Madagascar has a developing economy. About three-fourths of the people are farmers and herders. Rice is their chief food crop. Bananas, cassava, and sweet potatoes are also grown. Cattle are the country's most important livestock.
Coffee is the chief export.
Madagascar is the world's greatest producer of natural vanilla and cloves. Other exports include sugar and sisal, which is used to make binding twine. Bauxite, chromite, coal, and graphite are mined in Madagascar. Most of the country's few industries process hides, meat, sisal, and sugar for export. In 1989, Madagascar's government began a policy of encouraging foreign companies to build industrial plants in the country.