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UNIVERSITY OF ANTANANARIVO ************************* SCIENCE OF SOCIETY ******************** ECONOMICS *************** ACADEMIC BACKGROUND: LOCAL DEVELOPMENT AND PROJECT MANAGEMENT *************** THESIS FOR THE AWARD OF THE MASTER’S DEGREE IN ECONOMICS « INVESTMENT FEASIBILITY AND OPPORTUNITY FOR THE CASE OF LOCAL PLACE: VOHIMANA COMMUNITY FORESTRY » Written by: RAKOTOMAHARO Fenonjara Ghislain Oral Defense Dissertation day: 23 December 2016 Oral dissertation committee: Chairman: Mr RANDRIANALIJAONA Tiana Mahefasoa, University Lecturer Moderator: Mr RAZAFINDRAKOTO Jean Lucien, University Lecturer Supervisor: Mr RAKOTO David Olivaniaina, University Lecturer Academic year: 2010-2011 ABSTRACT This thesis study range ways of feasible investment and market opportunity for the Vohimana Community Forestry. Some area of expertise defined investment as every kind assets, contracts, property rights, production process or copyright, and also capital assets to carry out an economic project. Meanwhile such research have problems whether people at Vohimana are farmers not traders, information are sharing only by one way, from Tangalamena to others and people are not fully involved in community activities. In order to explore the topic, our objectives are to give appropriate training for adults and to provide information tools for value and supply chain for Vohimana products, if we follow the hypothesis that everyone should become an economic agent, accept mutual participation and to let them organize themselves. Our general strategy applies the methods of holistic approach and focus group interview. Our findings reveal that community suffered of the lack of health care services, children education and the oscillation of there is there isn’t of MATE (Man And The Environment) activities. To achieve the goal, local development project should respect community leader advice so that results may play a role such as having better life for key actors who wish to develop their basis community and preserve their environmental richnesses. Key words: investment, Vohimana Community Forestry, market opportunity, economic project, Tangalamena, community activities, tools, value and supply chain, economic agent, mutual participation, holistic approach, focus group, education, local development, key actors, environmental richnesses. i ACKNOWLEDGEMENTS I would like to thank my major Professor, Dr RAKOTO David Olivaniaina for the opportunity to complete this research. All of his advice and support have been greatly appreciated. I would like to thank my committee members, Dr RAZAFINDRAKOTO Jean Lucien for reviewing my research and their advice, and also Pr RANDRIANALIJAONA Tiana Mahefasoa for chairing my defense. Special thanks to Pr Pierluigi BOZZI, my external supervisor who give me advice for English Methodological Dissertation and Research Study. I would also like to thank the Employees of Economic Department (3rd Cycle) from the Faculty of Law, Economics, Management and Sociology. At last, I would like to show my deepest gratitude to my wife, Nirisoa to support me during performing this hard task, my grand Sister to support materials and financials, to my cousins Finaritra and Ninie to share their English knowledge, to the student members of “Research Group” especially Fano and Tenessie to share their experiences and work as team forces during field research. To my family members who are always support me during the academic study. MOST OF ALL, WE THANK GOD THE ALMIGHTY FOR MAKING ALL THINGS POSSIBLE January 2017 ii SUMMARY OF THE CONTENTS INTRODUCTION PART ONE: LITERATURE BACKGROUND, MATERIALS AND METHODOLOGIES CHAPTER 1: LITERATURE REVIEW ON FOREST CONSERVATION, HISTORY OF INSTITUTIONAL SCHEMES, COMMUNITY INVOLVEMENT, INVESTMENT FEASIBILITY AND LOCAL DEVELOPMENT Section 1 Introduction Section 2 The Institutional scheme: from international convention to the challenges of community application Section 3 The concept of Local Development Section 4 The theory of investment Section 5 Endogenous growths and Local Development Section 6 Theoretical literature of institution CHAPTER 2: MATERIALS AND METHODOLOGIES Section 1: Materials Section 2: Methodologies PART SECOND: RESULTS, FINDINGS AND DISCUSSIONS CHAPTER 3: RESULTS CHAPTER 4: DISCUSSIONS AND RECOMMENDATIONS Section 1: Spatial consideration Section 2: Conservation at the center point of discussion Section 3: Role of community on Local Economic Development Section 4: Analyzing different economic activities using SWOT matrix Section 5: Issues of investing Section 6: Social impact CONCLUSION BIBLIOGRAPHICAL REFERENCES ANNEX iii LIST OF ABBREVIATIONS AEA: Association for Environmental Action APRD: Action Plan for Rural Development AYC: Awassa Youth Campus BC: Basis