Centralization of power: main obstacle to economic growth

After three years of crisis, the World Bank has released a review report concerning the current situation in Madagascar. The report highlights the weakness and the absence of appropriate social and economic policies in the country. The centralization of power both in politics and economy is one of major factors causing the government’s lack of efficiency in making significant progress.

According the World Bank, the political power is twice more centralized in Africa than in the rest of the world. The phenomenon is not new in Madagascar but it has significantly increased during the recent years. At the same time, the centralization of the political and economical power is concentrated among the financial elites of the country who themselves belong to the political sphere. Such situation allows them to preserve their advantages directly through the government’s manipulated policies. For the World Bank, the centralization of the political and economical power is the proof of the failure of the government.