Friday, November 3, 2017

BOTSWANA: AN EXCEPTION IN AFRICA

Botswana was one of the countless territories which belonged to the British Empire. It would ensure its independence in 1966. At that time was one of the poorest countries in the world, and this was very clear when per capita income was observed.
            Almost all countries that have become independent in Africa, have faced many problems, resulting in widespread poverty of the population; and democracy; for its part, is often vilified where the rule of law can’t be fully accomplished.
Botswana, while not exempt from trampling on certain fundamental rules of democracy and disrespecting freedom of information and access to public funds by the opposition, is undoubtedly the country that has been able to develop more in key areas, at least as far as the African continent is concerned.
With a territorial similar size to France, with 70% of that area being part of the Kalahari Desert, its prospect of becoming another failed state in Africa and continuing one of the poorest countries in the world, was high.
How did we achieve this Botswana’s “miracle”? Economic freedom is by many considered to be the driving force of this success story. All this freedom was based on a trinomial - democracy, free markets and the rule of law. Therefore, promoting people who respected individual liberties.
Between 1966 and 1999, the country grew on average 9% a year, and transformed itself into one of the fastest-growing economies in the world.
The foundation of the first major boost in the country was its first President Seretse Khama (1966-1980). This period witnessed a tremendous progress at the social and economic level. It embraced an export-based economy built around beef, copper and diamonds. Strong measures were taken against corruption and it was developed market friendly policies. As a cornerstone of this, a democracy of the liberal type was observed, where the rule of law was key, despite the fact there is a dominant ethnic group - the Tswana (79%). It has thus become the fastest growing economy. The main revenues supplied the infrastructure, health care, the education system, as well as other sources of economic growth.
The current President Ian Khama (2008 - ?), the son of the 1st president, Seretse, praises to further leverage economic freedom through the enhancement of private initiative. One can observe the correlation between economic freedom and high current growth rate and improvements in the socio-economic conditions. Nowadays, Botswana’s economy is consolidated in three sectors: mining, cattle and tourism. As it safeguards property rights very well, the country turns out to be a “safe haven” for investors and is one of the most coveted countries in Africa.
It is also at the forefront of innovation on the African continent looking for breaking into new markets and struggling to scale up inventions. An example of this was the creation of the “Botswana Innovation Hub Park” - the green building first science and technology park. Its primary goal is "to contribute to the country's economic development and competitiveness by creating new scientific technological and indigenous knowledge-based business opportunities".
As highlighted earlier, the secret of all this? Economic freedom.
Therefore, is this a country that collects only successes? Out of the question. There are problems which one can’t find an easy solution. The HIV / AIDS epidemic - although the number of deaths has dropped in the last decade, the infected increased considerably. In addition, climatic and geographical conditions have contributed to major environmental problems: drought and desertification.


Miguel Verde - Senior Consultant, Professor of International Relations

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