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51. Diversification projects in Ukraine’s energy sector: state, problems and ways of achievement

Author:
Yevhen Shulha
Publication Date:
01-2009
Content Type:
Journal Article
Journal:
National Security and Defence
Institution:
Razumkov Centre
Abstract:
Ukraine, seeking to back future sustainable development of the national economy with energy resources, is interested in their reliable deliveries. Since large volumes of energy resources are imported from one country (or through the territory of one country) – Russia, Ukraine logically and reasonably tries to diversify their sources and in that way minimise risks for its energy security, including political ones. The plans to diversify sources of energy supply, first of all, to reduce energy dependence on the Russian Federation, for years have been declared in official documents of different levels (e.g., the Energy Strategy of Ukraine through 2030). Meanwhile, those questions caused most acute discussions in the Ukrainian political community and in society, which hindered implementation of diversification projects. The current stage of such projects’ development bears traits endangering their implementation. First, the global economic crisis that substantially complicated normal functioning of the Ukrainian economy also strongly affected operation of the national energy sector: in the conditions of foreign credits shortage and reduction of budget allocations on specific energy projects and the energy sector as a whole, investments in the energy sector go down, hindering its development. So, the global economic crisis adjusts plans that even before were not zealously implemented. Second, another “gas war” (January 2009) again complicated the uneasy relations of Ukraine with its strategic partner in the energy sector – Russia. And any economically unsound decisions may not only destabilise supply of energy resources but lead to their cut. Third, aggravation of home political confrontation on the eve of the presidential elections, unfortunately, extends to diversification projects in the energy sector. This greatly undermines the effectiveness of Ukraine’s international cooperation with foreign governments and transnational companies, since diversification projects are international, their implementation requires huge investments and import of advanced technologies. An economic choice of diversification projects should make that area of the energy sector reform the core of Ukraine’s energy strategy, concentrate funds on priority directions of development, cease excessive politicisation of that issue in society, making those projects nation-wide. At the same time, it is clear that irrespective of the diversification projects implementation time, Russia will remain the main partner for Ukraine in the energy sector in the long run. The pause in the “race” of international diversification projects caused by the global economic crisis enables Ukraine and its partners in implementation of said projects to defer for some time, without particular losses, passage of final decisions for all-round analysis of the goals they face and search of the most effective and acceptable for all actors ways of their attainment.
Topic:
Oil, Natural Resources, Gas, Diversification, and Energy
Political Geography:
Europe and Ukraine

52. 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

53. 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

54. 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

55. 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

56. 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

57. 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