Why did Madagascar adopt an IMF structural-adjustment program in 1982?

Madagascar adopted an International Monetary Fund (IMF) structural-adjustment program in 1982 because the country had become bankrupt.1

Following the transition to a socialist-oriented economy in the 1970s, the government nationalized foreign firms and established state monopolies across various sectors. This shift led to a severe economic decline characterized by rising inflation, falling exports, and a significant expansion of debt. By 1982, debt services consumed more than half of the nation's export earnings, imports had nearly ceased due to a lack of foreign exchange, and industrial production had plummeted to a quarter of its 1975 level.1

Faced with these adverse conditions and the deterioration of infrastructure and social services, the government was forced to accept the IMF's conditions, which included a "humiliating turnabout" to re-liberalize the economy, the abolition of state monopolies, and the potential privatization of state enterprises.1