Botswanas Economy Depends on Diamond Mining - 1286 Words

1. INTRODUCTION It is a well-known fact that Botswana’s economy is based on mineral resources especially diamonds. As such since the 2008 economic meltdown, the diamond market has not thrived as well as it used to, prompting the Government of Botswana to come up with ways of diversifying the economy and reducing reliance on the mining sector. The main challenge for the country now is how to diversify its economy and reduce heavy reliance on diamond revenue. Therefore in 2010 the Economic Diversification Drive was borne in an effort to come up with ways of diversifying the country’s economy. According to the Economic Diversification Drive Strategy of Botswana, â€Å"Economic diversification means diversifying a country’s sources of economic†¦show more content†¦The country should also promote the development of industries. These are able to employ a lot of people. In addition, the government should make it easy for industries and the private sector to obtain funding. 2.2 DEVELOP THE AGRICULTURE SECTOR Botswana imports most of its food from other countries. In order to diversify the country should cut down its import bill on food and start producing its own and maybe be able to export to other countries as well. Also Agriculture is a labour intensive and it creates a lot of jobs. Job creating sectors are important for the development of the country as well as the development of the economy. Most farmers in Botswana cannot access funding and therefore they do not have working capital even if they do have the machinery and other inputs for farming. The country should have food security and be self-sustaining. 2.3 GOVERNANCE United Nations OSAA (2011) asserts that â€Å"good governance is a pre-requisite in building an enabling environment for economic diversification.† The Government has to set up and establish favourable regulatory frameworks that encourage economic activity and to ensure a healthy business climate in the country. In the case of Botswana, the country has a lot of policies that should be supporting the diversification strategy of the country. Unfortunately most of these policies are run parallel even though they are supposed to be complementing each other. Also the turnaroundShow MoreRelatedThe Role Of Centralized Policies On The State Capacities929 Words   |  4 Pagesthe trained and efficient bureaucracy to devise national development schemes and implement relevant legal frameworks (Reinert, 2010). In addition to the capacities of setting up development plans, the successful development in resource-based economy depends on their ability to save all or part of the revenues from the extractive industries (Lewin, 2011). Since the non-renewable resources are destined to be depleted in the future, the mineral-wealth is limited, and it means the state should save theRead MoreEssay on Botswana4082 Words   |  17 Pageslived contentedly through the land’s provisions of plants and abundant species of animals and through prosperous trade with each other. Today, this simple way of life conflicts the nation’s potential wealth in democracy, cattle industry, diamond-mining, and other technologies. Both lifestyles have their advantages and disadvantages, a majority of which will be portrayed within this composition. Botswana is entangled in a struggle to produce what is healthiest for its country’s people and environment