Difference between revisions of "Botswana" - New World Encyclopedia

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==History==
 
==History==
 +
The Batswana (plural of "Motswana"), a term also used to denote all citizens of Botswana, refers to the country's major ethnic group (called the "Tswana" in South Africa). Prior to European contact, the Batswana lived as herders and farmers under tribal rule.
 +
 +
In the late nineteenth century, hostilities broke out between the Shona inhabitants of Botswana and Ndebele tribes who were migrating into the territory from the Kalahari Desert. Tensions also escalated with the Boer settlers from the Transvaal. After appeals by the Batswana leaders for assistance, the British government in 1885 put "Bechuanaland" under its protection. The northern territory remained under direct administration as the Bechuanaland Protectorate and is today's Botswana, while the southern territory became part of the Cape Colony and is now part of the northwest province of South Africa; the majority of Setswana-speaking people today live in South Africa.
 +
 +
When the Union of South Africa was formed in 1910 out of the main British colonies in the region, the Bechuanaland Protectorate, Basutoland (now [[Lesotho]]), and [[Swaziland]] were not included, but provision was made for their later incorporation. However, a vague undertaking was given to consult their inhabitants, and although successive South African governments sought to have the territories transferred, Britain kept delaying, and it never occurred. The election of the National Party government in 1948, which instituted apartheid, and South Africa's withdrawal from the Commonwealth in 1961, ended any prospect of incorporation of the territories into South Africa.
 +
 +
An expansion of British central authority and the evolution of tribal government resulted in the 1920 establishment of two advisory councils representing Africans and Europeans. Proclamations in 1934 regularized tribal rule and powers. A European-African advisory council was formed in 1951, and the 1961 constitution established a consultative legislative council.
 +
 +
In June 1964, Britain accepted proposals for democratic self-government in Botswana. The seat of government was moved from Mafikeng in South Africa to newly established Gaborone in 1965. The 1965 constitution led to the first general elections and to independence on September 30, 1966. Seretse Khama, a leader in the independence movement and the legitimate claimant to the Ngwato chiefship, was elected as the first president, re-elected twice, and died in office in 1980. The presidency passed to the sitting vice president, Ketumile Masire, who was elected in his own right in 1984 and re-elected in 1989 and 1994. Masire retired from office in 1998. The presidency passed to the sitting vice president, Festus Mogae, who was elected in his own right in 1999 and re-elected in 2004.
  
 
== Geography ==
 
== Geography ==
  
Botswana is dominated by the [[Kalahari Desert]], which covers up to 70% of the land surface of the country.  The [[Okavango Delta]], the world's largest inland delta, is in the Northwest. The [[Makgadikgadi Pan]], a large [[salt pan]] lies in the North.[[Image:Botswana map.png|thumb|left|200px|Map of Botswana]]
+
Botswana is dominated by the [[Kalahari Desert]], which covers up to 70 percent of the land surface of the country.  The Okavango Delta, the world's largest inland [[delta]], is in the northwest. The Makgadikgadi Pan, a large salt pan, lies in the north. Botswana has diverse areas of [[wildlife]] habitat, including the Okavango Delta, the Kalahari Desert, [[grassland]]s and [[savanna]]s, the latter where Blue Wildebeest and many [[antelope]]s as well as other mammals and birds are found.
[[Image:Onkovango delta Botswana Afrika november 2004.jpg|thumb|left|288px|[[Okavango Delta]], Botswana]]
+
[[Image:Botswana map.png|thumb|left|200px|Map of Botswana]]
{{MapLibrary|Botswana_sat.png|Botswana}}
+
[[Image:Onkovango delta Botswana Afrika november 2004.jpg|thumb|left|288px|Okavango Delta, Botswana]]
 
<div style="clear: both"></div>
 
<div style="clear: both"></div>
 
==Environment==
 
 
Botswana has diverse areas of [[wildlife]] habitat, including the Okavango Delta, the Kalahari Desert, [[grassland]]s and [[savanna]]s, the latter where Blue Wildebeest and many [[antelope]]s as well as other mammals and birds are found.
 
  
 
==Politics==
 
==Politics==
 
Politics of Botswana takes place in a framework of a presidential representative democratic republic, whereby the president is both head of state and head of government, and of a pluriform multi-party system. Executive power is exercised by the government. Legislative power is vested in both the government and the Parliament. Since independence the party system is dominated by the Botswana Democratic Party. The judiciary is independent of the executive and the legislature.
 
