Madagascar Economic Update : Why Has the Malagasy Economy Not Yet Collapsed?

The Madagascar's economy has suffered but not collapsed since the beginning of the political crisis in early 2009. This resistance is viewed mainly as the combination of: 1) the modest rebound in private activities due to the quasi-absence of violence over the past few months; 2) the surge in informal activities pushed by the strong performance of the rural sector; and 3) official aid flows, still equivalent to 5 percent of Gross Domestic product (GDP), that have been directed to vulnerable population and communities