▁Eastern ▁B loc ▁countries ▁and ▁a ▁shift ▁toward ▁economic ▁ins ular ity . ▁These ▁policies , ▁couple d ▁with ▁economic ▁press ures ▁stem ming ▁from ▁the ▁ 1 9 7 3 ▁oil ▁crisis , ▁resulted ▁in ▁the ▁rapid ▁collapse ▁of ▁Mad agas car ' s ▁economy ▁and ▁a ▁sharp ▁decl ine ▁in ▁living ▁standards , ▁and ▁the ▁country ▁had ▁become ▁completely ▁bank rupt ▁by ▁ 1 9 7 9 . ▁The ▁Rat si ra ka ▁administration ▁accepted ▁the ▁conditions ▁of ▁trans par ency , ▁anti - cor ruption ▁measures ▁and ▁free ▁market ▁policies ▁im posed ▁by ▁the ▁International ▁Mon et ary ▁Fund , ▁World ▁Bank ▁and ▁various ▁bil ater al ▁don ors ▁in ▁exchange ▁for ▁their ▁b ail out ▁of ▁the ▁nation ' s ▁broken ▁economy . ▁ ▁Rat si ra ka ' s ▁dw ind ling ▁popular ity ▁in ▁the ▁late ▁ 1 9 8 0 s ▁reached ▁a ▁critical ▁point ▁in ▁ 1 9 9 1 ▁when ▁president ial ▁gu ards ▁opened ▁fire ▁on ▁un ar med ▁protest ers ▁during ▁a ▁r ally . ▁Within ▁two ▁months , ▁a ▁trans itional ▁government ▁had ▁been ▁established ▁under ▁the ▁leadership ▁of ▁Albert ▁Z af y ▁( 1 9 9 3 – 9 6 ), ▁who ▁went ▁on ▁to ▁win ▁the ▁ 1 9 9 2 ▁president ial ▁elections ▁and ▁inaugur ate ▁the ▁Third ▁Republic ▁( 1 9 9 2 – 2 0 1 0 ). ▁The ▁new ▁Mad agas car ▁constitution ▁established ▁a ▁multi - party ▁dem ocracy ▁and ▁a ▁separation ▁of ▁powers