Publication: Botswana - Country Economic Memorandum: In Search of New Drivers of Inclusive Growth
Loading...
Date
2024-06-07
ISSN
Published
2024-06-07
Author(s)
Editor(s)
Abstract
Botswana aspires to become a high-income economy and eradicate extreme poverty by 2036, but it has shifted from a top to a mid-range performer over the past decade. The public sector-led growth model built on diamond rents shows signs of exhaustion, while the economy has become more vulnerable to financial, climate and health shocks. Botswana can meet its aspirations and avoid getting caught in a middle-income country trap with a greater emphasis on creating the conditions for productivity-led inclusive growth. This report intends to be an input into the government’s strategic vision and policymaking to help move Botswana closer to its ambitious objective of becoming a high-income economy by 2036.
Link to Data Set
Citation
“World Bank. 2024. Botswana - Country Economic Memorandum: In Search of New Drivers of Inclusive Growth. © World Bank. http://hdl.handle.net/10986/41676 License: CC BY-NC 3.0 IGO.”
Associated URLs
Associated content
Other publications in this report series
Journal
Journal Volume
Journal Issue
Collections
Related items
Showing items related by metadata.
Publication Belarus Country Economic Memorandum : Eeconomic Transformation for Growth(Washington, DC, 2012-04-05)The last decade in Belarus was marked by an average economic growth rate of close to 8 percent annually and an impressive eight-fold reduction in poverty. Economic growth was initially driven by external factors, but after 2005 expansionary domestic demand became the prevalent contributor to growth. Growth was backed by large state support to the economy, sizeable public investments, and huge expansion of credit, particularly under government directed lending programs. Simultaneously, the external balance shifted from a surplus of 1.4 percent of growth development product (GDP) in 2005 to a deficit of 15.0 percent of GDP in 2010. Throughout the period 2001-10, the economic model relied on underpriced energy resources from Russia, with an annual average size of the imputed subsidy of over 13 percent of GDP. However, the existing growth model has reached its limits and cannot ensure growth sustainability without structural reforms. Going forward, the growth model will have to rely on significant productivity gains driven by structural reforms in an environment of macroeconomic stability. Macroeconomic adjustment which effectively combats the sources of external imbalances in Belarus is a critical and necessary, but insufficient condition for achieving sustainable economic growth in the medium term. The Belarusian economy is facing formidable challenges beyond the macroeconomic issue of adequately financing its external imbalances: (1) how to reallocate labor and capital to high productivity segments of the economy; (2) how to restructure the state-owned enterprise sector; and (3) how to support the underdeveloped private sector and the services sector. By successfully overcoming these challenges, Belarus will revive its competitive segments of the economy and discover untapped opportunities for growth. It will also diminish its economic dependence on underpriced energy from Russia and move up the value chain in global integration. With valuable geographical location and an educated and disciplined labor force, Belarus can restructure its economy, diversify its exports, and increase the prosperity of its people.Publication Turkey - Country Economic Memorandum Informality : Causes, Consequences, Policies(World Bank, 2010-03-02)Informality in Turkey, using various definitions, and despite the signs of a recent decline in certain segments of the economy, is widespread. The level of informality is not excessively high, however, taking into account Turkey's level of income. While firm non-registration is not very common, underreporting of revenues and wages and non-registration of workers with the social security system are more prevalent. This report argues that success in reducing informality requires an integrated policy response. While no single 'sufficient' policy tool will be likely to increase formalization significantly, a combination of policies may move the economy to a new equilibrium with higher formalization. The report discusses the need to strengthen auditing capacity, effectiveness and targeting, to ease labor market regulations, and to communicate effectively with the public on the costs of informality and the benefits of formalization. This report is organized in six chapters. The second chapter introduces definitions and the conceptual framework for the analysis conducted. The third chapter provides a portrait of informality in Turkey, outlines certain issues of measurement, and presents the main trends using various decompositions. The fourth and fifth chapters discuss the costs (consequences) and the causes of informality, respectively, with a specific focus on informal employment. The final chapter presents a suggested integrated policy approach to reduce informality and provides concluding remarks.Publication Colombia : Country Economic Memorandum, The Foundations for Competitiveness(Washington, DC, 2005-11)Since Colombia's last Country Economic Memorandum (CEM) (1989) the country has endured several years of slow growth, burgeoning fiscal deficits, and high levels of debt. Colombia now is seeking to join a free trade agreement (FTA) with the United States in the hope of stimulating growth and improving living