Friday, October 29, 2010

Growth and Productivity in Agriculture and Agribusiness: Evaluative Lessons...

The Independent Evaluation Group (IEG) has released a new study titled “Growth and Productivity in Agriculture and Agribusiness: Evaluative Lessons from World Bank Group Experience.”The study is expected to help Africa and countries like Botswana raise productivity in the sector and promote its growth. Drawing on the World Bank Group’s (WBG) experience in supporting agricultural growth in the past decade, the report points to areas where increased funding can translate into higher impact.

According to the report  agricultural growth remains central to poverty reduction, particularly in the poorest countries, where a large share of the population relies on agriculture for their livelihood. At the same time, global demand for some of the major agricultural product groups is growing due to the growth in population and incomes, dietary shifts, and demand for biofuels. Click here to access the report.

Thursday, October 28, 2010

BIDPA advocates Citizens' Budget

The Mmegi Newspaper indicates that Botswana Institute for Development Policy Analysis (BIDPA) has advised Government to start producing and publishing a Citizens' Budget so that Batswana may be better informed about how public funds in the national coffers are raised and spent.

Unlike other countries in the region, among them South Africa, Namibia and Malawi, Botswana does not produce a Citizens' Budget, which is a non-technical presentation of the national budget published for the public to better understand government plans and make it accountable for its policies. Click here to read the full newspaper article.

Govt opens up on 2011/ 12 budgeting

In a rare moment coming at a time when public finances and debt are getting out of control, the Ministry of Finance and Development Planning has gathered its critics for 2011/ 12 budget consultation next week.The gathering, named Budget Pitso, is a culmination of concerns from the industry and NGOs that Botswana public budget is done in ‘secrecy’. This is coming at a time when public finances and debt are getting out of control

A number of policy think tanks like BIDPA and trade unions have queried the way budget formulation is being conducted. Botswana budget only gets to be scrutinised when it reaches parliament where legislators debate it. For the public, it is even worse as they only see the minister reading it on national television stations and newspapers. Click here to read more...

Tuesday, October 26, 2010

BIFM Economic review: Q3 2010

BFM Economic Review report shows that the third quarter of 2010 marked a continuation of the recovery from the global economic crisis of 2008-09. Recovery in Botswana’s most important industry – diamond mining – has been stronger than earlier expectations, with the global diamond market increasingly robust. This has had a positive impact on the trade balance and the government budget, and has helped to stabilise some of the adverse macroeconomic developments that were in full swing a year ago.

But in many respects, economic conditions remain challenging and far from the “pre-crisis normal”. The priority is now changing to adjustment, and dealing with the structural challenges that need to be addressed to ensure sustainable growth. Click here to read the full report.

Friday, October 22, 2010

Economic Development in Pre-Independence Botswana, 1820-1966: Historical Trends...

This paper examines the trajectory of economic development in Botswana between the years 1820 and 1966, when it achieved independence. The paper reviews the historical trends in the country's economic and social development indicators. It analyzes what factors have encouraged or hindered economic development in Botswana: In particular, the paper focuses on the roles of physical geography, climate, disease ecology, economic and political institutions, geopolitical relations, demographic trends, as well as on ethnic divisions and cultural belief systems. In conclusion the paper discusses Botswana's preparedness for modern economic growth when it gained independence in 1966. Click here to read the full paper.

Monday, October 18, 2010

EU, SADC inch closer to final EPA

The Mmegi Newspaper reports that a series of meetings involving senior officials and experts from the European Commission and SADC are scheduled before year-end as the two groups attempt to wrap up a full Economic Partnership Agreement (EPA) before the New Year.

Senior officials of the two parties recently met in South Africa, marking the first meeting between the groups since the EU accepted the region's request that it places its solidarity ahead of any final agreement. Four of the seven SADC-EPA states, including Botswana, signed an interim EPA last June, but this year agreed to walk in step with the remaining states in the resolution of outstanding issues. Click here to read more...

Mixed feelings greet prospects of Pula slide against Rand

According to the Mmegi Newspaper article, indications are that for the first time ever, the Pula could bite the dust against the South African Rand. This analysis is attributed to the spokesperson of the Bank of Botswana, Andrew Sesinyi.
The Botswana currency fetches only R1.04 for P1.00. From August 1976 when Botswana formally withdrew from the Rand Monetary Area (RMA) and introduced its own currency and pegged it to the US dollar at P1 = US$1.15, the Pula has never fallen below the Rand. The Pula was on a par with the Rand, which was also pegged to the US dollar at R1= US$1.15. Click here to read more...

Wednesday, October 6, 2010

IMF World Economic Outlook (WEO) - Recovery, Risk, and Rebalancing; October 2010

Acoording to this IMF report, thus far, economic recovery is proceeding broadly as expected, but downside risks remain elevated. Most advanced economies and a few emerging economies
still face large adjustments. Their recoveries are proceeding at a sluggish pace, and high unemployment poses major social challenges. By contrast, many emerging and developing economies are again seeing strong growth, because they did not experience major financial excesses just prior to the Great Recession. Sustained, healthy recovery rests on two rebalancing acts: internal rebalancing, with a strengthening of private demand in advanced economies, allowing for fiscal consolidation; and external rebalancing, with an increase in net exports in deficit countries, such as the United States, and a decrease in net exports in surplus countries, notably emerging Asia. The two interact in strong ways.

Increased net exports inadvanced economies imply higher demand and higher growth, allowing more room for fiscal consolidation. Strengthened domestic demand helps emerging market economies maintain growth in the face of lower exports. A number of policies are required to
support these rebalancing acts. Click here to read the WEO.

Monday, October 4, 2010

Global Financial Stability Report - Oct 2010

                                                            Global Financial Stability Report (October 2010) shows that the inability of multiple financial institutions to roll over or obtain new short-term funding was one of the defining characteristics of the crisis. Systemic liquidity risks were underrecognized by both the private and public sectors and required unprecedented intervention by governments and central banks during the crisis. This report discusses the vulnerabilities that led to the systemic liquidity crunch and, in doing so,  provides a holistic framework for dealing with them, with central banks expected to step in only in dire emergencies.

A key aspect of the crisis was the increased use by banks of short-term wholesale funding and the risks that it posed when these short-term markets dried up. Perhaps insufficiently recognized was that the wholesale providers of funds had also changed instead of interbank markets acting to move unsecured funds where needed, other intermediaries, such as money market mutual funds, were growing suppliers of funds while traditional, more stable depositors were not. Secured lending through repurchase operations
also grew immensely, greasing the funding markets.

The report shows that going forward a comprehensive approach is needed to better mitigate systemic liquidity risks. Higher liquidity buffers and lower asset/liability maturity mismatches in banks will help to reduce the chance that an individual institution will run into liquidity difficulties. Click here to access chapers 2 & 3 of the report.

BIDPA Ranked Top Think Tank in Sub-Saharan Africa

The Botswana Institute for Development Policy Analysis has attained a special milestone as a research Institute, having been ranked the top...