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61. Do Public Transfers Discourage Farmer Participation in Subsistence Crop Production? Empirical Evidence from Botswana

Author:
Tebogo Seleka and Khaufelo Lekobane
Publication Date:
08-2011
Content Type:
Working Paper
Institution:
Botswana Institute for Development Policy Analysis
Abstract:
We analyze the impact of public food and cash transfers on farmer participation in Botswana’s subsistence arable agriculture. The results indicate that publicly provided social pensions and food packages (rations) reduce the probability of participation in subsistence crop farming. Engagement in paid off-farm employment, which is sometimes facilitated through a public works programme (PWP), also discourages farmer participation in the subsistence economy. Therefore, public food and cash transfers and the PWP yield work disincentive effects in Botswana’s subsistence agriculture. This is because transfers are usually consistent and regular in Botswana, impacting on household behaviour. The design of social protection policies should therefore consider such potential disincentive effects on the agricultural sector.
Topic:
Agriculture, Development, Economic Development, and Farming
Political Geography:
Africa and Botswana

62. Factors Underlying Communal Beef Cattle Marketing Decisions in Botswana: The Role of Public and Private Transfers

Author:
Tebogo Seleka and David Mmopelwa
Publication Date:
08-2011
Content Type:
Working Paper
Institution:
Botswana Institute for Development Policy Analysis
Abstract:
This article examines factors underlying communal beef cattle marketing at a household level in Botswana, with emphasis placed on the role of public and private transfers. Results show that public and private transfers (pensions, remittances, government food rations, and food supplies from friends and relatives) discourage cattle marketing. Thus, while they are important sources of household food security, cash and food transfers may adversely impact on beef export performance in Botswana. It is therefore fundamental that public transfer programmes are well targeted to needy and poor households, in order to minimize their adverse effects on the cattle industry. On the positive side, the paper argues that public transfer programmes may assist poor farmers rebuild their cattle and other livestock inventory, contributing to transition out of inter-generational poverty.
Topic:
Development, Economics, Public Policy, Economic Development, Private Sector, and Cattle
Political Geography:
Africa and Botswana

63. Competition and Trade Policy: The Case of the Botswana Poultry Industry

Author:
Masedi Motswapong and Roman Grynberg
Publication Date:
09-2011
Content Type:
Working Paper
Institution:
Botswana Institute for Development Policy Analysis
Abstract:
The poultry sector is the most successful example of import substitution in Botswana with the country having achieved national self sufficiency. The paper describes the value chain in the industry and shows how, given the small size of the market, a high degree of market concentration exists. There is an estimate of the loss of consumer surplus from the current trade regime. The paper raises issues regarding the fundamental tension between competition and industrial policy in a small developing country. As the larger firms in the poultry industry move towards export readiness after 32 years of protection, the question of a new trade and industry regime is considered.
Topic:
Development, Economics, Economic Development, Trade Policy, Strategic Competition, and Industry
Political Geography:
Africa and Botswana

64. Enhancing public budgeting transparency in Botswana: Why and how

Author:
Gape Kaboyakgosi
Publication Date:
09-2011
Content Type:
Policy Brief
Institution:
Botswana Institute for Development Policy Analysis
Abstract:
This policy brief discusses the need to make Botswana’s budget process more transparent. Transparent or open budgets both facilitate and support timely, relevant public access to budget information, enhancing citizen participation in the budgetary process. Transparent budgets also strengthen the role and independence of oversight institutions such as Parliament and Supreme Audit Institution (SAI)-or the Office of the Auditor General. The objective of this brief is to advocate for the opening up of Botswana’s budgetary process, hence the paper concludes by making recommendations on how to enhance budget transparency in Botswana.
Topic:
Economics, Governance, Budget, Local, and State Funding
Political Geography:
Africa and Botswana

65. Botswana's Debt Sustainability: A Brief Narrative

Author:
Haile Taye
Publication Date:
03-2011
Content Type:
Policy Brief
Institution:
Botswana Institute for Development Policy Analysis
Abstract:
In terms of basic macroeconomic indicators, Botswana is, on the whole, in an enviable position relative to many African countries. The recent economic crisis notwithstanding, its growth rate has been more than average and its Balance of Payments position (as reflected in its foreign exchange reserves) has been impressive. Further, its exchange rate has been relatively stable compared to many middle and low income countries. Some of the weak points of the economy in recent years have been: (a) high inflation, even though it declined to a single digit in the last year (from 15% to about 7%); (b) relatively high unemployment for a fast growing economy (about 20%, according to the 2007 Informal Sector Survey); (c) stable financial sector, but with a wide spread between deposit and lending interest rates; and (d) lack of diversification, a heavy reliance on a few mineral products.
Topic:
Debt, Macroeconomics, Sustainability, and Economic Crisis
Political Geography:
Africa and Botswana

