input, low-output, land-mining agricultural strategy. A major incentive for migration is to seek out villages with further possibility for expanding the agricultural frontier. Insofar as migrants search for better living conditions, poverty in the villages and regions sending migrants is a driving force for natural resource degradation elsewhere. Thus, alleviation of poverty through improving access to public services, such as schools and health services, enhancement of domestic trade, and generation of off-farm income opportunities has beneficial effects on the conserva-tion of soils and natural resources. Our analysis sug-gests that as land becomes scarcer, conflicts about common property may reduce investments in soil con-servation because of tenure insecurity. On the other hand, social capital is found to significantly enhance soil fertility, presumably by enabling villagers to agree on more sustainable property rights regimes. Finally, while the potential of generating employ- ment and income opportunities in Madagascar's rural nonfarm sector should not be underrated, most rural households will probably continue to depend either directly or indirectly on agriculture and related animal production. Agricultural intensification in the major food crops, i.e., rice, cassava, potatoes, and maize, is therefore called for. The results suggest, therefore, the need for a greater role of public policy in improving agricultural productivity through increased invest- ments in agricultural research and extension. Madagascar is a country where the Green Revolution still needs to take place. Keywords: Madagascar, rural development, agriculture, poverty, income Recent FCND Discussion Papers The Constraints to Good Child Care Practices in Accra: Implications forPrograms, Margaret Annar-Klemesu, Marie T. Ruel, Daniel G. Maxwell, Carol E. Levin, and Saul S. Morris, February 2000 DP81 Nontraditional Crops and Land Accumulation Among Guatemalan Smallholders: Is the Impact Sustainable? Calogero Carletto, February 2000 DP80 Adult Health in the Time of Drought, John Hoddinott and Bill Kinsey, January 2000 DP79 Determinants of Poverty in Mozambique: 1996-97, Gaurav Datt, Kenneth Simler, Sanjukta Mukherjee, and Gabriel Dava, January 2000 DP78 The Political Economy ofFood Subsidy Reform in Egypt, Tammi Gutner, November 1999 DP77 Raising Primary School Enrolment in Developing Countries: The Relative Importance of Supply and Demand, Sudhanshu Handa, November 1999 DP76 Determinants of Poverty in Egypt, 1997, Gaurav Datt and Dean Jolliffe, October 1999 DP75 Can Cash Transfer Programs Work in Resource-Poor Countries? The Experience in Mozambique, Jan W. Low, James L. Garrett, and Vit6ria Ginja, October 1999 DP74 Social Roles, Human Capital, and the Intrahousehold Division of Labor: Evidence from Pakistan, Marcel Fafchamps and Agnes R. Quisumbing, October 1999 DP73 Validity of Rapid Estimates of Household Wealth and Income for Health Surveys in Rural Africa, Saul S. Morris, Calogero Carietto, John Hoddinott, and Luc J. M. Christiaensen, October 1999 DP72 The full text of this document and other FCND Discussion Papers are available on our Website FCND BRIEFS ILI International Food IF PoI lcy Research Institute 2033 K Street, N.W. Washington, D.C. 20006 U.SA. "Access to mtber-based financial Instfutons, such as credit groups vlage bank or swings and credit cooperal1v socleies, plays a signicant role in enabling agricultural Innnslficfalon In Madagascar.. ."-DP82