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61. Effective Budget Oversight In Botswana: Role of the Legislature and the Office of the Auditor General

Author:
Keneilwe Pearl Marata
Publication Date:
09-2013
Content Type:
Policy Brief
Institution:
Botswana Institute for Development Policy Analysis
Abstract:
This policy brief discusses the effectiveness of public budget oversight in Botswana. It assesses the roles of Parliament and the Office of the Auditor General (OAG) in budget oversight and makes recommendations on how to improve the effectiveness of oversight of both organs. The policy brief uses data from the Open Budget Survey (OBS) 2012, and earlier indices to discuss the subject. The OBS is a global assessment of the openness of public budgets conducted biannually by the International Budget Partnership since 2006. Countries are ranked on a scale of 0 to 100 through the Open Budget Index (OBI). Botswana's OBI scores have been declining since 2006; 65 in 2006; 62 in 2008; 51 and 50 in 2010 and 2012 respectively. A score of 50, means that government provides only limited budget information does not enable the citizens to effectively hold government to account for public finance, leading to accountability deficit.
Topic:
Governance, Budget, Finance, and Oversight
Political Geography:
Africa and Botswana

62. SACU Revenue Sharing Formula: Towards a Development Agreement

Author:
Masedi Motswapong and Roman Grynberg
Publication Date:
07-2012
Content Type:
Working Paper
Institution:
Botswana Institute for Development Policy Analysis
Abstract:
The South African Customs Union (SACU) Revenue Sharing Formula (RSF) has been revised substantively twice; once in 1969 and in 1994-2002 since the creation of the customs union in 1910 and each time the changes in the treaty were a reflection of the historic changes occurring in Southern Africa. The apartheid regime created a RSF that served to increase the share of revenue of Botswana, Lesotho and Swaziland (BLS), leaving the South African share as a residual of revenues. As this made South Africa a residual claimant it was unsustainable and required reform in the post-apartheid era. The 2002 formula increased the share to the Botswana, Lesotho, Namibia and Swaziland (BNLS) and removed South Africa as a residual claimant but did not change the fundamental economic relationship between members. While the International Monetary Fund (IMF) supports orthodox fiscal adjustment imbalances this paper argues that the order of magnitude makes those adjustment implausible and a new political arrangement is needed between South Africa and Lesotho and Swaziland to create a viable way forward for Southern African Development Community (SADC). It is argued that even in the case of Botswana and Namibia a new developmental formula, based on investing SACU revenues for regional and national development projects is needed to relieve those countries that have suffered the effects of polarization.
Topic:
Development, Regional Cooperation, Regional Integration, Economic Development, Integration, and Economic Cooperation
Political Geography:
Africa, South Africa, and Botswana

63. SACU Revenue Sharing Formula: Towards a Developmental Agreement

Author:
Roman Grynberg and Masedi Motswapong
Publication Date:
07-2012
Content Type:
Working Paper
Institution:
Botswana Institute for Development Policy Analysis
Abstract:
The South African Customs Union (SACU) Revenue Sharing Formula (RSF) has been revised substantively twice; once in 1969 and in 1994-2002 since the creation of the customs union in 1910 and each time the changes in the treaty were a reflection of the historic changes occurring in Southern Africa. The apartheid regime created a RSF that served to increase the share of revenue of Botswana, Lesotho and Swaziland (BLS), leaving the South African share as a residual of revenues. As this made South Africa a residual claimant it was unsustainable and required reform in the post-apartheid era. The 2002 formula increased the share to the Botswana, Lesotho, Namibia and Swaziland (BNLS) and removed South Africa as a residual claimant but did not change the fundamental economic relationship between members. While the International Monetary Fund (IMF) supports orthodox fiscal adjustment imbalances this paper argues that the order of magnitude makes those adjustment implausible and a new political arrangement is needed between South Africa and Lesotho and Swaziland to create a viable way forward for Southern African Development Community (SADC). It is argued that even in the case of Botswana and Namibia a new developmental formula, based on investing SACU revenues for regional and national development projects is needed to relieve those countries that have suffered the effects of polarization.
Topic:
Development, Economics, Customs, and Revenue Sharing
Political Geography:
Africa and South Africa

64. 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

65. 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

66. 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

67. 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

68. 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

69. 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

70. 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