66. Do Public Transfers Discourage Farmer Participation in Subsistence Crop Production? Empirical Evidence from Botswana

Author:
Khaufelo R. Lekobane and Tebogo B. Seleka
Publication Date:
08-2011
Content Type:
Working Paper
Institution:
Botswana Institute for Development Policy Analysis
Abstract:
We analyze the impact of public food and cash transfers on farmer participation in Botswana’s subsistence arable agriculture. The results indicate that publicly provided social pensions and food packages (rations) reduce the probability of participation in subsistence crop farming. Engagement in paid off-farm employment, which is sometimes facilitated through a public works programme (PWP), also discourages farmer participation in the subsistence economy. Therefore, public food and cash transfers and the PWP yield work disincentive effects in Botswana’s subsistence agriculture. This is because transfers are usually consistent and regular in Botswana, impacting on household behaviour. The design of social protection policies should therefore consider such potential disincentive effects on the agricultural sector.
Topic:
Agriculture, Poverty, Labor Issues, Farming, Safety Net, Cash Transfers, and Dependency
Political Geography:
Africa and Botswana

67. Factors Underlying Communal Beef Cattle Marketing Decisions in Botswana: The Role of Public and Private Transfers

Author:
David Mmopelwa and Tebogo B. Seleka
Publication Date:
08-2011
Content Type:
Working Paper
Institution:
Botswana Institute for Development Policy Analysis
Abstract:
This article examines factors underlying communal beef cattle marketing at a household level in Botswana, with emphasis placed on the role of public and private transfers. Results show that public and private transfers (pensions, remittances, government food rations, and food supplies from friends and relatives) discourage cattle marketing. Thus, while they are important sources of household food security, cash and food transfers may adversely impact on beef export performance in Botswana. It is therefore fundamental that public transfer programmes are well targeted to needy and poor households, in order to minimize their adverse effects on the cattle industry. On the positive side, the paper argues that public transfer programmes may assist poor farmers rebuild their cattle and other livestock inventory, contributing to transition out of inter-generational poverty.
Topic:
Poverty, Food Security, Cattle, Safety Net, Cash Transfers, and Meat Industry
Political Geography:
Africa and Botswana

68. Competition and Trade Policy: The Case of the Botswana Poultry Industry

Author:
Roman Grynberg and Masedi Motswapong
Publication Date:
09-2011
Content Type:
Working Paper
Institution:
Botswana Institute for Development Policy Analysis
Abstract:
The poultry sector is the most successful example of import substitution in Botswana with the country having achieved national self sufficiency. The paper describes the value chain in the industry and shows how, given the small size of the market, a high degree of market concentration exists. There is an estimate of the loss of consumer surplus from the current trade regime. The paper raises issues regarding the fundamental tension between competition and industrial policy in a small developing country. As the larger firms in the poultry industry move towards export readiness after 32 years of protection, the question of a new trade and industry regime is considered.
Topic:
Trade Policy, Imports, Value Chains, Self-Sufficiency, and Poultry Industry
Political Geography:
Africa and Botswana

69. Factors Affecting Botswana's Competitiveness

Author:
Grace G. Tabengwa
Publication Date:
11-2011
Content Type:
Policy Brief
Institution:
Botswana Institute for Development Policy Analysis
Abstract:
The World Economic Forum (WEF) in collaboration with the Botswana National Productivity Centre (BNPC) has on the 7th of September launched the 2011/12 Global Competiveness Report (GCR) which provides country- wide rankings on the competitiveness for a set of 142 nations so far (appended list). Since its introduction in 2005, the Global Competitiveness Index (GCI) has been used by an increasing number of countries and institutions to benchmark national competitiveness. The index is based on a survey questionnaire instrument administered to business entities and actual country data for a number of indicators of competitiveness. This brief note, therefore, examines Botswana’s competitive position and implications in light of the rankings Botswana attained from the 2011/12 GCR and earlier years. The analysis provides a comparison of Botswana’s performance and those of other countries on the key pillars and core indicators that inform the overall rankings to identify areas where Botswana has strengths and weaknesses in as far as competitiveness is concerned. The indicators which impact adversely on Botswana’s competitiveness and the overall performance of the pillars are fl agged (*) so that they are given emphasis in the reforms and strategies to improve competitiveness. This should inform policy dialogue and strategic decision making with insight on areas that should form the agenda for strategic intervention to address factors that continue to undermine Botswana’s competitiveness.
Topic:
Development, Economic Growth, and Economic Competition
Political Geography:
Africa and Botswana

70. Staple Food Prices in Botswana

Author:
BIDPA
Publication Date:
05-2010
Content Type:
Policy Brief
Institution:
Botswana Institute for Development Policy Analysis
Abstract:
What were the Causes of the 2007-9 Global Food Crisis? i) The main causes for the food crisis were the increase in oil prices together with subsidies for bio-fuels provided by food exporting countries. The introduction of bio-fuel subsidies by the US for maize derived ethanol contributed significantly to the food crisis. Changes in the value of the US dollar also worsened the crisis. ii) Almost all major food exporting countries have now established substantial bio-fuel mandates whereby a certain percentage of national transport fuel requirements will come renewable sources biofuels. These can easily be raised for bio-diesel which creates an increase in demand for the feedstock. This is a low cost way for governments of providing state support for farmers. iii) According to the World Bank, for every one percentage point increase in the barrel price of oil the price of maize will rise by 0.9% for all oil prices above USD50 per barrel (World Bank 2009, p7). This now links oil prices directly to maize.
Topic:
Markets, Food, Economy, and Food Crisis
Political Geography:
Africa and Botswana