Politics of Botswana takes place in a framework of a presidential representative democratic republic, whereby the president is both head of state and head of government, and of a pluriform multi-party system. Executive power is exercised by the government. Legislative power is vested in both the government and the Parliament. Since independence the party system is dominated by the Botswana Democratic Party. The judiciary is independent of the executive and the legislature.
 
== Administrative Divisions ==
 
  
 
Botswana is divided into 9 districts and 28 sub-districts.
 
Botswana is divided into 9 districts and 28 sub-districts.
  
 
== Economy ==
 
== Economy ==
Since independence, Botswana has had the fastest growth in [[per capita income]] in the world. [[Economic growth]] averaged over 9% per year from 1966 to 1999. The [[government]] has maintained a sound [[fiscal policy]], despite consecutive [[Deficit|budget deficits]] in 2002 and 2003, and a negligible level of [[External debt|foreign debt]]. It earned the highest sovereign [[credit rating]] in [[Africa]] and has stockpiled foreign exchange reserves (over $5.1 billion in 2003/2004) amounting to almost two and one half years of current imports. Botswana's impressive economic record has been built on the foundation of wisely using revenue generated from [[diamond]] [[mining]] to fuel economic development through prudent fiscal policies and a cautious [[foreign policy]]. [[Debswana]], the only [[list of diamond mines|diamond mining]] company operating in Botswana, is 50% owned by the government and generates about half of all government revenues.   
+
Since independence, Botswana has had the fastest growth in per capita income in the world. Economic growth averaged over 9 percent per year from 1966 to 1999. The government has maintained a sound fiscal policy, despite consecutive budget deficits in 2002 and 2003, and a negligible level of foreign debt. It earned the highest sovereign credit rating in [[Africa]] and has stockpiled foreign exchange reserves (over $5.1 billion in 2003/2004) amounting to almost two and one half years of current imports. Botswana's impressive economic record has been built on the foundation of wisely using revenue generated from [[diamond]] [[mining]] to fuel economic development through prudent fiscal policies and a cautious foreign policy. Debswana, the only diamond mining company operating in Botswana, is 50 percent owned by the government and generates about half of all government revenues.   
  
However, economic development spending was cut by 10 percent in 2002-2003 as a result of recurring budget deficits and rising expenditure on healthcare services. Botswana has been hit very hard by the [[HIV/AIDS]] epidemic; the average [[life expectancy]] is less than 40 years; the worst in the world.  Approximately one in three Batswana]] has HIV, giving Botswana the second highest HIV infection rate in the world after [[Swaziland]]. [http://www.avert.org/aidsbotswana.htm] The government recognizes that HIV]]/AIDS will affect the economy and is trying to combat the [[epidemic]], including free [[Antiretroviral drug]] treatment and a nation-wide Prevention of Mother-to-Child Transmission program.[[Image:Botswana Family.jpg|thumb|right|200px|Indigenous peoples of Botswana]] —>
+
However, economic development spending was cut by 10 percent in 2002-2003 as a result of recurring budget deficits and rising expenditure on healthcare services. Botswana has been hit very hard by the [[HIV/AIDS]] epidemic; the average life expectancy is less than forty years, the worst in the world.  Approximately one in three people has HIV, giving Botswana the second highest HIV infection rate in the world after [[Swaziland]]. [http://www.avert.org/aidsbotswana.htm] The government recognizes that HIV/AIDS will affect the economy and is trying to combat the [[epidemic]], including free [[Antiretroviral drug]] treatment and a nation-wide Prevention of Mother-to-Child Transmission program.
  
Some of Botswana's budget deficits can be traced to relatively high military expenditures (of roughly 4% of GDP in 2004, according to the CIA World Factbook), which some critics contend is unnecessary given the low likelihood of international conflict (though the Botswana government also makes use of these troops for multilateral operations and assistance efforts).  
+
Some of Botswana's budget deficits can be traced to relatively high military expenditures , which some critics contend is unnecessary given the low likelihood of international conflict (though the Botswana government also makes use of these troops for multilateral operations and assistance efforts).  
  
