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Tuesday, 2 February 2016

Focus on Botswana learning from our neighbour- Zimbabwe lessons



At the time of Independence (1966) Botswana was reliant on subsistence agriculture and had poor infrastructure such as, roads and electricity. By 2015 Botswana was generally regarded as the most successful country in sub-Saharan Africa and the one that has made the greatest progress post-independence (Acemoglu et al., 2003; Acemoglu and Robinson, 2013). For the past four decades, Botswana has not only recorded the highest annual growth rate in Africa, but also the highest annual growth rate in the world. The country grew from a per capita income (in constant prices) of US$ 379.65 in 1960 to an astonishing US$ 15,640 in 2013 (Trading Economics, 2015).

By 2015 Botswana’s economy had recovered from the global economic crisis. Real Gross Domestic Product (GDP) registered robust growth in 2013, underpinned by buoyant activity in the mining sector, particularly diamond production. According to Honde and Abraha (2015) Botswana’s growth prospects look “broadly favourable” and growth will primarily be driven by the non-mining sectors including trade and tourism, as well as financial and government services.

How has Botswana achieved this?
The strong performance post-independence has been attributed to the political settlement which facilitated the ways in which competing elite groups work together. This has enabled the development of a strong state that has maintained political order, peace and stability and implemented pro-development policies (Amegashie and Kamara, 2008). Botswana has achieved this through the creation of an indigenous well-paid civil service and strong leadership. These have provided the foundation for a democratic system of government willing and able to combat corruption. Elections are held every five years in Botswana and at the last elections held in October 2014 the Botswana Democratic Party won 37 out of the 57 elected seats in Parliament.
Botswana has developed a strong centralised technocratic planning system in the Ministry of Finance and Development Planning which is combined with devolved government. National development policies and plans are evidence-informed, revised every six years and implementation is monitored on an annual basis. Development partners contribute towards the achievement of these plans and donor programmes are only agreed if the government has the absorptive capacity and budget to implement them and meet any recurring costs. This led to an early reduction in dependence on external aid and the government has built up a strong budgetary surplus to protect against shocks.
Botswana is an excellent example of attempting to increase the equitable distribution of wealth from natural resources. The income from diamond and mineral exports has been invested in infrastructure (roads and electricity) and other public goods such as, health and education. Botswana provides an attractive environment for foreign direct investment and economic transformation and development. The strengthened private and business sectors support national economic growth and the introduction of the National Economic Diversification Drive has reduced reliance on diamonds and minerals (African Development Bank et al., 2012).

Natural capital accounting (NCA) is a tool that can help governments determine the true value of natural resources, optimise their use, and determine how they can be used to diversify the economy and reduce poverty. The Botswanan 11th National Development Plan (NDP) incorporates NCA as a tool to inform strategies on climate change adaptation, poverty eradication and the post-2015 development goals. The Vision 2016 Strategy also highlights the need for new sources of economic growth, while ensuring the sustainable use of natural resources. The Government of Botswana co-hosted the Summit for Sustainability in Africa in 2012, which resulted in the Gaborone Declaration - a set of proposals on the role of natural capital in development.

The pro-poor policy adopted by Botswana has subsidised agriculture (which a large proportion of the population depend upon for their livelihood) and invested in drought relief programmes (building dams and drilling boreholes). This is necessary due to the low productivity of agriculture in a semi-arid region. It is also designed to limit rural-urban migration and the problems that result from this. In terms of communications, Botswana has the third highest rate of mobile telephone subscriptions in sub-Saharan Africa (after Gabon and Seychelles).

Botswana is also a good example to all countries of the benefits of increasing access to anti-retroviral therapy for the treatment of HIV. Life expectancy in Botswana decreased dramatically due to AIDS-related deaths during the period 1991 to 2002 when the country had the highest global rate of HIV prevalence. However, Botswana has made treatment widely available and is the country in sub-Saharan Africa with the highest rate of access to treatment for people living with HIV. As a result, life expectancy has increased to 64.4 years, almost back to the pre-HIV levels.

Zimbabwe needs not to look East or West, just love thy neighbour!

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