COUNTRY PROJECT Presentations Integrated Assessment of Trade-Related Policies in the Agriculture Sector and Biological Diversity Geneva, 1-3 July 2008

OBJECTIVE OF THE ASSESSMENT General objective: Improvement of the contribution of shrimps aquaculture to the struggle against poverty and environment conservation. The problem the project aims to address: Rapid expansion of the sector But Week involvement of the State Lack of national norms

FOCUS OF THE ASSESSMENT North west of Madagascar, on two (2) sites located in the region of Boeny : AQUALMA (Aquaculture de Mahajamba), SOMAQUA (Société Malgache d’AQUAculture).

Location of the field cases

CONCEPTUAL FRAMEWORK Main policy: Plan directeur de la pêche et de l’aquaculture Objectives of the Plan directeur: -Increase of foreign currencies -Contribution to satisfaction of population’s food needs. -Improvement of incomes and livelihood of traditional fishermen. -Job creation. Likely changes in incentives in the : - Agriculture sector: Increase of production, and exports, - Land use: Extension of shrimp farms, transformation of vegetations on mangroves.

Impacts Impacts on the environment, biodiversity and the ecosystem services associated with biodiversity: Negative: Clear cut of mangroves (maximum authorized: 8-10%), impoverishment of flora and fauna (mangrove = nursery for several fauna sp.), quality of water around farms: flux of undesired outputs, Positive: Less illegal exploitation of mangroves, responsible management (flora and fauna inventories, management plans), Secured reproduction des species.

CONCEPTUAL FRAMEWORK (cont.) Context: -Code de conduite -SPS agreements Modalities of exports tarifs: -Cotonou agreements -APE -Liberalization Labels -Label rouge -Aquaculture biologique -Ecolabeling WWF Plan Directeur 2004 Analysis -Decision of investors Economic impacts Social impacts Environmental Impacts

METHODOLOGY Describe: - The baseline : Plan directeur + liberalization of international trade (tariffs erosion) - Policy scenario 1: Status quo; No commitment of the State out of the plan directeur. - Policy scenario 2: Effective commitment in promoting labels.

Indicateurs d’impact - ECONOMIC IMPACTS - a) Shrimp companies - -Costs of compliance and implementation. - - Global volume of salaries for national employees. -Number of national employees. -Volume of investments. b) Local communities -Job creation rate. -Incomes for rural households. c) Nation -Increase of foreign currencies.

Indicateurs d’impact SOCIAL -Change in production activities. -Social conflicts and control. -Migration (local and regional). -Accssess to ocial infrastructure and services. -Social « expressions » (lobbying, social claims, etc.) -Cultural practices. -Food habits. -Demography.

Indicateurs d’impacts ECOLOGICAL 1) Quantitative -Extension of bassins. -Quality et quantity of undiseride outputs. -Water quality. -Floristic and faunistic structure of mangroves and other vegetations around. -Exploitation of timber and non timber products. -spatial dynamics of mangroves.

Indicateurs d’impacts 2) Qualitative Occurrence of diseases. Services provided by mangroves. Disparearance/appearance (voluntary or not introduction) of species. Beauty of landscape.

METHODOLOGY (cont.) Public policies analysis (coherence, internal and external) Environemtal Impact Assessment Costs- benefits analysis Multicriteria analysis

ASSESSMENT OF IMPACTS Scenario 1: Liberalization + week commitment of State Economic impact: tariffs erosion, loss of foreign currencies. Social impact: Job losses (direct and indirect), loss of social benefits (salary, vaccination sponsored by shrimp companies, etc.) Environmental impact: non compliance to environmental rules (when control is not strongly required by international context) Biodiversity and associated ecosystem services: (Over)Exploitaiton of natural resources.

ASSESSMENT OF IMPACTS (cont.) Scenario 2: State involved in creating labels A encouraging individual initiatives Economic impact: exclusion of small scale investments Social impact: see scenario 1 Environmental impact: see scenario 1 Biodiversity and associated ecosystem services: see scenario

ASSESSMENT OF IMPACTS (cont.) Scenario 2: State involved in creating labels B State helps collective process Economic impact: Easy access to labels for any economic operator, stability of prices Social impact: maintenance of job Environmental impact: Less undesired products. Biodiversity and associated ecosystem services: Improved conservation of mangroves, controlled illegal exploitation.

ASSESSMENT OF IMPACTS (cont.) Erosion of tariffs without any solution towards international competition (Malagasy shrimps: high production costs, small quantity) Improvement of prices thanks to ecolabeling.

POLICY RECOMMENDATIONS Tendencies (hypotheses) - Avoid too high production costs: Incentives for the creation of entrants production units (shrimps food, etc.) -Taxes free Energy policy, - Active involvement in ecolabeling development and implementation, - Identify and treat separately the sectors (Plan directeur 2004 is too global).

NEXT STEPS Impacts assesment (datas collection and analysis). Improve policy recommendations agreed upon by stakeholders in Tana, June 2008.

ACHIEVEMENTS State of the art of the sector, National workshop for launching and capacity building, Integrated Assessment Methodology adopted; Creation of a monitoring handbook. Participation of research institute in First Review Workshop. Midway assessment workshop parcours (Tana 2008).

ACHIEVEMENTS Updated methodology. Conceptual framework Scenarios Impact indicators

CHALLENGES Effective involvement of the State. Understanding and acceptance of the necessity of this study by actors. Respect of the timeframe. Access to data. Appropriation of IA (necessity, methods, etc.) by stakeholders.