===Private sector development and foreign investment ===
+
===Foreign investment ===
 
[[Image:Botswana1987Kidsrainv2.jpg|thumb|right|250px|Palapye children, 1987, after the first rain for years.]]
 
[[Image:Botswana1987Kidsrainv2.jpg|thumb|right|250px|Palapye children, 1987, after the first rain for years.]]
  
 
Botswana seeks to further diversify its economy away from minerals, which account for a third of GDP, down from nearly half of GDP in the early 1990's.  Foreign investment and management are welcomed in Botswana.  Botswana abolished foreign exchange controls in 1999, has a low corporate tax rate (15 percent), no prohibitions on foreign ownership of companies, and a moderate inflation rate (7.6 percent November 2004).  The government is currently considering additional policies to enhance competitiveness, including a new Foreign Direct Investment Strategy, Competition Policy, Privatisation Master Plan, and National Export Development Strategy.
 
Botswana seeks to further diversify its economy away from minerals, which account for a third of GDP, down from nearly half of GDP in the early 1990's.  Foreign investment and management are welcomed in Botswana.  Botswana abolished foreign exchange controls in 1999, has a low corporate tax rate (15 percent), no prohibitions on foreign ownership of companies, and a moderate inflation rate (7.6 percent November 2004).  The government is currently considering additional policies to enhance competitiveness, including a new Foreign Direct Investment Strategy, Competition Policy, Privatisation Master Plan, and National Export Development Strategy.
  
With its proven record of good economic governance, Botswana was ranked as Africa's least corrupt country by [[Transparency International]] in 2004, ahead of many European and Asian countries.  The World Economic Forum rates Botswana as one of the two most economically competitive nations in Africa.  In 2004 Botswana was once again assigned "A" grade credit ratings by [[Moody's]] and [[Standard & Poor's]]. This ranks Botswana as by far the best credit risk in Africa and puts it on par with or above many countries in central Europe, East Asia, and Latin America.
+
With its proven record of good economic governance, Botswana was ranked as Africa's least corrupt country by Transparency International in 2004, ahead of many European and Asian countries.  The World Economic Forum rates Botswana as one of the two most economically competitive nations in Africa.  In 2004 Botswana was once again assigned "A" grade credit ratings by Moody's and Standard & Poor's. This ranks Botswana as by far the best credit risk in Africa and puts it on par with or above many countries in central Europe, East Asia, and Latin America.
  
U.S. investment in Botswana remains at relatively low levels, but continues to grow. Major U.S. corporations, such as [[H.J. Heinz]] and [[AON Corporation]], are present through direct investments, while others, such as [[Kentucky Fried Chicken]] and [[Remax]], are present via franchise.  The sovereign credit ratings by Moody's and Standard & Poor's clearly indicate that, despite continued challenges such as small market size, landlocked location, and cumbersome bureaucratic processes, Botswana remains one of the best investment opportunities in the developing world.  Botswana has a 90-member American Business Council that accepts membership from American-affiliated companies.
+
U.S. investment in Botswana remains at relatively low levels, but continues to grow. Major U.S. corporations, such as H.J. Heinz and AON Corporation, are present through direct investments, while others, such as Kentucky Fried Chicken and Remax, are present via franchise.  The sovereign credit ratings by Moody's and Standard & Poor's clearly indicate that, despite continued challenges such as small market size, landlocked location, and cumbersome bureaucratic processes, Botswana remains one of the best investment opportunities in the developing world.   
  
 
Because of history and geography, Botswana has long had deep ties to the economy of [[South Africa]].  The Southern Africa Customs Union (SACU), comprising Botswana, [[Lesotho]], [[Swaziland]], and South Africa, dates from 1910, and is the world’s oldest customs union. [[Namibia]] joined in 1990. Under this arrangement, South Africa has collected levies from customs, sales, and excise duties for all five members, sharing out proceeds based on each country's portion of imports. The exact formula for sharing revenues and the decision-making authority over duties &mdash; held exclusively by the government of South Africa &mdash; became increasingly controversial, and the members renegotiated the arrangement in 2001.  The new structure has now been formally ratified and a SACU Secretariat has been established in Windhoek, Namibia.  Following South Africa's accession to the [[World Trade Organization]] (WTO), Botswana also joined; many of the SACU duties are thus declining, making products from outside the area more competitive in Botswana. Currently the SACU countries and the U.S. are negotiating a free trade agreement. Botswana is currently also negotiating a free trade agreement with [[Mercosur]] and an Economic Partnership Agreement with the [[European Union]] as part of SADC.
 
