The note outlines the successfuloutcomes of the Livestock Adjustment and Investment Projectin Madagascar, whose main objective was to promote livestockproduction for domestic consumption, and exports. A majorproject impact, i.e., the Ministry of Livestock's shiftout of veterinary practice, - feed mill operation, fodderproduction, input supply, and breed improvement - wasconducive to service contracts, and the establishment of aprivate veterinary profession, which significantly improvedperformance, as confirmed by subsequent reviews. Moreover,extension programs were successfully developed in support offarmers' associations, improved crop varieties wereadopted, and significant progress was made with geneticimprovement, and research and development. Lessons reinforcethe importance of government commitment towards divestiture,particularly concerning privatization, emphasizing that theabsence of commitment to policy adjustment, should deterproject implementation. More importantly, policy reformsshould complement institutional development and investments,where good roads and credit access are particularlyimportant for rural, and private development, whileinvestments in these areas may be sub-optimal in Bank lending.
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