Report No. PID8126

Project Name Madagascar-Cultural Heritage

Region Africa

Sector Non Sectoral

Project MGPE67058 Public Disclosure Authorized Borrower(s) Government Of Madagascar

Implementing Agency Ministry Of Culture, Information And Communication

Environment Category C

Date PID Prepared September 15, 1999

Projected Appraisal Date September 8, 1999

Projected Board Date July 6, 2000

Public Disclosure Authorized 1. Country and Sector Background

The main sector issues with regard to cultural heritage conservation and management in Madagascar are: the role of culture in poverty alleviation efforts; the rapid deterioration of many culturally significant assets; the need to integrate a cultural dimension into local economic and social development plans; the challenge to strengthen the nascent institutional base for the sector to prevent the loss of cultural heritage assets; and, the coordination of multiple stakeholders' interests in cultural heritage management.

In developing countries, culture may be considered to be a luxury ill- Public Disclosure Authorized afforded by the majority of the people and to which scarce national resources should be devoted. Madagascar is one of the ten poorest countries in the world with nearly three quarters of its population living on less than one dollar a day. However, cultural heritage has important social facets and can help bring about faster economic growth. A widely-supported national vision for cultural conservation and development can serve not only to protect diversity of Madagascar's multi-cultural population, but also to catalyze social cohesion.

To help break the vicious circle of poverty, cultural identity and economic objectives are not mutually exclusive, but rather dependent on each other. Cultural identity lends personal and community commitment to income- generating activities and garners a sense of pride, which in turn generates more economic activities and benefits. For example, artisanal products of a high quality and significant to the country's cultural identity form a major Public Disclosure Authorized part of the tourist experience, thus providing the impetus for market expansion, job creation, and revenue generation.

With widespread poverty comes neglect of the environment, the public domain, and cultural assets. This could include lack of attention to littering, increased vandalism of natural or cultural sites, and lack of proper maintenance. This is particularly applicable to Madagascar given the high rates of poverty. To change this behavior, individual and collective values and beliefs must be redefined. For example, traditional fables, used for many generations to teach lessons and basic values, can play an important role in the gradual transformation of behavior. Stories abound throughout all parts of the country, with clear messages about the protection of the forest, the importance of ancestral rituals, health and nutrition, amongst others. There is a danger that these stories will be lost with the death of elders and the lack of recording and dissemination.

Although culture featured in local development strategies only a few decades ago, culture consciousness has dropped off the agenda of local authorities and communities. This was compounded by centralization of power and decision- making, leaving little for responsibility and planning at local levels. Following a recent push to devolve more authority to other levels of government, local economic and social development strategies will need to integrate a cultural dimension in order to fully realize benefits. Cultural projects can only be enhanced by building on such local development strategies, while in turn helping sustain a decentralized strategy.

Despite the country's best efforts, the institutional base of cultural heritage development is weak. At the central level, a clear vision of the necessary institutional framework -- including a clear strategy, the legal and administrative rules and regulations, and incentives to promote cultural development initiatives -- is not yet in place. Nonetheless, there are isolated examples of local good practice, such as the palace of King Andrianampoinimerina in Ambohimanga (located about 25 km from the capital), managed by the rural "commune", in collaboration with university staff and donors. This site has seen a threefold increase in number of visitors, and revenues have nearly doubled between 1996 and 1998. A strategy was developed by the local stakeholders, supported by the municipal council and the private sector, and drew upon expertise in architecture, anthropology and ethnography, and resources from existing investment projects (such as AGETIPA). Tour guides were trained, groups of local artisans were organized to sell their wares, and site managers promoted the site to tour operators in the capital. Lessons should be learned from this type of example to inform other levels of decision-makers, thus contributing to the development of a strategy.

Another key issue is the lack of information efficiency of the existing resource base, which in itself is quite limited. Resources and successful initiatives may exist in certain parts of the country, but are unknown in other parts, leading to potential duplication of effort and reducing efficiency. For example, environmental and conservation projects undertaken by civil society or non-government organizations may not build on existing work of other groups in eco-tourism. If these interests were shared and coordinated, better synergies and economies of scale would be achieved and brought to bear on the projects themselves.

The Government's overriding objective is high growth and meaningful reduction of poverty within a generation. In this context, it sees culture -- both tangible and intangible -- as an important element of social and economic development. The main challenge facing Madagascar is thus to foster good practice that will provide the foundation for the evolution of a cultural conservation and management strategy within the timeframe of this LIL.

- 2 - 2. Objectives

The Government of Madagascar has requested World Bank support through a Learning and Innovation Loan (LIL) with the objective of developing, through practice, effective approaches to integrate the conservation and management of cultural assets into local economic development plans. The creation of partnerships would serve as the driving force to achieve this objective, fostering synergies between tourism, environment, social development, and cultural activities.

In order to gain maximum and early impact in the context of a full learning experience in fostering partnerships and synergies, the Government has selected three geographical zones which offer significant all round potential for integrating cultural enterprises and industries into economic development. These areas already constitute centers of cultural enterprise: a number of natural sites and historical monuments are focal points of local tradition, community solidarity and visitor interest and could be gradually restored; and popular events such as music festivals, presentations of oral traditions, and traditional dance exhibitions are spontaneously held and, together with the production and sale of artisanal objects, could provide important and sustainable links between cultural preservation and income generation. In addition, private investors have made, or are planning, significant tourism investments in these areas, fueling a growth in tourist arrivals and receipts while feasibility studies have identified possibilities of further growth, especially in "discovery tourism". Finally, experience has shown that active participation of local community and civil society in cultural tourism energizes local entrepreneurial initiatives, boosts local economy and provides income to the poor, while at the same time fostering economic stability, social cohesion and national solidarity.

