ACP-EU JOINT PARLIAMENTARY ASSEMBLY

Transcription

1 ACP-EU JOINT PARLIAMTARY ASSEMBLY BUREAU 13 November 2007 REPORT ON THE JOINT MISSION OF THE ACP-EU JOINT PARLIAMTARY ASSEMBLY TO MADAGASCAR FROM 29 OCTOBER TO 1 NOVEMBER 2007 Mrs Glenys Kinnock, Co-President (EU) (Head of delegation) Mr Waven William (Seychelles), Vice-President (ACP) (Head of delegation) and Mr Antoine Dayori (ACP, Benin), Vice-President Mrs Lydie Polfer (EU), Vice-President CR\ doc APP/ /BURv01-00

2 INTRODUCTION An invitation from the President of the National Assembly of the Republic of Madagascar to the Co-Presidents of the ACP-EU Joint Parliamentary Assembly, on 12 January 2007, for the JPA to send a fact-finding mission to that country, was accepted by the Bureau at its meeting of 20 and 21 March At its meeting of 11 and 12 September 2007, the Bureau finalised arrangements for the meeting. The Delegation, which visited Madagascar from 29 October to 1 November 2007, was composed of: Mrs Glenys Kinnock, Co-President and co-head of Delegation Mr Waven William (Seychelles), Vice-President and co-head of Delegation Mr Antoine Dayori (Benin), Vice-President Mrs Lydie Polfer, Vice-President The programme for the mission is annexed to this Report. The Delegation would like to thank President Marc Ravalomanana, Mr Jacques Sylla, President of the Madagascar National Assembly, the Government of Madagascar and the Delegation of the European Commission in Madagascar, for facilitating the successful undertaking of the Mission. COUNTRY BACKGROUND History Formerly an independent kingdom, Madagascar became a French colony in 1896, but regained its independence in In 1972, after a military coup, the government was overthrown. This was a period of social unrest, followed by the government of Didier Ratsiraka, a military officer, whose brand of socialism and single party rule made his country desperately poor. In 1991, labour strikes led to major constitutional changes and during , free Presidential and National Assembly elections were held, ending Didier Ratsiraka s 17 years of single-party rule. In 1997, in the second presidential race, Ratsiraka was returned to the Presidency, defeating Zafy Albert, who had won the Presidential elections of The 2001 Presidential election was a close contest between Didier Ratsiraka and Marc Ravalomanana, and the dispute over the results led to a seven month stand-off between the two which paralysed the country. Eventually, in 2002, President Ravalomanana was recognised as President and was able to form a government. President Ravalomanana won a second term of office in elections held on 3 December 2006 in which he gained 54.8 % of the vote and was declared duly elected by the Constitutional Court on 23 December International Observers declared the elections were free, fair and transparent, although they made observations about certain electoral practices and procedures that need improvement. President Ravalomanana s government proposed Constitutional reforms which were approved in a referendum held in April Following the referendum, National APP/ /BURv /13 CR\ doc

3 Assembly Elections were held in September 2007, returning the President s party, Tiako I Madagasikara (TIM), with an overwhelming majority in Parliament (106 out of 127 seats). The turnout was low (around 30% according to the local elections observation committee KMF-CNOE and 46% according to the Conseil National Electoral; the final figure remains to be announced by the High Constitutional Court). Many also expect a low turnout at the forthcoming municipal elections owing to the increasing lack of interest of voters and the high number of elections held in a short period. Development Madagascar, 587 thousand sq. km in size and a population of about 19 million, is a Least Developed Country (LDC) with an annual income of US$972 of GDP per capita. According to the 2006 Human Development Report, its Human Development Index is 143 out of 177 countries; life expectancy at birth is 57.3; economic annual growth was about 6% in At the beginning of 2007 the Government published its Madagascar Action Plan (MAP), an ambitious framework for fostering rapid development and achieving the Millennium Development Goals. MDG Monitor, a UNDP Report on progress in tackling the MDGs, states as follows concerning Madagascar: During the period Madagascar recorded satisfactory progress in human development. Poverty has gone down to 67.5 per cent in 2006, largely as a result of improvements in education and health. This progress has been confirmed by the fact that Madagascar has for the first time joined the group of countries with average human development indicators according to the 2006 Human Development Report of UNDP. Other encouraging results include: the net rate of primary school enrolment increased from 67 per cent in to 87 per cent in ; the under-five mortality rate went down from 159 (EDS 1997) per 1,000 in 1997 to 94 in 2004; immunization coverage increased from 70 per cent in 2002 to respectively 92.2 (DPT3) and 83.8 per cent (measles) in 2006; and the prevalence of HIV has held steady at 0.5 per cent. Ongoing economic reforms have resulted in a per capita growth rate that is positive in real terms. The main challenges that the country faces are in capacity-building and mobilizing resources to ensure the implementation of the Madagascar Action Plan. 1 In the light of these challenges, the Malagasy government is preparing a conference early 2008 to bring together donors and discuss additional possibilities for funding the MAP implementation. 1 CR\ doc 3/13 APP/ /BURv01-00

