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Governance

NATIONAL PROGRAMME TO STRENGTHEN GOVERNANCE IN MADAGASCAR

1. GENERAL BACKGROUND

Madagascar, an island continent located at the east of Africa, extends over an area equivalent to that of France and Belgium combined, and has a population of 12 million inhabitants. Its geographical location, the fact that it is an island, the nature of its terrain which compartmentalizes the territory, its pre-colonial history and the successive political and economic choices made since independence, which was obtained in 1960, afford an explanation of its present situation.

1.1 Cultural and historical situation

Madagascar, stopping place on the route to the Indies, is a melting pot where populations coming in successive waves from horizons as diverse s Asia, Africa, India, Arabia and Europe have intermingled with the great island's first habitants. Many kingdoms were established in all parts of the island (south,east, west, centre), bringing together 18 ethnic groups, until the Merina monarchy, established on the central uplands, embarked upon the task of extending its sway over the entire country with a view to unifying it. In 1986 Madagascar became a French colony, thus entering into the conflictive dynamics of resistance, most notably in the insurrection of 29 March 1947, acculturation, the search for a specific identity, acquisition of satellite status and the current choice of a development model that is sufficiently endogenous and linked to the context of globalization of trade and of the economy.

1.2 Political structure

Madagascar is presently under the regime of the Third Republic, governed by the Constitution of 18 September 1992, as amended on 13 October 1995.

This Constitution appears to present shortcomings and internal contradictions which make it difficult to establish the institutions and structures it provides for: the Senate, the High Court of Justice, the Constitutional, Administrative and Financial Court, the National Justice Council, the Office of the Inspector General of Justice, and decentralized territorial communities. The Prime Minister is designated by the President of the Republic, who is not answerable to the National Assembly in this respect. Political liberalization has encouraged the proliferation of political parties, which number 140.

Despite its political and geo-ethnic diversity, which may be conducive to dispersal of activities, the country enjoys a peaceful socio-political climate and a unity of culture embodied in a national language that is understood throughout the territory; these are major and federalizing assets in the implementation of a national development plan.

1.3 Socio-economic situation

Madagascar has seen its per capita GDP decline from $500 in the 1960s to $230. Currently, 70 per cent of the population, which is growing at around 3 per cent a year, are living below the poverty line. The agreements recently concluded with the Bretton Woods institutions have enabled Madagascar to regain the confidence of the international financial community in supporting its structural adjustment programme and its development objectives. Over and above the necessary restoration of the macroeconomic equilibria, Madagascar has set itself the goal of reducing the proportion of the poor to around a third of the population within one generation. This calls for high growth rates which are expected to be achieved through a spectacular expansion of private as well as public investment. For this to be achieved, national and foreign promotes need to have confidence in the countries and institutions and feel certain that their investments will be assured of acceptable profitability and security. Basically, this calls for the support of all political, economic and social actors in implementing growth and development projects.

1.4 The issue of governance

This concept of participation by all actors in national life in drawing up and implementing common projects is precisely what lies at the basis of the good governance that is generally recognized as the key to sustainable human development. Good governance in Madagascar is expected to contribute to resolving the paradox that has been complained of for a number of decades: why has the country, which is so potentially rich in all areas, been unable since attaining independence to promote its growth and economic and social development? The findings in this respect over a lengthy period may be summarized as follows:

- The absence of a stable majority within the institutions, which leads instability of the regime;

- A State which does not possess the means required by its policy of drawing up and putting into effect a real scheme society;

- A highly politicized and poorly motivated administration, with the civil service held in low esteem, finances destructured and justice unreliable;

- Decentralization that is slow to take effect;

- A private sector that is awaiting an environment conducive to its expansion;

- A fully organized civil society;

- A democratic culture that is lying fallow.

The National Programme to Strengthen Governance (PRNG) is developing the components of the programme to be implemented in order to help resolve these problems.

2. OBJECTIVES AND STRATEGIES

2.1 Scope and objectives of the governance programme

The PNRG holistically covers all the aspects of national, regional and local activity in the political, economic, social and cultural spheres, and involves all actors in the public sector, the private sector civil society and the political parties. Its implementation is based on clarification of roles and redefinition of functions, strengthening of skills and provision of the resources to enable the institutions and actors to perform their functions ln an optimum manner within the overall dynamics of the system.

The PNRG aims at attaining the following objectives:

- Establishing economic, political and institutional conditions for resolving the crisis of the State and the socio-economic crisis;

- Promoting a national policy conducive to economic and social development;

- Creating favourable and durable conditions for improving the management of public affairs and expanding participation by the citizenry and civil society in that management, as well as realizing the social expectations of each actor;

- Promoting interrelationships between the State, the institutions and the other major actors in the national life.

