have fallen further following speech the President also announced proposals more debt cancellations announced by to permit foreign investors to purchase Russia (70% of debt cancelled, the freehold land in Madagascar - subject to a remainder rescheduled over 33 years) and minimum investment of $0.5 million.. The Britain. necessary legislation for this and for the tax Air Madagascar. Despite increased holiday was introduced and adopted at special competition, Air Madagascar seems likely to sessions of the National Assembly and the make a profit in 2003, after three years of Senate before the end of August. There was a losses that left the company with predictable outcry against this abandonment accumulated debts of S50 million. One of a long-standing principle, but in general reason is that the President now uses his own this measure has been accepted. One group aircraft at Government expense instead of likely to take advantage of the new law are requisitioning Air Madagascar flights as Reunionnais who are believed to be looking to Ratsiraka used to do; and the Government return and buy land in the Sakay area to the now pays the fares of ministers and officials west of Antananarivo where many of them flying on Air Madagascar. The company farmed before 1975. was also able to take advantage of the crisis Statistics. The general impression in the world airline industry to negotiate a that the economy is improving is borne out by new lease of a Boeing 767-300 at one third various sets of statistics released during the of the price, saving over S6 million a year. year. Of course all 2003 statistics show an It is planning to lease a second 767 which improvement on the crisis year of 2002, the will permit the opening of a second service important comparison being with the previous to Europe, but to Milan instead of Paris to year 2001. In the first few months of 2003 the cater for the growing number of tourists number of new businesses created, the amount from Italy; and also the re-opening of a of fuel consumed and the number of ships service to Asia, but to Bangkok rather than calling and amount of tonnage handled at the Singapore. For its internal and regional ports all showed an increase on 2001. Owing flights Air Madagascar is replacing its two to improved tax collection, government old Boeing 727-200s with two new 727-300s revenue in the first quarter of 2003 was 14% to add to the 737-300 that it is already up on 2001, while current expenditure was up leasing. 71%. The Government forecast for GNP Fares on Air Madagascar internal growth in 2003 is an impressive 9.6% over the flights remain high. One consequence is that low figure for 2002, but this will be minus the taxis-brousse have improved the service 4.1% compared with 2001. Various they offer in terms of both quality of encouraging figures have been given for the vehicles and reliability of time-tables. With decline in the rate of inflation, the latest being the expected improvement of the roads from the Government's estimate of 5% by the end the Government's road-building programme, of the year. road travel is likely to become an A report in March stated that the increasingly viable alternative for tourists. balance of payments position was now much Railways. The privatisation of the healthier than it was eight years ago (1995) railways was completed early in the year because of the volume of aid, substantial debt when the FCE railway (Fianarantsoa-Cote relief and the growth of exports, so that Est) was acquired by an American company. reserves were much ,higher - 234 million It was in a poor state as no services had been Special Drawing Rights compared with 40 run for four years. As reported in Newsletter million in 1995. In the same period debt XLV of May 2001 the northern railway servicing fell from 41.3m. SDRs a year to network was acquired by the South African

