Economic crisis: the positive attitude from Monja Roindefo

The Roindefo government is keen on showing that the economic situation is under control. The first priority mission, according to the Prime minister, is the creation of a secured environment favourable to economic activities. “There is a psychosis”, he recognized. Economic operators are retaining reserves, they are refraining from investing; the Malagasy want to be far-sighted, so they are refraining from consuming”. 

According to Monja Roindefo, psychosis is the first to be blamed for the economic slow down.”The national citizens are providing up to the 60% of the GDP “, he recalled. The Rajoelina mobility’s Prime minister recognized that the revenue forecasts are far from being reached. “When political uneasiness appeared between the HAT and the other mobilities, foreign financial helps have been suspended as other financings such as the FID have, whereas they used to be fully part of the macroeconomic diagram”, he explained. 

Using unprecedented austerity measures this time around, the Roindefo government is, so far, striving to stem the tide of the disaster. The drastic reduction of public expenses was the single possible option to lighten the spending deficit. “The government has already started an economic re-launch plan, recalled Monja Roindefo. The impulse has been broken by the political uneasiness and by the Maputo I agreements”. 

In spite of their tense relationship with financial backers, the de facto transitional authorities are trying to stick to the conflict’s good face. “Saying that helps will be suppressed and that Madagascar will be subdued to an embargo only aims at frightening the population”, complained Monja Roindefo. He is actually trying to connect the current situation to the IMF’s financial suspension back in 2008, affirming that the support of the financial backers’ support has been cut since the Ravalomanana era. 

The strategy of the HAT consists in playing the national sovereignty card and to look the financial backers down because “the bill will be for the Malagasy state”. Monja Roindefo is reckoning with the necessity to improve the international help system. “70% of financings are returning to financial backers as provided services or as purchase of materials”, he regretted. The Prime minister of the HAT believes that it will be necessary to negotiate, so that the Malagasy part gets the largest share of financial backing’s advantages. 

Monja Roindefo doesn’t rule out interventionism to control some sectors. The government of the transition is not keen on having to face up to skyrocketing rice or fuel prices, as they were dimmed not to on the place of May 13th. The Prime minister is pointing at the competition between oil corporations which has a negative impact on the fuel distribution. He is also denouncing the virtual rice shortage, affirming that the available stocks are sufficient.  

“It is a vicious circle; operators are claiming the freedom to trade whereas they are making speculation”, outlined the Prime minister. Monja Roindefo is warning to be bound to apply state control, and, henceforth, to intervene in whatever economic sector if the population is victimized. The spectrum of a state controlled economy happens to be the best deterring incentive for investors.