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The prospects for educational development in Madagascar are excellent due mainly to the increasingly favorable policy environment for the sector. One of the key challenges for policymakers and managers, in this sector, is to transform public spending in the sector into educational outcomes that will make a significant contribution to poverty reduction. This report identifies challenges at all levels in the formal education system. Among the topics discussed are equity in education, education finance, and coverage and structure of the education system. There are chapters devoted to primary and secondary education, vocational and technical education and training, and higher education.