## _cr06304

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---

### Overview
- The government prepared its first PRSP in July 2003, updated it in mid-2005, and finalized the 2005 Annual Progress Report (APR) for calendar year 2005 in June 2006.
- The PRSP update incorporates the longer term vision "Madagascar Naturellement" (to 2015), emphasizes rural areas, and incorporates the creation of the 22 regions.
- The APR provides a comprehensive overview of results achieved, analysis of results, lessons learnt, and challenges in implementing the poverty reduction strategy.
- The government is preparing a new growth and poverty reduction strategy, the Madagascar Action Plan (MAP) for 2007-2011, expected to be finalized by late October 2006 and sent to Parliament with the 2007 Finance Law.

### Poverty reduction — key findings (APR/EPM 2005)
- The APR presents a poverty profile based on the 2005 household survey (Enquête Prioritaire auprès des Ménages, EPM).
- Incidence of overall poverty: 68.7 percent in 2005 (2001: 69.7 percent).
- Rural poverty incidence: 73.5 percent in 2005 (2001: 77.2 percent).
- Urban poverty incidence: 52 percent in 2005 (2001: 43.9 percent).
- Regional variation: lows in Analamanga (44 percent) and Antananarivo (58 percent) to highs of over 80 percent in other regions.
- Trend observations:
  - Decline in poverty was greater in rural areas than in urban areas.
  - Reduction in inequality and improvement in depth of poverty indicate growth helped those at the bottom of the distribution.
  - Trends consistent with 2004/5 economic shocks: higher rice prices and oil prices hurt urban consumers, while higher producer prices for rice benefited rural producers, and expansion of road access contributed.

### Macroeconomic policies and medium-term framework
- 2005 macroeconomic objectives for growth and revenue were not achieved; growth slowed due to power outages and increases in world oil prices and electricity tariffs.
- End-period inflation declined, reflecting stability in rice price and exchange rate induced by tight monetary policy.
- Revenue performance continued to disappoint; somewhat tighter expenditure policy resulted in a slight decline in the overall deficit.
- Exports dropped sharply due to end of preferential access to industrial country textile markets and adverse terms of trade shocks.
- Medium-term fiscal framework (2005-2008) aims to promote fiscal consolidation and align expenditure with PRSP objectives:
  - 2006 budget calls for an overall deficit on a cash basis equivalent to 10.8 percent of GDP.
  - For 2005-2008, total revenues should grow by 1.5 percent of GDP due to termination of ad hoc tax and duty exemptions and tax administration reforms.
  - Domestically-financed expenditures expected to increase by 0.5 percentage point of GDP during 2005-2008.
  - Improvement of the domestic fiscal balance by about one percent of GDP is expected.
  - Overall fiscal deficit (cash basis, excluding grants) expected to decline gradually to 8.5 percent in 2008.
  - Deficit expected to be financed principally by foreign grants and loans mainly on IDA-equivalent terms.
- Staffs identify needs for the MAP:
  - Define policies and supply response (notably pro-poor rural, tourism and infrastructure strategies).
  - Develop medium-term macroeconomic policies underlying attainment of objectives.
  - Prepare costing and prioritization of objectives given uncertainties.
  - Specify programs to eliminate identified obstacles to growth.
  - Reflect additional fiscal space from MDRI debt relief in the MAP.

### Governance and public sector management — progress and priorities
- Sustained efforts to improve public financial management guided by the Priority Action Plan (PAP).
- Key priorities for next 12 months:
  - Progress in domestic revenue mobilization.
  - Strengthening of internal control mechanisms, particularly expenditure commitments.
  - Simplifying the expenditure management framework.
  - Further strengthening capacity to prepare and execute the budget in priority ministries (e.g., education, health, infrastructure).
  - Implementing the new Procurement Code with adequate training for sector ministry procurement staff.
- PREA (Program of Reform for improving the efficiency of the administration) is operational.
- Government is setting up a Local Development Fund as part of decentralization; need to operationalize new financing framework for local governments and clarify fiscal rules governing decentralization.
- Corruption indicators:
  - WBI governance indicators show Madagascar above Sub-Saharan African average in examined areas, notably control of corruption, regulatory quality, voice and accountability.
  - Transparency International Corruption Perception Index 2005: Madagascar ranked 97th out of 158 countries (previous rankings: 82/145 in 2004; 88/133 in 2003; 98/102 in 2002).
- Staffs support government focus on addressing fraud and corruption in key sectors (e.g., mining, forestry, judiciary) and strengthening institutional framework for anti-corruption.