10 company Comazar. An operating company acceptable abattoirs. Madirail was set up with Comazar holding a The island remains the largest source majority and participation by the Government of vanilla, producing on average half the and private Mala gasy shareholders. About world's supply of 2,000 tons of prepared 650 of the 2000 rail workers were expected to vanilla. It has benefited from the tenfold lose their jobs. Rail services between the increase in the world price between 1997 capital and Toamasina were resumed in April and 2002. The price has increased further 2003. In July Madirail received from the following Coca Cola's introduction in May European Investment Bank a loan of 11 2002 of a new product Vanilla Coke, made million, repayable over 20 years, for putting from natural vanilla, which has proved to be the railway in order. a spectacular success, outselling all other Commodities. Despite the sodas in American supermarkets. improvement in the economic statistics, most Unfortunately, Madagascar missed the bus, of the traditional sectors appear to be in partly due to bad timing (the new drink was decline. Although the world price of coffee launched in the middle of the 2002 crisis) increased in 2002 (from a very low level) due but also because of disorganisation of the to lower harvests in Brazil, Madagascar was trade in Madagascar and the emergence of not able to take advantage because of a non-professional "cowboys " among decline in production - from 623,000 sacks of exporters, resulting in a lowering of quality. 60 kg in 1997-98 to 417,000 sacks in 2002-03 Coca Cola, which is now taking something (0.4% of world production). In this last year like 10% of world production, is obtaining exports amounted to only 155,000 sacks, or all its vanilla from Uganda, a relatively new 1.17% of world exports. Exports of sugar fell producer. Because of increased competition from 22,270 tons (worth $11.5 million) in from the Comores and India as well as 1995 to 16,480 tons ($5 million) in 2003. Uganda, Madagascar will need to re- After the disruption of 2002, the volume of establish its reputation for quality in order to exports of cloves in 2003 recovered to the retain its pre-eminent position. level of 2001, but owing to a severe fall in For some time now prawns have price they earned only $45 million compared been the country's most valuable export, with $95 million in 2001. providing between 15 and 20% of foreign The beef industry is also in decline. exchange earnings, but the industry is Whereas not so long ago the number of cattle experiencing some problems. Over-fishing was about equal to the number of people at 10 is leading to a decline in the size of the million it has now declined to about 8 million prawns - more than half weigh less than 15 (partly due to the effect of years of drought in grams. In December 2002 a government the South), while the latest census puts the order suspended prawn fishing in territorial human population at 16 million. Sadly the waters (which accounts for 40% of industry makes virtually no contribution to the production) for several months in order to export economy. It was awarded a quota for replenish stocks. Also there has been an exports of beef to the European Union, and in important drop in world prices because of a 1995 exported 3,790 tons worth $11 million. spectacular increase in farmed production in But a decline in hygienic conditions meant S.E.Asia and Latin America, from 700,000 that none of the abattoirs met EU standards, tons in 1990 to an estimated 2 million tons so that in the last few years beef exports have in 2004/5. In Madagascar production, both been virtually non-existent. The potential for fished and farmed, is only 15,000 tons, of exports is still there( and Malagasy beef which 13,000 tons are exported.. remains of high quality, but a substantial In recent years textiles, produced in investment will be needed to produce ZFI factories and exported mainly to USA

11 under the AGOA agreement, have been the ANGLO-MALAGASY RELATIONS most dynamic sector of the economy. The Re-opening of Embassy. As part of his crisis of 2002, which prevented exports for policy of expanding relations with the several months and caused nearly all factories Anglophone world, the President has to close, was a serious setback. Exports of announced that the Embassy in London, textiles to USA which, before the crisis had closed in 1975 in response to the closure been expected to reach over $100 million and (fortunately temporary) of the British overtake prawns as the most valuable export, Embassy in Antananarivo, will be re-opened. amounted to only $49 million. A number of However budgetary considerations may foreign investors pulled out permanently but delay the implementation of this decision, in others have returned and it was hoped that view of the very high cost of buying or some 80% of the textile factories would have renting property in London. resumed production by the end of the year. The Madagascar branch of the In January 2003 the largest Malagasy English Speaking Union was formally textile company COTONA (Cotonniere inaugurated in April by the Prime Minister d'Antsirabe), in a joint venture Cottonline Jacques Sylla, who appropriately gave his with US and Sri Lanka partners, inaugurated speech in English. Those present included a new factory in Antsirabe in the presence of the acting Foreign Minister and the British a delegation from the US Congress headed by and American Ambassadors. The Chairman the Chairman of the Ways and Means of the ESU, Lord Watson and its Director- Committee. The US partner is a branch of General Valerie Mitchell travelled from The Limited, a distribution company with an London specially for the occasion. annual turnover of $13 billion and 6,000 British aid mainly takes the form of outlets. Together with another new factory small grants, usually between £1,000 and recently opened by Columbia Clothing £5,000 each, given direct to local authorities Company, Cottonline will bring back 3,000 at the village level where a small sum can jobs to Antsirabe. The outlook for textiles is make a big difference to people's lives. good, but as with vanilla, prawns and cloves Though modest in financial terms compared the competition will be fierce. The high with some other countries, the programme quality of the Malagasy work force remains an enjoys a high profile. Hardly a week goes asset, but its cheapness is less apparent by without a report of the British following increases in wages over the last two Ambassador, Mr Brian Donaldson, making years in response to inflation. a grant to a small village project. Typical Mining is another sector which could examples are the repair of a school building soon be making a much greater contribution or the construction of new schoolrooms, to the national economy, especially from often in a school originally built by British sapphires. Official mineral exports rose from missionaries; aid to associations to help the $16 million in 1997 to $37 million in 2000. handicapped; and income-earning projects However the trade is marked by massive such as chicken-raising or bee-keeping. corruption and far greater quantities (mainly Grants are also given to non-governmental of sapphires) are smuggled abroad, estimates organisations, e.g. to WaterAid for sanitation varying from $200 million to $500 million a projects; to the Andrew Lees Trust for work year. The World Bank has approved a credit on the protection of the environment; to the of $32 million to help Madagascar manage its Dodwell Trust for its community radio mineral resources and use them to reduce project; and to the Association des Sans-Abri poverty. for its work in rehabilitating destitute families.

