The document discusses Botswana's strategies for building capacity and promoting economic development. It describes how the government invested heavily in education and job training to develop skills in the public sector. Institutions like BIAC, IDM and UB received funding to provide training. The government also secured scholarships for overseas education. This helped Botswana build an effective public service and experience rapid economic growth in the 1980s. The government implemented national development plans and provided loans to encourage citizens to start their own businesses. Major sources of government revenue included taxes, diamond mining, beef exports, and tourism which helped develop the country's natural resources.

1.  With respect to capacity building one can confidently state that
Botswana government has steadily built the capacity of the public
service at both the central and local government levels to formulate
and effectively execute development policy and projects.
 Education and training were heavily emphasised in order to equip
Botswana citizens with the capacity to analyse, evaluate and
implement agreed policies.
 Institutions such as Botswana Institute of Administration and
Commerce (BIAC), Institute of Development Management (1DM),
and the University of Botswana (UB) received substantial financial
outlays from the government and aid agencies in order to enable
them to train public servants for various categories of jobs in the
public sectors.
Strategy 1: Capacity building

2.  Vigorous attempts were also made to secure scholarships from
overseas universities and training institutes especially in Britain
and North America.
 Students receiving these scholarships were bonded to work for
the Public Service Sector for at least two years before they could
leave and seek employment in the Private Sector.
 In order to achieve the broad strategic objective of building
strong state capacity, the government formulated an incomes
policy in 1972, the basic thrust of which was that the Private and
Parastatal Sectors should generally conform to and pay wages
and salaries which did not exceed those paid by the government
to comparable grades of public employees.
Strategy 1: Capacity building cont.

3.  This policy was, however, abandoned in 1992 as the
government was able to recruit and retain more
skilled personnel in the Public Sector than was the
case earlier on.
 As a result the government has been relatively
successful in building an effective public service
capable of formulating and executing its
development policies.
Strategy 1: Capacity building cont.

4.  In the 1980's Botswana greatly experienced rapid economic growth.
 It is also important to point out that the government of Botswana
made a conscious decision to place development policy formulation
at the centre, especially the Ministry of Finance and Development
Planning, for consideration and approval by cabinet, and to devolve
policy implementation to various ministries and local authorities
once cabinet had approved its broad parameters.
 In short, there has been a process of centralisation of policy
formulation in key Ministries such as Finance and Development
Planning, Agriculture, Local Government and Lands —
notwithstanding the creation of Village and District Development
Committees.
Strategy 2: Rapid economic growth

5.  Governments normally take on tasks which require long-term
investments such as those that create infrastructure such as roads,
dams, ports, telecommunications and others.
 Government can also invest directly in industry, for example by
building and running factories as Tanzania did.
 Alternatively, government can leave industry to be developed
entirely by the Private Sector consisting of local businesses and
Trans-National Companies.
 A third way is for government to work with the Private Sector and
to regulate it to some extent.
 For example, the government can encourage some businesses by
giving them loans or tax concessions and protecting them from
outside competition by placing high taxes on imported goods.
Strategy 2: Rapid economic growth

6.  In some countries people have to pay for their education and medical
treatment.
 In others governments train and pay the teachers, nurses and doctors, but
people pay for their children's school fees and communities help build
classrooms and clinics.
 In Botswana education and medical treatment has been free for all citizens.
 Remember that politics is all about who owns and controls wealth and
resources, so that the most serious debates are often about money and
inequalities.
 In Botswana all people pay tax, it is charged according to how much one
earns.
 The more money you earn the more tax one pays, hence they refer to the
tax paid by workers as Pay As You Earn (P.A.Y.E.).
Strategy 3: Cost Sharing

7.  In terms of social justice the government is responsible for
providing education and training.
 This is done by providing free education to all so that the country
has a pool of educated people who can contribute towards the
development of their country.
 There is also provision of medical treatment. For production to
be successful there is a great need to have good healthy people.
 As such the government provides minimal charges for health
care services for the citizens.
 The government of Botswana has also introduced the anti-
retroviral drugs (ARV's) to help boost one's immunity system
and to help them live longer despite their HIV infection.
Strategy 3: Cost Sharing cont.

8.  The idea of national planning comes from Socialist or
Planned economies, but mixed economies also rely on
planning of some sort.
 Many developing countries draw up a National
Development Plan, usually for a period of five years.
 Botswana like any other developing country draws a
National Development Plan.
 A National Development Plan has aims and policies of the
government and what it plans to do over a certain number
of years, such as five years as is the case with Botswana.
Strategy 4: Implementing National
Development Plans

9.  The provision of loans and grants to Batswana to start
their own businesses is another strategy the government is
using so that development takes place in the country.
 Government provides loans to Batswana through the
National Development Bank and its affiliated schemes such
as CEDA,ISPAAD, LIMIT and others.
 These schemes are meant to help empower Batswana and
encourage them start their own business so that they can
be self-reliant and create employment at the same time.
Strategy 5: Provision of Loansand
Grants

10.  (i) Income tax — People have to pay a certain percentage of
their salary or other income to the government. Often rich
people pay a higher proportion than poor people.
 (ii) Company or Corporate tax — Businesses pay a percentage
of their profits to the government.
 (iii) Value Added Tax — An amount added to the price of all
goods that are sold, and this is sent to the government. Liquor,
tobacco and petrol are often more heavily taxed than basic
foods.
 (iv) Import duty — Import taxes are paid on all goods entering
the country from foreign places by people who import the
goods.
Tax and Payment of Services by
Public Users cont.

11.  Governments can borrow money at home or
overseas. Interest is paid each year and the whole
amount has to be paid back over an agreed time.
 Some governments own the railways or electricity
supply network and get income from the users. They
may also collect licence fees from road users or
television viewers as is the case in South Africa.
 The government can then develop the country using
the money it obtained through these different ways.
Tax and Payment of Services by
Public Users Cont.

12.  Diamonds are the backbone of Botswana's economy as
they are very important and valuable natural resources
found in Botswana that bring revenue into Botswana.
 The De Beers consolidated company is the major
shareholder with Botswana government being the second.
 Botswana diamonds are also sold to overseas countries
going and this generates even more foreign exchange.
Other sources of Revenue in
Botswana- Diamond

13.  Like diamonds, beef is one of the main exported commodities in
the Republic of Botswana.
 This has been evident in years of drought or when the country
experienced natural catastrophes such as animal diseases that
often pose a serious threat to the beef industry such as foot and
mouth and lung diseases.
 When the country experiences such unfortunate incidents
revenue from the beef industry is usually very small compared to
how it would otherwise stand on a normal disease free year.
 The largest market of Botswana beef is in Europe with major
markets including United Kingdom, Germany and Holland to
mention a few.
Other sources of Revenue in
Botswana-Beef

14.  Another way through which the government generates revenue is through
tourism.
 Learner, I hope you are aware that there are times when we get a very a
high number of people entering our country as visitors.
 These people visit to look at our animals and other resources that they do
not have in their countries.
 They pay for all the services given to them and even to see the animals and
resources.
 The people are called tourists.
 Tourists bring a lot of money into our country and help create employment.
 Tourism helps harness and develop our country's abundant natural
resources and in so doing develop them to be more attractive to tourists.
Other sources of Revenue in
Botswana-Tourism