### Structural policies for growth and investment — observations and priorities
- Growth remains central and has been narrowly based on the garment and shellfish sectors.
- Constraints and vulnerabilities:
  - Garment and shellfish sectors employ only a small fraction of the labor force.
  - Industrial base needs broadening.
  - Agricultural output accounts for about 26 percent of GDP and has expanded slowly.
  - Economy highly vulnerable to exogenous shocks.
  - Private sector competitiveness hindered by opaque business environment and administrative interventions.
  - Termination of the Agreement on Textiles and Clothing and scheduled end of U.S. AGOA III in 2007 pose risks to growth prospects.
- APR discusses key growth sectors (mining, fishing, tourism, manufacturing, EPZ enterprises) but does not discuss benefits of trade liberalization or recent tariff streamlining measures.
- Future planned initiatives include:
  - Setting up the Economic Development Board for Madagascar.
  - Elaboration of a new investment code.
  - Developing the growth pole initiative.
  - Undertaking analytical work to identify binding constraints to growth.
  - Priority placed on assessing benefits of further trade liberalization.
- Infrastructure and logistics:
  - Road rehabilitation progress in 2005 relative to 2004 fell short of expectations due in part to institutional problems within the Ministry of Transport.
  - Container terminal of main port Toamasina (handles more than 80 percent of total traffic) placed under concession.
  - Critical priorities:
    - Resolve accumulation of government arrears to companies for VAT refunds and contractual payments.
    - Ensure maintenance of overall roads program through the Road Maintenance Fund in short and medium term, especially rural roads.
    - Encourage introduction of innovative performance-based contracts for rural road maintenance.
- JIRAMA (public utility company):
  - Economic growth in 2005 was lower owing to production shortfalls linked to power cuts and loss of competitiveness.
  - Reforms advanced in 2005 with donor assistance; a two-year management contract commenced in April (2006).
  - A restructuring plan was prepared and presented to donors in Paris in January 2006 and is being implemented.
  - Key priorities: steady implementation of restructuring plan and implementing proposal to continue public-private partnership via a concession after the two-year management contract expires in April 2007.
- Environment:
  - Creation of an additional one million hectares of protected areas in 2005.
  - Staffs recommend priorities:
    - Assure 8 percent of MDRI debt relief is allocated to financing the protected areas system.
    - Adopt and implement concession policy for private management of facilities around protected areas.
    - Contain illegal logging and adopt a transparent system of forest licensing.
- Agriculture:
  - Progress on increasing agricultural productivity, particularly rice.
  - Key priorities:
    - Implementation of the new fertilizer policy.
    - Privatization of seed distribution facilities.
    - Continued promotion of transformation and diversification of agricultural products.

### Human development: education, health, nutrition
- Education:
  - Donors endorsed National Education for All (EFA) plan; government updated EFA plan in April 2005.
  - FTI Catalytic funds: US$10 million for 2005, and US$25 million each for 2006 and 2007 to support implementation.
  - Funding targets support increasing salaries for community teachers and providing competitive school grants.
  - Enrollment and completion:
    - Primary net enrollment rate (government figures): from about 67 percent in 2001/02 to about 98 percent in 2004/05.
    - Primary net enrollment rate (2004 Household surveys EPMs): increase from 72 percent in 2002/2003 to 86 percent in 2004/2005 (differences due to population projection bases).
    - Primary completion rate increased from about 30 percent to 60 percent over the same period.
  - Remaining issues and medium-term EFA priorities:
    - High repetition and drop out rates.
    - Implement reform extending primary education from 5 to 7 years.
    - Address quality constraints: teacher training, teaching/learning process and curriculum.
    - Improve school construction program management.
    - Rationalize human resources management.
    - Donors providing technical assistance to MENRS for implementation.
    - Government preparing strategy for overall reform of post-primary education.
- Health:
  - Immunization rates: increased from 62 percent in 2002 to 87 percent in 2005.
  - Child mortality has declined; HIV/AIDS prevalence remained stable.
  - Declines observed in percentage of women giving birth in health centers and consultation rate at health centers; APR provides rationales.
  - Government updated national health policy and estimated costs of attaining health MDGs.
  - MAP could focus on:
    - Finalizing operationalization of national health policy with concrete measures, including prioritizing and sequencing reforms.
    - Aligning costing exercise with resources available in the MAP for the health sector.
- Nutrition:
  - The National Nutrition Office (ONN), the secretariat for implementing the nutritional policy, is operational.