12 Debt cancellation. On 27 June Mr had already been selected to provide the Donaldson signed an agreement cancelling centre post for the rebuilding of the Queen's debts to the United Kingdom amounting to Palace itself £3.4 million and the re-scheduling of a further Raombana pilgrimage. Members £0.8 million over 23 years with a grace period will recall that at our 40`'' anniversary of six years. meeting Judge Raymond Ranjeva of the Youth visit. In July a group of 16 International Court gave a talk about his British teenagers made a 4-week visit to distinguished ancestor Raombana, who was Madagascar organised by the Association of educated in England in the 1820s; on his World Challenge Expeditions. Their return to Mada g ascar he became Private programme included a long walk in the South, Secretary to Queen Ranavalona I, when he helping out at the Akany Avoko centre, kept a diary and wrote a remarkable account building a silk-weaving workshop at of his times and a , all Soatanana and working in the national parks. in English. At the end of October Judge Visit by Chairman. In September the Ranj eva and his wife Yvette (Ambassador to Chairman of the Society Sir Mervyn Brown UNESCO) led a group of twenty or so visited Madagascar with a (rather elderly) descendants of Raombana on a pilgrimage to team of tennis veterans. They played matches trace the footsteps of their ancestor and visit against considerably younger Malagasy the places where he studied and lived during veterans, and lost honourably by 9 matches to his time in this country. They included the 6. They visited the Akany Avoko remand sites of London Missionary Society schools home where they were enormously impressed in Borough Road in London and in Salford by the work of Irenee Home; and had dinner where Raombana and his twin brother were with Hanitra Anderson at the restaurant of her educated and places where they spent splendid Antshow cultural centre. They saw holidays in Wales and in Oswestry. They indri and other lemurs at the Andasibe reserve also paid visits to the Houses of Parliament, and spent three days at the excellent Ylang to SOAS Library where the LMS archives Ylang Hotel (part-owned by our Secretary are kept and to Windsor Castle, where Stuart Edgill) in Nosy Be, where Sir Mervyn Queen Adelaide received a Malagasy celebrated his eightieth birthday. embassy in 1837. The pilgrimage reflected Going out a few days before the tennis both the importance of Anglo-Malagasy players, Sir Mervyn also called on the relations in the nineteenth century and the Minister of Culture Madame Odette central position of ancestors and the family Rahaingosoa, who had given an excellent talk in the lives of the Malagasy people. t6 the Society some years ago; the Foreign Shopping. The British furniture and Minister General Marcel Ranjeva, brother of white goods store retailers Courts now have our member Judge Raymond Ranjeva; the stores in Antananarivo, Toamasina and Prime Minister Jacques Sylla, and finally Antsirabe. They have been outstandingly President Ravalomanana. The President successful in catering to those with limited spoke of the importance of Anglo-Malagasy incomes by providing cheap credit and a relations in the context of the proposed re- wide choice of goods. The South African opening of the Embassy in London, and also company Shoprite has bought out of his keen interest in restoring the nova of the Champion., a French supermarket chain. Queen's Palace. Sir Mervyn was later able to Such exotic delicacies as Marmite, HP sauce see that, in addition to the repair of the Palace and porridge are now available to discerning Church, the royal tombs and Andria- shoppers at reasonable cost. nampoinimerina's wooden `palace' had been rebuilt. He was told that a 40-metre tree-trunk

