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Botswana: A Case Study

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Raghavi Naidu

on 19 November 2013

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Transcript of Botswana: A Case Study

Botswana: A Case Study
The African 'miracle' growth story
Invaded by the British. Known as the Brtish
of Beuchenland
Botswana declares independence to become a multiparty
Geologists from De Beers discovers
Botswana is abundant with natural resources.
Government of Botswana (GOB) created a state company called Debswana.
It is the largest producer of diamonds by value
Other main source of exports are tourism and beef
Since it's independence, it has been governed by one party.
Has fair and free elections every 5 years.
Ranked No. 1 in Africa by Transparency International.
The BDP has historical roots to the elite Tswana tribe.
Source: Central Statistics Office, STATS BRIEF National Accounts Statistics Bank of Botswana Annual Report 2008
GNI (including PPP)
Fundamental Causes of Growth
Index of Economic Freedom
➢ Secure property rights
➢ Fair and efficient judiciary
➢ Developed and transparent financial sector
➢ Widespread access to education
➢ Efficient capital markets
Botswana’s GNI per capita increased by about 298% between 1980 and 2012.
Current Outlook on Growth and Development
• Promote liberalisation in resource and product markets
• Monetary policy to contain inflation
• Complementary fiscal policy
• Tackling poverty indirectly through high growth
• Development can be seen by decline in agricultural/mining sector

'Resource curse' on Growth and Development
Future of Development and Outlook
The seven strategic pillars
• Educated and Informed
• Prosperous, productive and innovate
• Compassionate, just and caring
• Safe and secure
• Open, democratic and accountable
• Moral and tolerant
• United and Proud
The challenges
• E-governance
• Declining population growth
• Urbanisation
• Unsustainable economic growth
• Water stress

Gini Coefficient
Relative high coefficient
Capital Intensive activities
Unreliable agriculture
Appreciated currency

National Poverty rate declined between 2002/2003 and 2009/2010.
Increased poverty in urban areas.
Increase in Urbanisation.
Social Welfare
Social welfare programmes have lead to a decline in poverty.
Relatively less effective at targeting the poor.
Fiscal Redistribution Policy failure.
Examples of Programmes
• School Feeding Program
• Vulnerable Group Feeding Program
• Old Age Pension program
• Orphan Care program
• Program for Destitute Persons

• Negative relation between resource abundance and growth
• Over-reliance on diamonds has created adverse economic structural problems
• Dependence on primary commodities means higher risk of political violence
• Resource rents
• Consequences of resource curse – purely economic?

23% of the adults aged 15 to 49 are infected with HIV/AIDS
There are currently 340,000 people living with AIDS.
Possible Impact of HIV/AIDS
1) On Education
-supply of Teachers
-Demand for Education
-Quality of Education
2) Economic Cost
-Side effects of antiretroviral medication
-Shortage of skilled workers
Issues undermining development
It was invaded for purely strategic reasons.
It was still ruled by Batswana elites.
continuation of pre-colonial institutions
Small colonial footprint.
Source: Central Statistics Office, STATS BRIEF National Accounts Statistics Bank of Botswana Annual Report 2008
Un-democratic laws.
Single Party Dominance.
Human rights issues.
High Unemployment.
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