VZCZCXYZ0007
RR RUEHWEB

DE RUEHAN #0775/01 3170928
ZNR UUUUU ZZH
R 130928Z NOV 09
FM AMEMBASSY ANTANANARIVO
TO RUEHC/SECSTATE WASHDC 3011
RUEATRS/DEPT OF TREASURY WASHDC

UNCLAS ANTANANARIVO 000775 
 
SIPDIS 
 
STATE FOR AF/E - MBEYZEROV 
FOR EEB/IFD/ODF - MSIEMER 
USAID FOR AFR/EA - AMARCUS 
FOR AFR/SD - CPOWELL, MILES 
TREASURY FOR FBOYE 
 
E.O. 12958: N/A 
TAGS: SOCI EAID SCUL MA
SUBJECT: MADAGASCAR'S CRISIS TAKES A TOLL ON BASIC EDUCATION 
 
SUMMARY 
------- 
 
¶1. The on-going political and economic crisis in Madagascar is 
taking a toll on the basic education system and prospects for 
continued gains in improving education for 4,400,000 primary school 
children. Available resources from the government and donors have 
diminished and parents are being expected to assume more of the 
costs of primary education. Concerned about the potential impact on 
school attendance, donors plan to request release of USD 15 million 
out of the USD 85 million Catalytic funds that had been approved for 
Madagascar under the World Bank managed Fast Track Initiative. This 
funding will support emergency needs for the coming six months and 
donors hope that it can help prevent widespread abandonment in the 
education system. The US government suspended its education activity 
in Madagascar and the project terminated in Sept 2009. The US 
government does not contribute to the Catalytic funds. 
End summary. 
 
BACKGROUND 
---------- 
 
¶2. In 2003, Madagascar embarked on an ambitious reform of the basic 
education system aimed at meeting the Millennium Development Goal of 
universal primary school completion by 2015. Madagascar's ambitious 
and comprehensive 'Education for All' plan benefited from funding 
from Fast Track Initiative (FTI) during two consecutive periods 
(2003-2005 and 2006-2008). In April 2008, Madagascar received 
approval for an additional USD 85.1 million Catalytic Funds to cover 
the period of 2009-2011. 
 
¶3. With these funds and other donor support for education, including 
the US government which prior to suspension of all non-humanitarian 
assistance supported teacher training and development of educational 
materials in Malagasy, English, and math, Madagascar was well 
equipped to tackle low primary completion rates. Only three of ten 
children in rural areas and six out of ten children in urban areas 
complete the primary cycle. 
 
¶4. Over the past six years the repetition rate for primary students 
dropped from 30 percent in 2003 to 20.5 percent in 2005.  The 
primary school completion rate increased from 36 percent in 2003 to 
60 percent in 2007. 
 
¶5. However, the prospects for continued progress have ground to a 
halt as the unfolding political and economic crisis has adversely 
affected basic education. Many donor programs have been suspended. 
The national education budget for 2009 was cut by 20 percent. 
Meanwhile the budget for 2010 has not yet been formulated. Usually 
by October the draft budget law has been submitted to the National 
Assembly for review and vote. 
 
¶6. Donors have observed with concern signs that diminished resources 
are likely to affect attendance and quality of classroom learning. 
School principals have started to collect contributions from parents 
which in turn affect their ability to finance costs of education for 
all children in the family. Distribution of school kits has been 
adversely affected. Planned school construction has slowed 
substantially while some contractors who have built classrooms have 
gone unpaid. There are concerns about the continued ability of the 
Government to pay teacher salaries, particularly for the contract 
teachers recruited by parents' associations. These teachers comprise 
59 percent of the teaching workforce. 
 
STATUS OF DONOR ASSISTANCE AND ACTIONS 
-------------------------------------- 
 
¶7. In the aftermath of the March 2009 coup, the World Bank, Japan 
Cooperation (JICA), Embassy of Norway, and the US government 
suspended their assistance in education. In September 2009, the US 
government-funded education activity was terminated. The US does not 
contribute to the Catalytic Fund. The European Union and African 
Development Bank continued the implementation of on-going projects 
through completion.  The UN agencies (UNICEF, UNDP, UNESCO, WFP, and 
ILO), French Embassy, and Agence Francaise de Developpement (AFD) 
have continued their education assistance but have elected to work 
directly with the schools and local communities while maintaining 
limited collaboration with senior education technical staff in 
government. 
 
¶8. Concerned about the prospects for continued deterioration within 
the education system, donors conceived a plan intended to mitigate 
the worst impacts on children's education and avoid large scale 
abandonment. The donors jointly prepared an emergency program which 
will cover six months from January through June 2010 and requested 
that the FTI Secretariat release USD 15 million from the undisbursed 
USD 85.1 million approved in April 2008. The World Bank office in 
Madagascar will continue as Trustee of the Catalytic Funds. The 
funds would be released to UNICEF as a grant. 
 
¶9. UNICEF will work with local NGOs and schools in the most 
vulnerable geographic zones, particularly in the drought prone 
South, to address urgent needs as follows: (1) provide subsidies to 
schools to cover community teachers' salaries, (2) cover overdue 
payments to contractors for work already completed, and (3) provide 
small grants to schools in vulnerable zones. The program will be 
managed so that no funds pass through the government. 
 
¶10. This emergency arrangement is expected to prevent a substantial 
increase in rates of absenteeism or abandonment and support the 
education system until a new government is elected and installed. 
Meanwhile, this plan will help ensure some measure of continued 
protection of children's right to basic education. 
 
MARQUARDT