MADAGASCAR'S CRISIS TAKES A TOLL ON BASIC EDUCATION

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
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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
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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
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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