4 POLITICAL CONSIDERATIONS The Parliament The JPA Delegation visited both the National Assembly and, for a shorter time, the Senate. The President of the National Assembly undertook to ensure that a parliamentarian to represent Madagascar in the JPA would attend the forthcoming session in Rwanda. In the meeting with the Delegation on the first day of the mission, President Ravalomanana had expressed concern about the inadequate facilities in the National Assembly, stating that the physical state of the present infrastructure at the National Assembly buildings did not provide a suitable working environment for staff and Members of Parliament. On the visit to the National Assembly, it was apparent to the Delegation that the main buildings were old and in urgent need of repair, while it was also made clear that the new EDF, implementing the priorities jointly agreed in the CSP, could not provide the funding for building and renovation costs. The cochair of the Delegation, Glenys Kinnock, addressed the Members of the National Assembly during their plenary session, which was followed by a question and answer session with the delegation. Despite the physical limitations, Members demonstrated a deep knowledge of the economic and social challenges facing their country, especially in the area of development cooperation with the EU and EPA negotiations. The new President of the National Assembly, Mr Jacques Sylla, told the JPA Delegation that the National Assembly had been consulted on the MAP, and that all decisions had to be ratified by that body. Madagascar just completed the ratification process of the Cotonou agreement in October There is, however need to enhance the capacity of Members to play an effective oversight role over the government, in particular on the Madagascar Action Plan (MAP), Country Strategy Papers, the European Development Fund and EPAs. The EU Delegation could organise briefing sessions for parliamentarians, perhaps initially on EPAs and on the working of the EDF. Capacity building should also focus on enhanced exchange and communication with civil society and private sector. Political opposition The JPA Delegation met eight leading members of non-government parties. No opposition party appears to be strong enough to offer a credible challenge to the ruling party. There also appears to be very little cooperation among the opposition parties. They did seem at one, however, in their complaints about the election system, calling for: - An independent Election Commission - the legal status for the opposition - A single ballot paper (currently each party is responsible for the printing of its own ballot papers for its candidates) - Legal limits on election expenses State financing of political parties was also mentioned as a way of levelling the political playing field. There were complaints over lack of access to the media. APP/ /BURv /13 CR\ doc

5 In the ongoing political dialogue under Article 8 of the Cotonou Agreement between the EU and Madagascar, the delegation would like to see a focus on the issue of elections, the recent tendency to closure of the political space and the issue of access to media, including possible conflicts of interest given the President's ownership of a private radio and TV network. Human rights and good governance The Madagascar Constitution protects the fundamental rights of citizens, and Madagascar is a signatory of several international instruments on human rights. But the delegation noted that the MAP does not reflect this commitment sufficiently. Political and civil rights are mentioned explicitly under the challenge of strengthening the rule of law, but other objectives are also closely linked to human rights standards (e.g. those identified under the challenge to build social trust and promote civic education). The social, economic and cultural objectives should also be linked to the existing human rights standards, thus expressing clearly that States and the international community are obliged to strive for decent living standards, gender equality, education and health for all. The right to form and join associations seems to be well used in Madagascar. A manifold number of organizations exist and increasingly, platforms are being formed. Continuous support will be necessary to strengthen civil society's capacity for joint action and campaigning on both political and social issues. Constant involvement in development policies is crucial, beyond the praiseworthy initial consultation on the MAP. The Delegation was informed that a law had been tabled in the Senate for full abolition of the death penalty (an effective moratorium has been in place for many years). Despite receiving support from the government, the bill has not yet been put to vote in the Senate. The Delegation noted the express commitment of the Malagasy government to effectively fight corruption, which is also one of the major objectives of the Madagascar Action Plan. According to the Transparency International Corruption Perception Index (CPI), an indicator to be used with caution, Madagascar's score improved slightly between 2006 and 2007 (from 3.1 to 3.2, maximum score being 10), but with low statistical significance. Madagascar's "country ranking" fell between 2006 (84 out of 163 countries studies) and 2007 (94 out of 179), partly due to the increase of the number of countries in the 2007 CPI sample. Some interlocutors informed the delegation that progress had been made, but mainly in the field of petty corruption. The delegation also noted that civil society is active in monitoring corruption, which should be supported by the relevant governmental institutions. CR\ doc 5/13 APP/ /BURv01-00

