Marketing Failure

I have spent hours looking at the resulting effect of a naming crisis and the best I can come up with is - Disaster.

Any chance you get as a country to shine - you should seize it. It counts. The good stuff bring a lot of interest to the country and maybe even more tourists. The ugly stuff - pushes everyone away. So for a country like Zambia aiming high at attracting investors, tourists, capital inflows, etc would benefit from a good marketing plan. We should look at all the nice things that we can let the people know about us. If not, we lose out! Simple marketing philosophy.

I believe we have missed that chance with such a distance off, its disastrous. Who would think of all the creativity that this country has - look at the flag! None matches! The name - worthwhile! The currency names, seriously Kwahca - Ngwee who has such!!! That's the Zambian spirit! Impress through out. Well, so we thought, not knowing our marketing took another turn.

A stadium is being built in Lusaka with a 50,000 capacity. Ordinarily you expect people to be excited that it is almost complete now. So the naming session started. An opportunity to come up with a sell-able, breath taking name, marvelous name, You know - the Zambian way! After all, the football heroes are buried near the stadium. Heroes who died in the plane crash off the Coast of Gabon in 1993. (Did I give too much away in the name for the stadium ... wait for it)

After the naming session, the country went crazy with social media! Facebook, Twitter had all the crazie stuff. Why? The name was/is:

"Gabon Disaster Heroes National Stadium"

So maybe we marketed the country on a wrong platform - disaster name and not a marvel of a name!

Here is the reaction:

And the social media responses:

MM:

    Good news fellow Zambians on behalf of Hon. Kambwili i would like to apologise for the small glitch in the stadia naming. It was supposed to be " Off the Coast of Gabon Disaster National Heroes Stadium" thank you

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NC

Naming of the Lusaka stadium as "Gabon Disaster Heroes National Stadium" continues to attract attention from Zambians today.

But Potphar Mbulo's comments attracted my attention:

"No I object. we are Africans and we are precise in naming. On the contrary, GRZ should name the new stadium as "Gabon Disaster Heroes plunged Into the Indian ocean on their way to Senegal For a World cup qualifier Match National STADIUM'

LOL"

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P B B K posted to The Zambian Peoples PACT.

This is what happens when u smoke fwaka yaku ‪#‎Mpatamato‬

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MCC

Retweeted ZESCO EXPLAINS IT (@_ZESCO):

We've been reliably informed that Govt plans to Rename us "The Zambia's Disastrous Electricity Supply Coorporation." ZDESCO

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CZ

we seem to have a challenge in western province either its Equitorail Guinea Gabon 2013 (EQG 2013) or Barotse Killings Stadium however in Livingstone there is no problem i.e Mukuni's disaster at bunji jumping stadium lol- Jack Munsaka

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CNM

Kanshi since government likes the name, they shud just finnish it off and call it,' Gabon Disaster Heroes plunged Into the Indian ocean on their way to Senegal For a World cup qualifier Match National STADIUM

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ES

Mailoni brother's stadium even sounds better....

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CN

ba conducter, nipempako ninga sale pa gabon disaster?

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E N R N

"@CenturionLincon: @FreshENJ Its Carbon Air disaster at Heroes Stadium!!" eish, it's wild I tell ya

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Gabon Disaster Heroes Buffalo Plane Investigation Manufacturing Error seating Capacity 50 thousand National Stadium.

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E N R N

"@philmwenya: @freshenj the footballers should be first to boycot games..."yes, let 'them' and their tuma suits go to the stadium alone.

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E N R N

Here's an idea, if 'they' stick to that silly suggested name, let's all not attend a single game to make every match a real DISASTER!

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CIC

Seriously..."gabon disaster national stadium"....really😧´.... Y not jst heroes national stadium or april 28 national stadium...

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S A G G

Gabon disaster heroes national stadium...???? Are you kidding me?? Who thought of that MORONIC name?? Is that in memory of Gabon as a country? its like calling the reconstructed post 9/11 buildings in new york "victims of terrorism heroes twin towers"..we are DISRESPECTING the dead.CHANGE IT.....

