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Debt-for-Nature Swap in Madagascar

Case Study C0214
[edit]

Date1996
AgencyGovernment of Madagascar
Donor/support agencyWWF
USAID
World Bank
Missouri Botanical Garden
Conservation International
Project typeImplemented by agency
Context(s)Protected area
Geographic coverageMadagascar
Biodiversity focusEcosystem/landscape
Development focusLocal communities
Conservation goalsImprove natural resource conservation in Madagascar
Poverty reduction goalsImprove the living conditions of people living in and around protected areas

Summary
Studies carried out in the 1980s revealed that Madagascar's environmental status had suffered from forest fires, extensive logging, rapid agricultural expansion, hunting and unregulated goat raising and cattle ranching. In response to this situation, the Government of Madagascar formally decided in 1985 to give priority to natural resource conservation, with a plan that included the following actions: review the existing forest cover; enhance the protection of reserves and national parks; establish new protected areas; develop environmental education programmes; implement integrated rural development programmes; involve communities in the rational use of natural resources around protected areas. To finance this programme, the Government of Madagascar entered in a debt-for-nature swap agreement with WWF in 1989. This agreement, the first of its kind for an African country, led to the acquisition by WWF of $3 million of Madagascar foreign debt. Following the positive results of this first programme, the Government of Madagascar negotiated numerous others debt-for-nature swaps with Conservation Intenational, Missouri Botanical Garden and WWF, which, between 1989-96 generated $11.7 million in conservation funds. The projects to which these funds have been allocated were selected by the Government of Madagascar.

Conservation impact
There are now about 45 protected areas in Madagascar.

Poverty reduction impact
Many people were trained as nature protection agents, to improve conservation and community awareness of environmental issues. Many protected areas now offer ecotourism benefits and hydrological services, including irrigation and potable water, thus contributing to poverty alleviation.

Strategy for Conservation/Poverty Linkages
Payments for conservation services

Reference 1
http://www.fao.org/DOCREP/006/T0670E/T0670E00.HTM

Reference 2
http://www.conservationfinance.org/WPC/WPC_documents/Apps_11_Moye_Paddack_v2.pdf

 

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