Country-Level Effectiveness and Accountability Review : Madagascar

This Country-Level Effectiveness and Accountability Review (CLEAR) examines the efficacy of microfinance aid in Madagascar, based on an objective analysis of donor assistance for the sustainable development of financial systems targeting the poor. The three levels of the financial system are the micro level (e.g., retail institutions), the meso level (e.g., apex, technical service providers), and the macro level (e.g., regulations and policies). At the micro level, there is a large number of stakeholders, and an increasing interest of banks and private investors, including a predominant stake by the Decentralized Financial Systems (DFS), as well as major roles by the local Savings Institution and the Post Office. At the meso level, there is a supply of services such as auditing. Finally, at the macro level, coordination and supervision exist, and a specific legal framework on microfinance is in place. Notwithstanding, microfinance in Madagascar remains weak, and, concerns suggest DFSs carry structural weaknesses at various levels. Additionally, it is specified services in support of microfinance are still rare, and its quality it debatable. Professional organizations need to be strengthened, particularly as lack of reliable information on financial results is concerned. At the macro level, supervisory and coordinating agencies rely on limited means, whereas the legal framework is not fully supportive. Risks suggest potential market disruptions resulting from subsidies and interest rate hikes, an implication by which the Ministry of Agriculture not always agrees with the Microfinance National Strategy. Finally, the judicial system does not rely enough in favor of the development of the financial sector.