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CL

Weird quote attributed to Zambia's Minister of Sport via The Post: "Let me confirm that the Lusaka stadium has been named and it is called the Gabon Disaster Heroes National Stadium," Kambwili said in an interview. "Now this shows that President Sata is not self-centred because if he was, he could have said it will be called Michael Sata Stadium. But he appreciates the role different citizens have played in the development of the nation."

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CMB

1993 Gabon Disaster Heroes National Stadium

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MBM

Just catching up with the whole stadium naming debate....awe shuwa that's why BZ proposes that we throw away all manners of identification ama reg,license,under-5 cards etc we shall be the laughing stock of the region,pela if you can't come up with a name asking never hurt nobody,they could have even run a competition in the paper like they do with kids for essays nefyashala....I'm sooo moving to malawi...fyachila..

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MS

Chuck Norris: What's the name of this beautiful new stadium?

Me (very excited): Gabon Disaster Heroes... ***KICK!***

Chuck Norris (in Spartan like tone): This Is Zambia!!!

Me (thinking to myself, half conscious): Might as well have said "Chuck Norris Stadium", I would still be standing

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MS

Ti pempa boma iti yanganepo pa nkani ya zina ya stadium, ndaba ma ticket yaza nkala ma size A3.

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YG

@ZedDictionary: THE GABON DISASTER HEROES STADIUM: A large stadium in Matero with a disastrous name.

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AM

Gabon Disaster Heroes Stadium lol....I wonder is because wi ........? First of all this is Zambia in case someone missed the memo. secondly, Disaster should be removed from the name all together. Even under the influence of Ganja smoke there is no way a name like that would find the pride of place in my mind. So it leaves Heroes Stadium, good place to start but not the best either. Ok am nauseated.

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SM

Doesn't this government have a spin master(s)? Now is the time to swing into action. ‪#‎Gabondisaster‬ stadium naming crisis!

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TM

@AJStream: The Zambian govt named a new football venue "‪#‎Gabon‬ Disaster Heroes Natl Stadium" http://t.co/pEyUAckOHi

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MK

I told u that the excited Zambians will show case their ignorance now look at this

1. Piki Piki Na Piki Do Li National Stadium.

2. Sembe Nina Mvelela National Stadium

3. We had no idea what name to give National Stadium

4. Isambo Lyamfwa Memorial Stadium

5. Father Frank Bwalya Memorial Stadium

6. Fikaisolva kuntashi

7. We meant More Money In our Pockets National Stadium

8. Or Leave Zambeef Alone National Stadium

9. Juju yenu taya bombe lelo National Stadium

10. Nga Twa Monekela Kuichaila Stadium

11. With Immediate Effect National Stadium

12. George Bush Has Been Here Several Times National Stadium

13. Retirement Is 65years National Stadium

14. My Vice President Is White National Stadium

15. Fi Zambia Watch Dog Tukafikata National Stadium

16. My Wife Is A Doctor National Stadium

17. UNWTO 2013 Was Held Here National Stadium

18. We meant 90 years National Stadium

19. Zambeef Will Embalm You National Stadium

20. I Don't Like South Africans National Stadiums

21. GBM All For Gender Based Violence Stadium.

22. BUFI National Stadium

23. Them If I've Lost National Stadium

24. Christopher No Juju Katongo National Stadium

25. On Your Way To Broken Hill National Stadium

26. My Wife Is A Doctor National Stadium

27. I Hate People With Bold Heads National Stadium

28. Dora Siliya Is MMD Stadium

29. Tauli Munandi National Stadium

30. Semeke National Stadium

Courtesy of @___

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SOS

Th name is too long. The stadium should be called "30 Heroes Stadium" or 28th April Stadium".

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KB

Kindly subsidies the independence stadium name from gabon heroes to simply Heroes stadium, ba Hon. Kambwili please.

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Did I miss any juicy pic or comment? Let me know. 

G8 Focus on Taxes, Transparency, and Trade

It is such a great time in many African countries economically. After the Asian miracle, we have an Africa which is growing fast than other regions of the world. A great time indeed.

