Sustainability of Apparel Exports from Madagascar's Export Processing Zones

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The paper will examine the viability of the Malagasy apparel industry beyond the eventual expiration of preferential provisions under the African Growth and Opportunity Act. Although the third country eligibility of Madagascar's apparel exports has been extended to 2012, thus offering breathing room to an industry on which depend a large number of Malagasy workers, the long term prospects of the industry remain murky. The challenge for Madagascar is to ensure the sustainability of its exports through local sourcing, better marketing, technological improvements and productivity enhancements and investment in infrastructure (transportation, power generation, etc...) The paper will rely on several interviews conducted by the author with industry operators and government representatives during a visit to Antananarivo in May and June 2007. The author will also use a number of secondary data sources published either in French or English. Challenges facing the industry will be related to the broader context of economic development in Madagascar, the role of Export Processing Zones, and the linkages with suppliers in the surrounding communities. Finally, conclusions and recommendations will be drawn, in light of Malagasy circumstances as well as the experience of other countries in the area (in particular Mauritius). The prospects for regional cooperation and integration will also be explored.

Stream: Economic Sustainability

Paper: A paper has not yet been submitted.

Farid Sadrieh is the holder of a Licence (Bachelor's Degree), a Maitrise (Master's Degree) in Economics from the University of Paris I (Pantheon-Sorbonne) as well as a postgraduate DESS in Marketing from the same institution. Later, he pursued his education in the United States, where he obtained an MBA in Finance (Fordham University, New York) and a a PhD in International Business (Temple University, Philadelphia). He gained experience in the automotive industry as a parts inventory analyst before joining academia in 1997. His publications have focused on business and government interface (lobbying and political action) as well as international marketing and entrepreneurship. He has been recommended as a Fulbright candidate in Madagascar for 2008-2009 and had taught in that country while conducting research on the apparel industry.