6 ECONOMIC CONSIDERATIONS Economic situation Prior to 2002, Madagascar was reported to have the 5 th lowest economic growth rate in the world, about 0.5%. The situation has improved under the TIM government. After the political and economic crisis in 2002, Madagascar's economy has started to recover with growth rates of approximately 5% in the period The ambitious goal of the MAP is to reach a growth rate of 8-10% by Growth is mainly driven by private investment. The main economic sectors have remained stable over the years (services: 51% of GDP, agriculture: 36%, industry: 13%). Madagascar, being favoured with significant water resources, has great potential for agriculture and an agribased industry. However, being a mountainous country, it has had to first rehabilitate its road infrastructure, which deteriorated in the period after independence. The agricultural sector, which provides about 80% of jobs, also suffers from low productivity, due to the lack of modern equipment and underutilisation of fertilizers and improved seeds. The MAP aims at increasing productivity significantly, but traditions and lack of infrastructure impede rapid modernisation. The provision of local storage space for agricultural goods (one of the projects visited by the Delegation), is one measure for helping farmers to increase their income. Madagascar has unique flora and fauna as well as attractive beaches which make tourism a strong future potential for growth and employment, as recognized by the MAP. The TIM government is pro-market and business friendly. The Government has floated the currency and there has been of late, a resurgence of international investment interest in the country. Poorly run state enterprises have been privatised, and efforts have been made to streamline import and export processes. Remarks were made to the JPA delegation at various times during their visit about the wealth of the President and the economic dominance of his companies. There seemed to be some feeling among private sector operators that this stifled competition in those sectors in which the President had an interest. In order to support private sector development in Madagascar, it was suggested to the Delegation that incentives should be created for European enterprises to work in Madagascar and other African countries and to encourage companies implementing EC funded projects to cooperate with local firms and ensure the transfer of know-how and technology, even more than is already current practice. The national legislation does not oblige international companies to work jointly with local partners. Tax policy An immediate MAP priority is to make dramatic changes in the tax code. Currently, Madagascar's tax take is among the lowest in the world, which severely limits the government's capacities to invest in development. According to an IMF study, while formal tax rates are close to the African norm, the collected revenue was 10.7% of GDP in The revenue from taxation on companies is very low. Companies in export processing zones are exempt from tax. The President has announced plans no longer to grant new tax exemptions for companies in EPZs while those that enjoy it APP/ /BURv /13 CR\ doc

7 already, would continue to do so. Tax evasion, including from companies linked to the President, was raised in some of the discussions the delegation had. The recent tax amnesty could undermine the government's tax policy objectives in setting a problematic precedent. Trade Madagascar's principal export goods are coffee, shellfish, vanilla, fish, textiles/garments (Free Zone), cloves, pepper, cotton, chromites, graphite, sapphires. Madagascar textile exports face competition from Chinese goods, which will increase when quota limits are scrapped in Europe in 2008 and in the US in Concerns about the risks of lowering customs for products entering Europe from Asian countries for the Malagasy industry were raised by private sector representatives in the meeting with the Delegation. The Government of Madagascar expressed an interest in rapid completion of negotiations over an Economic Partnership Agreement with the EC, jointly with the CMMS group (Comoros, Madagascar, Mauritius and Seychelles) of the ESA region. The alternative of the "Everything but Arms" regulation would be disadvantageous for Madagascar given the stricter rules of origin. However, in the Delegation's meeting with private sector representatives a number of concerns were raised about a speedy adoption of the EPA, in particular in relation to the continuing uncertainty on the support ACP countries would receive for covering their adjustment costs. EU Aid The European Union is the largest donor of Madagascar. Under the 10th EDF, 577 million are programmed for the A envelope and 11.2 million for the B envelope for the period The Country Strategy Paper and the National Indicative Programme were approved on 5 October EU aid will continue to concentrate on two main intervention sectors: transport infrastructure and rural development and food security. Good governance and reform of justice are a further non focal sector. Bilateral aid from Member States, in contrast, is rather limited, with only Germany and France having substantial aid programmes. They are the only Member States represented with Embassies in the capital. During the briefing with the EC and Member State representatives, the Delegation was informed about very close cooperation and coordination among the different donors, very much in line with the principles of the Paris declaration. The importance of improving the transport infrastructure was witnessed by the delegation during the field trip to Mananjary where the EC is repairing the national road system and has renovated the Anjilajila Bridge to connect remote regions and allow transport of goods to markets further away. The Commission also funds the ACORDS programme, combining decentralization with improvement of basic services at local level. Functioning like "local budget support", the local communes decide on, and implement, the priority projects according to their specific needs. The Delegation heard reports from several Mayors in the Vatovavy Fitovinany region most of whom underlined the positive effects not only on basic infrastructure in the communes but also on local policy making: closer cooperation between legislature CR\ doc 7/13 APP/ /BURv01-00