2.2 Links with the national development plan

These objectives of the PNRG are in line with the national development plan. The Economic Policy Framework Document 1996-1999, which reflects the basic socio-economic choices of the Malagasy authorities, entails a redefinition of the roles of the Government and a recognition of the essential role of the private sector and civil society in socio-economic recovery.

In highlights the fact that a strategy for sustainable development is inseparable from good governance, which calls for extensive reforms designed to promote an incentive-providing macroeconomic and regulatory environment, as well as the support of all the forces in the national, which is a prerequisite for its success.

The government's Programme maintains that in order to combat poverty, resolve the State's social and economic crisis, there is a need to ensure reform of the State, strengthening of human capital and economic recovery.

2.3 The strategic framework

What is at stake in the PNRG is resolving the paradox between the country's regressive socio-economic situation and the real potential it possesses. The task is to create a synergy between the economic development and the cultural development of all the actors called upon to learn new forms of behavior and at enterprisingly within a juridical and legal framework that secures the support and the participation of all. The strategy for implementation of the PNRG is based on five major approaches:

- The programme approach, which responds to a concern for coherence and consensual vision of the objectives and modalities;

- The decentralized approach, designed to turn regional and local resources and skills to advantage;

- The participatory and iterative approach, based on involvement of local decision-makers, the local population and the private and associative sector in the design, programming and management of the mechanisms of good governance;

- Decentralization of the resources of the national and international executing agencies so as to permit local management;

- Empowerment of the citizens so as to enable them to acquire negotiating power with a view to a partnership in putting into effect their own social objectives.

3. COMPONENTS OF THE PROGRAMME: OBJECTIVES, ACTIVITIES AND RESULTS

The PNRG has seven components which take the form of subprogrammes.

3.1 Achievement of a State ruled by law

OBJECTIVE

Restoration of the State's credibility through respect for human rights, the emergence of a State conscience and the promulgation and implementation of high-quality legislation designed to promote sustainable development.

Result 1: Respect for the indivisibility and universality of human rights.

Activities:

- Design and establishment of an institutional legal framework to act as an observatory of the State ruled by law;

- Turn to advantage and strengthen the specificity of the Ombudsman's Office;

- Inventory, ratify and apply the international conventions on fundamental rights.

Result 2: High quality and effective legislation

Activities:

- Organization of specific training courses and ongoing training sessions for parliamentarians and magistrates;

- Turn to advantage and strengthen the specificity of the Ombudsman's Office;

- Inventory, ratify and apply the international conventions on fundamental rights.

Result 3: Achievement of knowledge of the law by all citizens, confidence in the law and consolidation of the advances made

Activities:

- Identification and implementation of social mobilization activities.

3.2 STRENGTHENING THE SEPARATION AND BALANCE OF

THE THREE POWERS

IMMEDIATE OBJECTIVE 1

Effective exercise of the prerogatives of Parliament, particularly in drawing up high-quality legislation.

Result: High-quality legislation capable of resolving conflicts and inspiring confidence among persons on trail.

Activities:

- Drafting and promulgation of high-quality legislation;

- Inventory and preparation of documents for use by parliamentarians (handbooks, etc.)

IMMEDIATE OBJECTIVE 2

Strengthening of the capability of the executive with a view to continuity of the State.

Result: Compliance with the State's programmes and commitments.

Activities:

- Periodic review of the State's programmes and commitments.

IMMEDIATE OBJECTIVE 3 0

Independence of the judiciary.

Result 1: Rapid and efficient judicial machinery as indicated by the number of cases investigated.

Activities:

- Inventory and drafting of documents for use by magistrates.

Result 2: Rehabilitation and reorganization of prison administration and judicial machinery.

Activities:

- Provision of sufficient resources for the judicial machinery;

- Preparation and dissemination of relevant information-education-communication (IEC) documents;

- Establishment of logistic support for storage of documentation, particularly in the translation services.

3.3. Reactivation of the administrations capacity for greater efficiency/effectiveness

IMMEDIATE OBJECTIVE 1

Effective economic administration making it possible to respect the major macroeconomic equilibria and the commitments entered into with the international financing community.

Result 1:

Control of the major economic and financial parameters: growth, inflation, budget deficit, fiscal pressure, money supply, external deficit, etc.

Activities:

- Draw up and keep up to date a set of indicators of macroeconomic management and foreign aid;

- Conduct of internal evaluations and follow-up exercises of projects/programmes in terms of the results and the impact on the life of the population.

Result 2 Improved ability to coordinate official and private external assistance.

Activities:

- Progressive stabilization of public fiances, and in particular appropriate utilization and rigorous management of aid;

- Organization of ongoing training seminars or retaining sessions for the officials assigned to this task.

IMMEDIATE OBJECTIVE 2

A civil service performing its economically and socially and socially useful role.

Result 1 Sufficiently well paid and status-enhancing jobs.