Because of history and geography, Botswana has long had deep ties to the economy of [[South Africa]].  The Southern Africa Customs Union (SACU), comprising Botswana, [[Lesotho]], [[Swaziland]], and South Africa, dates from 1910, and is the world’s oldest customs union. [[Namibia]] joined in 1990. Under this arrangement, South Africa has collected levies from customs, sales, and excise duties for all five members, sharing out proceeds based on each country's portion of imports. The exact formula for sharing revenues and the decision-making authority over duties &mdash; held exclusively by the government of South Africa &mdash; became increasingly controversial, and the members renegotiated the arrangement in 2001.  The new structure has now been formally ratified and a SACU Secretariat has been established in Windhoek, Namibia.  Following South Africa's accession to the [[World Trade Organization]] (WTO), Botswana also joined; many of the SACU duties are thus declining, making products from outside the area more competitive in Botswana. Currently the SACU countries and the U.S. are negotiating a free trade agreement. Botswana is currently also negotiating a free trade agreement with [[Mercosur]] and an Economic Partnership Agreement with the [[European Union]] as part of SADC.
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[[Gaborone]] is host to the headquarters of the fourteen-nation Southern African Development Community (SADC), a successor to the Southern African Development Coordination Conference (SADCC-launched in 1980), which focused its efforts on freeing regional economic development from dependence on apartheid South Africa.  SADC embraced the newly democratic South Africa as a member in 1994 and has a broad mandate to encourage growth, development, and economic integration in Southern Africa.  SADC's Trade Protocol, which was launched on September 1, 2000, calls for the elimination of all tariff and non-tariff barriers to trade by 2008 among the 11 signatory countries. If successful, it will give Botswana companies free access to the far larger regional market.  SADC's failure to distance itself from the [[Robert Mugabe|Mugabe]] government in [[Zimbabwe]] has diminished the number of opportunities for cooperation between the U.S. and SADC.
 
[[Gaborone]] is host to the headquarters of the fourteen-nation Southern African Development Community (SADC), a successor to the Southern African Development Coordination Conference (SADCC-launched in 1980), which focused its efforts on freeing regional economic development from dependence on apartheid South Africa.  SADC embraced the newly democratic South Africa as a member in 1994 and has a broad mandate to encourage growth, development, and economic integration in Southern Africa.  SADC's Trade Protocol, which was launched on September 1, 2000, calls for the elimination of all tariff and non-tariff barriers to trade by 2008 among the 11 signatory countries. If successful, it will give Botswana companies free access to the far larger regional market.  SADC's failure to distance itself from the [[Robert Mugabe|Mugabe]] government in [[Zimbabwe]] has diminished the number of opportunities for cooperation between the U.S. and SADC.
 
 
  
 
===Tourism===
 
===Tourism===
 
Tourism plays a role in Botswana.  A number of national parks and game reserves, with their abundant wildlife, are a top draw for tourists.
 
Tourism plays a role in Botswana.  A number of national parks and game reserves, with their abundant wildlife, are a top draw for tourists.
  
Botswana is the setting for the popular mystery series by [[Alexander McCall-Smith]], The No. 1 Ladies' Detective Agency, and was also the location  for the 1980 movie "The Gods Must Be Crazy".
+
Botswana is the setting for the popular mystery series by Alexander McCall-Smith, The No. 1 Ladies' Detective Agency, and was also the location  for the 1980 movie "The Gods Must Be Crazy".
  
 
==Labor==
 
==Labor==
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== Culture ==
 
== Culture ==
 
''See also'': [[List of African writers (by country)#Botswana|List of writers from Botswana]], [[African art#Botswana|Art of Botswana]]
 
{| border="2" cellpadding="4" cellspacing="0" style="margin: 1em 1em 1em 0; background: #f9f9f9; border: 1px #aaa solid; border-collapse: collapse; font-size: 95%;"
 
