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71. 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

72. 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

73. 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

74. Botswana's Trade Agreements: Potential Benefits from Non-SACU Bilateral and Multi-lateral Agreements

Author:
Johnson T. Maiketso
Publication Date:
04-2007
Content Type:
Policy Brief
Institution:
Botswana Institute for Development Policy Analysis
Abstract:
This brief will focus on three of the most important non-SACU trade agreements that affect SACU, that is the SADC Trade Protocol, Economic Partnership Agreement negotiations with the European Union, and the US Africa Growth and Opportunity Act (AGOA). The policy brief is based on the study, "Diversifying Botswana Exports: An Overview," carried out by BIDPA and the World Bank in 2005.
Topic:
Treaties and Agreements, Bilateral Relations, Economy, Multilateralism, and Trade
Political Geography:
Africa and Botswana

75. Export Diversification and Infrastructure: The Cost of Utilities for Business

Author:
Margaret Sengwaketse
Publication Date:
06-2007
Content Type:
Policy Brief
Institution:
Botswana Institute for Development Policy Analysis
Abstract:
This policy brief focuses on the role of infrastructure and, in particular, the cost of utilities and their impact on export growth and diversification. The availability of and access to infrastructure s an essential prerequisite for the competitiveness of firms and countries in world markets. Inadequate access--in terms of cost and availability--to water, power supplies and telecommunications make it difficult for firms to operate efficiently.
Topic:
Infrastructure, Diversification, Exports, and Utilities
Political Geography:
Africa and Botswana

76. Trade Facilitation and Export Diversification in Botswana Part I: Customs and Border Procedures

Author:
Margaret Sengwaketse
Publication Date:
04-2007
Content Type:
Policy Brief
Institution:
Botswana Institute for Development Policy Analysis
Abstract:
This policy brief focuses on customs and border procedures in Botswana and their role on export diversification initiatives. Customs is at the centre of trade facilitation because it is where the majority of administrative and procedural requirements involved in the movement of goods are and where the highest potential gains in trade facilitation are to be found. The policy brief is based on the findings of the 2005 BIDPA and World Bank study entitled "Diversifying Botswana's Exports: An Overview."
Topic:
Economy, Borders, Diversification, Exports, Trade, and Customs
Political Geography:
Africa and Botswana

77. Trade Facilitation and Export Diversification in Botswana Part II: Transport

Author:
Margaret Sengwaketse
Publication Date:
06-2007
Content Type:
Policy Brief
Institution:
Botswana Institute for Development Policy Analysis
Abstract:
This brief reviews the contribution that transportation makes to trade facilitation in Botswana. As a landlocked, export-driven economy, efficient transport and transit procedures are important to support competitiveness and export growth. Transport costs are particularly important to landlocked countries, where the additional distances to be covered can increase product prices, undermine the competitiveness of exports, and generally make it more difficult to compete in international markets. The policy brief draws from the findings of the 2005 BIDPA and World Bank study entitled "Diversifying Botswana's Exports: An Overview," as well as other relevant studies.
Topic:
Markets, Diversification, Trade, Transportation, and Customs
Political Geography:
Africa and Botswana

78. Export Diversification: Is it Really Necessary for Botswana?

Author:
Joel Sentsho
Publication Date:
12-2006
Content Type:
Policy Brief
Institution:
Botswana Institute for Development Policy Analysis
Abstract:
Even though Botswana gained independence as a very poor country in 1966, over the last three decades the country has risen to the level of a middle income developing country. The country’s GDP growth averaged about 9 percent over the fi rst three decades of independence and was thus comparable to that of the East Asian Tigers. Perhaps the only disadvantage with this impressive growth is that it was and continues to be fuelled by the primary sector, particularly diamond mining, although copper/nickel and beef were also important in the earlier years. As early as 1982, the Government of Botswana recognized that dependence on a narrow range of exports was undesirable and could have adverse long-term consequences, and that export diversifi cation was necessary. However, despite numerous policies aimed at achieving export diversifi cation, it appears that there has not been much success, and while sustained high rates of economic growth have been achieved this has remained dependent upon the primary export sector, mainly diamonds. This raises fundamental questions: Is export diversification really necessary for Botswana? Could Botswana not continue into the future and achieve the ideals of Vision 2016 through continued primary export growth? These questions will form the focus of this policy brief. The main objective of this Policy Brief is to explore the reasons why Botswana continues to pursue the export diversifi cation strategy in spite of its limited success over the years. The Policy Brief is based on the BIDPA-World Bank study entitled “Diversifying Botswana’s Exports: An Overview”, fi nalized in July 2005, which argues strongly that export diversifi cation still needs to be pursued by Botswana. This policy brief will summarise the reasons advanced by the study for the pursuit of export diversification and make recommendations on the way forward.
Topic:
Development, Economy, Diversification, and Exports
Political Geography:
Africa and Botswana

