Poverty reduction initiative, big business on board

Madagascar has called on local and international businesses operating in the country to throw their weight behind efforts to tackle widespread poverty. The government recently launched the Growing Sustainable Business for Poverty Reduction Initiative, aimed at encouraging greater partnership between the public and private sectors in the country. The United Nations Development Programme (UNDP) in Madagascar is coordinating the project and is optimistic about the benefits it could generate. "The launch of the initiative is in line with the government's stated commitment to fighting poverty in the country through various ways. In other countries where similar projects have been launched there have been positive results. With more than half of the population living in poverty, it is important that all creative measures are taken to address these poor living conditions," UN Resident Coordinator, Bouri Sanhouidi, told IRIN. Notwithstanding enhanced economic performance during the last year, poverty remains pervasive in Madagascar. Some 70 percent of the population live on less than a US $1 a day, and improved delivery of government services to the poor is at the heart of the government's attempts to address poverty. Already Electricite de France has proposed three projects to supply power to rural areas and poor communities near urban areas, and a fourth to improve community water supply. According to UNDP, the rural electricity project has received government approval and will likely start within two months. Sanhouidi noted that energy giant Total had proposed assisting small and medium-sized fuel transport enterprises expand and improve their operations. "The initiative does not envisage big businesses to set up large-scale companies in the rural parts of the country. It is hoped that local and international companies will work closely with communities to create employment, thereby reducing poverty," Sanhouidi said. Other participating international businesses include Coca Cola, mining conglomerate Rio Tinto and Tata, a major Indian company. Last November the World Bank gave Madagascar's poverty reduction strategy the go-ahead and approved a credit of US $30 million to support reforms in the public sector.