<CAPTION><font size="+1">'''Holidays'''</font></caption>
 
|-
 
! style="background:#efefef;" | Date
 
! style="background:#efefef;" | English Name
 
! style="background:#efefef;" | Local Name
 
! style="background:#efefef;" | Remarks
 
|-
 
| [[January 1]] || [[New Year's Day]] || -
 
| &nbsp;
 
|-
 
| [[January 2]] || Public Holiday || - |
 
| -
 
|-
 
| (varies, usually in late March or early April) || [[Good Friday]]
 
| - || -
 
|-
 
| (varies, usually in late March or early April) || [[Easter Monday]]
 
| - || -
 
|-
 
| (varies, usually in May) || [[Ascension Day]] || -
 
| -
 
|-
 
| [[July 1]]
 
| [[Seretse Khama|Sir Seretse Khama]] Day
 
| - || -
 
|-
 
| [[July 19]] || [[Presidents' Day (Botswana)|President's Day]] || - || -
 
|-
 
| [[July 20]] || Public Holiday || - || -
 
|-
 
| [[September 30]] || Independence day || - || -
 
|-
 
| [[December 25]] || [[Christmas]] day || - || -
 
|-
 
| [[December 26]] || [[Boxing day]] || - ||-
 
|-
 
| first Monday after Christmas || Public Holiday
 
| - || -
 
|}
 
 
== Main population centres (in descending order)==
 
Cities:
 
* [[Gaborone]]
 
* [[Francistown]]
 
 
Towns and villages:
 
* [[Molepolole]]
 
* [[Selebi-Phikwe, Botswana|Selebi-Phikwe]]
 
* [[Maun]]
 
* [[Serowe, Botswana|Serowe]]
 
* [[Kanye, Botswana|Kanye]]
 
* [[Mahalapye]]
 
* [[Mochudi]]
 
* [[Mogoditshane]]
 
* [[Lobatse]]
 
* [[Palapye]]
 
* [[Tlokweng]]
 
* [[Ramotswa, Botswana|Ramotswa]]
 
* [[Thamaga]]
 
* [[Moshupa]]
 
* [[Tonota]]
 
* [[Jwaneng]]
 
* [[Orapa]]
 
* [[Letlhakane]]
 
  
 
== Education ==
 
== Education ==
 
*[[University of Botswana]]
 
*[[University of Botswana]]
{{main|Education in Botswana}}
+
==References==
 
 
 
== Miscellaneous topics ==
 
== Miscellaneous topics ==
  
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===Government===
 
===Government===
*[http://www.gov.bw/home.html The Republic Of Botswana] official government site
+
*[http://www.gov.bw/home.html The Republic of Botswana] official government site
 
*[http://www.gov.bw/government/the_parliament.html The Parliament of Botswana] official site
 
*[http://www.gov.bw/government/the_parliament.html The Parliament of Botswana] official site
*[http://www.rulers.org/rulb1.html#botswana Rulers.org —Botswana] List of rulers for Botswana
 
 
*[http://www.britannica.com/nations/Botswana Encyclopaedia Britannica] Botswana Country Page
 
*[http://www.britannica.com/nations/Botswana Encyclopaedia Britannica] Botswana Country Page
 
*[http://www.gov.bw/government/office_of_auditor_general.html Supreme Audit Institution] Botswana Audit Office
 
*[http://www.gov.bw/government/office_of_auditor_general.html Supreme Audit Institution] Botswana Audit Office
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[[Category:Nations and places]]
 
[[Category:Nations and places]]
 
[[Category:Africa]]
 
[[Category:Africa]]
[[Category:]]
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[[Category:African nations]]
[[Category:Landlocked countries]]
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[[Images OK]]
  
 
{{credit|64702147}}
 
{{credit|64702147}}

Revision as of 16:49, 6 December 2006


Lefatshe la Botswana
Republic of Botswana
Flag of Botswana Coat of arms of Botswana
MottoPula (Rain)
Anthem: Fatshe leno la rona
(Blessed Be This Noble Land)
Location of Botswana
Capital
(and largest city)
Gaborone
24°40′S 25°55′E
Official languages English (Official), Tswana]] (National)
Government Parliamentary Republic
 -  President Festus Gontebanye Mogae
Independence From United Kingdom 
 -  Date September 30, 1966 
Area
 -  Total 600,370 km² (46th)
231,804 sq mi 
 -  Water (%) 2.5%
Population
 -  2005 estimate 1,765,000 (147th)
GDP (PPP) 2005 estimate
 -  Total $16.64 billion (114th)
 -  Per capita $11,410 (60th)
Currency Pula (BWP)
Time zone (UTC+2)
Internet TLD .bw
Calling code +267

