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International advisory reportREPORT OF THE INTERNATIONAL ADVISORY PANEL
August 2011
INTRODUCTION AND GENERAL CONTEXT
The Panel convened June 1-13 in Madagascar. In addition to site visits (the mine and several rural development projects in Mandena), the Panel reviewed a wide range of written materials relating to the project and to socio-economic, political and environmental issues. Meetings were held with QMM and with stakeholders including civil society, Anosy political leaders, the private sector, international organizations and members of an Anosy rural citizen’s discussion forum. A detailed chronology is included as Annex A and the names of persons with whom the Panel met as Annex B.
The Panel’s previous visit in May, 2010 occurred when Madagascar’s political crisis was in its fourteenth month. The resulting report described the negative and debilitating effects of the crisis at national, regional and mining project levels. One year later, little has changed at the macro level, notwithstanding the multiple efforts of the African Union and the Southern Africa Development Community (SADC). Madagascar’s de facto government continues to be regarded as illegitimate by the international community, including the African Union. Official aid flows have been cut since the beginning of the political crisis except to social sectors where donors have significantly increased their disbursements between 2008 and 2010. This increase has been justified on humanitarian grounds, to respond to the growing social distress of the population.
On the government side however, social spending has collapsed. For example, Government spending on health declined by 75% between 2008 and 2010 (from $8 to $2 per head). The net result is that most social indicators have continued to fall. The World Bank reports a drop in net registration rate in primary schools, as well as in the rate of births attended by medical staff and the use of external medical consultations. Madagascar’s National Institute of Statistics calculates that 2010 saw the second highest level of poverty since measurements began in 1993 and UNICEF reports a significant rise in infant and child malnutrition throughout the country. For Southeastern Madagascar, the malnutrition and food insecurity figures are especially alarming. A recent survey by UNICEF concluded that only 13% of households were food secure, with the remainder being either food insecure (43%) or highly vulnerable (44%).
Given this grim situation, the Panel was paradoxically encouraged by many developments in the region of Fort Dauphin. Last year, we found little evidence of collective action to address the effects of the crisis. Indeed, for the most part the general view seemed to be to “wait out the crisis”; proactive measures were largely in suspense pending a “return to normalcy.” In contrast, the general view this year, as conveyed to us across the wide range of interviews and discussions we held, was characterized far more by a “we need to take action now and not to assume or await a resolution of the national crisis.” With regard to the QMM project, in 2010 the crisis had reversed major gains made in building partnerships and in dialogue between the company and regional and local authorities and there were significant difficulties and tensions in the relationship with the Office National de l’Environnement (ONE). Regional planning, both short- and longer-term, was paralyzed and the members of the main institution of regional planning, the Comité Régional de Dévelopement (CRD), questioned whether their institution had any future role at all. A generalized sense of disenchantment and frustration was palpable.
It would be erroneous to suggest that all of this has changed. Tangible indicators of broad-based development and improvement of life quality indicators remain disappointingly elusive and frustration over this was evident in many of the conversations and interviews that we held. But we also saw considerable evidence that pointed to the strengthening of essential relationships and a disposition towards establishing new partnerships for development. We encountered many positive indicators of initiatives and of momentum towards improving consultation processes and rebuilding the institutions and structures for regional development. It is important that every effort be made to advance the potentials this new situation offers. The continuing crisis and distressing social indicators are all the more reason for all stakeholders to collaborate to take maximum advantage of the positive factors that are summarized in this report.