But this growth has many many obstacles which make some gains in GDP growth mere academic exercise for a lot of countries - Zambia included. Why? Well to start off, we have an economy propelled by the mines whose contribution to the economy is actually not that great. We have read about the way our multi-nationals have taken almost everything out through tax avoidance or worst case tax evasion. If there was a good contribution from most of these multi-nationals, our tax contribution as citizens through (Pay As You Earn) PAYE would be reduced. But alas, even Switzerland gets a bigger chunk of 'our' money than we do!

Why is the state of affairs like that? Well, partly because I believe the West benefited from this arrangement! Do you think Switzerland would not enjoy stolen money presented to them as taxes? Honestly? They have built an economy out of the proceedings of crimes (as my Zambian law would put it). Think about it, they have built a system of secrecy on all banks and they are proud of it and say, you want to sort it out, deal with your issues in your country. The West enjoyed this and it was business as usual. 

But as you know, there is a little thing I learnt from Martin Luther King's statements and now quotations. I have kept this in my head at all times and has really guided me to make some decisions since I was in grade nine.

"Injustice anywhere is a threat to justice everywhere" - Martin Luther King Jr.

There was an injustice on many resource rich countries and the beneficiaries just turned a blind eye to the happenings. But the threat has now caught up with them! Tax avoidance has now not only hit the resource rich third world countries, it has hit the "first world". It has hit them so badly that the G8 meeting has put the three (3) Ts on the agenda.

But as life would have it, the G8 is a group of 8 from the world's eleven (11) wealthiest countries. The three (3) missing countries include China, Brazil and India. 

The good news, the west and us are being attacked perhaps by the same enemy! So we now have an opportunity to make things right and just. ?The demand from the resource rich nations has just been one - access to information. The g8 meeting is also working on making access to information a priority and an agreement should be worked on those lines. So maybe because we speak the same language on this issue, we can now move together and make progress? I seriously doubt it! The west still enjoys and would like to enjoy the fruits of crime in African countries. I will be shocked if they prove me wrong by actually working for the better standing of all countries facing this enemy. My belief is that they would come up with agreements that will suit themselves and leave the third world on their own path to freedom. Maybe under the G11 would we expect something seriously correct - maybe!

I have great respect for Cameron for making this topic priority. He has done a lot by just putting it as an agenda item. I wish more could be said on this issue. And I believe his statement "Making sure we have more trade deals so we keep prices down, making sure we have greater transparency so we can help developing countries get the tax and revenue that they need, and this issue of taxation, making sure we crack down on tax evasion and aggressive tax avoidance, so right across the world, countries get the tax revenue they need to keep taxes down for hard-working people." as quoted here, is a good one, but I think the motivation is wrong. It should have been done on its own merit when the issue started coming out! Not when they have been hit by the same "crime". If they had not been hit, they would have gone on with business as usual. That is exactly what is wrong with the economy structure at the moment. Things only change when the powers that be are in the firing line. We need to strike a balance and act when something wrong has been sighted.

Lets pray and hope the G8 makes a good outing of these issues as they can make things better for the world. We have to work to improve the taxation and justice in revenue collecting. I always say, there is a time that the west will need justice in such matters when the developing countries actually develop. It looked like a joke, but today, even the G8 countries are not among the 8 wealthiest nations. There is a group of "emerging economies" that have emerged and got into the top 8! Imagine 40 years from today who will be among the top 8 wealthiest countries.

Fight Tax Evasion/Avoidance ... Don't Give Aid

A lot of African people have stood up and said no to Aid. For obvious reasons, Aid has been around for decades with little to no hope of seeing Africa move a step closer to development and provide for its people. 

In extreme cases, people have even claimed a reduction in living standards as statistics show that African people have become poorer in the time of Aid. From 11% poor to 66% is a scary statistic. 

