Botswana

Botswana is a model for the use of natural resources for development. It has evolved from one of the ten least-developed countries at independence in 1966 to a middle-income country, characterised by sustained economic growth, anchored in good governance, peace, political stability and sound macroeconomic management. Fundamental human rights and freedoms are entrenched in the Constitution, respected in practice and enforced by the Courts. GDP stood at some 50 billion Pula in 2004/5 (€8.4 billion). Whilst minerals, principally diamonds, remain the dominant source of revenue, there has been growth in such sectors as financial services, tourism and manufacturing. The trade balance is structurally in large surplus. Remarkable achievements resulting from sustained public investments have been recorded in the delivery and outcomes of social services such as health care, access to safe water and education. Over the last 35 years, the education system has expanded tremendously to accommodate the population growth and needs of the country, as reflected in outstanding achievements in enrolment at both primary and secondary levels.

The long-term aspirations of Botswana are encapsulated in “Vision 2016”, a strategic vision, whereas the National Development Plan 9 (NDP 9) sets out the Government’s development agenda for 2004-2009. The latter identifies poverty reduction and prosperity for all as fundamental national development goals, to be achieved through economic growth, diversification, job creation and human resources development.

In spite of the country’s economic growth and the positive trends in poverty indicators, income disparities remain a major concern and its achievements are seriously threatened by one of the highest HIV/AIDS prevalence rates in the world. Income poverty affects 23.4% of the population, in particular people in remote and rural areas. Policy needs to address more specifically poverty alleviation, as the persistence of poverty poses a threat to the achievement of the country’s strategic goals. The need to integrate women in the development process is perceived as an issue of social equality and a key element contributing to poverty eradication. There is a need to accelerate significantly the pace of economic reform, in particular to ensure effective implementation of policies promoting foreign direct investment and private sector development, and to improve productivity and competitiveness of human resources. Economic diversification and global competitiveness remain major challenges to sustain development growth. Employment creation is limited by the capital-intensive nature of economic growth in Botswana (mining sector) and a labour market lacking the increasingly skill-intensive workforce that it requires. Education and Training is seen as a critical area for economic development and technological change with a need to strengthen the links between education/training and employment, in particular by infusing business and entrepreneurial skills throughout the education and training system and by promoting a culture focused on productivity, skills and performance.

As a result of the analysis undertaken, and taking into account the GoB strategic vision and development agenda and lessons learned from past cooperation, the response strategy in this Country Strategy Paper (CSP) and the National Indicative Programme (NIP) identifies Human Resources Development as the single focal sector. This sector offers the best opportunity to tackle the twin challenges of economic and social development. This response will contribute to poverty alleviation in Botswana through support for economic diversification and greater global competitiveness.