79. Abundant Resource Endowment: A Basis for Successful Economic Diversifi cation

Author:
Joel Sentsho
Publication Date:
12-2006
Content Type:
Policy Brief
Institution:
Botswana Institute for Development Policy Analysis
Abstract:
It is widely accepted that achieving sustainable economic growth and development for resource-based economies must be based on economic diversifi cation. An economy is said to be diversifi ed if it has reached a level of industrial and economic development in which “no sector of the economy may be singled out as a major engine of economic growth.” For many resource-based economies, such as those based on minerals or agriculture, this economic diversifi cation appears to have been elusive, prompting some analysts of resource-based development to argue that resource-based economies are hard to industrialize and diversify. This policy brief agues this the “resource curse”, although widespread, is not inevitable, because abundant resource endowment also provides advantages that can enhance the potential for economic diversifi cation when appropriate policy choices are made. This policy brief discusses the reasons for pessimism in resource-based economic development, resulting in failure to achieve economic diversifi cation and sustainable economic growth. It then looks at why resource abundance can support successful economic diversifi cation. Finally, the policy brief outlines the policies that result from the two scenarios and concludes that there is reason for successful economic diversifi cation in resource-based economies provided appropriate policies are chosen and implemented.
Topic:
Economics, Economic Growth, Diversification, and Resource Management
Political Geography:
Africa and Botswana

80. Botswana’s Enabling Environment for Economic Diversification: Plugging the Holes

Author:
Victoria Ndzinge-Anderson
Publication Date:
12-2006
Content Type:
Policy Brief
Institution:
Botswana Institute for Development Policy Analysis
Abstract:
It is widely recognized that economies endowed with natural resources and highly dependent on one or two primary commodities for exports are susceptible to exogenous shocks that can lead to fl uctuations in export earnings. The unpredictable nature of export earnings from primary products, especially when a narrow range of such products is exported, makes it diffi cult for countries to plan and allocate their resources effi ciently, thereby hindering sustainable economic growth and development. This is particularly evident in countries where backward and forward linkages are limited or non-existent within and between resource-based sectors and the rest of the economy. The uncertainty over the stability of future output growth that often characterizes resource-abundant economies can be countered to some extent by economic diversi fi cation, which calls for the broadening of the range of products and services produced for export. This may include broadening the range of primary products exported, so as to reduce dependence on a narrow range of primary export products and avoid the associated vulnerabilities. Diversi fi cation may include increasing the degree of processing of primary products prior to export, which can lead to additional local value added and reduced dependence on primary product markets. More generally, diversi fi cation is usually understood to include the production of a range of industrial and service exports. Depending on the nature of the products, this can be a skilled labourintensive and technology-driven process that transfers growth-enhancing spillover bene fi ts to the rest of the economy and promotes sustainable economic growth. It is generally accepted that the private sector, de fi ned as all economic activities not produced by the public sector, is the most powerful tool for achieving economic diversi fi cation. It induces a spiral effect on foreign and domestic investment, growth, employment, productivity and poverty alleviation. Stimulating economic diversi fi cation through broadening the range of export products requires new investment in a range of activities, which is itself dependent upon the nature of the enabling environment for both domestic and foreign investment. Botswana’s enabling environment for investment was assessed in a Report prepared by BIDPA and World Bank entitled “Diversifying Botswana’s Exports: An Overview” (2005). This Policy Brief presents the main fi ndings of that assessment. It focuses on the achievements, challenges and the way forward for Botswana in providing a business environment conducive for economic diversifi cation. To this end, the Policy Brief also provides a critical overview of what has been achieved so far, and identifi es what remains to be done.
Topic:
Economics, Environment, Natural Resources, and Diversification
Political Geography:
Africa and Botswana