Daewoo

Thank you for the interesting reactions. It just shows how much we would stand for the benefit of this beloved country of ours. I would like to congratulate the reaction of our President; if it is got into effect. I think that he should need further assistance and voice out from Malagasy development agents.

In fact, it seems that we are too quick to be lured by "FDI" Foreign Direct Investments. We should ask one very important question: why all of these FDI are rushing to get land in our country and mostly and only lands??? And the corollary questions behind it: what are the status of land market in those countries? That is to say how much money would it take them to acquire these vast tracks of land? Could they access and possess such vast track of land? How are the land taxation systems in those countries? What advantages are we offered to them that they would either find in their own countries of origin?

How many of these so called FDI bring about positive changes to our country and our fellow citizens? Take an objective look at Tolagnaro and Moramanga? Are we capable of monitoring and conter act the perverse effects of such land /ressources acquisition?

In fact, in my opinion, these just demonstrate the outstanding needs for investments – private investments in agricultural sector and natural resource management in Madagascar. It just demonstrates that there is market s out there that needs to be responded to for our small farmers to earn a better income and to improve their livelihoods. I totally agree that there is a need to add value and cultivate these vast land tracks. Based on best available statistics, there are over 35 million hectares of uncultivated lands in Madagascar “tanety lava misy hisainana” and year in and year out subject to wildfire because that is the cheapest tools for our rural people to manage bushes and have a meager forage for rooming zebu herd. These lands need hard investments and indeed techniques and technologies to value them. However, I am telling you I am dreadfully worried that someday we will all wake up in reservation like the Native Americans. European have used and abused their land but both in North and South America? Native Americans are left to marginal land and more and more pushed to these marginal lands. They remain in the best picture just hand laborers that have hard time to join the two ends. Adding to that we have other big private interest from other parts of the World, China, India, Japanese, Korean, Arabs, and still the European...

These international private investors have money to be used and get the best and outstanding return… They are here for that. They are not to socialize with us and do our proper development, they are once again here, we need to realize it, to earn money and if that could be done big bangs in short term... the risks are too high and impromptus…

My recommendations:
Yes we need FDI, but these private entities should not access more than 10% of land tracks. That would be as vast as the equivalent of 3.5 Millions hectares.
They must be required to set aside hard funds for the public – government and/or private entities the bank to be used as development and investment funds by our poor multitude small farmers and/or our young people striving to establish Agricultural SME to produce goods that they seeks and/or all Private SME in civil engineerings to improve productive infrastructures such as roads dams and irrigation systems. That would quickly reverse the disinvestment in our rural areas from sustainable funding. Given that private investment are the major sources of sustainable funding. Our private SME and agriculturalist need to produce and make a profit if not they are out of business, however, they need a lift from our government. I would state here a comment from a french technical assistant - how could Madagascar dare to think about development while 82% of its population have not access to any tangible assistance? Just compare, in Europe and US investment interest rate are at less than 5% how much is it here, between 24 to 43%. There is no way Madagascar would ever overcame its poverty. Indeed and unfortunately, you are making richer and richer the banks and misfit foreigners that seek easy fortunes in your country.

Finally, there is a need for open process to establish and finalize the territory management plan. If not and believe me these FDI, will someday wake up with social unrest… just remind yourself the “OPKS”…

Adele Rahelimihaja [mailto:rahelimihaja2003@yahoo.com]

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