Findings *&CC1WLD BANK
Africa Region Number 63 April 2001
Findings Infbbriefs reports on Good Practice in ongoing operational, economic and sector work carried out by the World Bank and its
member governments in the Africa Region. It is published monthly by the Knowledge and Leaming Center on behalf of the Region.
The views expressed in Findings are those of the author/s and should not be attributed to the World Bank Group.
Madagascar: Promoting Livestock Production
The main objective of the project was to promote livestock productionfor domestic consumption and
exports through adjustment and investment. The project was designed as a package of policy reforms,
supported by an institution-building component and a production development component.
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Impact on the ground
* The Economic Rate of Return for the milk production component is estimated at. 19 percent, which is at
the high end of the appraisal estimate. The ERR on the extensive cattle component was uncertain, but
probably lower than for milk production.
* The Ministry of Livestock shifted out of feed mill operation, fodder production, input supply, breed im-
provement and veterinary practice.
•  Service contracts, introduced after the mid-term review, significantly improved performance.
* A private veterinary profession has been established, and a consultant review co:nfirms that 80 percent are
doing an effective job.
* Effective extension programs and support for Farmers' Associations were developed. Eighty-three percent
of the appraisal target of 12,000 farmers in Farmers' Associations was achieved.
* Improved varieties of fodder maize, oats and root-crops were adopted.
* Significant progress was made with genetic improvement and Research and Development.
The "Good Practice Infobrief' series is edited by P. C. Mohan, Rm. JS-055, Knowledge and Learning Center, World Bank, 1818 H Street NW,
Washington D.C., 20433. Tel. (202) 473-4114; e-mail: pmohan@worldbank.org



Lessons learned
* Strong government commitment towards divestiture is important where activities are being privatized, but
the corollary of that lesson is that sectoral policy adjustment projects should not proceed to appraisal
where strong commitment is not evident.
* It is important to have analytically demonstrated complementarity between policy reforms, institutional
development, and investments.
* Management and accountability are important, not just for the overall project, but for the individual
components. It was weaker in the least successful component.
* Good roads and credit access are particularly important for rural and private sector development.
Investment in these areas may be sub-optimal in Bank lending.
• Experience suggests that privatization of services can leave the more remote, and therefore less profitable,
areas unserviced, at least initially. This can be anticipated at the time of project preparation and appraisal
and a strategy should be developed to deal with it that balances efficiency and equity.
This Infobrief is based on informationfrom the Implementation Completion Report No. 19811 of the Livestock
Sector project. For more information, please contact either Ousmane Seck Oseck(aworldbank.org or Ridley
Nelson: Rnelson@caworldbank.org
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