Madagascar country

1. Madagascar country
Presented By
M.Nagesh

2. Madagascar
Total GDP: 10.61 milliards USD (2013)
GDP per capita: 462.97 USD (2013)
Madagascar
Total GDP: 10.61 milliards USD (2013)
GDP per capita: 462.97 USD (2013)

3. Even though the logging and export of rosewood from
Madagascar is banned through a National Decree in 2010
Madagascar Rosewood species is under the protection of the
Convention on International Trade in Endangered Species
(CITES)

4. • SUPPLIERS: Malagasy mafia who hire the Local community:
Loggers wage $1 per kilo, $3 to $5 per day for the dangerous
and physical work.
• DEMAND: China (98%) and west countries (Europe and
America) (2%)
Each 150-kilogram has an approximate market value of U.S.
$1,300

5. • Factories that make traditional “red wood” Ming-
and Qing-style furniture are located in three major areas:
Jiangsu/Zhejiang/Shanghai area
Guangzhou/Shenzhen/Fujian area
Hebei/Tianjin/Beijing area
The total number of factories is estimated at around 300–500. A typical
factory usually hires about 150–300 workers, supervised by a handful of
highly skilled carvers. Since carving skills are passed down only within
families, most of the factories have labour shortages, and workers are
paid well

6. Economic impacts
• From 2007 to 2014, illegal trafficking of rosewood is estimated
to 39,000 tons: $376 million of loss in revenue for the
government and the Malagasy population (most of the traffic
are hidden so it is just a part of the reality)
• When trees are cut without the right permits and are smuggled
abroad, governments lose out financially in several ways,
including lost revenue from taxes and duties and the costs of
efforts to manage illegal logging.

7. Suggestions to deal with
illegal stockpiles
• Suggestion 1: (By Global Witness (GW) and Environmental Investigation Agency (EIA))
Destruction of all illegally felled wood
• Suggestion 2:
The transformation of felled rosewood into manufactured products for sale > Investors > Creation of job
opportunities
• Suggestion 3:
The logs are not sold on the open market. Rather, philanthropists, conservation organizations, and
international aid agencies pay to “adopt” a log. Each log can be “adopted” for its market value (about $1,300).
• Suggestion 4:
Logs would be auctioned via a transparent market system in which the price and the log code would be
recorded, publicly available, and digitally traceable.

8. • The 4th largest island in the world (587,040 sq km)
• Sub-Saharan Africa in the Indian Ocean
• Population: 24 million (Malagasy)
• Capital: Antananarivo (1.987 million habitants)
• Density (2015): 40,5 ppl/km2
• Currency: Malagasy Ariary (MGA) (1 USD = 3,200 MGA)
• GDP at market price (2014): Total: $10,59 billion
• GDP per capita (2015): $449 (Low income)

9. • WILDLIFE
Travel & tourism: 15,5% of total gdp (2015)
• Madagascar is widely known for its unique biodiversity: home
to thousands of plant and animal species found nowhere else in
the world (5% of the world’s biodiversity), Madagascar is now
among the hotspot because its biodiversity is highly threatened
• Wildlife (fauna, flora), stunning landscapes, natural rainforests
and wonderful beaches…
• For instance: 6 of the 8 species of Baobab in the world are in
Madagascar, one in Africa and one in Australia

10.  MINERAL POTENTIAL: Strong nickel, copper and platinum group
metal anomalism have been identified in rock chips and soil
 Coal (potential has been estimated to contain as much as 100 Mt of
good quality coal), Bauxite (estimated at containing 100 Mt of
bauxite), Iron (400Mt ), Sapphires (Madagascar has the world’s largest
reserves of sapphires), Chromite, Gold (Madagascar is estimated at
producing as much as 70 tons of Gold in total)
 Water bodies (lakes and rivers)
 Mangroves and coral reefs
 Wood (nearly 10 million hectares of intact, native forests and precious
wood species)
 Fisheries

11. • COMMODITIES
• Agricultural exports: Coffee, Vanilla (one of the world’s vanilla
biggest vanilla producers), Shellfish, Sugar, Cotton clothes,
textiles
• Mineral exports: Gemstones, Graphite, Chromite
• Exports: $2.187 billion (2014)
• TOP EXPORT DESTINATIONS
• France, United States, Belgium, Netherland

12. • The economic significance of natural resources depends upon the magnitude of two basic
variables: current flows of income (function of production costs and market demand) and
potential future flows of income (natural resource endowments and management planning)
• When well-managed:
 Contribution towards fiscal revenue, income and poverty reduction
 Employment and job creation potential
 Value of ecosystem services (for the renewable resources)
• Natural Capital Approach:
 Renewables—if managed sustainably - yield an increment of resources that can be harvested
indefinitely into the future.
 Non-renewable resources can by definition only be depleted, as they do not regenerate
themselves over humanly meaningful time spans

13.  Political problems: Although there is a struggle for control, there is also an overall
dominance of the President and his party. Majority of the 184-seat parliament (Senate and
National Assembly) are given to the politicians belonging the ruling party
 The major power: The ruling party (the President), the government (and the politicians) =>
Ravalomanana’s regime, Rajoelina’s regime and the current President (4th republic): because
they have the power and the money
 Madagascar is dealing with a serious issue of corruption, despite the fact that during the
regime of RAVALOMANANA, independent anti-corruption agency BIANCO was
established
• Suggestions for corruption: A severe discipline should be set, from the bottom to the top,
regardless of who you are

14. • GDP - composition, by sector of origin:
• Agriculture (farming, fishing, and forestry): 26.5%
• Industry (mining, manufacturing, energy production, and
construction): 16.6%
• Services (government activities, communications, tourism and
travel, transportation, finance): 56.9% (2014 est.)

15. • Madagascar used to be known as the Malagasy republic
• An island Southeast of Africa in the Indian Ocean
• Home to 5% of the animal species
• Used to be a French colony but gained independence in June
26, 1960

16. • 1997-2000 period of economic growth
• In 2001-2004, a dispute over presidential elections caused the
GDP to drop 12.7%
• Malagasy Ariary’s value dropped significantly
• 24% inflation
• Stricter monetary enforcement helped the growth development
return to normal
• Poverty levels are still fairly high

17. • The senate consists of 90 senators
• 60 are elected by the people and 30 are elected by the president
• They all serve 6-year terms
• President appoints the Prime Minister
• President holds the most power

18. • Major imports include: petroleum, consumer goods, food
• Import partners: (see chart)
• $881 million

19. • Major exports include: coffee, vanilla, sugarcane, cloves,
cocoa, rice, cassava (tapioca), beans, bananas, peanuts and
livestock products
• Export partners: (see chart)
• $600 million

20. • An island in the Indian Ocean, across from Mozambique
• Fourth largest island in the world
• There is a steep escarpment between the plateau and low-lying
coastal areas
• Known as the “Red Island” because of red laterite soil that is
being exposed by erosion