MG - Inclusive and Resilient Growth DPO

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The development objective of this Inclusive and Resilient Growth Development Policy Operation (DPO) for the Madagascar is to tackle the micro foundations of inclusive and resilient growth by: (i) strengthening the resilience of individuals against shocks; and (ii) creating an enabling environment for economic opportunities in rural communities. The first pillar seeks to build the foundations for resilience at the individual and household level. Repeated shocks – ranging from frequent climatic shocks, including hurricanes, droughts and floods, to macroeconomic and health shocks – have tested the resilience of Madagascar’s poor in the past five decades leading to a reversal of the little progress that had been made in terms of poverty reduction. The second pillar focuses on enabling rural inclusion, by supporting economic opportunities in local communities. Close to 80 percent of Madagascar’s population live in rural areas, and rural poverty rates are nearly twice as high as in urban areas.