Botswana, officially the Republic of Botswana (Tswana: Lefatshe la Botswana), is a landlocked nation in Southern Africa. Formerly the British protectorate of Bechuanaland, Botswana adopted its new name after becoming independent within the Commonwealth on September 30, 1966. It is bordered by South Africa to the south, Namibia to the west, Zambia to the north, and Zimbabwe to the northeast. The economy, closely tied to South Africa's, is predominated by mining (especially diamonds), cattle, and tourism. The country is named after its largest ethnic group, the Tswana.

History

The Batswana (plural of "Motswana"), a term also used to denote all citizens of Botswana, refers to the country's major ethnic group (called the "Tswana" in South Africa). Prior to European contact, the Batswana lived as herders and farmers under tribal rule.

In the late nineteenth century, hostilities broke out between the Shona inhabitants of Botswana and Ndebele tribes who were migrating into the territory from the Kalahari Desert. Tensions also escalated with the Boer settlers from the Transvaal. After appeals by the Batswana leaders for assistance, the British government in 1885 put "Bechuanaland" under its protection. The northern territory remained under direct administration as the Bechuanaland Protectorate and is today's Botswana, while the southern territory became part of the Cape Colony and is now part of the northwest province of South Africa; the majority of Setswana-speaking people today live in South Africa.

When the Union of South Africa was formed in 1910 out of the main British colonies in the region, the Bechuanaland Protectorate, Basutoland (now Lesotho), and Swaziland were not included, but provision was made for their later incorporation. However, a vague undertaking was given to consult their inhabitants, and although successive South African governments sought to have the territories transferred, Britain kept delaying, and it never occurred. The election of the National Party government in 1948, which instituted apartheid, and South Africa's withdrawal from the Commonwealth in 1961, ended any prospect of incorporation of the territories into South Africa.

An expansion of British central authority and the evolution of tribal government resulted in the 1920 establishment of two advisory councils representing Africans and Europeans. Proclamations in 1934 regularized tribal rule and powers. A European-African advisory council was formed in 1951, and the 1961 constitution established a consultative legislative council.

In June 1964, Britain accepted proposals for democratic self-government in Botswana. The seat of government was moved from Mafikeng in South Africa to newly established Gaborone in 1965. The 1965 constitution led to the first general elections and to independence on September 30, 1966. Seretse Khama, a leader in the independence movement and the legitimate claimant to the Ngwato chiefship, was elected as the first president, re-elected twice, and died in office in 1980. The presidency passed to the sitting vice president, Ketumile Masire, who was elected in his own right in 1984 and re-elected in 1989 and 1994. Masire retired from office in 1998. The presidency passed to the sitting vice president, Festus Mogae, who was elected in his own right in 1999 and re-elected in 2004.

Geography

Botswana is dominated by the Kalahari Desert, which covers up to 70 percent of the land surface of the country. The Okavango Delta, the world's largest inland delta, is in the northwest. The Makgadikgadi Pan, a large salt pan, lies in the north. Botswana has diverse areas of wildlife habitat, including the Okavango Delta, the Kalahari Desert, grasslands and savannas, the latter where Blue Wildebeest and many antelopes as well as other mammals and birds are found.

Map of Botswana

Politics

Politics of Botswana takes place in a framework of a presidential representative democratic republic, whereby the president is both head of state and head of government, and of a pluriform multi-party system. Executive power is exercised by the government. Legislative power is vested in both the government and the Parliament. Since independence the party system is dominated by the Botswana Democratic Party. The judiciary is independent of the executive and the legislature.

Botswana is divided into 9 districts and 28 sub-districts.

Economy

Since independence, Botswana has had the fastest growth in per capita income in the world. Economic growth averaged over 9 percent per year from 1966 to 1999. The government has maintained a sound fiscal policy, despite consecutive budget deficits in 2002 and 2003, and a negligible level of foreign debt. It earned the highest sovereign credit rating in Africa and has stockpiled foreign exchange reserves (over $5.1 billion in 2003/2004) amounting to almost two and one half years of current imports. Botswana's impressive economic record has been built on the foundation of wisely using revenue generated from diamond mining to fuel economic development through prudent fiscal policies and a cautious foreign policy. Debswana, the only diamond mining company operating in Botswana, is 50 percent owned by the government and generates about half of all government revenues.

