Benja Razafimahaleo: We can do it on our own

a 800 million dollars high state reserve filled by public funds and an acute reduction of administrative expenses are the secrets of the austerity policy, which, according to the Finance Minister, is a complete success. Benja Razafimahaleo praises the ministerial departments’ efforts to function with limited means. 

The results would already be felt by the transitional government. “The economy starts to recover, we must keep on this way in order to break our dependence on foreign help” said Benja Razafimahaleo. “we can prove today how possible it is to be totally independent and self sufficient”. 

Then the transitional finance minister fustigated the former regime. “they boasted before that they successfully got a loan or the debt erasing”. For Benja Razafimahaleo, the Madagascan government can handle its own future when it’s gone independent from foreign fund suppliers. 

The finance minister’s excessive optimism would only be one more political speech of the economic propaganda, one of transitional authorities’ favourite exercise. The austerity policy is no choice, but a constraint resulted from the lack of international recognition. 

The transitional regime, which wants to govern without electoral legitimacy, will not get any support from any financial and technical partners without a return to constitutional order. The regime tries to make believe that foreign funds are non-essential once the belt is tightened. 

Therefore the whole nation must embrace deprivation to let the HAT govern. Financial help represents about two thirds of the state budget. Reality is hidden by the displayed revenues. Andry Rajoelina’s highly contested tour in Senegal and Paris has shown the limits of the austerity policy.