Shooting Ourselves In The Foot

The common discussion at various economic development tables across the world is the one of ownership, partnership, and equity.

In Zambia this discussion is highly developed and even runs the risk of being over discussed.

Two key factors seem to always surface in the economic development discussion; taking responsibility for ones self whether an individual or a nation, and strategizing to benefit in the medium to long term as opposed to the short term.

Currently, a World Bank diagnostic study is being done on the railway systems in Zambia with a view to finding some way to improve the sector. This very comment suggests that the study is not Zambia owned but World Bank owned, and it smacks of a foreign solution to a local problem. This intuition is flavoured by experiences on the ground in many African countries.

Key benchmarks of the study will include investment requirements, rail transport tariff structures, profitability, competitiveness, and recommendations on the way forward for the railways sector which will incorporate financial investments amongst other logistics.

The four month study is being conducted by the World Bank and pronouncements indicate that the experts will come from the bank and most probably not from Africa.

The ingredients and style of this work have not changed much over the decades as the World Bank and possibly Zambia; continue to perceive that the bank has the knowledge and knowhow to turn things around for the better in the railway sector.

History shows a quite different success rate for World Bank projects around the world, but Africa continues to shoot herself in the foot by ducking the responsibility of taking ownership, having very little equity, and developing hardly any strategy to achieve the desired goals. In other words, let the World Bank study, design, recommend, and finance where possible.

Recent experiences reveal financing pull outs by the World Bank for the Oshiwara rail project in India, and another rail project in Azerbaijan during 2009. In 2009 the Nanguang rail project in China was funded by the World Bank and is expected to be completed by 2014. Indications show that the Chinese are in full control of the project and take full responsibility for its design and completion. There may be some lessons for Africa to learn in these external experiences.

The discussions and debates that the plight of the railway sector in Zambia fuels, is part of the realignment mechanism to engage the country to move from passenger status in the strategy, to driver and prime mover of the development program.

The opportunities that the 2010 World Cup offers to southern Africa are many.

Another possible foot shooting option faces the sub region as motions of price fixing in the airline industry surface in the media. The opportunity of abundant air travel business in the region during 2010 and the strategy of keeping the flow momentum going for the foreseeable future, begin to be undermined when the South African and Zambian Competition Commissions suggest that there may be collusion in price fixing and monopoly practices to maximize profits during the 2010 World Cup season.

In other parts of the world the opportunities for an overwhelming influx of business in the air travel sector would generate options for innovative and capturing products that will serve the public beyond the aftershocks of the World Cup frenzy.

The birth of budget airline services that operate contrary to the conservative and traditional class models for air fares can be experienced in southern Africa during 2010 if a long term business strategy approach is taken.

The tried, tested, and not so profitable flight schedules that leave aircraft parked and non productive at airports during the nights can be challenged this year as more customer segmented schedules can be designed to cater for the wider profiles of air travelers that range from business executives to back packer students on a cheap adventure tour.

The business persons operating in Africa often shoots themselves in the foot and misses the opportunity to truly prosper during times of plenty, but cries foul when life goes back to normal and the state is expected to protect the weak and visionless in a new world where globalization and liberalization are viewed as the cornerstones of positive economic development.

Shooting oneself in the foot is a choice, unlike the popular myth that suggests that it is an act of misadventure and un-intentional action. The long term reality of shooting oneself in the foot is that we soon develop a nation of handicapped people that have limited productivity and rapidly become their own worst enemies.

Published 13 April 2010