The consequences of the vanilla boom: Madagascar Edition

Vanilla is currently rivaling the value of silver, per unit weight.

That has come with consequences for Madagascar, which accounts for 80 percent of the global production of natural vanilla. According to FT:

Madagascar, which supplies 80 per cent of the world’s natural vanilla, is in the grip of a vanilla boom. “People are saying, ‘I don’t care about growing food to feed myself. I only want to grow vanilla’,” says Eugenia Lopez, an agricultural expert with Swiss development agency Helvetas. Girls are dropping out of school to marry “vanilla barons”, and sales of televisions, alcohol and other luxuries are high. “People are buying cars and motorbikes that they won’t even be able to fill with petrol when the price of vanilla crashes,” says Ms Lopez.Screen Shot 2018-06-05 at 10.03.27 AM.png

Not all the value is trickling to farmers. And the sector remains highly volatile, but with minimal options for smoothing consumption among affected farmers.

While the likes of Coca-Cola, Unilever, the British-Dutch consumer goods group, or Danone, the French food company, are forced to pay inflated prices, farmers receive only 5 to 10 per cent of the value of their crop [!!!!], according to industry observers.Worse, they say, if farmers switch to lucrative vanilla and abandon food crops such as rice and manioc, they could be left in desperate straits when the vanilla market crashes, as it inevitably will. Vanilla has been through violent booms and busts before. Only five years ago, it was trading at $20 a kilogramme against some $515 now, down from a recent peak of $600 and compared to a silver price of $528/kg.

More on this here.

Meanwhile, Madagascar is in the midsts of a political crisis ahead of elections scheduled later this year.

… a dispute over electoral minutiae had spiralled into a full-blown political crisis. A month on, the situation seems intractable.

The original rally centred on some controversial laws that would have made certain opposition candidates ineligible for elections scheduled for November. Most notably, the changes would have barred both Marc Ravalomanana, president from 2002 until he was removed in a coup in 2009, and Andry Rajoelina, the coup leader who took over as president until 2013, from running.

….. On 3 May, the High Constitutional Court (HCC) rejected a number of clauses in the new laws as unconstitutional. This included those provisions that would have prevented Ravalomanana and Rajoelina from running.

According to Malagasy law, the next step should have been for the executive to send the legislation back to parliament for review. But instead, the president unilaterally amended the laws and published them on 11 May.

The military has threatened to intervene, again, if the politicians fail to resolve their differences.

H/T Pavel

alpha conde confirmed winner of Guinea’s presidential poll

Update:

The Daily Nation reports:

Guinea’s losing presidential poll candidate Cellou Dalein Diallo (left) on Friday accepted results of the election, saying he had no choice but to comply with the Supreme Court’s decision.

The BBC reports that Alpha Conde has been confirmed the winner of Guinea’s (Conakry) presidential election. Mr. Conde got 52% of the vote. His opponent Mr. Cellou Diallo had gone to court challenging the results.

President-elect Alpha Conde

Mr. Conde won a mere 18% in the first round against Diallo’s 44% thus forcing the runoff. The standoff following the runoff threatened to plunge the country into chaos. If confirmed into office Mr. Conde will be Guinea’s first elected president since independence.

Guinea has been under an interim government led by Gen Sekouba Konate since the 2008 coup. The coup came after the death of Lansana Conte, dictator for 24 years. Mr. Conte himself rose to power in a coup following the death of Guinea’s founding president Sekou Toure.

ouattara won, but gbagbo determined to latch on to power

The Ivorian electoral commission declared Alassane Ouattara, the northern candidate, as the winner of the presidential runoff held on Sunday. Ouattara got 54.1% of the vote. Incumbent Laurent Gbagbo disputed the results and had the country’s constitutional court reject the pronouncement. His supporters contend that there were significant irregularities in three regions in the north of the country.

Gbagbo (left) and Ouattara

UN and other mission observers declared that the election globally reflected the will of the people of Cote d’Ivoire. The BBC reports that the country’s military has sealed the borders amid rising tension and confusion over the political stalemate in the country. Mr. Gbagbo has been president since 2000.

For the sake of institutionalism the international community should not allow Mr. Gbagbo to remain in power. His 10-year tenure has not done much in terms of healing relations between the two halves of the country that fought the 2002-04 civil war. The fact that even his incumbency advantage could not help him beat Ouattara signals his general incompetence and the mass’s disaffection with his rule.

Cote d’Ivoire has a population of 21 million people, 49% of whom live in urban areas. Life expectancy in the country is a dismal 56 years. Only 48% of Ivorians  age 15 and over are literate. Ivorians’ per capita income is US $1700 and 68% of them depend on agriculture for livelihood. 42% of Ivorians live below the international poverty line of $2 a day.

Cote d’Ivoire is the world’s largest producer and exporter of cocoa beans and a significant producer and exporter of coffee and palm oil. Because of the political risk in the country Cocoa for March delivery climbed $110, or 4 percent, to $2,868 in New York.

coup claim in madagascar

UPDATE: The BBC reports that soldiers loyal to Rajoelina have stormed the barracks where the mutinying soldiers were ensconced to restore order and discipline. It is not clear how many casualties, if any, resulted from this operation.

 

Military officers in Madagascar have announced that they are in charge and have dissolved all government institutions on the day of a crucial referendum to lower the age requirement for president. Col Charles Andrianasoavina made the announcement. The country’s Premier, Camille Vital, has however denied the coup claim in a statement supported by the country’s top military brass. The situation is still unfolding.

Current president, former mayor of Antananarivo and DJ, Andry Rajoelina, took power in a 2009 coup and wants to lower the age limit to 35 so that he, 36, can legally be president.

Madagascar, the island nation off the east coast of continental Africa, has 21.2 million people, half of whom live below the poverty line. The country’s per capita income is US$ 1000 and life expectancy is just over 63 years. 80% of the country lives on agriculture, including fishing and forestry. Early this year, Antananarivo unfairly lost its duty free access to the US under AGOA* for hypocritical political reasons.

*Africa Growth and Opportunity Act

president tandja ousted in coup

Nigerien president Mamadou Tandja has been ousted in a military coup. An announcement on national radio stated that the Supreme Council for the Restoration of Democracy was now in charge of the country. The council includes Col. Salou Djibo (the leader) and and four other colonels.The president and members of his cabinet are being held at a military barracks outside the capital Niamey after they were seized during a cabinet meeting.

Mr. Tandja had been president since 1999. Last year he was supposed to leave office at the end of his two terms but amended the constitution in a sham referendum allowing him to stay on for a third term. His presidency did not do much for Niger’s 15 million odd citizens. 63% of them continue to live on less than a dollar a day.

It is almost tempting to say good riddance, but given the track record of military rule (remember Guinea?) in West Africa the Nigeriens may have jumped out of the frying pan into the fire. Only time will tell. In the meantime condemnation of the coup and calls for an immediate return to democracy keep coming from the AU, ECOWAS, EU and other concerned parties. How things never change.