HAT economics 101

When going through the news for the last couple of days I could hardly believe my eyes at what I saw, and I had to re-read the information to make sure that I was actually seeing it.

Andry Rajoelina and his government made a statement on April 14th that they are going to revive the economy in only 6 months and guarantee “self-sufficiency” in NATIONAL rice production in 2 or 3 years.  I couldn’t believe someone would make such a bold and very stupid statement regarding the economy. Then they go on to hint that they are moving back towards nationalization stating that they are going to make the country self-sufficient in rice production? Is there not a vast amount of rice farming occurring in Madagascar? Wasn’t TIKO a big part of providing rice to the populace? I fail to see how Madagascar is not currently self-sufficient, perhaps I am missing information, but this statement does not make any sense to me, because people were enjoying their rice just fine before Andry Rajoelina came along. And it is almost as if they think that people don’t know how they are going to achieve this “self-sufficiency”… they have pretty much already stated it on the news! TIKO may owe taxes and it may not, who knows, but 26 billion Ariary for 2 years? That’s real believable HAT… it is an incredible number for any business in Madagascar, but it also makes for a perfect excuse to for the  seizure of all of TIKO’s assets. It is even more believable when you hear rumours that the HAT is also seizing products, bank accounts of companies and personal accounts of shareholders. I am sure after the seizure, you can expect that they will eventually start production again at all the TIKO factories, the products will just be re-branded under a name that pleases Andry Rajoelina.

But wait… theres more!

If you thought that last bit of information was unbelievable, wait until you hear about how they plan to re-fill the state coffers! In a statement today, reported  by Midi Madigaskara, Andry Rajoelina and his government plan on cutting civil budgets and increasing taxes! Andry Rajoelina spent months crusading for the poor, promising that he is going to help each and every one of them and then he and his government make a decision that will inevitably cause a rise in prices in virtually everything. Brilliant! Not only have the HAT facilitated the destruction of many businesses in the various occurrances of looting (which he has still not re-imbursed the businesses as promised) and dismantled the only affordable, high quality food producer in Madagascar, but now they are going to cause more businesses to close and punish the people who already cannot afford the basic necessities! Where did the HAT learn economics? There is a global recession all around the world now, do you see anyone else in the world raising taxes? It hardly makes sense for a developing country to raise taxes in a global and local economic recession… they need to go back to school!

This HAT government is ridiculous and seriously should step down if indeed it’s interests are what is best for the poor (which is something I am pretty sure that no one believes at this point). There is no “feasible” way that this HAT government could ever succeed and if they are determined to cling to power it is only going to hurt Madagascar more. It is obvious that they are desperate for money and will do anything necessary to obtain the money they need to function, whether it is legal or not and regardless of its consequences. It goes to show you how badly a self-imposed government can be when they want to stay in power and there is no one that will co-operate with them. They really should have taken up Marc Ravalomanana’s offer to hold a referendum because that was their only opportunity to have a “democratic” government, not the illegal one that they are trying so very hard to maintain. If they were as popular as they think they are, then I am sure he would be legally elected and have the co-operation of all other democratic countries… but they most likely took this route because the knew they wouldn’t win. After all, in a lot of places outside of Antananarivo,  most people don’t have a clue who Andry Rajoelina is so it would be doubtful they would have voted for him. So, as far as I am concerned, the HAT government is just a mortally animal that refuses to die, but should be put it out of it’s misery.

I guess what this all comes down to now, or at least for the near future is what happens when Marc Ravalomanana comes back to Madagascar, which is rumoured to be this Saturday at a rally in Ambohijatovo. Will he come flying into the country accompanied by SADC troops? Or will he be alone? One thing is for sure, the HAT will be looking to put him in a jail cell as quick as possible and try and hold him accountable for all of the economic troubles they are facing, so he better not be coming back without any protection. I tend to think that since Marc Ravalomanana has been in Africa for this long, and has been talking with so many African nations that he must have some sort of master plan. I guess it doesn’t make sense to think that he wouldn’t because it wouldn’t do anyone good if he just showed up to speak and was arrested, he couldn’t be that stupid. So… who or what will be coming with him? And what will happen in Madagascar on Saturday?

One thing is for sure though… my father in-law will be furious that Johnny Halliday will not be coming to Madagascar!