1. CASM 2006 November 11-15, 2006 Antsirabe MADAGASCAR
“MADAGASCAR SESSION”
Tonga soa, Welcome, Bienvenue!

2. Wealth at the Bottom of the Pyramid: Opportunities in ASM in Madagascar
By Lucie C Phillips, Ph.D.
Consultant, Ministry of Energy and Mines, Mineral Resources Governance Project

3. Through PGRM studies we learned
ASM is already the best option
For young rural people
Since government opened up mining
And legal marketing
Jobs and revenues are growing rapidly
12.32 billion Ariary in 2005, billion in 2005 and upward trend continues in 2006 ($6.16 million-$12.64 million)

4. Revenues from gemstones better than agriculture or livestock

5. Revenues from gold panning even better

8. Wealth in the sector Miner workers bottom Foremen next rung up
Brokers higher
Buyers higher
Exporters
Home offices
Sri Lanka &
Thailand

9. Capital comes down the pyramid
Home offices finance local buyers
Buyers inject capital
Sponsor mines
Without them, mining is marginal

10. How we are improving opportunities?
What works?
Adaptations
New legal framework
New technology
New management
More effective governance
Financial services—yet to come

11. Technology Cell phones=seller power Private power supplies
Privately funded schools, clinics
Coming now:
Internet at Rural Mines Office—for global price info
& text messaging—to sell to established customers

12. New management Miners associations Gold panning corridors
Global buying networks

14. Training—IGM Improving market Paving the way for jewelry industry
Most wealth is at the bottom—selling rough or tumbling it
Niche market: “Madagascar naturally”

15. Reducing Corruption Digital cadastre—first come, first served
Updated and visible daily—
Taxing the market chain
Transparency
Easier procedures
Decentralizing, 2% royalty
1.6% to communes
Approach works better than force

16. Administration Mine rush management strategy
Integrating environmental protection
Making tax payment easy
One-stop export processing
Provisions for foreign buyers
Legal exports of gemstones doubled from 2004 to 2005
From $6.16 million to $12.64 million and continuing to grow in 2006.

17. Misaotra. Merci. Thank you Lucie C. Phillips, Ph. D
Misaotra! Merci. Thank you Lucie C. Phillips, Ph.D. International Business Initiatives 2200 Clarendon Blvd., suite 1200 Arlington, VA Tel Fax