### Nutrition program and budget execution (Section 2)
- The APR notes delays in the availability of budget allocations for the program, which have disrupted implementation and caused results to fall short of expectations (e.g. the school nutrition program and the number of children in growth promotion program).
- Critical actions recommended:
  - Ensure that the institutional arrangements are completed based on the planned institutional assessment.
  - Ensure that the budget flows are predictable.
  - Ensure that the scope of the nutrition program is in line with the available resources to maintain quality of service.

### Rural water and sanitation (Section 2)
- Overall implementation of the national water supply and sanitation program continues satisfactorily, and the recommendations of the previous JSA have been acted upon.
- Access and coverage:
  - Access to potable water in rural areas increased from 13 percent to 16 percent between 2003 and 2005.
  - In 2005, an additional 245,000 persons living in rural areas gained access to potable water against 220,500 in 2004.
  - Still, 10 million people in rural areas have no improved access to potable water.
- Institutional and planning developments:
  - Preparation of a 3-year rolling Medium Term Economic Framework.
  - Preparation of a “water and sanitation for all” strategy, including the costs to attain the MDGs.
  - Establishment of a computerized database for improved monitoring and evaluation.
  - The Directorate of Water and Sanitation of the Ministry of Mines and Energy continues to lead the SWAP work, in close collaboration with key partners.
- Sector capacity and financing:
  - Through improved planning, increased responsibility for service delivery at deconcentrated and decentralized levels, and increased public expenditure accountability and efficiency, the sector has increased its potential absorptive capacity.
  - However, while the total budget for the DEA/MEM has increased over the past few years, it still remains insufficient to attain the MDGs.

### Monitoring implementation and participatory processes (Section 2)
- The APR elaborates well the monitoring system for the PRSP, the improvements made, and the challenges encountered.
- Institutional reforms and statistical capacity:
  - Government is clarifying the institutional structure for monitoring implementation, notably through efforts in the development of a harmonized planning, monitoring and evaluation system.
  - Ongoing efforts include finalization of institutional arrangements, harmonization of procedures, methods and tools, and the elaboration and implementation of the National Strategy for the Development of Statistics.
  - These efforts will be critical to effective planning, monitoring and evaluation of the implementation of the MAP.
- Participatory monitoring:
  - The APR describes the participatory process for monitoring the PRSP, including thematic and regional workshops.
  - The APR could have elaborated further on the participatory process (notably within the government, involvement of other stakeholders, and mechanisms used to consult the poor and their representatives) and summarized the major issues raised during the process.
  - The systematic participatory process that the government is currently undertaking to develop the MAP is welcome and will be an important factor for its success.

### Conclusions and recommended MAP priorities (Section 2)
- The APR shows that Madagascar has made good progress in implementing its poverty reduction strategy.
- Key priorities as the government formulates its MAP:
  - (i) Identification of the key structural and binding constraints to shared growth, including impediments to domestic private sector activities and further trade liberalization;
  - (ii) Preparation of alternative macroeconomic scenarios within a realistic medium-term framework consistent with the sources of growth analysis, including, notably, the scaling up scenario embedded in the MAP;
  - (iii) Increased mobilization of domestic revenue and improvements in public financial management;
  - (iv) Inclusion of a policy reform matrix which outlines the sequencing and prioritization of the key policy and institutional reforms needed to achieve the MAP’s objectives; and
  - (v) Adoption of a harmonized system for planning, monitoring and evaluation by all actors, as well as the implementation of the national strategy for the development of statistics to promote greater focus on results.