13 OBITUARY STOP PRESS , Prime Minister from On 5 January the prime Minister announced 1993 to 1995, died on 15 February aged 62. a substantial government reshuffle. The size He was a lawyer from a well-known political of the government was further reduced, from family based in Vohipeno on the East coast. 22 ministers and one state secretary to 17 He was prominent in the movement for ministers and two state secretaries. Only change in 1990-91 and in 1993 was elected by nine of the present ministers survived, six the National Assembly as the first prime remaining in their existing posts and three minister under the new parliamentary being switched to other posts. Nine new constitution, which in theory gave all ministers were appointed and twelve were executive power to the prime minister. dismissed, including the Minister of Culture However the President refused to Madame Odette Rahaingosoa and the accept the limitations of his constitutional Minister of Justice Madame Alice Raj aonah. office, interfered constantly in government The full list of the new Government is in the matters and undermined Ravonys efforts to attached Annex. conclude an essential agreement with the World Bank and the IMF. Lacking an adequate power base in the National Assembly, Ravony eventually resigned after Zafy won a referendum giving him rather than the Assembly the power to appoint the prime minister. He was generally respected as an honest politician who was known as "Monsieur Franc-parler". Svlvestre Randafison, the grand old master of valiha players, died on 12 July at the age of 75. He was the last surviving member of the famous Ny Antsaly trio, the first traditional music group to tour extensively abroad, in the 1950s and 60s, including a visit to the Welsh National Eistedfodd in 1962. He made several visits to Britain, the last time some ten years ago when he and his two daughters took part in concerts with the former Ambassador to London Jules Razafimbahiny.. He carried out valuable research into traditional music in various parts of the island, and received numerous academic honours for his work. He was a member of the Academie Malgache, a Grand Officer of the Ordre National de Madagascar and a Chevalier of the Ordre des Arts et des Lettres Fran caises. He made many records and was also a renowned maker of valihas. A charming, modest man, he will be greatly missed.

1 4 ANNEX New Government 5 January 2004 Unchanged Premier Ministre Jacques Sylla Economie, Finances et Budget Radavidson Benjamin Andriamparany Programme Economique, Transport, Travaux Publiques et Amenagement du Territoire Zaza Ramandimbiarison Energie et Mines Rabarison Jacques Affaires Etrangeres Ranjeva Marcel Industrialisation et Commerce Mejamirado Razafimihary Environnement, Eaux et Forets Rabotoarison Charles Sylvain

Changed portfolios Education Nationale et Recherche Scientifique Razafinjatovo Haja Nirina Fonction publique, Travail et Lois Sociales Ranjivason Jean Theodore Culture et Tourisme Rabenirina Jean Jacques

New ministers Defense Nationale General Behajaina Petera Interieur et Reforme Soja Justice Madame Ratsiharovala Lala Henriette P9pulation et Protection Sociale Zafilaza Telecommunications, Postes et Communication Mahazaka Clermont Gervais Agriculture, Elevage et Peche Randriarimanana Harrison Edmond Jeunesse et Sports Randrianjatovo Henri Francois Victor

New State Secretaries in Ministry of the Interior Decentralisation, Developpement Rural et Communes Eniavosoa Securite Publique Razakanirina Lucien Victor