Activities:

- Definition of a strategy to restore the reputation of the administration and professionalize it: development of skills, recognition of good performance and penalization of infractions, motivating remuneration;

- Rehabilitation of personnel files.

Result 2

Functional information system and efficient public service network governed by precise rules, regulations, procedures and directives and subject to monitoring and control.

Activities

- Establishment of a participatory administration and revitalization of the civil service, finances, the tax system and justice.

Result 3

Improving the moral standards of the administration.

Activities:

- Combating corruption and putting transparency procedures into effect.

- Ensuring the continuity of the State by depoliticizing the administration in order to eliminate the "spoils system", which has become a factor in its decline.

3.4 Strengthening the capacity of the decentralized territorial communities (DTCs) to speed up the process of decentralization

IMMEDIATE OBJECTIVE 1

Assumption by regional or local populations of responsibility for the management and development of their regions or areas.

Result 1: Effective participation by the population.

Activities:

- Promulgation of texts governing decentralization;

- Clarification of the real responsibilities among decentralized services and the authorities of DTCs, and drawing up of a charter of responsibilities;

- Expansion of cooperation between the decentralized services and the DTCs;

- Establishment of inter-commune understandings.

Result 2:

Strengthened management capacity and role of DTCs in local development

Activities

- Drawing of a local development policy and strategy;

- Establishment of a partnership network and protocol;

- Organization of think tanks and technical and practical training workshops for elected officials and staff of the decentralized services with the authorities of the DTCs;

- Drawing up of the terms of reference for the technical and financial executing agencies for projects;

- Creation of an environment conducive to economic activates.

IMMEDIATE OBJECTIVE 2

Effectiveness of the transfers of skills accompanied by transfer of resources to ensure the viability of the DTCs.

Result 1: Decentralization of patrimonial assets, transfer of resources.

Activities:

- Clarification and improvement of the related policy;

- Strengthening of capability for preparing and implementing a resource redistribution procedure;

- Improvement of the communal tax system.

Result 2:

Adequate and realistic budget.

Activities

- Strengthening of programming and management capabilities;

- Preparation of budgets in relation to available resources;

3.5 Improvement and strengthening of the framework conditions for promotion and expansion of the private sector

IMMEDIATE OBJECTIVE 1

A framework of incentive for the private sector.

Result

Creation of a good juridical and fiscal environment

Activities:

- Reform and tidying up of business legislation;

- Adjustment of banking legislation and facilitation of access to credit;

- Expansion of tax incentives to a broader range of beneficiaries;

- Establishment of a single office for the establishment of companies;

- Extension to the regional and sectoral level of the standing framework for analysis and discussion.

IMMEDIATE OBJECTIVE 2

Development of entrepreneurship

Result: Stronger process of development of entrepreneurship

Activities

- Structuring of sectors with strong growth potential and institution of a sectoral policy and strategy backed by appropriate financial instruments and accompanied by monitoring/follow-up/adjustment;

- Improvement in the quality and competence of the Board of Governors defined in the statutes of the company (corporate governance);

- Strengthening of the chambers of commerce for industry and crafts (CCIA) so that they can meet users' needs, and operation of local resource centres to support small private structures;

- Establishment of mechanisms to promote respect for the rights and obligations of private enterprise.

IMMEDIATE OBJECTIVE 3

Progressive involvement of informal activities.

Results: Active participation of the informal sector in national development projects.

Activities:

- Expansion of credit services for the poor;

- Identification of coercive measures against companies which deliberately evade the legislation in force;

- Organization of a regular flow of information through the circulation of IEC documents on the tax and simplified accounting management regulations;

- Establishment and application of criteria for positive and negative sanctions.

IMMEDIATE OBJECTIVE 4

Development of the rural private sector.

Result:

Viability of family or community agricultural units

Activities:

- Improvement of access to the micro-credit system;

- Training in management techniques.

3.6 Empowerment of civil society

OBJECTIVES

Result 1:

A strong civil society involved in decision-making.

Activities:

- Application of mechanisms to ensure transparency in the management of public affairs and participation by the population;

- Education in the culture of management and quality control of governance in order to involve civil society and identified village community leaders in all national programmes/projects aiming at sustainable development.

Result 2:

Significantly increased representation of women and young people in social, political and economic life, particularly in elected bodies and at all levels of the power pyramid for women.

Activities

- Support for micro-achievements by women and young people and facilitation of access to credit for income-generating activities;

- Strengthening of social mobilization for the status of women, children's rights, young people and support for increased participation by women and young people in social, political and economic life.

Result 3:

Effective NGOs

Activities:

- Application of the legislation on NGOs;

- Application of transparency rules to the management and administration of NGOs and associations;

- Organization of management training for NGOs and associations;

- Follow-up of local structures and transfer of skills (building intra-economic and political problems, capable of enlightening and shaping public opinion.

