Assignment 2
Assignment 2: Lending Institutions, Health Care, and Human Capital
Professor Paula Moore
SOC300: Sociology of Developing Countries
Joanne Rivera
3/21/14
Madagascar is part of Sub-Saharan Africa. It is a developing country that is the fourth largest island in the nation. The average population is 22.29 million and its gross domestic product averages 9.975 billion. Andry Rajoelinas seized power in 2009 leaving the country isolated; deprived of foreign aid (The World Factbook). Andry began to rebuild an unconstitutional government in Madagascar causing new president Hery Rajaonarimampianina to take office. This under poverty country has its Malagasy citizens living under less than two dollars a day (Razafison, 2012). It is important to understand how this low income country has contributed to their financial instability. Madagascar’s main exports are vanilla, coffee, seafood, cloves, petroleum products, chromium, and fabrics. They are particularly vulnerable to global shutdown because they are an open economy. The economy revenues from 80% tourism earnings, 50% export of goods, and 15% foreign direct investment (Measuring Impact of the Political Crisis, 2013). Madagascar’s new president was willing to create an important step to the five year political crisis because of the suspension of funds. The suspension caused a depriving of cash and stunting economic growth. An important organization that would help bring Madagascar back to their feet would be IMF, International Monetary Fund. IMF has an important role in helping developing countries like Madagascar. IMF has six primary roles in helping developing countries. There to five policy advice to governments and central banks based on analysis of economic trends and cross country experiences. They research statistics, forecasts, and analysis based on tracking of global, regional or individual economics and markets (International Monetary Fund). Learn to help
Professor Paula Moore
SOC300: Sociology of Developing Countries
Joanne Rivera
3/21/14
Madagascar is part of Sub-Saharan Africa. It is a developing country that is the fourth largest island in the nation. The average population is 22.29 million and its gross domestic product averages 9.975 billion. Andry Rajoelinas seized power in 2009 leaving the country isolated; deprived of foreign aid (The World Factbook). Andry began to rebuild an unconstitutional government in Madagascar causing new president Hery Rajaonarimampianina to take office. This under poverty country has its Malagasy citizens living under less than two dollars a day (Razafison, 2012). It is important to understand how this low income country has contributed to their financial instability. Madagascar’s main exports are vanilla, coffee, seafood, cloves, petroleum products, chromium, and fabrics. They are particularly vulnerable to global shutdown because they are an open economy. The economy revenues from 80% tourism earnings, 50% export of goods, and 15% foreign direct investment (Measuring Impact of the Political Crisis, 2013). Madagascar’s new president was willing to create an important step to the five year political crisis because of the suspension of funds. The suspension caused a depriving of cash and stunting economic growth. An important organization that would help bring Madagascar back to their feet would be IMF, International Monetary Fund. IMF has an important role in helping developing countries like Madagascar. IMF has six primary roles in helping developing countries. There to five policy advice to governments and central banks based on analysis of economic trends and cross country experiences. They research statistics, forecasts, and analysis based on tracking of global, regional or individual economics and markets (International Monetary Fund). Learn to help
Cited: International Monetary Fund. (n.d.). Retrieved from https://www.imf.org/external/about/whatwedo.htm Measuring Impact of the Political Crisis. (2013, June 5). Retrieved from WorldBank: http://www.worldbank.org/en/news/feature/2013/06/05/madagascar-measuring-the-impact-of-the-political-crisis Razafison, R. (2012, October 29). Madagascars Battled Economy Can Rebound: Wolrd Bank. Retrieved from Africa Review: http://www.africareview.com/Business---Finance/Counting-the-cost-of-Madagascars-crises/-/979184/1605988/-/72ep0rz/-/index.html The World Factbook. (n.d.). Retrieved from https://www.cia.gov/library/publications/the-world-factbook/geos/ma.html World Bank. (2014, February 27). Retrieved from World Bank: http://www.worldbank.org/en/news/press-release/2014/02/27/world-bank-approves-emergency-help-to-improve-health-and-food-security-in-madagascar