During Madagascar's First Republic, France heavily influenced Madagascar's economic planning and policy and served as its key trading partner. Key products were cultivated and distributed nationally through producers' and consumers' cooperatives. Government initiatives such as a rural development program and state farms were established to boost production of commodities such as rice, coffee, cattle, silk and palm oil. Popular dissatisfaction over these policies was a key factor in launching the socialist-Marxist Second Republic, in which the formerly private bank and insurance industries were nationalized; state monopolies were established for such industries as textiles, cotton and power; and import–export trade and shipping were brought under state control. Madagascar's economy quickly deteriorated as exports fell, industrial production dropped by 75 percent, inflation spiked and government debt increased; the rural population was soon reduced to living at subsistence levels. Over 50 percent of the nation's export revenues was spent on debt servicing.
The IMF forced Madagascar's government to accept structural adjustment policies and liberalization of the economy when the state became bankrupt in 1982 and state-controlled industries were gradually privatized over the course of the 1980s. The political crisis of 1991 led to the suspension of IMF and World Bank assistance. Conditions for the resumption of aid were not met under Zafy, who tried unsuccessfully to attract other forms of revenue for the State before aid was once again resumed under the interim government established upon Zafy's impeachment. The IMF agreed to write off half Madagascar's debt in 2004 under the Ravalomanana administration. Having met a set of stringent economic, governance and human rights criteria, Madagascar became the first country to benefit from the Millennium Challenge Account in 2005.
Madagascar's GDP in 2009 was estimated at 8.6 billion USD, with a per