8 and administration, closer involvement of citizens, strengthened accountability, transparency and capacity-building. The EC supports the humanitarian project set up by a clergyman, Father Pedro in Akamasoa with food aid. The village provides shelter and food for formerly poor and homeless citizens near Antananarivo. The Delegation was informed, however, that the continuation of food aid is not secure given the new modalities under the new food aid instrument run by ECHO. The delegation has agreed to raise this issue with ECHO, given the important help the project provides to the most vulnerable sectors of society in Madagascar. Some of the Delegation also visited the Akany Avoko children's home, a private initiative which offers poor and abused children, some of them condemned for petty crimes, a new start in life. The Delegation was told that the home should receive for each child placed by the government in the home 1000Ar per day but that regular payments had been missing for years. The project also depends on EDF funding, currently secure until mid SOCIAL CONSIDERATIONS The penitentiary sector The Delegation experienced during its visit to the Maison Centrale in Antananarivo, accompanied by the Minister of Justice and several representatives of NGOs, the major shortcomings of the current prison system: overpopulation, very limited provision of mosquito nets, insufficient food provision and poor hygiene conditions, as well as lack of rehabilitation and education programmes. A poorly equipped library was run by an NGO. A significant number of prisoners were below 18. Many young women - pregnant or with children - are detained. Serious and petty criminals are put together; "auto discipline" is the major mechanism for keeping order. Due to the lengthy wait for trial many persons presumed to be innocent have to live under inhuman conditions. In the Maison Centrale, around 48% of the prisoners have not yet been found guilty by court. For example, the delegation spoke to one 16-year old girl awaiting trial since five months for alleged theft from her employer. The Minister of Justice presented to the Delegation an action plan to deliver concrete results by March 2008 for assuring a functioning and reliable justice sector, achieving humane prison conditions and reducing the number of prisoners. As a first step a list of prisoners awaiting trial had been established. The Delegation also raised the need for defining rules for releasing prisoners on bail and the need for assuring access to defence for poorer people. In fact, the judicial system needs a complete overhaul. The Commission promised to continue financial support for prison reform and improvement of infrastructure, an intention fully supported by delegation members. Social justice The JPA Delegation learnt of a recent proposal from the Employers' Association (the Patronat) to cut workers official holiday entitlement of one month a year by half and APP/ /BURv /13 CR\ doc

9 to increase the official work week from 40 to 44 hours. The unions (and not only them) are worried that this will be taken up by the Government, which would mean, given the ruling party s dominance in parliament, that it could rapidly become law. Such steps would be most unlikely to give the sought-for boost to productivity. Better management and a better socio-business environment, with a level playing field and a fall in corruption are much more likely to do so. Health The health system urgently requires major improvement and investment. The Delegation visited a basic health centre in Kianjavato where it found appalling conditions, not only in terms of equipment but also hygiene and cleanliness. This issue was raised directly with the Minister of Health and Family Planning in the meeting on 1 November who promised to look into this case immediately. The three hospitals visited in Antananarivo were proof of different health standards not only between poor (non-paying) and rich (paying) patients, but also between hospitals, depending on the level of outside funding. Most of the time, patients have to buy their own medicines as they are not available in public health institutions. The Ministry of Health has adopted, in the framework of the MAP, an ambitious programme for improving the quality and ensuring access to health by 2011, yet it admits a budgetary gap of around US$574 million. The government has also launched a campaign for distributing impregnated mosquito nets, but universal free provision has not yet been achieved. Education The Prime Minister told the JPA Delegation that compulsory schooling had gone up from five to seven years. The government had to recruit a further 6, 000 teachers this year but efforts are praiseworthy: the government informed the delegation that the state was paying even for schoolbags and school milk. Nonetheless, it remains a major problem that many children leave school before completion of the full primary cycle. The MAP recognizes that the school retention rate and the internal effectiveness still have to be improved. Women in society The Delegation programme began with the participation in the opening session of the Forum on "Women and Leadership" where 3000 enthusiastic women were addressed by the President of Madagascar and Glenys Kinnock. Compared to this impressive signal of the government's will to enhance the role of women in politics and society, the delegation noted that only 10 women were part of the 127-strong national assembly. The Delegation also noted that the promotion of gender equality and empowerment of women is taken up in the MAP as the very last point. Women's rights should be a clear priority in the government's development plan. Particular attention must be paid to the high maternal mortality rates, clearly linked to the practice of women's marriage, pregnancy and childbirth at a very young age. CR\ doc 9/13 APP/ /BURv01-00