*Prepared by the Staffs of the International Development Association and the International Monetary Fund; Joint Staff Advisory Note on the Poverty Reduction Strategy Paper Annual Progress Report for the Republic of Madagascar*

### Section 1

### _cr06304 - Section 1

### I. OVERVIEW
- The government prepared its first PRSP in July 2003, updated it in mid-2005, and finalized the 2005 Annual Progress Report (APR) for calendar year 2005 in June 2006.
- The PRSP update incorporates the longer term vision "Madagascar Naturellement" (to 2015), emphasizes rural areas, and incorporates the creation of the 22 regions.
- The APR provides a comprehensive overview of results achieved, analysis of results, lessons learnt, and challenges in implementing the poverty reduction strategy.
- The government is preparing a new growth and poverty reduction strategy, the Madagascar Action Plan (MAP) for 2007-2011, expected to be finalized by late October 2006 and sent to Parliament with the 2007 Finance Law.

### II. IMPLEMENTATION OF THE POVERTY REDUCTION STRATEGY

#### A. Poverty Reduction — Key findings
- The APR presents a poverty profile based on the 2005 household survey (Enquête Prioritaire auprès des Ménages, EPM).
- Incidence of overall poverty: 68.7 percent in 2005 (2001: 69.7 percent).
- Rural poverty incidence: 73.5 percent in 2005 (2001: 77.2 percent).
- Urban poverty incidence: 52 percent in 2005 (2001: 43.9 percent).
- Regional variation: lows in Analamanga (44 percent) and Antananarivo (58 percent) to highs of over 80 percent in other regions.
- Trend observations:
  - Decline in poverty was greater in rural areas than in urban areas.
  - Reduction in inequality and improvement in depth of poverty indicate growth helped those at the bottom of the distribution.
  - Trends consistent with 2004/5 economic shocks: higher rice prices and oil prices hurt urban consumers, while higher producer prices for rice benefited rural producers, and expansion of road access contributed.

#### B. Macroeconomic Policies — Findings and medium-term framework
- 2005 macroeconomic objectives for growth and revenue were not achieved; growth slowed due to power outages and increases in world oil prices and electricity tariffs.
- End-period inflation declined, reflecting stability in rice price and exchange rate induced by tight monetary policy.
- Revenue performance continued to disappoint; somewhat tighter expenditure policy resulted in a slight decline in the overall deficit.
- Exports dropped sharply due to end of preferential access to industrial country textile markets and adverse terms of trade shocks.
- Medium-term fiscal framework (2005-2008) aims to promote fiscal consolidation and align expenditure with PRSP objectives:
  - 2006 budget calls for an overall deficit on a cash basis equivalent to 10.8 percent of GDP.
  - For 2005-2008, total revenues should grow by 1.5 percent of GDP due to termination of ad hoc tax and duty exemptions and tax administration reforms.
  - Domestically-financed expenditures expected to increase by 0.5 percentage point of GDP during 2005-2008.
  - Improvement of the domestic fiscal balance by about one percent of GDP is expected.
  - Overall fiscal deficit (cash basis, excluding grants) expected to decline gradually to 8.5 percent in 2008.
  - Deficit expected to be financed principally by foreign grants and loans mainly on IDA-equivalent terms.
- Staffs identify needs for the MAP:
  - Define policies and supply response (notably pro-poor rural, tourism and infrastructure strategies).
  - Develop medium-term macroeconomic policies underlying attainment of objectives.
  - Prepare costing and prioritization of objectives given uncertainties.
  - Specify programs to eliminate identified obstacles to growth.
  - Reflect additional fiscal space from MDRI debt relief in the MAP.

#### C. Governance and Public Sector Management — Progress and priorities
- Sustained efforts to improve public financial management guided by the Priority Action Plan (PAP).
- Key priorities for next 12 months:
  - Progress in domestic revenue mobilization.
  - Strengthening of internal control mechanisms, particularly expenditure commitments.
  - Simplifying the expenditure management framework.
  - Further strengthening capacity to prepare and execute the budget in priority ministries (e.g., education, health, infrastructure).
  - Implementing the new Procurement Code with adequate training for sector ministry procurement staff.
- PREA (Program of Reform for improving the efficiency of the administration) is operational.
- Government is setting up a Local Development Fund as part of decentralization; need to operationalize new financing framework for local governments and clarify fiscal rules governing decentralization.
- Corruption indicators:
  - WBI governance indicators show Madagascar above Sub-Saharan African average in examined areas, notably control of corruption, regulatory quality, voice and accountability.
  - Transparency International Corruption Perception Index 2005: Madagascar ranked 97th out of 158 countries (previous rankings: 82/145 in 2004; 88/133 in 2003; 98/102 in 2002).
- Staffs support government focus on addressing fraud and corruption in key sectors (e.g., mining, forestry, judiciary) and strengthening institutional framework for anti-corruption.

