Zimbabwe is not known as an economic dynamo in Africa. In fact, most people who know anything about the country probably have the opposite impression. Yet not so long ago, Zimbabwe was the bread basket of Africa – endowed with amazingly fertile land, abundant mineral resources, and one of the best educated populations on the continent.
Cecil the Lion at Hwange National Park in Zimbabwe.
We all know about the story that broke the Internet: the story of Cecil the lion and the Minnesota dentist who killed him. What you may not know is that you can now buy a gold-plated iPhone case with Cecil etched on the back for about US$1,000.
The world has reacted in different ways to the news of this black-maned martyr. For various reasons, the media has gone into overdrive, the public has been outraged, and enterprising phone-case companies have gotten creative. So what does it mean for us in the field of tourism, conservation and development?
The global spotlight has been a good thing. First of all, it has raised the temperature of the debate around conservation. People have flooded the dentist’s business page with negative online reviews (“murderer!”), called for his extradition to Zimbabwe, signed petitions, made donations, retweeted celebrities and forced three US airlines to ban wildlife trophy transport.
Publicity like this can have a lasting effect on consumer demand by stimulating more responsible behavior. For example, media exposs on sex tourism and child abuse in Thailand and Madagascar caused the tourism industry (more than 1,000 travel and hospitality companies) to adopt a global code of ethics. Public backlash against the negative impacts of orphanage tourism (volunteering) in Cambodia – following a 2012 investigation by Al Jazeera – meant that most large travel agents removed the product from their books, not only in Cambodia but globally. There is an opportunity here for all tourists, hunters and operators to reflect on and improve the way they behave and interact with wildlife.
More crucially, Cecil’s publicity has revealed the divisiveness of the issue. While everyone condemns the illegality of what happened, conservationists, columnists, academics and others cannot definitively agree on bigger questions. Does trophy hunting really contribute to conservation? Or should it be banned? Is photographic tourism a better alternative? Do we actually know?
For those of us concerned with such development goals as natural-resource management, job creation or local community empowerment, this lack of a global consensus poses a policy challenge. Indeed, the last few days have highlighted that indeed both consumptive (hunting) and non-consumptive (safari) tourism can demonstrate positive impacts.
So perhaps the question is not “Which is the better alternative” but “How can we better capture the value and benefits of each?” One way is to look at the policy framework and its role in regulating the supply side of the equation.
Sub-Saharan Africa’s (SSA) impressive growth over the past decade or so has been matched by its equally impressive showing on the World Bank Group's "Doing Business" index. In 2012, one-third of the world’s top reformers on the index were from the continent, and every year its countries feature in the top 10 most active reformers. In 2014, five of the top 10 were from SSA.
Doing Business tracks progress in reforms that support a firm through its life-cycle, from start-up, through to raising capital, to potential closure. Through a mix of wide geographic coverage and rankings that generate a lot of public attention (not all of it wholly positive), the report has been a powerful motivator of investment climate reform, with the data serving as a useful means to measure progress made.
Doing Business as a start
While a large appeal of Doing Business as a measure of a country’s business environment is that it focuses on tangible business activities to which the private sector and policymakers can directly relate, its indicators are limited in scope. They are therefore intended to be used mainly as a litmus test of the state of a country’s investment climate. Therefore, while Doing Business's accessibility and global profile can be very useful in generating momentum for private sector reform, it ought to mainly serve as a starting point for a country to then engage in both broader reaching and deeper investment climate change. (This approach to the use of Doing Business has largely underpinned investment climate reform efforts in SSA by the Bank Group’s Trade and Competitiveness Global Practice.)
So, if Doing Business is a starting point and is used as such, is there evidence to support the assumption that it triggers wider and deeper private sector reform? Or is movement on Doing Businesses a starting point and, unintentionally, an ending point too?
Linkages to wider competitiveness reform data
One of the most comprehensive measures of the state of different countries’ business environments is the World Economic Forum’s (WEF) Global Competitiveness Index (GCI), a data set of over 110 variables that looks at the current state of, and tracks changes in, competitiveness across the world. The data set is structured under 12 pillars that cover measures from institutional development to technology and innovation.
Using GCI as a good measure of competitiveness, and interpreting changes in it as a reflection of a country’s effectiveness in engaging in wider competitiveness reform, we can look at the relationship between GCI and Doing Business and, significantly, the extent of movement on the two indices.
A high-level review of the relationship between changes in GCI and Doing Business for different regions between 2007 and 2013 shows SSA to have performed comparatively well on both indices, performing similarly to countries of Eastern and Central Europe and surpassing the world average. However, looking beyond averages to GCI’s specific pillars, SSA’s performance has been variable, advancing as a region in some areas more than others. Figure 1, below, shows GCI pillars where SSA has improved the most and the least, highlighting the top and bottom three.
Figure 1: Variations within competitiveness
(SSA score on GCI, total and select pillars)
Of particular interest is Pillar 6, Goods Market Efficiency, because many of the areas that this pillar tracks are also areas where the Bank Group has focused its investment climate reform interventions, from business entry and competition, to taxes, trade and investment. (Two of the 16 indicators in this pillar actually comprise Doing Business data – the number of procedures and days required to start a business.)
Pillar 6 is one of the top three GCI pillars that have the greatest upward pull on SSA’s overall performance on GCI, countering the areas where SSA has slipped in its scores.