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              THE REPUBLIC OF MADAGASCAR: INTERIM STRATEGY NOTE

                                      CHAIR’S SUMMING UP 

                                  Meeting of the Executive Directors

                                              February 21, 2012


       Executive Directors discussed the IDA Madagascar Interim Strategy Note (ISN) for
FY12 - FY13 (IDA/R2012-0020).

        Directors welcomed the progress being made on the comprehensive road map towards a
return to constitutional order, noting that the first two steps and a part of the third have already
been implemented. Directors recognized that the prolonged crisis had virtually brought to a halt
implementation of the Government’s poverty reduction strategy. They noted with concern the
impact of the crisis and the reduced international assistance on the poor, particularly the apparent
deterioration in health, nutrition and education outcomes. They also expressed their sympathy
for those affected by the recent cyclone Giovanna that hit Madagascar on February 14.

          Directors broadly supported the Strategy and welcomed its alignment with the Africa
Regional Strategy and the recommendations of the 2011 World Development Report,
particularly its focus on fragility prevention and the importance of remaining engaged even in
situations of political instability and weak governance. Directors welcomed the ISN’s focus on
the most pressing short term issues affecting the country, while taking a medium term approach
on the key strategic issues of governance, employment and vulnerability. They highlighted the
need for: (i) a more strategic use of the existing portfolio, (ii) a more focused analytical effort,
(iii) strengthened partnerships and donor coordination, and (iv) a cautious, strategic and selective
approach to modest new lending to address emergency situations in social sectors and to deal
with major external shocks or humanitarian crises.

        Directors expressed concern with the weakening governance over the past few years and
stressed the importance of addressing this challenge. In particular, they raised concerns regarding
gender and human trafficking, as well as with transparency and effective implementation of
public programs. In this connection, Directors encouraged close supervision of project
implementation, especially fiduciary aspects.

        Finally, Directors urged all stakeholders in Madagascar, and in particular the Transition
Authorities to advance rapidly towards a crisis resolution that enjoys broad support, in light of
the significant social and economic costs of the crisis to the vulnerable population.




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    This summary is not an approved record.