conditions for the country as a whole. In response to the opportunities and challenges presented by the proposed FTA with the United States, the Colombian government has launched an "internal agenda," an action plan that involves major stakeholders -- public sector, private sector, and regional government -- aimed at obtaining greater levels of competitiveness. The government has articulated the need for greater understanding of the impact of the proposed FTA, and a strategy for a reform agenda that would enable the country to capture the potential benefits from freer trade and facilitate the transition to greater openness. This report is produced as an input into Colombia's reform agenda. It starts with an executive summary and policy report which presents the main findings and key policy recommendations of the three chapters comprising the report. Chapter 1 evaluates Colombia's business and growth environment and the likely challenges the manufacturing sector will face in taking advantage of the FTA with the United States. The chapter consists of three sections. Section I uses detailed survey data to identify the top constraints on growth and competitiveness of Colombian firms. Section 2 analyzes key developments in the manufacturing sector following the trade liberalization of 1990-91 using micro-level data, and highlights areas where reforms are needed. Section 3 examines the challenges and opportunities faced by small and medium-sized businesses in confronting a more open trading environment. Chapter 2 builds on the microeconomic issues raised in the first chapter, and follows with an evaluation of macroeconomic and fiscal (tax and expenditure) policies that are important for making the Colombian economy competitive. In this context, the study also evaluates the sustainability and trajectory of public debt. Finally, Chapter 3 examines the likely impact of agricultural liberalization on income distribution in the country under the proposed Colombian-U.S. FTA -- identifying who are the likely gainers and losers -- and assesses its impact on economic growth and poverty in the country.Publication Mauritania - Policy Options to Enhance Private Sector Development : Country Economic Memorandum(World Bank, 2010-04-01)Mauritania has undergone massive economic and political changes. Mauritania is a West African country located on the western edge of the Sahara desert, with a population of approximately 3 million people that is mostly concentrated in the urban areas. Since independence in the 1960s, Mauritania's economy has been dependent on natural resources, iron ore first then combined with fisheries, and presently oil and other minerals. Natural resources exploitation and more recently oil discovery boosted Mauritania's rate of economic growth, but key challenges remain, in particular the promotion of productive value-adding activities and the creation of a strong, formal class of small and medium-sized enterprises (SMEs). The Government of Mauritania recognizes the strategic role of the private sector and the urgency of supporting SME development as a catalyst for long-term growth. In the Second Poverty Reduction Strategy Paper (GPRSP-II), the Mauritanian authorities indicated that accelerating economic growth will be based on: (i) optimizing spinoff effects from developing the oil business and implementing more effective policies for harnessing the growth potential of other promising sectors; (ii) a thorough reform of the financial system; (iii) significant improvement in the business climate and the development of SMEs; and (iv) giving a greater economic and land-use planning dimension to the infrastructure that supports growth (World Bank, 2006). Furthermore, the authorities identified several priorities to improve the business climate and promotion of SMEs, as follows: (i) improving the legal environment for businesses; (ii) fighting anti-competitive practices; (iii) making tax and customs policies more favorable to business; and (iv) institutional support for the development of trade and commerce. This country economic memorandum (CEM) examines the four most constraining factors to private sector development and proposes the formulation of practical solutions to enable the emergence of a strong class of formal private firms. Specifically, to accelerate growth and to attain the four strategic GPRSP II objectives - (i) optimize spinoff effects; (ii) reform financial system; (iii) improve the business climate and the development of SMEs; and (iv) improve business enabling infrastructure), the CEM analyses the role of taxation to promote firm formalization; skills development to enhance labor productivity; competition policy as a way to address anticompetitive market conduct; and the options for establishing special economic zones as instruments to close infrastructure gaps and promote investment climate reforms.Publication Togo - Reviving the Traditional Sectors and Preparing for the Future : An Export-Led Growth Strategy - Country Economic Memorandum(World Bank, 2010-09-01)Togo is one of the smallest countries in mainland Africa, with an area of 57,000 k
Users also downloaded
Showing related downloaded files