10 CONCLUSIONS Madagascar s political, social and economic situation is the product of the social movements and political changes during its recent past. Under the TIM government, the economy has made significant strides and restored the confidence of international donors and investors (Madagascar was the first country that qualified for funds from the US Millennium Challenge Account). In the next few years, much will depend on the implementation of the MAP and how development benefits the poorest sectors of society. Continued international support is needed to help the country realise its ambitious objectives and in particular the Millennium Development Goals. Of fundamental importance to the success of the economy will be institutional changes that can be perpetuated over several electoral cycles in order to cement democracy, rule of law, and respect for human rights and to promote good governance. A strong opposition and Parliament, coupled with equitable access to the media, will be indispensable to this process. APP/ /BURv /13 CR\ doc

11 Annex: Programme Brussels, 5/11/2007 ACP-EU JPA Fact-finding mission to Madagascar 29 October - 1 November 2007 FINAL PROGRAMME Saturday, 27 October/ Sunday, 28 October Arrival in Antananarivo - Ivato Welcome and transfer to hotel HILTON: Pierre Stibbe Anosy street BP 959 Antananarivo 101 Madagascar Phone: + (261) Fax: + (261)/ Web site: Hilton/index.do Monday, 29 October 08h30 9h00-11h00 11h30 12h30-14h30 15h30-17h00 19h00 19h30 Departure from hotel Participation in the Forum "Women and Leadership", Iavoloha Palace Meeting with EU Member States (Residency of the Ambassador of Germany) Working lunch at the Residency of the Ambassador of Germany Visit to prison of Antananarivo with the Minister of Justice, (including discussions on the reform of the penitentiary sector with representatives of NGOs active in this field) Departure from hotel Cocktail offered by the Head of EC delegation (Residency of the Head of Delegation) CR\ doc 11/13 APP/ /BURv01-00

12 Tuesday, 30 October 08h15 08h h15-10h00 10h15-10h45 11h00-12h30 13h00-14h30 15h00-16h00 16h30-18h00 19h00 19h30 Departure from hotel Courtesy visit to the President of the National Assembly (Tsimbazaza) Meeting with Parliamentarians (Meeting Chamber in the Palais de Tsimbazaza) Courtesy visit to Senate (Anosikely) Courtesy visit to the Prime Minister Working lunch with private sector representatives (one topic proposed: EPAs) Meeting with political groups (EC delegation, Tour Zital, Ankorondrano) Meeting with Civil Society (EC delegation) Departure from hotel Dinner offered by the National Assembly and the members of Bureau (Restaurant La Varangue) Wednesday, 31 October 05h15 06h30 07h40 08h00 08h15-08h45 08h45 10h - 10h30 10h45 10h45-12h15 12h45 13h45 14h50-15h 16h00-16h15 Departure from hotel to Ivato airport Departure from Ivato airport Arrival to Mananjary Working Breakfast with local representatives (offered by the Delegation) Departure of the delegation to Anjilajila bridge Anjilajila bridge: "rehabilitation of suspension bridge and road infrastructure (RN25)" Departure to Irondro/Kianjavato Visit of NGO ICCO intervention (Water and sanitation) in partnership with SAF/FJKM in Ampandramana Arrival in Kianjavato Exchanges on ACORDS process and interventions in the region (decentralisation) Visit of a social infrastructure (health) Departure to Mananjary Arrival in Mananjary - speech and exchange of view with local actors Refreshment & snacks (offered by the delegation) Departure Arrival to Ivato airport APP/ /BURv /13 CR\ doc

13 Thursday, 1 November (public Holiday) 09h15 10h00 Departure from the Hotel Meeting with Minister of Health and Family Planning and the Vice-Minister; joint visit to three hospitals in Antananarivo: Centre Hospitalier Universitaire de Befelatanana et Maternité de Befelatanana, Centre Hospitalier Universitaire de Joseph Ravoahangy Andrianavalona (HJRA), Maternité Sainte Fleur (dans l enceinte du HJRA) Meeting with Father Pedro and visit to Akamasoa projects Working lunch with the head of the EC delegation (de-briefing) Visit to Palais d'ambohimanga (approx. 20 km from Antananarivo) or Visit to Akony Avoko Children's home 20h30 Transfer from Hilton to Ivato airport (part of delegation) Transfer of other members of the delegation on 2 and 3 November. CR\ doc 13/13 APP/ /BURv01-00