"Despite a deluge of Aid between the years of 1970 and 1998, poverty on the continent skyrocketed from 11 percent of the population to 66 percent, which means over six hundred million Africans are now impoverished." (Guernica)

This is under the claim that over 1 trillion dollars have been sent. A figure nicely fought by pro-aid people like Owen Barder that the figure is less than trillions of dollars! "since aid began in the 1960s donors have given a grand total of $502 billion to sub-Saharan Africa, which is worth about $866 billion in today’s prices. (Table 29; excludes debt relief.)". But is it really trillion dollars or no does not bother me. The fact that it has not worked will not make a point for it because the figure is $200billion less to be regarded as a failure! Will it make the point more true if they said 'despite the 500billion to 800billion of aid, there is nothing to show that aid is helping Africa (oh sub-Sahara Africa?' I think the substance that aid has failed to improve the lives of the continent is priority in considering this issue even if you disagree on the figures. I think the case that this policy should be re-looked at is a good one and one that should be taken on for people truely interested in seeing the growth of Africa and an improvement of people's life. Surely, there is no transparency on aid (even recognized by the OECD - "The current lack of transparency and predictability of aid have been recognized as key bottlenecks in making aid more effective."), will a $200billion not be spent through back door "help"? If you really want the $1 trillion to show up somewhere before you indicate that aid has failed.

My alternative to aid has been fairness in trade and the West not stealing the resources from Africa. After all, it is common knowledge that the West benefits more from Africa and only send Aid as a personal action to sleep at night. 

By calculations that need not be very complicated and require a lot of resources, just qwids (1) I have created a graph of aid inflows into Africa from 1960 to 2012.

Now we see how much aid has been increasingly off-loaded into Africa and one would expect a corresponding effect on eradicating poverty. The simple graphic data I could find is on a working paper by Dr. Mark Perry (University of Michigan) from this post.

Not much improvement from the '70s to warranty a fight to maintain the status quo. Obvisoiusly, updated data is needed and I am working on it.

On the other hand, data from different sources shows the same dismal result - aid is not helping at all. "Helping Africa is a noble cause, but the campaign has become a theater of the absurd – the blind leading the clueless. The record of Western aid to Africa is one of abysmal failure. More than $500 billion in foreign aid – the equivalent of four Marshall Aid Plans – was pumped into Africa between 1960 and 1997. Instead of increasing development, aid has created dependence.....
The more aid poured into Africa, the lower its standard of living. Per capita GDP of Africans living south of the Sahara declined at an average annual rate of 0.59 percent between 1975 and 2000. Over that period, per capita GDP adjusted for purchasing power parity declined from $1,770 in constant 1995 international dollars to $1,479. The evidence that foreign aid underwrites misguided policies and feeds corrupt and bloated state bureaucracies is overwhelming."(CATO Institute). I think Andrew Mwenda and Dambisa Moyo are on to something that can clearly be seen although fought by the likes of Bono and Bill Gates. Aid is not doing Africa any good.

Tax Problems

I believe this is an area where Bill Gates and the team can help Africa and not handouts! There is a lot of out flows in revenues from Africa which can have far better impact on development prospects and eradicating poverty than aid. I would have loved to show how good Bill Gates' company was doing on that front, but this is not helping. I wouldn't want to think of the effect on Africa itself.

So if Africa and the West got together and fought this battle and seriously on disclosure, more results would come out than what Aid has done so far. Maybe as a result of recent fights by the West, Africa may actually benefit! 

"Rich countries have promised much but delivered little meaningful support to African countries on tax evasion, said a report ahead of a G8 meeting chaired by David Cameron.

The UK prime minister has made tax and transparency key subjects for next month's summit at Lough Erne, Northern Ireland, but this year's Africa Progress Panel report, Equity in Extractives, criticises the rich countries in the Organisation for Economic Co-operation and Development (OECD) for their failure to strengthen disclosure standards.

Africa loses twice as much in illicit financial outflows as it receives in international aid, the panel said. It is unconscionable that some companies, often supported by dishonest officials, use unethical tax avoidance, transfer pricing and anonymous company ownership to maximise profits, while millions of Africans go without adequate nutrition, health and education, the panel added."(Guardian)

I have said it before on this blog, no help is coming out of the West on this issue. It has more contribution than Aid will ever have. Most importantly, it would kill the dependence that Aid has created.

Edited:
You may wish to read the latest developments on this topic here (Give us access to information on tax havens and tax avoiders, African leaders tell David Cameron ahead of G8 Summit.)