#### D. Structural Policies for Growth and Investment — Observations and priorities
- Growth remains central and has been narrowly based on the garment and shellfish sectors.
- Constraints and vulnerabilities noted:
  - Garment and shellfish sectors employ only a small fraction of the labor force.
  - Industrial base needs broadening.
  - Agricultural output accounts for about 26 percent of GDP and has expanded slowly.
  - Economy highly vulnerable to exogenous shocks.
  - Private sector competitiveness hindered by opaque business environment and administrative interventions.
  - Termination of the Agreement on Textiles and Clothing and scheduled end of U.S. AGOA III in 2007 pose risks to growth prospects.
- APR discusses key growth sectors (mining, fishing, tourism, manufacturing, EPZ enterprises) but does not discuss benefits of trade liberalization or recent tariff streamlining measures.
- Future planned initiatives include:
  - Setting up the Economic Development Board for Madagascar.
  - Elaboration of a new investment code.
  - Developing the growth pole initiative.
  - Undertaking analytical work to identify binding constraints to growth.
  - Priority placed on assessing benefits of further trade liberalization.
- Infrastructure and logistics:
  - Road rehabilitation progress in 2005 relative to 2004 fell short of expectations due in part to institutional problems within the Ministry of Transport.
  - Container terminal of main port Toamasina (handles more than 80 percent of total traffic) placed under concession.
  - Critical priorities:
    - Resolve accumulation of government arrears to companies for VAT refunds and contractual payments.
    - Ensure maintenance of overall roads program through the Road Maintenance Fund in short and medium term, especially rural roads.
    - Encourage introduction of innovative performance-based contracts for rural road maintenance.
- JIRAMA (public utility company):
  - Economic growth in 2005 was lower owing to production shortfalls linked to power cuts and loss of competitiveness.
  - Reforms advanced in 2005 with donor assistance; a two-year management contract commenced in April (2006).
  - A restructuring plan was prepared and presented to donors in Paris in January 2006 and is being implemented.
  - Key priorities: steady implementation of restructuring plan and implementing proposal to continue public-private partnership via a concession after the two-year management contract expires in April 2007.
- Environment:
  - Creation of an additional one million hectares of protected areas in 2005.
  - Staffs recommend priorities:
    - Assure 8 percent of MDRI debt relief is allocated to financing the protected areas system.
    - Adopt and implement concession policy for private management of facilities around protected areas.
    - Contain illegal logging and adopt a transparent system of forest licensing.
- Agriculture:
  - Progress on increasing agricultural productivity, particularly rice.
  - Key priorities:
    - Implementation of the new fertilizer policy.
    - Privatization of seed distribution facilities.
    - Continued promotion of transformation and diversification of agricultural products.

#### E. Education — Progress and priorities
- Donors endorsed National Education for All (EFA) plan; government updated EFA plan in April 2005.
- FTI Catalytic funds: US$10 million for 2005, and US$25 million each for 2006 and 2007 to support implementation.
- Funding targets support increasing salaries for community teachers and providing competitive school grants.
- Enrollment and completion:
  - Primary net enrollment rate (government figures): from about 67 percent in 2001/02 to about 98 percent in 2004/05.
  - Primary net enrollment rate (2004 Household surveys EPMs): increase from 72 percent in 2002/2003 to 86 percent in 2004/2005 (differences due to population projection bases).
  - Primary completion rate increased from about 30 percent to 60 percent over the same period.
- Remaining issues and medium-term EFA priorities:
  - High repetition and drop out rates.
  - Implement reform extending primary education from 5 to 7 years.
  - Address quality constraints: teacher training, teaching/learning process and curriculum.
  - Improve school construction program management.
  - Rationalize human resources management.
  - Donors providing technical assistance to MENRS for implementation.
  - Government preparing strategy for overall reform of post-primary education.

#### F. Health — Progress and recommended focus
- Immunization rates: increased from 62 percent in 2002 to 87 percent in 2005.
- Child mortality has declined; HIV/AIDS prevalence remained stable.
- Declines observed in percentage of women giving birth in health centers and consultation rate at health centers; APR provides rationales.
- Government updated national health policy and estimated costs of attaining health MDGs.
- MAP could focus on:
  - Finalizing operationalization of national health policy with concrete measures, including prioritizing and sequencing reforms.
  - Aligning costing exercise with resources available in the MAP for the health sector.