Publication Classroom Assessment to Support Foundational Literacy(Washington, DC: World Bank, 2025-03-21)This document focuses primarily on how classroom assessment activities can measure students’ literacy skills as they progress along a learning trajectory towards reading fluently and with comprehension by the end of primary school grades. The document addresses considerations regarding the design and implementation of early grade reading classroom assessment, provides examples of assessment activities from a variety of countries and contexts, and discusses the importance of incorporating classroom assessment practices into teacher training and professional development opportunities for teachers. The structure of the document is as follows. The first section presents definitions and addresses basic questions on classroom assessment. Section 2 covers the intersection between assessment and early grade reading by discussing how learning assessment can measure early grade reading skills following the reading learning trajectory. Section 3 compares some of the most common early grade literacy assessment tools with respect to the early grade reading skills and developmental phases. Section 4 of the document addresses teacher training considerations in developing, scoring, and using early grade reading assessment. Additional issues in assessing reading skills in the classroom and using assessment results to improve teaching and learning are reviewed in section 5. Throughout the document, country cases are presented to demonstrate how assessment activities can be implemented in the classroom in different contexts.Publication Argentina Country Climate and Development Report(World Bank, Washington, DC, 2022-11)The Argentina Country Climate and Development Report (CCDR) explores opportunities and identifies trade-offs for aligning Argentina’s growth and poverty reduction policies with its commitments on, and its ability to withstand, climate change. It assesses how the country can: reduce its vulnerability to climate shocks through targeted public and private investments and adequation of social protection. The report also shows how Argentina can seize the benefits of a global decarbonization path to sustain a more robust economic growth through further development of Argentina’s potential for renewable energy, energy efficiency actions, the lithium value chain, as well as climate-smart agriculture (and land use) options. Given Argentina’s context, this CCDR focuses on win-win policies and investments, which have large co-benefits or can contribute to raising the country’s growth while helping to adapt the economy, also considering how human capital actions can accompany a just transition.Publication Morocco Economic Update, Winter 2025(Washington, DC: World Bank, 2025-04-03)Despite the drought causing a modest deceleration of overall GDP growth to 3.2 percent, the Moroccan economy has exhibited some encouraging trends in 2024. Non-agricultural growth has accelerated to an estimated 3.8 percent, driven by a revitalized industrial sector and a rebound in gross capital formation. Inflation has dropped below 1 percent, allowing Bank al-Maghrib to begin easing its monetary policy. While rural labor markets remain depressed, the economy has added close to 162,000 jobs in urban areas. Morocco’s external position remains strong overall, with a moderate current account deficit largely financed by growing foreign direct investment inflows, underpinned by solid investor confidence indicators. Despite significant spending pressures, the debt-to-GDP ratio is slowly declining.Publication World Development Report 2006(Washington, DC, 2005)This year’s Word Development Report (WDR), the twenty-eighth, looks at the role of equity in the development process. It defines equity in terms of two basic principles. The first is equal opportunities: that a person’s chances in life should be determined by his or her talents and efforts, rather than by pre-determined circumstances such as race, gender, social or family background. The second principle is the avoidance of extreme deprivation in outcomes, particularly in health, education and consumption levels. This principle thus includes the objective of poverty reduction. The report’s main message is that, in the long run, the pursuit of equity and the pursuit of economic prosperity are complementary. In addition to detailed chapters exploring these and related issues, the Report contains selected data from the World Development Indicators 2005‹an appendix of economic and social data for over 200 countries. This Report offers practical insights for policymakers, executives, scholars, and all those with an interest in economic development.Publication Europe and Central Asia Economic Update, Spring 2025: Accelerating Growth through Entrepreneurship, Technology Adoption, and Innovation(Washington, DC: World Bank, 2025-04-23)Business dynamism and economic growth in Europe and Central Asia have weakened since the late 2000s, with productivity growth driven largely by resource reallocation between firms and sectors rather than innovation. To move up the value chain, countries need to facilitate technology adoption, stronger domestic competition, and firm-level innovation to build a more dynamic private sector. Governments should move beyond broad support for small- and medium-sized enterprises and focus on enabling the most productive firms to expand and compete globally. Strengthening competition policies, reducing the presence of state-owned enterprises, and ensuring fair market access are crucial. Limited availability of long-term financing and risk capital hinders firm growth and innovation. Economic disruptions are a shock in the short term, but they provide an opportunity for implementing enterprise and structural reforms, all of which are essential for creating better-paying jobs and helping countries in the region to achieve high-income status.