Dambisa Moyo Vs. Bill Gates

I was very disappointed to watch Bill Gates' response to a question on Dambisa Moyo's "Dead Aid". Watch

Seriously it is one thing working on codes and programming and living in a country full of poverty and "Aid". Dambisa Moyo is Zambian, a poor country which is a massive recipient of aid. Bill Gates and visisted it on several occasions and probably was taken to meet some of the poor people he "helps" out. But the issue is the experience on the matter and not being a by-stander and being led to meet poor people so you can dish some aid to them. The two have had completely different perspectives of the same thing.

But that is not the issue as I saw it. They are people who have simply empathized on the poor and got a great understanding of the issue in totality  So we would expect that Gates can have a good understanding of the issues that are being addressed here. Maybe even better that Dambisa.

But surely saying Dambisa's book promotes evil is a hit below the belt no matter how much you think you know the issues. I don't think it even comes close to being an insult, it is disgraceful of the man. Look at the facts on the table. I will use some well known sources for easy of reference:

"despite one trillion dollars in western aid over the past sixty years, the economic lot of the average African has only gotten worse. Most Africans now live on one dollar per day, and sub-Saharan Africa remains the poorest region in the world. Despite a deluge of aid between the years of 1970 and 1998, poverty on the continent skyrocketed from 11 percent of the population to 66 percent, which means over six hundred million Africans are now impoverished." (Guernica)

Meaning, the more aid keeps coming to Africa, the poorer the people are becoming. Logically, a rethink of the whole system is in order. But does that re-thinking worth being called "promoting evil"? Surely have respect for intellectual alternative that is being offered. With due respect if this was an area that she has no connection with, you wouldn't disregard one that much, but an economist from Africa talking about an alternative to the system and that is promoting "evil"?

I think the whole thing was probably mis-understood by Gates. Someone credited as being an analyst of great intellectual standing would not go out and literally be so "un-intellectual". I don't think he has even looked at his competitors over the years as that! 

The more I read about the issues, the more I realize the people involved in the debate and unfortunately, can easily be grouped into only two - promoters of aid and promoters of alternative thinking. The promoters are mostly from donor groups or individuals and the alternative thinkers are from poverty and aid recipient countries!

I have never seen anything worth talking about aid. It is mostly used by so called "donors" to get what they want. I even coined a word for one - Gay-Aid. Where the "gay rights" are used in order to get "aid". Malawi is an example of that outcome. Without serious brain gears turning, you reralize the problem of "aid". It does not work to improve people's livelihoods but makes a good thing to use for the west to get their way. African leaders have long been known to use aid to win elections or control certain views all of which do not promote growth and economic prosperity.

On the other hand, if people are being taught to improve and infrastructure built from the financial sector, they would be great responsibility in making sure the goodness of the spirit to build is achieved. This is unlike a situation where one stands with a plate for a donation from Gates foundation to eat. Why would any government think of improving and providing for the people? After all, gates will do it while they steal the wealth through corruption and bribers from west countries' companies. Responsibility and the desire to work and produce results is killed by aid. I seriously look for evidence of a continent that developed from aid! I would be give you a large one which has not move forward over decades because of aid. The facts are on the table not debating the person. 

Guernica and other worthy of read sources have facts that Mr. Gates should have disputed and provided his own facts and not debate the person presenting her facts! It is always that simple!

Sorry, I may get derailed when people disrespect the whole issue of intellectual debate that I may divert myself but when facts are presented, an ad hominem in this time and age is really a hit below the belt!

Tax Avoidance Now Hitting The West

Africa has been trying for many years to find a solution to tax avoidance. There was little interest from Europe and the USA. Mostly because they actually gained from this tax that escaped from Africa and landed in their banks.

But life is a funny thing. What goes around, surely comes around. Now the USA is at pains to stop tax avoidance. Apple is accused of $74bn US tax evasion and thats what the news is all about.

The good news that has come out of this confusion is the push for harmonized tax system that will make it impossible to avoid paying their rightful contribution to the nation's treasury. Good news fro countries like Zambia whose tax base has been greatly eroded by such actions of multi-nationals.

I believe the way out is simple. Most tax havens would die without helping multi-nationals avoid taxes. So if there is a move to stop that, these tax havens will reject such a move. Do you think Ireland and Mauritius to agree to measures that will make it impossible for them to get money into their economy? But on the other hand, if the countries being affected unite to fight this kind of tax treatment and setup was to make these companies pay, great things can come up. Maybe even disagree to have Tax Agreements with these nations to force them to comply and make tax avoidance a thing of the past.

