OVERVIEW OF BOTSWANA’S DEVELOPMENT STRATEGY/PLAN

NATIONAL WORKSHOP ON THE VIENNA PROGRAMME OF ACTION

27 October 2015

Presentation by the National Strategy Office (NSO)

Mbakiso G. Morapedi

2

Introduction The Botswana National Planning System

• Botswana has followed multi-year economic planning since 1966;

• Economic development guided by six (6) year National Development Plans (NDPs);

• Mid Term reviews of National Development Plans;• National Development goals have been achieved through

Government policies, programs and projects;• Since 1996, medium term development plans (NDPs) have

been augmented by the longer horizon National Vision (V16);• National Development plans represent the blueprint of this

National Vision;• Currently developing the Next Long Term Vision (Beyond

2016) – Vision 2036

3

Five Priority Issues1. Eradicating

extreme poverty & reducing inequality

2. Strengthening human

development outcomes

3. Generating export-led diversified growth and

employment

4. Managing trade-off

between income generation &

environmental sustainability

5. Deepening democracy

outcomes & strengthening governance institutions

4

Poverty and Inequalityi. Despite remarkable economic achievement, level of

poverty and inequality remain too high. 19.3% live below PDL and 16% below Food Poverty Line: Rural areas, female-headed households, households headed by

those with no formal training, are most affected. Around 20 percent of Botswana children under the age of 14 live in

extreme poverty, higher than any other age group.

ii. The central thrust of poverty eradication strategy is to provide opportunities for the poor to have a sustainable livelihood;

iii. Improving targeting and efficiency of social protection system;

iv. Interrupting the intergenerational transmission of poverty through the eradication of child poverty;

v. Improving access of the poor to basic services, particularly shelter, sanitation, electricity.

5

Human Development Outcomes: Health & Education

I. Despite high spending, quality and outcomes are below potential. 109th out of 185 countries in UN HDI of the United

Nations, 70 places below per capita GDP rank of 54. Gross enrollment for senior secondary (tertiary)

education is only about 62% In international test of mathematics and science

subjects, Botswana’s 9th grade achieved 20% less than international average of 8th grade.

Vision 2016 goal of “no new infection” of HIV unlikely to be met. BAIS IV unadjusted HIV incidence rate: 2.41%.

Botswana's LEB was 65.3 in 1991, dropped to 55.6 in 2001 and recovered to 68 in 2011, compared with 79 in high income countries.

II. Addressing quality issues while further improving access;

III. Improving health service delivery.

6

Generating Export-Led Growth and Employment: Private Sector

I. Building a vibrant private sector

Public sector: strengthened public policies for competitiveness, improved business environment, entrepreneurship education;

Private Sector: Renewed efforts to compete in non-government markets; enhanced sophistication of business strategy and operations, labour relations and HR management, product quality management, technology adoption and absorption.

7

Environmental Sustainability• Despite rich endowments, tough trade-offs exist between income generation and environmental sustainability that must be recognized and managed.

Water Security

Energy Security

Food Security

Biodiversity

Mining and the environment

8

Governance, Safety and Security

I. Democratic outcomes must be further deepened for citizens.

II. Effectiveness and efficiency of the public sector must be further strengthened:

Implementation bottleneck; Efficiency of public investment;

III. Crime rate must be further reduced.IV. Anti-corruption efforts must be scaled up.

9

Botswana in 2036: the Aspirations

Prosperity for all

United people, no extreme poverty, low inequality, material as

well as spiritual wellbeing.

Healthy and educated

citizens, highly productive

workforce that excels in

entrepreneurship, learning and

innovation.

Robust export-led, job-creating

growth based on

competitiveness driven by a

vibrant private sector in close collaboration

with R&D community.

Optimized balance btw

income generation and maintenance

of natural endowments,

with food, water, energy

security, environmental sustainability.

Nation of excellence in

governing public affairs with major success in enhancing

effectiveness and efficiency of the public

sector.

Endowments

Monetary & Fiscal Policies

Human Development & Political Institutions

Sophistication of Company Operations

& Strategy

State of Cluster Development

Quality of Business Environment

Macroeconomic Competitiveness

Microeconomic Competitiveness

Michael Porter’s Competitiveness Framework

1. Productivity ultimately depends on improving the microeconomic capability of the economy and the sophistication of local competition revealed at the level of regions and clusters.

2. Macroeconomic competitiveness sets the economy-wide context for high productivity to emerge, but is not sufficient to achieve this outcome.

3. Endowments, i.e. natural resources, geographical location, and size, create a foundation for prosperity, but true prosperity is created by productivity in the use of endowments.

10

11

Beyond Aspirations: Proposed Overall Strategy

Export-led Growth and Job Creation

Competitiveness of priority clusters

Abundance, Uniqueness of endowments

Greater realization of citizens’ potential

Productivity in using endowments

Improve health and education outcomes to build a productive workforce

Manage the trade-off between

income and environment to achieve

green growth

Strengthening the public

sector to provide

institutional foundation

and enabling framework

Prosperity for all

Equip workforce with available and suitable advanced technology

12

a) Economic diversification is a key objective for Botswana, and requires action at the cluster level;

b) Cluster development focuses scarce implementation capacity on fields with critical mass and higher potential of success;

c) There are important opportunities to upgrade existing clusters in Botswana;d) Cluster development is a key tool to stimulate improvements in the general

business environment;e) An action agenda for Botswana should involve a clear sequence, broadening the

scope of activities over time;f) Action should start where the economic opportunities are most obvious.