3. Rationale for Bank's Involvement

4. Description The LIL would support the following components in three selected regions: (a) site conservation and management; (b) support for cultural initiatives; and (c) institutional development and capacity building. The three pilot regions are the national capital area, the north-west / Nosy-Be area, and the central east coast / Ile Sainte-Marie and Foulpointe areas.

During the preparation of the project, the newly created Advisory Committee began collecting information and studies, and consulting local stakeholders in the three pilot regions. This process is expected to lead to:

(a) the identification of major relevant stakeholders operating in the three areas; (b) the creation of an inventory of potential sites as well as relevant documentation, in collaboration with representatives of these stakeholders; (c) an outline of tourism development strategies on the basis of existing regional studies undertaken by the Ministry of Tourism and other relevant ministries and institutions; (d) a list of priority actions with respect to conservation and management of cultural and natural sites, the promotion and development of cultural enterprises, and / or support to strengthening of institutional capacities; (e) a proposed institutional structure for the coordination, operation and

-3 - evaluation of project activities; and (f) detailed cost estimates and implementation schedules.

Component 1: Site Conservation and Management.

The project would provide resources for the development of appropriate models of cost-effective site conservation and management in the three regions. Specific areas of conservation and management to be examined include zoning, planning, rehabilitation, exploitation, visitor interpretation, and maintenance. Models and site activities would be developed and launched jointly by local authorities and stakeholders. Pilot sites, selected by consensus among stakeholders within each region, are:

(a) in the national capital area: (i) the three royal huts (Besakana) that are part of the Rova complex of Antananarivo; (ii) (to be completed); ...

(b) in the north-west area: (i) (to be completed) ... ; and,

(c) in the central east coast: (i) (to be completed).

Component 2: Support to Cultural Initiatives.

The objective of this component is to provide demand-driven support to cultural initiatives aimed at promoting social cohesion and identity, and stimulating income-generating opportunities for local communities. This objective would be achieved through a matching-grant scheme supported by a Cultural Heritage Fund (CHF). Proceeds from the CHF would be made available to the three regions on a competitive basis and would be managed by the Project Coordination Unit (PCU). To assist the PCU in marketing the CHF, screening project proposals, approving proposals below a threshold, and monitoring implementation, three Regional Cultural Committees (RCCs) would be established, made up of representatives of stakeholders. Project promoters, including local groups (such as NGOs, artists, women's group, artisans, etc.) and partnerships of interested parties would be invited to submit proposals to their Regional Committee. Proposals would be selected according to principles, criteria and procedures acceptable to IDA.

Project proposals should conform to the following fundamental principle: promoting economically feasible initiatives that are culturally relevant and consistent with local development plans. Initiatives should result in greater capacity, expertise and know-how that can be transferred to future activities. As a matching grant scheme, the CHF would require project promoters to mobilize resources and seek additional funding from private sources.

Areas eligible for support encompass all forms of cultural expression or representation. Broad categories of acceptable initiatives would include:

support to artisanal activities with a focus on reviving traditional skills (stone carving, silk production, etc.), strengthening existing skills (woodworking, paper, embroidery, etc.), improving methods of

- 4 - production to ensure better product quality and mix, and expanding markets (distribution, promotion, selling points, etc.); promotion of living culture, including dance and theater, music (vocal and instrumental), oral traditions (fables, stories and poetry), local customs (ancestral rituals and ceremonies), and ethnographic artifacts; education of the public and visitor interpretation, including development of signage, brochures and pamphlets, training of tour guides, creation and/or enhancement of museums; and, other activities that support discovery tourism, e.g. eco-tourism, adventure travel and cultural tourism.

The content of proposals, selection criteria, disbursement of funds and other processes would be defined in the Manual of Procedures of the CHF, which would be finalized during Negotiations.

Component 3: Institutional Strengthening and Capacity Building.

This component is designed to provide assistance for institutional strengthening involving:

(a) support to NCHB and RCCs in areas of project management, finance and administration, procurement, monitoring and evaluation, and other skills;

(b) training and study tours for staff of implementing agencies and cultural initiatives promoters, both in-country as well as internationally. Study tours would include visits to other regions in Madagascar and neighboring countries that offer successful examples of cultural heritage management and tourism;

(c) public awareness programs and new marketing approaches that would involve media and NGOs, and would raise interest in cultural issues leading to the creation of a vision of cultural development in the new millennium; and,

(d) monitoring and evaluation of all activities due to the nature of the learning and innovation loan. Elements of the monitoring and evaluation (M&E) program would include technical and financial audits, beneficiary assessments, Bank supervision, and independent reporting. A cultural database will be maintained and periodically updated to include a listing and details of classified sites and monuments, as well as the relevant stakeholders involved. Participatory monitoring would be undertaken by RCCs in their respective regions.

1. Site Conservation and management 2. Support to cultural initiatives 3. Institutional strengthening and capacity building

5. Financing Total ( US$m) Government 1.7 IBRD IDA 4.8 Total Project Cost 6.5

-5- 6. Implementation

7. Sustainability

8. Lessons learned from past operations in the country/sector

9. Program of Targeted Intervention (PTI) N

10. Environment Aspects (including any public consultation) Issues

11. Contact Points:

Task Manager Daniel Viens The World Bank 1818 H Street, NW Washington D.C. 20433

The InfoShop The World Bank 1818 H Street NW. Washington DC. 20433 Telephone No.: (202)458-5454 Fax No.: (202)522-1500

Note: This is information on an evolving project. Certain activities and/or components may not be included in the final project.

Processed by the InfoShop week ending September 17, 1999.

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