Investing in Human Capital in Botswana
Botswana has sprinted to become an upper-middle income (UMIC) economy largely thanks to strong institutions and mineral resource revenue. Living conditions have steadily improved since independence as the wealth from diamond discoveries has helped lay the foundations for growth and development together with investments in infrastructure and human development and the building of strong government institutions. Social public service delivery has expanded to provide large parts of the vast country with clean water, electricity, and sanitation; and basic education and health outcomes have steadily improved thereby strengthening the wellbeing of most Botswana. But this extractives-driven growth model is reaching its limits to further sustain poverty reduction and inclusive growth. The average economic growth has been declining since 2010 and has further decelerated and turned more volatile since 2016. Poverty and inequality rates also remain inordinately high for a country of its income level. Botswana’s projected extreme poverty rate for 2019 (13.5 percent) is more than four times higher than comparators of similar Gross Domestic Product (GDP) levels and is further expected to stagnate. Inequality is amongst the highest in the world. With decelerating growth, an undiversified economy, low human capital outcomes, and higher-than-expected poverty, Botswana’s high-income country (HIC) goal appears distant. The government has demonstrated a strong commitment to human capital development with high levels of investments in education, health and social protection Botswana spends significant government resources as a share of GDP on health (4.8 percent), education (7.1 percent) and social protection (2.6 percent) compared to many of its UMIC neighbors in the region that also have high levels of poverty, and inequality and high burdens of disease. Human Development is also centrally placed in the most recent National Development Plan (number 11, 2017-2023).
| Main Authors: | , , , , , , |
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| Format: | Report biblioteca |
| Language: | English en_US |
| Published: |
Washington, DC: World Bank
2024-05-30
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| Subjects: | INFORMATION AND COMMUNICATIONS TECHNOLOGIES, EDUCATION, QUALITY EDUCATION, SDG 4, NO POVERTY, SDG 1, REDUCED INEQUALITIES, SDG 10, |
| Online Access: | http://documents.worldbank.org/curated/en/099052124042010578/P17544418e9d3f09f18f0314d2dfcb1934c https://hdl.handle.net/10986/41625 |
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| Summary: | Botswana has sprinted to become an
upper-middle income (UMIC) economy largely thanks to strong
institutions and mineral resource revenue. Living conditions
have steadily improved since independence as the wealth from
diamond discoveries has helped lay the foundations for
growth and development together with investments in
infrastructure and human development and the building of
strong government institutions. Social public service
delivery has expanded to provide large parts of the vast
country with clean water, electricity, and sanitation; and
basic education and health outcomes have steadily improved
thereby strengthening the wellbeing of most Botswana. But
this extractives-driven growth model is reaching its limits
to further sustain poverty reduction and inclusive growth.
The average economic growth has been declining since 2010
and has further decelerated and turned more volatile since
2016. Poverty and inequality rates also remain inordinately
high for a country of its income level. Botswana’s projected
extreme poverty rate for 2019 (13.5 percent) is more than
four times higher than comparators of similar Gross Domestic
Product (GDP) levels and is further expected to stagnate.
Inequality is amongst the highest in the world. With
decelerating growth, an undiversified economy, low human
capital outcomes, and higher-than-expected poverty,
Botswana’s high-income country (HIC) goal appears distant.
The government has demonstrated a strong commitment to human
capital development with high levels of investments in
education, health and social protection Botswana spends
significant government resources as a share of GDP on health
(4.8 percent), education (7.1 percent) and social protection
(2.6 percent) compared to many of its UMIC neighbors in the
region that also have high levels of poverty, and inequality
and high burdens of disease. Human Development is also
centrally placed in the most recent National Development
Plan (number 11, 2017-2023). |
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