Applying the experience and knowledge of Korea's development to rural areas

In MadagascarPresented on April 6, 2016

By Liankanto RANAIVOSON ID: 156748

Chonnam National UniversityGraduate School of Business,

MBA in Community Development and LeadershipSubject: Organization Management

Professor: 김영용

Outline

Continent: AfricaCountry: MadagascarCapital: Antananarivo

Main exports: - Agricultural (coffee, vanilla, sugar) - Mineral (graphite, chromite) and raw nickel (2014)Total: $1,838.0 Million (2013)

Main imports:- Refined petroleum (20,1%)- Rice (5,4%) (2013)Total: $3,085.4 million (2013)

MADAGASCAR- World's 4th biggest island (after Greenland, New Guinea and Borneo)- Surface area: 587,041 sq km - GDP: $462 (2013)

- Population: 23,812,681 (2015)- Density: 41 ppl/sq. km (2015)- Rural areas: 15,447,015 or 64% (2015)

Languages: Malagasy, French Administrative divisions: Provinces > Regions > District > Commune

GDP BY SECTOR: - Agriculture: 27.3%

- Industry: 16.4% - Services: 56.3% (2013 est.)

- Median age: 19,2 years- Life expectancy: 65,2 years - Literacy rate: 65.9% (2012)

Agricultural land (arable, under permanent

crops/pastures): 71.2% (2015)Staple food: Rice

AGRICULTURE SECTORA key economic sector in Madagascar27,3% of GDP, 80% of population (labor force)

STRENGTHS- Land area is huge

- Young population

- Natural resources

OPPORTUNITIES- Solar energy

- Uniqueness and strengths of each region

- Natural conditions for farming are favorable to all kind of activities: forestry, hunting, and fishing, cultivation of crops and livestock production.

WEAKNESSES- Low budget allocation (less than 10%)

- The poor performance (quality, quantity) due to lack of infrastructures, machineries, technology

- Limited knowledge (slash and burn (tavy) practice)- The difficult access for producers to markets

THREATS- Poverty level is high

- The state of the roads is such that farmers prefer to consume their production

- Climate change- World price fluctuation

Rice is the main staple crop in Madagascar BUT

AGRICULTURAL PRODUCTION EXPORTS IMPORTS

RICE 4,737,970 MT 22.00 MT 168,645 MT

WHEAT 12,500 MT - 96,143 MT

MAIS 411,914 MT 825.00 MT 4,609 MT

SOYA BEAN 41.00 MT - 975.00 MT

Source: FAO (2013)

Common fields in rural areas:

- Poultry farming- Cattle farming- Goat farming- Hog farming- Rabbit farming- Fisheries- Honey Bee keeping- Dairy production

AGRICULTURE IN MADAGASCAR

Subsistence levelTraditional patternPoor performance

DEVELOPMENT STRATEGIES

Cooperation between Government – Investors/Partner/Projects

Cooperation between Government – Villages (regions, districts)

Cooperation Villages - Investors/Partner/Projects

Madagascar Action Plan (2007)COMMITMENT 4: RURAL DEVELOPMENT

• Promotion of market driven activities;‐• Diversification of agricultural activities;• Setting up of Market Access Centers in several decentralized collectivities;• Diversification and improvement of sea products as well as building and rehabilitating infrastructures.

OBJECTIVES• Implement various income generating activities

in rural areas => raise income• Improve living standard => villages environment

and facilitate betterment of life in rural areas

Human capital LandNatural

resources

Increase of income

Development of Rural areas

VillagersInvestors& private sectorGovernment

1) Friendly agriculture policies (trade, tax, budget allocation)

2) To conduct a study of each region => Maximize on the strength of each region

3) To be committed in the education and training of the human capital

4) To find investors and to motivate villages through incentives (competition of model village…)

1) To be the main actors of their development by taking initiatives

2) To be committed to enhance the performance of production

3) To be ready to cooperate with investors and private sector

1) To support the development of agro-zones: technology, infrastructures, logistics

2) To ensure/facilitate the success of the agricultural market

COOPERATION

SIMILAR “AGRO-ZONE SYSTEM” FOR EVERY VILLAGE

Housing environment

& infrastructures

Income projects

Control &monitoring

Cooperative life

Education & training

- Water tank or water well- Convenient toilets per household- Farm roads: paved

Farming or non-farming income activities (livestock project, creation of SME in honey, dairy production…)

Control of the performance (quality and quantity)

of the production

- Primary schools to high school per village

- Agriculture training for farmers

Creation of town hall, warehouse, workshop

EXPECTED OUTCOMES1) Self-help or self-reliant

villages: villages having meaningful outcomes in their communities and their livelihoofd

2) Income generating activities: - People have jobs- Members have equal

chances- Activities are not

discriminative

3) Village-improvement: convenient roads (summer season!)And infrastructures: water well or water tank, paved road, livestock project, enterprises projects (milk, honey, eggs…)

4) Reinforcement of skills and promotion of education for villagers and next generationEnhanced brand-name through competition

5) Supply according to the local/national or international demand standards

CONCLUSION

• If the issues in rural areas are well addressed, the development of agricultural sector is in line with three main MDG:

REFERENCES

• http://www.worldbank.org• http://www.statistiques-mondiales.com/madagascar.htm• https://www.cia.gov/library/publications/the-world-factbook/geos/ma.html• http://www.indexmundi.com/madagascar/gdp_composition_by_sector.html• http://www.tradingeconomics.com/madagascar/agriculture-value-added-percent-of-gdp-wb-data

.html• http://www.indexmundi.com/madagascar/median_age.html• http://www.unicef.org/infobycountry/madagascar_statistics.html• http://data.un.org/CountryProfile.aspx?crName=MADAGASCAR• http://www.foodsecurityportal.org/madagascar

Thank you