Markets, Trade, and Development in Madagascar: Recommendations for G20 Support for Governance Reforms and Investment

This paper provides practical insight from the perspective of a least developed country (LDC) exporting industry, namely the textiles and clothing industry in Madagascar. The paper focuses primarily on the dynamics of reform, domestic governance, and integration, and is meant to provide a case study on the role of the private sector in supporting elements of the G20 trade and development agenda on poverty reduction and growth. The paper also illustrates the distance from the peaks of G20 summits to the valleys of reality in many LDCs, such as Madagascar, where the rule of law and institutions are weak or indeed crumbling. This paper discusses the major problems posed by weak domestic institutions on job creation and development, using Madagascar as a case study. It then recommends ways in which the G20 can play a supporting role in order to encourage better climates for investment and broad-based development.