Lost in Translation: Policy Communication, Procedural Legibility and the Implementation Gap in Madagascar's Informal-Sector Formalization
Year: 2026
Type: article
Study design: Observational Study
Abstract: Madagascar has spent a decade simplifying business registration and taxation, yet informality remains near-universal. This article asks why. It argues that the reforms failed at implementation, and that the immediate cause is communication: the reforms exist inside the administration but have not been turned into procedures that entrepreneurs can understand and follow. The study surveys 200 informal entrepreneurs across four provinces (Antananarivo, Antsiranana, Toamasina and Toliara). The analysis uses descriptive statistics, Spearman correlations, chi-square tests, binary logistic regression with a probit robustness check, and thematic coding of open-ended answers. Sixty per cent of respondents have no knowledge of formalization procedures and 89% have never encountered a government sensitization campaign. Knowing the procedure is the strongest predictor of participation (OR = 2.17; average marginal effect = 11.8 percentage points), and education is a second, separate predictor. Knowing the benefits is not associated with participation. Of the minority who engaged, 84% report a positive impact and see state action as relevant, while 79% of non-participants see it as irrelevant. The sample is purposive and the design cross-sectional, so the results show associations and likely mechanisms, not causal effects or population estimates. Outreach should explain the concrete procedure (where to go, what to bring, how long it takes, what it costs) through trusted local channels, and governments should monitor whether people understand it as well as how many register. The article introduces procedural legibility as a distinct and measurable stage of implementation, separates it from information asymmetry and administrative burden, and gives the first multi-province quantitative evidence on how informal entrepreneurs in Madagascar respond to formalization policy.
Institution: University of International Business and Economics
Language: English
Subfield: Economics and Econometrics
Domain: Social Sciences
Open Access status: green
OpenAlex ID: W7225415754