Madagascarís Pro-Business President Cites Countryís Achievements by Larry Luxner Madagascar, the worldís fourth-largest island, is home to 17 million people and thousands of plant and animal species that live nowhere else on Earth. Yet most Americans know absolutely nothing about the placeóand the country receives fewer than 8,000 U.S. visitors a year. That could change dramatically, however, thanks to next monthís release of ìMadagascar,î an animated film produced by Steven Spielbergís company, DreamWorks. The movie tells the story of three animals that escape from a New York zoo and try to adapt to their new environment. ìEven though itís a cartoon, it was developed from research about Madagascar that shows how beautiful our landscape is,î said Rajaonarivony Narisoa, Madagascarís ambassador to the United States. ìWe expect that with the release of this movie, we could register as many as 1 million tourists a year, up from 200,000 a year at present. We think it can be a tool to promote tourism and especially Madagascarís biodiversity,î Narisoa added, noting that 80 percent of the islandís flora and fauna are endemic to Madagascar. Thatís why meeting Spielberg a t DreamWorksís Los Angeles studios was such a priority for Madagascarís president, Marc Ravalomanana, during his early February visit to the United States. A devout Christian, Ravalomanana was also invited to President Bushís National Prayer Breakfast, and he met with business leaders in Texas as well as 24 Malagasy students attending Abilene Christian University. Speaking at a Washington event organized by the Corporate Council on Africa and the Millennium Challenge Corp., Ravalomanana said that last year, Madagascar registered 8 percent annual gross domestic product growth even while slashing tariffs and customs duties. Even more impressively, Madagascar ranked first in the Wall Street Journal-Heritage Foundationís 2004 index of economic freedom among emerging markets. ìWe want to create jobs for our people, strengthen industry and make the most of our natural beauty,î said the president. ìWe still have a steep road to climb, but we need support from our friends. I am counting especially on America to help us, because Americans are not afraid of new frontiers. We need your spirit to fight poverty, build roads and ensure clean water for our people.î On the other hand, he said, ìBusinessmen will only come to Madagascar if we offer three things: security, stability and profit. I know the businessmanís mentality very well, and we cannot force them to come to Madagascar. We must create a new investment climate.î Ravalomanana, 55, is originally from Imerkasinina, a village east of Madagascarís capital city, Antananarivo. One of eight children, he turned his familyís small yogurt operation into an agribusiness giant and in the process, became one of Madagascarís richest men. He entered politics in 1999 as a candidate for mayor of Antananarivo and won by a large margin. Ravalomananaís popularity as mayoróparticularly his improvements in hygiene and municipal sanitationóhelped him win the presidency only three years later. ìI was elected in 2002 because the people wanted a change,î said Ravalomanana. ìMadagascar is trying hard to control corruption, and good governance is on its way. Our accomplishments are frequently cited by other countries.î Theyíre also cited by Paul Applegarth, chief executive officer of the Millennium Challenge Corp. (MCC), a nonprofit organization that provides assistance to countries that achieve specific levels of progress in civil liberties, political rights, transparency in government and other criteria. ìWe are very optimistic about Madagascar,î said Applegarth. ìFirst of all, President Ravalomanana is a self-made man. He sold yogurt from the back of his bicycle, and within two years, he secured a loan from the World Bank to start a yogurt factory. Since becoming president, heís become the guiding force in fighting corruption. ìAt its heart, the MCC is about reducing poverty through substantial economic growth,î Applegarth continued. ìGrowth occurs fastest in countries like Madagascar that adopt good policies. Countries compete for our assistance. Those who win the competition rank highest among their peers. In fact, Madagascar has made so much progress that itís among four countries in the final stages of a compact with the MCC, along with Nicaragua, Honduras and [the ex-Soviet republic of] Georgia.î Helping the president achieve his goals is the recently established U.S.-Madagascar Business Council, headed by Earl Young. Other entities involved in the effort include ExxonMobil, Texas Childrenís Hospital and Boeing Corp. At present, some 80 percent of trade between Madagascar and the United States consists of textiles, thanks to opportunities created by the African Growth and Opportunity Act (AGOA), signed into law during the Clinton administration. And even though Ravalomanana said his country is ìnot afraid of Chinese competition,î others are clearly concerned that once U.S. global textile quotas are lifted, a flood of imports from China will devastate Madagascarís fledgling garment export industry. (See related story on page A-18) ìWe must make sure China doesnít take over the whole world,î said Stephen Lande, president of Manchester Trade Ltd., a Washington consulting firm with experience in Africa. ìSecondly, AGOA must be strengthened, particularly with regard to textiles. We will do whatever is necessary to make sure that happens.î Larry Luxner is a contributing writer for The Washington Diplomat.