VZCZCXRO8894
OO RUEHBZ RUEHDU RUEHJO RUEHMR RUEHRN
DE RUEHAN #0116/01 0370812
ZNR UUUUU ZZH
O 060812Z FEB 07
FM AMEMBASSY ANTANANARIVO
TO RUEHC/SECSTATE WASHDC IMMEDIATE 4259
RUEHLMC/MILLENNIUM CHALLENGE CORPORATION IMMEDIATE
INFO RUCNSAD/SOUTHERN AFRICAN DEVELOPMENT COMMUNITY
RUEHFR/AMEMBASSY PARIS 0802
RHEHNSC/NSC WASHDC

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 
 
 
ANTANANARI 00000116  001.2 OF 002 
 
 
¶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 
 
ANTANANARI 00000116  002.2 OF 002 
 
 
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