Do Telecommunications and Air/Sea Transport Problems Limit Madagascar's Exports?

This study had its origins in the notion that Madagascar's ability to expand and diversity its exports was significantly hampered by three conditions: *high sea freight rates as a result of oligopolistic practices by a shipping conference; *Air Madagascar's monopoly on air traffic rights; and *an obsolete and often non-functional national telecommunications system. To what extent is the perception correct? For two weeks we asked this question in interviews of manufacturers, shipping agents, airline executives, ship operators, port authorities and government officials. Two weeks are clearly insufficient for a detailed study of both the transportation sector and the telecommunications system. The period may be adequate, however, for the purpose of determining the basic validity of the perceptions which prompted this study. The following, somewhat general statements reflect our conclusions. The rest of the report provides supporting detail.Center for Research on Economic Development, University of Michiganhttp://deepblue.lib.umich.edu/bitstream/2027.42/100993/1/ECON434.pd