#### G. Nutrition — Institutional development
- The National Nutrition Office (ONN), the secretariat for implementing the nutritional policy, is operational.

*Prepared by the Staffs of the International Development Association and the International Monetary Fund; Joint Staff Advisory Note on the Poverty Reduction Strategy Paper Annual Progress Report for the Republic of Madagascar*

### Section 2

### _cr06304 - Section 2

### Nutrition program and budget execution
- The APR notes delays in the availability of budget allocations for the program, which have disrupted implementation and caused results to fall short of expectations (e.g. the school nutrition program and the number of children in growth promotion program).
- Critical actions recommended:
  - Ensure that the institutional arrangements are completed based on the planned institutional assessment.
  - Ensure that the budget flows are predictable.
  - Ensure that the scope of the nutrition program is in line with the available resources to maintain quality of service.

### Rural Water and Sanitation
- Overall implementation of the national water supply and sanitation program continues satisfactorily, and the recommendations of the previous JSA have been acted upon.
- Access and coverage:
  - Access to potable water in rural areas increased from 13 percent to 16 percent between 2003 and 2005.
  - In 2005, an additional 245,000 persons living in rural areas gained access to potable water against 220,500 in 2004.
  - Still, 10 million people in rural areas have no improved access to potable water.
- Institutional and planning developments:
  - Preparation of a 3-year rolling Medium Term Economic Framework.
  - Preparation of a “water and sanitation for all” strategy, including the costs to attain the MDGs.
  - Establishment of a computerized database for improved monitoring and evaluation.
  - The Directorate of Water and Sanitation of the Ministry of Mines and Energy continues to lead the SWAP work, in close collaboration with key partners.
- Sector capacity and financing:
  - Through improved planning, increased responsibility for service delivery at deconcentrated and decentralized levels, and increased public expenditure accountability and efficiency, the sector has increased its potential absorptive capacity.
  - However, while the total budget for the DEA/MEM has increased over the past few years, it still remains insufficient to attain the MDGs.

### Monitoring implementation of the Poverty Reduction Strategy (PRS)
- The APR elaborates well the monitoring system for the PRSP, the improvements made, and the challenges encountered.
- Institutional reforms and statistical capacity:
  - As recommended in the previous JSA, the government is clarifying the institutional structure for monitoring implementation, notably through efforts in the development of a harmonized planning, monitoring and evaluation system.
  - Ongoing efforts include finalization of institutional arrangements, harmonization of procedures, methods and tools, and the elaboration and implementation of the National Strategy for the Development of Statistics.
  - These efforts will be critical to effective planning, monitoring and evaluation of the implementation of the MAP.
- Participatory monitoring:
  - The APR describes the participatory process for monitoring the PRSP, including thematic and regional workshops.
  - The APR could have elaborated further on the participatory process (notably within the government, involvement of other stakeholders, and mechanisms used to consult the poor and their representatives) and summarized the major issues raised during the process.
  - The systematic participatory process that the government is currently undertaking to develop the MAP is welcome and will be an important factor for its success.

### Conclusions and recommended MAP priorities
- The APR shows that Madagascar has made good progress in implementing its poverty reduction strategy.
- Key priorities as the government formulates its MAP:
  - (i) Identification of the key structural and binding constraints to shared growth, including impediments to domestic private sector activities and further trade liberalization;
  - (ii) Preparation of alternative macroeconomic scenarios within a realistic medium-term framework consistent with the sources of growth analysis, including, notably, the scaling up scenario embedded in the MAP;
  - (iii) Increased mobilization of domestic revenue and improvements in public financial management;
  - (iv) Inclusion of a policy reform matrix which outlines the sequencing and prioritization of the key policy and institutional reforms needed to achieve the MAP’s objectives; and
  - (v) Adoption of a harmonized system for planning, monitoring and evaluation by all actors, as well as the implementation of the national strategy for the development of statistics to promote greater focus on results.

*Source: _cr06304 - Section 2*

---


_Source: https://www.imf.org/-/media/websites/imf/imported-full-text-pdf/external/pubs/ft/scr/2006/_cr06304.pdf_