Bibliographic Details

Main Authors:	Moyart, Manuel, Duflos, Eric, Latortue, Alexia, Lecuyer, Francois, Isern, Jennifer, Rauch, Hubert
Language:	English en_US
Published:	CGAP and the World Bank, Washington, DC 2005-10
Subjects:	ACCESS TO FINANCIAL SERVICES, ACCESS TO TRAINING, ACCOUNTING, ADVOCACY ACTIVITIES, AGRICULTURAL BANK, AGRICULTURAL FINANCE, AGRICULTURAL PRODUCT, AGRICULTURAL PRODUCTS, AID EFFECTIVENESS, APEX INSTITUTIONS, ARREARS, AUCTION, BALANCE SHEETS, BANK BRANCHES, BANK RATES, BANKING LAW, BANKING NETWORK, BANKING REGULATIONS, BANKING SECTOR, BANKING SECTORS, BANKING SUPERVISION, BANKING SYSTEM, BORROWING, BUSINESS PLAN, BUSINESS PLANS, CAPACITY BUILDING, CAPITAL MARKET, CASH FLOWS, CENTRAL BANK, CHECKING ACCOUNTS, COLLATERAL, COLLECTIVE ACTION, COMMERCIAL BANK, COMMERCIAL BANKS, COMPETITIVE BIDDING, COOPERATIVE BANKS, COOPERATIVES, CORRUPTION, COST OF CREDIT, CREDIT AGENCY, CREDIT ASSOCIATION, CREDIT BANKS, CREDIT BUREAUS, CREDIT INFORMATION, CREDIT INFORMATION BUREAU, CREDIT SUPPORT, CUSTOMER BASE, DEBT, DEEDS, DEMAND FOR CREDIT, DEPOSITS, DEVALUATION, DEVELOPING COUNTRIES, DEVELOPMENT BANK, DISCLOSURE GUIDELINES, DIVERSIFICATION, DONOR FUNDING, DONOR FUNDS, DONOR SUBSIDIES, DONOR SUPPORT, ECONOMIC COOPERATION, ECONOMIC CRISES, ECONOMIC CRISIS, ECONOMIC GROWTH, EDUCATION SYSTEM, ELIGIBILITY CRITERIA, ENTERPRISE PROMOTION, EQUIPMENT, EXCHANGE RATE, EXTERNAL DEBT, EXTERNAL FINANCING, EXTERNAL SHOCKS, FARMERS, FINANCE COMPANIES, FINANCES, FINANCIAL COSTS, FINANCIAL HEALTH, FINANCIAL INFORMATION, FINANCIAL INFRASTRUCTURE, FINANCIAL INSTITUTIONS, FINANCIAL MARKET, FINANCIAL MARKETS, FINANCIAL PERFORMANCE, FINANCIAL RESOURCES, FINANCIAL SECTOR ASSESSMENT, FINANCIAL SECTOR DEVELOPMENTS, FINANCIAL SECTOR REFORM, FINANCIAL SERVICE, FINANCIAL SERVICES, FINANCIAL SERVICES PROVIDERS, FINANCIAL STATEMENTS, FINANCIAL STRUCTURE, FINANCIAL SUPPORT, FINANCIAL SUSTAINABILITY, FINANCIAL SYSTEM, FINANCIAL SYSTEMS, FINANCIAL TOOL, FINANCIAL TOOLS, FINANCIAL TRAINING, FINANCIAL VIABILITY, FINANCING FACILITIES, FOREIGN EXCHANGE, FORMAL FINANCIAL SECTOR, GUARANTEE FUND, GUARANTEE FUNDS, HUMAN RESOURCES, ILLITERACY, INCOME TAX, INFLATION, INFLATION RATE, INFORMATION SHARING, INFORMATION SYSTEM, INFORMATION SYSTEMS, INFORMATION TECHNOLOGY, INFRASTRUCTURE INVESTMENTS, INSURANCE, INSURANCE COMPANIES, INTEREST INCOME, INTEREST RATE, INTEREST RATE POLICY, INTEREST RATES, INTERNATIONAL DEVELOPMENT, INTERNATIONAL INVESTORS, INTERNATIONAL STANDARDS, INVENTORY, INVESTMENT RISK, JOINT STOCK COMPANIES, LACK OF INFORMATION, LACK OF KNOWLEDGE, LAND RECORDS, LEGAL FRAMEWORK, LEGAL SYSTEM, LINES OF CREDIT, LOAN, LOAN COOPERATIVES, LOAN CUSTOMERS, LOAN DEFAULTS, LOAN PORTFOLIO, LOAN PORTFOLIOS, LOAN REPAYMENT, LOAN VOLUME, LOCAL BANKS, LOCAL CURRENCY, LOCAL FINANCIAL MARKETS, LONG-TERM INVESTMENTS, LONG-TERM LOANS, MACROECONOMIC STABILITY, MACROECONOMIC STABILIZATION, MARKET DISTORTIONS, MARKET ECONOMY, MERCHANT, MERCHANTS, MFI, MFIS, MICROCREDIT, MICROFINANCE, MICROFINANCE INSTITUTIONS, MICROFINANCE SECTOR, MONETARY FUND, MONEYLENDERS, MORTGAGES, NATIONAL BANK, NATIONAL BANKS, OPERATING COSTS, OUTREACH, OUTSTANDING CREDIT, OUTSTANDING LOANS, PAYMENT HISTORY, PENETRATION RATE, POOR CLIENTS, PORTFOLIO MANAGEMENT, PORTFOLIO QUALITY, POST OFFICES, POSTAL SAVINGS, POTENTIAL INVESTORS, PRIVATE CAPITAL, PRIVATE INVESTORS, PROFITABILITY, PROVISIONING RULES, REGISTRATION FEES, REGULATORY FRAMEWORK, REPAYMENTS, RESERVES, RETURN, RETURN ON ASSETS, RETURNS, RISK MANAGEMENT, RISK OF DEFAULT, RURAL CREDIT, RURAL FINANCE, SAVINGS, SAVINGS ACCOUNTS, SAVINGS BANK, SAVINGS BANKS, SCHOLARSHIPS, SHAREHOLDER, SHAREHOLDERS, SOCIAL DEVELOPMENT, SUBSIDIZATION, SUPERVISORY AUTHORITY, SUPPLY OF CREDIT, TAX EXEMPTIONS, TAX PROVISIONS, TAX SYSTEM, TECHNICAL ASSISTANCE, TECHNICAL SUPPORT, TELECOMMUNICATIONS, TERM CREDIT, TRAINING CENTER, TRANSACTION, TRANSACTION COSTS, TRANSPARENCY, TREASURY, TREASURY BILL, TREASURY BILL RATE, TREASURY BILLS, TURNOVER, UNFAIR COMPETITION, UNION, UNIONS, VILLAGE,
Online Access:	http://documents.worldbank.org/curated/en/2005/10/18626355/country-level-effectiveness-accountability-review-clear-madagascar https://hdl.handle.net/10986/16961
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