Strengthen the Core

• Diamond Cluster

Upgrade Traditional Fields

• Tourism Cluster• Beef Cluster• Mining Cluster

Energise Emerging Fields

• Financial Services• Health Services• Educational Services

Cluster Based Agenda

Supportive Business Environment + Essential EnablersTransport, Education & Skills Development, Communication, Innovation & Technology

13

How will the National Vision be implemented?

• Through six (6) year NDPs;• TWGs will plan, implement and monitor and evaluate;

i. Economy and Employment;

ii. Social Upliftment;

iii. Sustainable Environment;

iv. Governance, Safety and Security;• First plan – National Development Plan 11

14

Key Priorities for NDP 11 • Developing Diversified Sources of Economic Growthi. Infrastructure Developmentii. Improving Information Communication Technologyiii. Ease of Doing Business and Competivenessiv. Cluster Developmentv. Economic Diversification Drivevi. Improving Quality of Public Investment• Human Capital Developmenti. Improved Quality of Education and Trainingii. Employment Creation and Productivityiii. Research, Innovation and Developmentiv. Skills Development

15

Key Priorities for NDP 11 continued• Social DevelopmentHealth Sector

i. Prevention

ii. Rehabilitation• Poverty Eradication and Unemployment Challengesi. Continue current social protection programmes;

ii. Development and support of SMME and the establishment of permanent markets;

iii. Enhanced access to and provision of quality basic education;

iv. Enhanced vocational education training;

v. Promotion of food security through agricultural support programmes;

vi. Implementation of the Local Economic Development Framework for Botswana

vii. Provision of basic business start-up knowledge, business planning, financial literacy and managerial skills.

16

Key Priorities for NDP 11 Continued• Consolidation of Good Governance and Strengthening

National Securityi. Sovereignty and Territorial Integrity

ii. Diamond Security

iii. Proceeds of crime

iv. Border Security

v. Nuclear Materials and Weapons of Mass destruction

vi. Migration

vii. Fraudulent Acquisition of security documents etc

viii. Internal and Transnational Organized Crime

ix. Cyber Crime and Information Security

x. Disaster Preparedness and Response

17

Key Priorities for NDP 11 Continued• Consolidation of Good Governance and Strengthening

National Security (continued…)i. Transparency and Accountability

ii. Citizen Participation

iii. The Rule of Law

iv. Public Sector Reforms

18

Key Priorities NDP 11 Continued• Sustainable Use of the Natural Resources

i. Sustainable Management of Natural and Cultural resources

ii. Climate Change Mitigation and Adaptation

iii. Planning for sustainable Human settlements

iv. A healthy environment for a healthy population

19

Key Priorities NDP 11 Continued• Establishment of Effective Monitoring and Evaluation

System

i. Development of the policy framework, tools, guidelines for performance monitoring, including for cross-sectoral and ministerial performance frameworks, and development of evaluation policy, national evaluation plan and framework, tools, and competencies;

ii. Development of the National Performance Framework (‘Results Framework’) and Key Performance Indicators for NDP 11;

iii. Development of data and measurement strategies for NDP 11 National-level Performance Indicators;

20

Key Priorities NDP 11 Continued• Establishment of Effective Monitoring and Evaluation

System (continued….)

i. Institutional Strengthening and Capacity Building;

ii. Design of a comprehensive M&E HR Training and Development Strategy; and

iii. Design of a Performance M&E Change Management tool, including risk management and communications as well as quality assurance and initial communications materials for the implementation of the new national M&E system;

21

Key Priorities NDP 11 Continued• Establishment of Effective Monitoring and Evaluation

System

i. In order to address the implementation capacity constraints, it is necessary to employ policy measures such as privatisation and outsourcing; fast tracking the implementation of the Public-Private Partnerships (PPPs) policy; prioritised establishment of project implementation units to undertake mega projects; and harmonisation and reduction of the number of policies and strategies.

22

Doing Business Reform Roadmap and Action Plan Approved in December 2014 Implementation on-going.

Removal of Licensing for citizens except for defined set of activities

One Government principleUnique Identification NumberIntroduce Regulatory Impact AssessmentReducing frequency of taxesExpanding use of electronic tax filing and paymentsReduce number of documents required for exports and

importsEtc

QUALITY OF BUSINESS ENVIRONMENT

23

Private Sector Development Strategy Botswana Investment and Trade Centre (BITC) Local Enterprise Authority (LEA)

BUSINESS SOPHISTICATION

24

A short-term strategy (up to 3 years) to boost economic growth and maximize the potential for job creation.

Goals: Stimulate economic growth Diversify the economy Accelerate job creation

Areas of Focus: Infrastructure Development Tourism Development Agriculture Development Manufacturing Skills Development

ECONOMIC STIMULUS PROGRAMME

25

• Botswana Excellence Strategy;• Sustainable Development Goals of the United Nations;• Agenda 2063 of the African Union;• Vienna Programme of Action

OTHER STRATEGIES CONSIDERED

26

Thank you….