Daewoo Logistics to press farm deal in Madagascar despite coup

By Ben Hancock
SEOUL, March 18 (Yonhap) -- Daewoo Logistics Corp. acknowledged Wednesday that
its massive farm deal in Madagascar remains in jeopardy but said it is confident
that a new military-backed government there would eventually support it.
"There is no comment," said Shin Dong-hyun, who handles the project at Daewoo's
office in Seoul, when asked how the company would respond if the newly installed
populist administration of Andry Rajoelina opposes the project.
However, Shin said whoever is in power in Madagascar will ultimately need the
deal if they hope to develop the nation's economy. The former French colony in
the Indian Ocean is one of the poorest countries in the world.
The Korean shipping firm has been pushing to cultivate an area half the size of
Belgium for a period of 99 years but did not receive full approval from the
ousted government of President Marc Ravalomanana.
Rajoelina was handed power on Tuesday by Madagascar's military chiefs, who the
day before stormed the presidential office in the capital of Antananarivo. He is
set to lead a transitional government until 2011 when elections will be held.
Foreign media outlets including The New York Times and the BBC have suggested
that the recent political unrest in Madagascar is at least partially due to
Daewoo's proposal, which would secure nearly one-third of the country???s arable
land.
The media outlets cited unrest among the country's agricultural poor, many of
whom make less than a dollar a day and accuse Ravalomanana of selling out the
country for personal benefit.
"I don't think the political turbulence is related to this project," Shin had
said earlier. "The news reports were a lie."
The Daewoo official has also countered allegations that the deal's aim is to
boost Korea's food security, saying the firm will sell its produce to the market
where it can make the most profit.
(END)