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Last Updated: Wednesday, 16 June, 2004, 14:05 GMT 15:05 UK
Economy woes spur Malagasy unrest
Cyclone devastation in Madagascar
Cyclones have ripped a hole in the fragile Malagasy economy
Discontent at a stumbling economy and the rising cost of living have sparked bloody unrest in Madagascar.

Over the past 10 days, civil servants, students and mothers have taken to the streets of the capital, Antananarivo, and hundreds have been injured.

The immediate cause of many protests has been the high cost of oil, for which the island relies on imports.

The Malagasy franc has been falling sharply this year, causing consumer prices to spike.

At the same time, output in the vanilla industry - the island's key exporter - has been battered by devastating cyclones.

Ups and downs

The buffeting from the weather and international commodity prices has forced the Malagasy Government into austerity measures.

Public transport fares have been hiked, and some food prices have doubled.

The government says it is doing its best to hold down the price of staple foods; funds to support those made homeless by cyclones have also been set up.

But inflation is still predicted to come in at 12% this year, far higher than the norm.

And the mood in the capital is especially bitter, because many expected President Marc Ravalomanana to do more to help.

Mr Ravalomanana gained the presidency after a bitter struggle with a rival in 2002, during which he enjoyed solid support among the population and army units in Antananarivo.


SEE ALSO:
Madagascar troops in pay protest
28 May 04  |  Africa
Country profile: Madagascar
12 Mar 04  |  Country profiles
Q&A: Madagascar turmoil
05 Jul 02  |  Africa


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