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(Waves) Madagascar WEALTH ACCOUNTING AND VALUATION OF ECOSYSTEM SERVICES (WAVES) MADAGASCAR PHASE 2 SCOPING STUDY AND WORKPLAN February 2013 WAVES Madagascar National Steering Committee This report was prepared by Alison Clausen (World Bank Consultant) with contributions from Ramy Razafrindalambo (World Bank Consultant) and Iharimamy Andriamarozaka (Instat). It was prepared in collaboration with the WAVES Madagascar National Steering Committee, and in particular with the substantial support of the Steering Committee Co-presidents, Jean-Gabriel Randrianarison (Ministry of Economy and Industry) and Leon Rajaobelina (Conservation International). Valuable comments on an earlier draft of the report were received from the following World Bank staff (in alphabetical order): Kirk Hamilton, Glenn-Marie Lange, John Nash, Stefano Pagiola, Giovanni Ruta, and Xavier Vincent. Paulo Nunes (The Mediterranean Science Commission) also provided comments on the draft report. The study team thanks all the reviewers for their valuable comments. Cover photo: Visitors’ center and landscape of Isalo National Park. Located in the southwest of the country, it is the most visited protected area in Madagascar i Table of Contents Acronyms and Abbreviations ....................................................................................................................................... iv 1 Introduction ................................................................................................................................................................. 1 1.1 Introduction to the WAVES Global Partnership ..................................................................................... 1 1.2 WAVES in Madagascar and Activities to Date .......................................................................................... 1 1.3 Purpose and Structure of Report ................................................................................................................. 1 2 Overview of Economic and Environmental Context in Madagascar ........................................................ 3 2.1 Macro-economic Context in Madagascar................................................................................................... 3 2.1.1 Past and Current Economic Performance ............................................................................................. 3 2.1.2 Economic Structure ....................................................................................................................................... 4 2.1.3 Causes of Economic Fragility ..................................................................................................................... 5 2.2 Overview of Environment and Natural Resources in Madagascar .................................................. 5 3 Ecosystem Valuation & Natural Resource Accounting in Madagascar ................................................... 8 3.1 Past Ecosystem Service Valuation Studies ................................................................................................ 8 3.2 Outcomes of WAVES Phase 1 Technical Case Studies ........................................................................... 9 3.2.1 Valuing Ecosystem Services in the CAZ Protected Area ................................................................ 10 3.2.2 Economic and Policy Aspects of the Malagasy Fisheries and Coastal Resources Sector .. 10 3.3 Treatment of Natural Resource Issues within the System of National Accounts .................... 11 3.3.1 Introduction to Malagasy System of National Accounts ............................................................... 11 3.3.2 Treatment of Natural Resources Issues in the Malagasy SNA .................................................... 12 3.4 Organizations involved in Ecosystem Valuation and Natural Resource Accounting ............. 12 4 Priority Policy Objectives for WAVES Madagascar ..................................................................................... 15 4.1 Overall Approach ............................................................................................................................................ 15 4.2 Macro-economic Indicators ........................................................................................................................ 15 4.2.1 Overview of Current Issue ....................................................................................................................... 15 4.2.2 Opportunities for WAVES Madagascar Activities ............................................................................ 17 4.3 Mineral Resources .......................................................................................................................................... 17 4.3.1 Overview of Issue ........................................................................................................................................ 17 4.3.2 Opportunities for WAVES Madagascar Activities ............................................................................ 19 4.4 Water Resources ............................................................................................................................................. 19 4.4.1 Overview of Current Issue ....................................................................................................................... 19 4.4.2 Opportunities for WAVES Madagascar Activities ............................................................................ 20 4.5 Protected Areas and Forestry Ecosystems ............................................................................................ 20 4.5.1 Overview of Current Issue ....................................................................................................................... 20 4.5.2 Opportunities for WAVES Madagascar Activities ............................................................................ 23 4.6 Fisheries and Coastal Resources ............................................................................................................... 23 4.6.1 Overview of Current Issue ....................................................................................................................... 23 4.6.2 Opportunities for WAVES Madagascar Activities ............................................................................ 25 5 WAVES Madagascar Workplan, Schedule and Budget Estimate ............................................................ 26 5.1 Introduction ...................................................................................................................................................... 26 5.2 Objective 1: Macro-economic Indicators ................................................................................................ 26 5.3 Objective 2: Mining sector ........................................................................................................................... 26 5.4 Objective 3: Protection of watersheds .................................................................................................... 27 5.5 Objective 4: Value of protected areas and forest ecosystems ........................................................ 27 5.6 Objective 5: Fisheries and coastal resources ........................................................................................ 28 5.7 Cross-Cutting Activity 1: Capacity Building ........................................................................................... 28 5.8 Cross Cutting Activity 2: Communications Activities ......................................................................... 28 5.9 Institutional Arrangements for WAVES Implementation ................................................................ 29 5.10 Annual Workplan Review and Monitoring ......................................................................................... 29 5.11 Workplan Budget ......................................................................................................................................... 30 5.12 Activity Schedule .......................................................................................................................................... 31 ii Annexes Annex 1: Overview of Natural Resources Data in Malagasy SNA ..................................................................................... 32 Annex 2: Preliminary Review of Data Availability for Key Sectors ................................................................................. 35 Annex 3: Terms of Reference for WAVES National Steering Committee ...................................................................... 51 List of Tables Table 2.1: Structure of Madagascar’s Economy ......................................................................................................................... 4 Table 3.1: Key Organizations in Ecosystem Valuation & Natural Resource Accounting ....................................... 13 Table 4.1: Existing and Potential Large-Scale Mining Activities in Madagascar ....................................................... 17 Table 4.2: Evolution of Forest Cover and Deforestation ...................................................................................................... 21 Table 4.3: Quantity and Value of Fisheries and Coastal Resources Exports in 2010 and 2011 .......................... 24 Table 5.1: Summary of Workplan and Budget .........................................................................................................................
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