Shared this one (too) in FriendFeed’s Madagascar group

Thanks a lot for this very good (and wise!) blog post!

by William Easterly Secretary of State Hilary Clinton had good news for Africa in the Nairobi forum yesterday on the US African Growth and Opportunity Act (AGOA). AGOA offers breaks from quotas and duties on African exports to the US….

Presently, there are about a thousand Filipino expatriates working in Madagascar, commonly within the textile and garment industry. And we haven’t even counted those who came from Nepal, Mauritius, China, South Africa, Kenya and France.

Should the AGOA eligibility of Madagascar is revoke–the textile and garment industry is expected to collapse, displacing thousands of Malagasy people from their jobs, as well as, the foreign expatriates. This is already an international concern, not just between Madagascar and the US.

We, the Filipinos, are raising our fear with the Department of Foreign Affairs, likewise, with the Philippine Overseas and Employment Administration. We hope that thru this effort, the Philippine Government can help us bring our flights to the appropriate authorities in the US.

Madagascar is not our country, yet it has become a home for most of us.

I am an operator and investor in Madagascar working under AGOA for the past eight years. Your blog address has been given to me by a friend from “Am Cham” newly formed in Madagascar, which I am also a member.

Firstly, thank you very much for sharing your insight of Madagascar track records of working with AGOA over the years and call for the stop of revoking Madagascar from AGOA for very good reason. I would like to tell you that we share your exact view of not only revoke Madagascar from AGOA would not help the situation at all but would actually make it much worse. Because if tens of thousands would be out of job tomorrow due to AGOA, would there be any relatively peaceful situation in the society as now? Would there be no uprising like the past six months? Would the population here understand the truth behind the revocation of AGOA? We ought to understand that whatever ideas we, the outsider, have for Madagascar’s politics or the forming of their government must have the understanding and support of the population. To be exact, we need to think about all these from their point of view and have our feet in their shoes. In fact, I doubt very much that there would be a large percentage of population knowing what AGOA means. Meanwhile, Madagascar, the people and the population being taken off the map of AGOA that would be most unfair.

During the past months of trouble here, we, the operators found no sign of problems in our operation and factories, everything was normal! Even when there was no form of transportations during trouble times, the workers would walk to work and it would mean walking over two hours in some cases, and our attendance in the factories was always around 95%. We appreciate very much the determination of all the local workers of AGOA that they are willing to work towards their good future no matter the situation, as long as we would allow them!!

Where our investment is concern, as you are most certainly aware of, that the total export under AGOA in Madagascar would take easily up to 60% of their entire exports. Now, imagine the amount of good investment we entrusted to AGOA in Madagascar over the years. If Madagascar will be taken off from AGOA, we are talking about a total annihilation of the entire industry in Madagascar that the local workers and investors built with a lot of hard work over the years.

Should U.S.A take such action towards the people of Madagascar and our industry under the current global economic crisis?

AGOA was designed to help the growth of Africa country and ultimately the betterment of the people’s life. On the other hand, the revocation of Madagascar from AGOA would not hurt the same people that we were trying to help?

Thank You with My Best Regards

Bob

“There’s a big difference between cutting off aid to bad governments and cutting off export opportunities to the private sector in a country with a bad government.”

- a very good answer and one which I think policy makers should way carefully before embarking on sanctions.

So agreed -

Now how about an answer to my repeated question on World Bank industrial policy?

SS

Cutting aid to government therefore strikes at the heart of the problem and hurts the perpetrators of the coup. Unless the coup’s backers are big exporters, cutting aid to the private sector, or to programs that reach directly to the people, is really not something that affects those in power. It only hurts the businesses and workers of the country, already suffering from the turmoil. What a misguided policy.