A positive outcome of this whole tax avoidance to me is the indication that the world is slowing becoming a solid market place, where if you ignore what is happening in Africa - tough luck, it will hit you in America harder than you thought. Apple is hopefully a beginning so that the world can come up with a solid united fight against tax evasion and avoidance.

SI 32 of 2013

Sorry I have been out of touch on serious assignments. But I think we need to have some space for one of the few happenings in the economy of Zambia - Statutory Instrument no. 32 of 2013.

I will have to do a blog on this but you should look at it from and see what it has for you. I know there are a lot of lies about it and some dreams too. I will offer my opinion as soon as I have time. It can be found here.

Time To Nationalize

It is always interesting to look at how Economist look at different views they have on an issue in the economy. An interesting view if you are an Economist in the field also.

I have been looking at the issue of the mines and the outcomes of which party is in charge of the mines. Right now, we are made to believe mines are not making any profit and so their contributions to taxation. Seriously if the operations are so bad that no one pays taxes, it would not make business sense to even own the mine. So why don't the owners leave? Why would anyone continue with a business operation which does not make sense (both generic, economic or business sense). If it really was the case, they would have left. 

I believe they have not left because all these loses that they complain about is a properly engineered part of transfer pricing! They find all loses in the chain and the money and profits show up in Switzerland. How else will a company pay taxes in Switzerland over Zambia's minerals when Switzerland has no copper? That is an issue that shocks me. 

My perspective is even strange to other economists. I think it will make good sense if the same loses that the mining companies are complaining about leading to no payment of taxes to be enjoyed by government. Why can't government take over the burden from the mining companies and the little resources enjoyed by the owners of the mines be ploughed back into Zambia? The country will not experience loses as much as the mining companies. The difference will be, there will be worry about the loses and exports since all returns from the mining activities will be back here in Zambia!

I know any modern Economist avoids using the words of nationalization and favours privatization. I believe things should be looked at a different angle altogether. Zambia has been using modern economic theories and perspectives since time in memorial, have we seen any goodness out of that? When the mines were owned by the people of Zambia, the mining towns were doing way better than today. Even ZESCO was selling electricity properly and a rate better than it is today. So the two experiences we have had should give us a lesson we can surely use to our advantage. Even the football pitches were a marvel to be in. Need we forget the schools that we all dreamt of going to? So what has changed with going back and getting the best out of it.

From where I stand, the whole western world has ganged up on Africa and its resources. There is too much complex way of ripping the resources of Africa such that if we try to follow the logical steps, we will be doomed. Ireland, Luxemburg, Netherlands and now even Mauritius have been set up in such a way that they will use all possible ways of reducing taxes so that Multi-Nationals find their way to Africa through these places and rip all the resources. There is 10 times more resources leaving Africa than the ones coming in in form of "AID"! Had this been a straight forward business, Africa would have been far better than any country in Europe or the Americas. But that does not appear to be.

Moreover, if we look at the China arrangement, you will agree with me that China does not follow the "modern" economics. They use planned economy and have been heavily criticized by the west. Did the Chinese system fail them? No they have producing for the world! So anyone looking at a way to develop, would surely think China is a way to go! They have more state owned enterprises competing in the world than you would imagine. We have taken these as our brands for some reason without looking at them and their history. Look at these:

ZTE Corporation (Zhongxing Telecommunication Equipment Corporation)

ZTE is no upstart. The company was founded in 1985 by a handful of state-owned companies affiliated with the Ministry of Aerospace Industry and has grown along with China's big phone companies, which are ZTE's top customers.That is pure genius!

China National Petroleum Corporation (CNPC)

British Broadcasting Corporation (BBC)

ABN AMRO Bank N.V. 

Bharat Electronics Limited

So why do we fear nationalization  After all I think the mines will contribute more to the economy when all their owners are Zambians. Many countries have a way of dealing with State-owned enterprises, we can find a way that can work if we divorce politics from the running.

I know its wishful thinking, but it is worth every typed word. We should nationalize the mines - The benefits far, far out weigh the costs (I am a student Economist, I should know that!)