Positive and negative effects of peace and war on the distribution of foreign aid in Madagascar
In Madagascar, foreign aid is both a benefit and a cost of development and growth towards peace. The country appears as a victim of aid-financed democracy that does not suffice to assist it in defeating the challenges of poverty and the lack of sufficient economic systems (Moyo, 2009).
In 2009, Madagascar underwent a coup. This was an indication of the failure of its democracy, backed by foreign powers, to sustain the peaceful transition of government. In fact, the institutions of the country are weaker compared to their ideal functioning levels in a robust democratic society. The distribution of wealth is not equitable, which has served as one of the pretexts for internal conflict. The lack of systems to ensure that the citizens are the real beneficiaries of foreign aid continues to hamper the ability of Madagascar to sustain its peace process.
Peace in Madagascar allowed sufficient development of institutional frameworks that would aid the overall development of the country’s economy. The support of the government and recognition by international political and economic bodies meant that there were sufficient prospects for economic growth and an increase in people’s standard of living. However, as a risk report on the country shows, the effects of conflict ensured that the country had a higher sovereign credit risk, followed by currency inconvertibility and transfer risks as of 2014 (JLT, 2014). These factors jeopardize the effective functioning of aid programs, despite the fact that they arise at a period when the major conflict is over, and the country is working towards rebuilding its peace.
Madagascar was a recipient of foreign aid prior to the coup in 2009 and the unfolding events in the years that followed. Major donors such as the United States opted to suspend the country from aid programs and limit any existing aid to humanitarian programs. Therefore, the war has led to the removal of any available opportunities for foreign aid to fund the development of institutions that would allow the country to sustain peace once it attains it. Currently, aid is only occurring in sectors that mainly require recurrent expenditure assistance. These include humanitarian crises, which require the supply of basic needs and do not allow the concerned agencies to come up with long-term plans to remedy the situation (Ploch & Cook, 2012).
Mass killings continued after the coup of 2009 in the southern parts of the country. Criminal gangs and security forces kept on disobeying human rights and the rule of law to administer their versions of justice and order (WILPF International, 2013). This was a bad report from a country with more than two-thirds of its population being below the poverty line. The period of conflict in the country only worsens the economic situation of the majority of citizens. For example, when bandits attack villages and steal cows in organized cartel activity, security forces opt to destroy entire villages that are suspected of harboring the criminals (WILPF International, 2013).
As a result, they destroy the source of livelihoods for thousands of people, and the nullify gains made on economic empowerment programs supported by foreign aid (WILPF International, 2013). The effects of conflict continue to affect urban area sustainability programs. Many towns are forced to accommodate an influx of internal immigrants fleeing the war. Moreover, the country now has to deal with a growing problem of internally displaced persons who lack resources for self-sustenance.
Other than the direct effects of the war on the economy, there are also indirect effects of the withdrawal of aid. The reduced expenditure of the government due to reduced budgetary support means that non-critical programs of government are not funded in the annual budget. For example, environmental issues relating to illegal logging and the endangerment of wildlife continue to hurt the stability of the country’s economy and the sustenance of its citizen’s welfare (Ploch & Cook, 2012).
Actions Taken by the Leadership
According to the WILPF International (2013), the government of Madagascar is not committed to restoring peace, given that criminals who are affiliated with the political elites continue to possess arms. The reluctance of the current government is part of a larger institutional problem that began in the previous governments. The development of the Madagascar economy cannot happen without being intertwined with political dynamics. Over the last ten years, a number of development initiatives seek to make effective use of foreign aid because it supported the government’s public expenditure that existed before the conflict. A notable example was the education reform launched in 2003.
However, there were issues with government support that minimized the gains made from the program. The concentration of power by the incumbent president, Ravalomanana, meant that resources would not be evenly distributed across the country (Jütersonke & Kartas, 2010). The main reason for the failure of development aid was that it went into programs that did not have sufficient coordination and lacked coherence with the pressing needs of the country. In fact, the seemingly forceful nature of foreign aid to particular programs in developing countries is often cited as a major reason for failure (Moyo, 2009).
Hery Rajaonarimampiana ascended to the presidency in 2014 and initiated negotiations with major investment and donor partners of the country (JLT, 2014). The president also ensured that the government would function optimally by appointing a cabinet and a prime minister. Going forward, the government’s next action is to tackle corruption and strengthen democratic institutions.
Has the extension of foreign aid successfully reduced poverty and the incidence of warfare in the selected country?
Foreign aid has to be effective, in addition to being provided in the right quantity. The system and delivery of aid have to be efficient, so that much of the aid goes to the intended projects. Relying on the positive differences in development to measure the effect of aid makes it easier to interpret aid as less effective due to the causes of funds’ disappearance highlighted above. In fact, there are studies recommending critical reflection in dealing with operational programming cases regarding foreign aid pertaining to the case of Madagascar (Jütersonke & Kartas, 2010).
According to Moyo (2009), an emerging economy requires a transparent and accountable government. In addition, it must have an efficient civil service that will allow it to meet social needs. Unfortunately, it appears that the constant stream of foreign aid has only aggravated problems by keeping inefficient and bad governments in power, especially in the African economies analyzed by Moyo (2009), among them Madagascar. The argument here is that a constant supply of aid provides no motivation for change in systems, despite the fact that the aid is channeled to the specific countries for reasons related to the strengthening of institutions to have checks and balances (Moyo, 2009).
Based on the above analysis, it is likely that future incidences of war in Madagascar will lessen. However, the outcome depends on the ability of the new government to restore confidence in foreign donors so that they resume unconditional aid. It also relies on the government’s commitment to tackling corruption and supporting programs of equitable distribution of resources in Madagascar, as well as protection of natural resources.
References
JLT. (2014). Madagascar risk report: Credit, political and security risk. Web.
Jütersonke, O., & Kartas, M. (2010). Peace and conflict impact assessment (PCIA), Madagascar. Geneva, Switzerland: Centre on Conflict, Development and Peacebuilding (CCDP), Graduate Institute of International and Development Studies. Web.
Moyo, D. (2009). Why foreign aid is hurting Africa. The Wall Street Journal. Web.
Ploch, L., & Cook, N. (2012). Madagascar’s political crisis. Congressional Research Service. Web.
WILPF International. (2013). Premises of a civil war in Madagascar? Women’s International League for Peace and Freedom. Web.