MCC CEO DANILOVICH VISITS MADAGASCAR

UNCLAS SECTION 01 OF 02 ANTANANARIVO 000116

SIPDIS

SIPDIS

DEPT FOR AF/E AND AF/FO
PARIS FOR AFRICA WATCHER
MCC FOR CEO DANILOVICH

E.O. 12958: N/A
TAGS: EAID KMCA ECON PGOV PREL MA
SUBJECT: MCC CEO DANILOVICH VISITS MADAGASCAR


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1. SUMMARY: MCC CEO Ambassador John J. Danilovich, accompanied by
Catholic Relief Services President and MCC Board Member Kenneth
Hackett assessed progress under Madagascar's Compact January 31 to
February 2. President Ravalomanana committed to take immediate
steps for the remediation needed on Madagascar's indicators, and
eagerly requested an update on the prospects for a second compact.
On a trip to view MCC work in the field, Ambassador Danilovich
participated in a ceremony to deliver land certificates, training
certificates, loan approval letters from the BOA (Bank Of Africa),
met local officials and farmers, and planted geraniums. END
SUMMARY


2. Visiting Millennium Challenge Corporation (MCC) CEO Danilovich
held a cordial meeting with President Marc Ravalomanana February 2
to review progress and next steps in Madagascar's Millennium
Challenge Compact. Commenting on his trip down to the Vakinakaratra
Region to see MCC work first-hand, Ambassador Danilovich lauded the
commitment to the program ranging from leaders such as MCA Director
General Emma Ralijohn down to the individual members of farmer
cooperatives.


3. The President emphasized the MCA Compact is an integral piece of
his Madagascar Action Plan (MAP) to promote rural development.
Noting success to date, he quickly and eagerly turned to the subject
of Madagascar's eligibility for a second compact. Ambassador
Danilovich said the needed legislative changes would be a priority
in the upcoming February 14 MCC Board Meeting and in appointments on
Capitol Hill. Director Ralejaona said consultations in Madagascar
were complete for the phase two proposal, and feasibility studies
were underway.


4. President Ravalomanana preempted Ambassador Danilovich to raise
the two key areas of remediation needed for Madagascar's eligibility
for MCC: immunization and girl's school enrollment. Clearly
well-briefed on these issues, and acknowledging Ambassador McGee's
January 12 call on the topic, the President confirmed that immediate
steps would be taken to improve Madagascar's performance on these
indicators. He accepted the point that MCC eligibility was
demanding, while also calling for some flexibility. The President,
ever impatient, emphasized his need to move fast and encouraged MCC
to streamline its procedures.

MCC Site Visits
--------------


5. Two days in the field provided Ambassador Danilovich with a
close-up view of compact implementation in Madagascar. He visited a
land registry office where he was shown the MCA-funded improvements
that had been made in recording and storing documentation of
ownership. He visited the office of the Agricultural Business
Center (ABC) in Antsirabe, where he was shown how farmers are
provided information that improves their production, allows them to
diversify their crops, and assists them in finding appropriate
markets for their surplus. In Ambatofinandrahana he visited an
exhibit of MCA activities and then was guest of honor at a ceremony
to hand out newly issued land certificates, loan approval letters as
well as training certificates for 21 farmers' cooperatives. In some
ways the highlights of the trip were two stops along the road to
visit farmers' cooperatives. In one, his hosts offered Ambassador
Danilovich a live rooster to express their appreciation for the help
they had received through the MCA. In another, the cooperative
explained how switching from manioc cultivation to geraniums, an
MCA-funded initiative, had dramatically raised their incomes. The
farmers then brought Ambassador Danilovich into the field for a
"hands-in-mud" demonstration of geranium planting.

Press Coverage
--------------


6. The visit garnered extensive, and uniformly positive, media
coverage over several days. This started with the advance press
announcement that was covered in most major news outlets. The field
trip was reported on three television stations, five local and three
national radio stations, and seven newspapers. The meeting with the
President and the press conference were covered by five television
stations, six radio stations and nine newspapers. The most common
theme highlighted was Ambassador Danilovich's satisfaction that
Madagascar was showing positive results from its compact.


7. COMMENT: Ambassador Danilovich's visit came just before the
halfway point of Madagascar's Compact, when momentum has been strong
and results emerging. The shared pride of MCC success is a focal
point of strong bilateral relations. Having overcome the growing
pains and first-mover difficulties as the first MCC country,
Madagascar both enjoys its prestige as a charter member of the
program and seeks rewards for its work in the form of a Second

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Compact. To date, Post assesses Madagascar's MCC experience to
positively reinforce all Mission objectives and believes this
development experiment shows enormous promise. END COMMENT.

MCGEE