Activities

- Regulation of media ethics;

- Drawing up of a charter for the media.

3.7 Promotion of democratic culture and political ethics in order to

give effect to good governance

IMMEDIATE OBJECTIVE 1:

Organization of free elections and instruction in acceptance of the verdict of the ballot.

Result:

Socio-political stability and stability of the regime.

Activates

- Reform of the juridical framework and regulation of the formation and financing of political parties and electoral campaigns, and application of transparency rules to the financing of parties and electoral campaigns;

- Promotion of awareness among all political actors and the electorate of the values of democratic culture.

IMMEDIATE OBJECTIVE 2

Promotion of awareness of the political parties (Whether in power or in opposition) of the need to link the will to win and exercise power with a government programme that offers a scheme for society.

Result 1:

Improved credibility of the political parties in society and competence of representatives of political bodies to contribute positively to the conduct of national affairs.

Activities

- Preparation of a charter of good governance, equipped with performance indicators;

- Design and application of a mechanism to evaluate the impact of good governance following the establishment of a reference system of standards and indicators.

Result 2:

Open and constructive political debate on problems of general interest, conducted between aware leaders and an informed public.

Activities:

- Design and conduct of citizenship awareness programmes for the public and organization of training workshops fork the various groups in the institutional authorities (parliament, etc.), particularly in order to advance women to leadership positions;

- Conduct of complementary studies to clarify areas that are still obscure.

4. PROCEDURES FOR COORDINATION AND IMPLEMENTATION

4.1 Institutional framework

It is envisaged that existing or planned structures will be utilized for the management and piloting of the sectoral subprogrammes.

On the other hand,the PNRG as a whole entails the establishment of an institution with juridical personality and autonomy of organization which will constitute a platform for dialogue and participation, as well as a structure for overall management and coordination. Its functions will be guidance, coordination and follow-up of financial and organizational execution of the subprogramme. Its tripartite composition will be to include representatives of the State, donors and the beneficiaries of the programme.

4.2 Time table

The duration of execution of the PNRG will extend over a three-year period, starting in September 1997 and with activities continuing until August 2000.

4.3 Follow-up and reporting

Follow-up on the technical and financial levels and in terms of impact will be ensured by the overall management structure, which is also responsible for publishing reports and recommendations on the state of governance to supplement the manual on follow-up/evaluation procedures that will be prepared for the PNRG.

4.4 Indicators of success and benchmarks

The indicators of success and benchmarks will be assessed in terms of the results achieved in each subprogramme in the light of the following criteria:

- Socio-political stability and a state that performs effectively thanks to the application of the rules contained in the Constitution;

- A dynamic civil society that participates in the decision-making process at the national, regional and local levels;

- High-quality legislation that promotes a feeling of security and is effectively applied;

- Human rights protection;

- Restoration of confidence among the actors thanks to the expansion of private initiatives;

- Rigorous management of public finances and maintenance of the major macroeconomic equilibria, opening up opportunities for relaunching growth;

- Viability and financial autonomy of the DTCs;

- A flourishing private sector that contributes to the creating of sustainable livelihoods thanks to a favourable environment;

- A firmly based democratic culture and in particular the emergence of investigatory journalism for in-depth analysis of political, economic and social problems in order to enlighten and shape public opinion, and political parties working as a matter of priority on a programme that yields a scheme for society;

- A formalized charter of governance that is respected.

4.5 Evaluation

Evaluation of progress in the PNRG should be conducted by an audit mission assigned to an independent body which possesses appropriate resources and is capable of making a well-founded judgement of the state of progress of the programme's activities.

This body should be under the office of the Prime Minister.

5. OVERVIEW OF FINANCIAL REQUIREMENTS

In the implementation of the PNRG, all of its components will need to be coordinated by the Government with external assistance and financing in the bilateral and multilateral contexts along with mobilization of the resources of the State.

The total financial requirements for a duration of three years are assessed at 75,512,000 Malagasy francs.

Allocation of the programme's resources is the subject of negotiations through which the intentions of certain donors have become more or less clear.

5.1 RESOURCES REQUIRED

(Total in Malagasy francs and foreign currency)

Note:

EM: Malagasy State

RIP: Domestic resources

FAC: Fonds d'Aide et de Coopération

FMG: Malagasy franc

FF: French franc

USD: United States dollar

5.2 RESOURCES ALREADY AVAILABLE OR PLEDGED

Total in Malagasy francs and foreign currency)

Note: UNDP: United Nations Development Programme

PAIGEP: Public Management Institutional Support Project

MCAC: French Cooperation and Cultural Action Mission

FAC: Fonde d'Aide et de Coopération

Exchange rate as at 17 February 1997: 1FF - 852 FMG; 1 USD - 4,329.6 FMG

5.3 RESOURCES STILL REQUIRED

(Total in FMG)

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