Community (French COBA and VOI in Malagasy) BCD: Basis Community Development BPAF: Biodiversity and Protected Area Fondation (French FAPB) BST: Bertelsman Stiftung Trasnformation CA: Capability Approach CARE: Cooperative Assistance Relief Everywhere CBD: Convention on Biological Diversity CD: Community Development CDA: Community Development Approach CIFOR: Center for International Forestry Research CO2: Carbon Dioxide CMO: Copyright Malagasy Office (French OMDA) CSR: Corporate Social Responsibility EAI: Environmental Accountability for Investments EAP: Environmental Action Plan ECD: Economic Community Development ED: Economic Development EIS: Environmental Impact Study EPA: Environmental Protected Agency EPM: Environmental Project Management FAM: Forest Agreement Management FAPB: Funding Protected Area and Biodiversity FDI: Foreign Direct Investment FIM: Foire Internationale de Madagascar FMC: Forest Management Contracts FMRP: Forestry Master Regional Plan FSL: Forest System Logging GACA: Green Awassa Collaborative GFCF: Gross Fixed Capital Formation GOITC : German Organization for International Technical and Cooperation (in German GTZ) iv HDI: Human Development Index HIV/AIDS: Human immunodeficiency virus infection and acquired immune deficiency syndrome ICDP: Integrated Conservation and Development Project ID: Investment Decision IDC: Identity Card IISD: International Institute for Sustainable Development IPGRI: International Plant Genetic Resources Institute IPMO: Intellectual Property Malagasy Office (French OMAPI) IUCN: International Union for Conservation Nature LD: Local Development LED: Local Economic Development MAB: Man And the Biosphere MACO: Management Committee (French COGE) MATE: Man And The Environment MIAR: Malagasy Institute for Applied Research MIF: Madagascar International Fair MNP: Madagascar National Park MREIF: Madagascar Rural Economic International Fair (French FIER MADA) NABSAP: National Biodiversity Strategies and Action Plans NAEA: National Association for Environmental Action (ANAE in French) NAMPA: National Association to Manage Protected Area (ANGAP in French) NAMTH: National Association of Madagascar Traditional Healers (ANTM in French) NEAP: National Environmental Action Plan NEO: National Environmental Office NGO: Non-Governmental Organization NRI: National Reserve Integrated NSCSD: National Strategy for Conservation and Sustainable Development (French SNCDD) OC: Organization Community PAC: Protected Area Code PACA: Participatory Appraisal for Competitive Advantage PES: Payment for Ecosystem Services PhD: Philosophy Doctorate PIC: Prior Informed Consent v PRA: Participatory Rural Appraisal PROMIS-NT : Poverty Alleviation and Support for Local Governance in the Nusa Tenggara Provinces PPP : Public Private Partnership REDD: Reduction for Emission on Deforestation and Degradation REDD+ : Reduction for Emission on Deforestation and Degradation, Carbon Storage RFMP: Regional Forestry Master Plan RSA : Rapid Situation Analysis SIDA : Swedish International Development Agency SLA : Sustainable Livelihood Approach SLMRNR: Secured Local Management of Renewable Natural Resources (French GELOSE) SRI : Socially Responsible Investment SWOT: Strength Weaknessess Opportunity Threats UNDP: United Nations Development Program UNEP : United Nations Environmental Program UNESCO: United Nations Educational, Scientific and Cultural Organization USA: United States of America USAID: United States Agency for International Development USD: United States Dollar VCF: Vohimana Community Forestry WB: World Bank WCS: Wildlife Conservation Society WEF: World Economic Forum WWF: World Wide Fund for Nature vi --------------Investment Feasibility and Opportunity for the Case of Local Place: Vohimana Community Forestry------------- INTRODUCTION Introduction part gives an overview to the master thesis topic. General background and meanings about main terms such as investment, feasibility and opportunity will be provided. Hereafter problem definition, assumptions and objectives, followed by justification, relevance and limitation, research question and research methods, and closed by structure of the research. GENERAL BACKGROUND The first part of the thesis establishes connection between the main terms as the title:”Investment feasibility and opportunity for the case of Vohimana Community Forestry”. Since it has been a thesis, it became a reflexion to draw how to perform a new idea inside community level. First of all, when we heard the term “investment” on the news, it means Foreign Direct Investment (FDI) or international or private donors. It’s true but not false too. If we examine the richness and traditional knowledge of Vohimana, we can take an extended meaning of investment as proposed by International Institute for Sustainable Investments