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CITES Project on Cost-Benefit Analysis of Wildlife in Madagascar

Madagascar is a major centre of biodiversity with many unique species of plants and animals. A significant number of these are rare, and some are threatened with extinction. The State also exports significant volumes of wildlife and wildlife products, both plant and animal, for commercial purposes. These exports involve a wide range of species and are subject to a complex system of national and international regulations. In addition, there is notable export of specimens for non-commercial purposes, primarily for scientific research. The trade brings significant economic benefits to those directly involved in it as well as generating income for the Government (through export taxes and license fees). Some economic benefits accrue to individuals in rural areas, although this is a small fraction of the overall value of the trade.

A country-wide review of Madagascar’s trade in species that are listed in Appendix II of the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES) (namely those species that could become threatened unless trade is closely controlled) resulted in a five-year CITES Action Plan and a series of recommendations. The Action Plan and recommendations were developed by the CITES Animals and Plants Committees together with key Malagasy stakeholders, and finalized in 2003. One of the stated objectives of the Action Plan seeks to establish a national policy and legislative framework for managing wildlife in Madagascar. To be internally consistent, to adhere to international norms, and to support appropriate management decisions, the Action Plan also envisioned a cost-benefit analysis of wildlife trade in Madagascar and of different regulatory regimes to govern wildlife trade.

This cost-benefit analysis should support the policy framework by facilitating systematic implementation of CITES requirements and helping to ensure that wildlife strategies become an important component of national development plans in Madagascar, which is a mega-biodiversity country. The analysis can also contribute to the achievement of other objectives, such as setting priorities and improving the capacity and coordination between national agencies responsible for regulating wildlife trade (thereby promoting good governance). In this connection, the analysis should establish linkages as appropriate with international organisations working on wildlife-trade-related issues, such as CBD, TRAFFIC, FFI, and IUCN. There is some discussion in Madagascar about the relative merits of banning the export of certain or many species, compared to the existing regime of authorised, regulated trade. Some observers suggest that an absolute trade ban would be a simpler and more cost-effective way to ensure the preservation of wildlife, given the limited national regulatory capacity and the potentially high costs of ensuring legal trade. Others argue that imposing an absolute ban would be as costly to enforce as controlling a regulated trade, might never become fully effective, and could undermine rural incomes and potentially sustainable economic activities.

The proposed cost-benefit analysis (CBA) of alternative regulatory regimes to govern the wildlife trade in Madagascar has not been conducted yet owing to the lack of financial resources. As of early 2006, Malagasy authorities and donors are negotiating the budget and the logistics related to its implementation. The Terms of Reference developed by the CITES Secretariat to achieve the objectives mentioned above includes a brief overview of the wildlife trade in Madagascar and the existing regulatory regime, as well as key issues of concern from the perspective of CITES. The Terms of Reference outline the proposed objectives of the study and the activities to be carried out, as well as the arrangements for supervision and reporting, a provisional timetable, consultant profile, budget, and payment schedule.

For more information, please contact the CITES Management Authority of Madagascar at m_andriamananoro@yahoo.fr

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