However, economic development spending was cut by 10 percent in 2002-2003 as a result of recurring budget deficits and rising expenditure on healthcare services. Botswana has been hit very hard by the HIV/AIDS epidemic; the average life expectancy is less than forty years, the worst in the world. Approximately one in three people has HIV, giving Botswana the second highest HIV infection rate in the world after Swaziland. [1] The government recognizes that HIV/AIDS will affect the economy and is trying to combat the epidemic, including free Antiretroviral drug treatment and a nation-wide Prevention of Mother-to-Child Transmission program.

Some of Botswana's budget deficits can be traced to relatively high military expenditures , which some critics contend is unnecessary given the low likelihood of international conflict (though the Botswana government also makes use of these troops for multilateral operations and assistance efforts).

Foreign investment

Palapye children, 1987, after the first rain for years.

Botswana seeks to further diversify its economy away from minerals, which account for a third of GDP, down from nearly half of GDP in the early 1990's. Foreign investment and management are welcomed in Botswana. Botswana abolished foreign exchange controls in 1999, has a low corporate tax rate (15 percent), no prohibitions on foreign ownership of companies, and a moderate inflation rate (7.6 percent November 2004). The government is currently considering additional policies to enhance competitiveness, including a new Foreign Direct Investment Strategy, Competition Policy, Privatisation Master Plan, and National Export Development Strategy.

With its proven record of good economic governance, Botswana was ranked as Africa's least corrupt country by Transparency International in 2004, ahead of many European and Asian countries. The World Economic Forum rates Botswana as one of the two most economically competitive nations in Africa. In 2004 Botswana was once again assigned "A" grade credit ratings by Moody's and Standard & Poor's. This ranks Botswana as by far the best credit risk in Africa and puts it on par with or above many countries in central Europe, East Asia, and Latin America.

U.S. investment in Botswana remains at relatively low levels, but continues to grow. Major U.S. corporations, such as H.J. Heinz and AON Corporation, are present through direct investments, while others, such as Kentucky Fried Chicken and Remax, are present via franchise. The sovereign credit ratings by Moody's and Standard & Poor's clearly indicate that, despite continued challenges such as small market size, landlocked location, and cumbersome bureaucratic processes, Botswana remains one of the best investment opportunities in the developing world.

Because of history and geography, Botswana has long had deep ties to the economy of South Africa. The Southern Africa Customs Union (SACU), comprising Botswana, Lesotho, Swaziland, and South Africa, dates from 1910, and is the world’s oldest customs union. Namibia joined in 1990. Under this arrangement, South Africa has collected levies from customs, sales, and excise duties for all five members, sharing out proceeds based on each country's portion of imports. The exact formula for sharing revenues and the decision-making authority over duties — held exclusively by the government of South Africa — became increasingly controversial, and the members renegotiated the arrangement in 2001. The new structure has now been formally ratified and a SACU Secretariat has been established in Windhoek, Namibia. Following South Africa's accession to the World Trade Organization (WTO), Botswana also joined; many of the SACU duties are thus declining, making products from outside the area more competitive in Botswana. Currently the SACU countries and the U.S. are negotiating a free trade agreement. Botswana is currently also negotiating a free trade agreement with Mercosur and an Economic Partnership Agreement with the European Union as part of SADC.

Cattle at a water hole near Serowe

Botswana's currency — the Pula — is fully convertible and is valued against a basket of currencies heavily weighted toward the South African Rand. Profits and direct investment can be repatriated without restriction from Botswana. The Botswana government eliminated all exchange controls in 1999. The Central Bank devalued the Pula by 7.5% in February 2004 in a bid to maintain export competitiveness against the real appreciation of the Pula. There was a further 12% devalution in May 2005 and the policy of a "crawling peg" was adopted.

Most (70 percent) of Botswana's electricity is imported from South Africa's Eskom. 80% of domestic production is concentrated in one plant, Morupule Power Station near Palapye. [2]

Gaborone is host to the headquarters of the fourteen-nation Southern African Development Community (SADC), a successor to the Southern African Development Coordination Conference (SADCC-launched in 1980), which focused its efforts on freeing regional economic development from dependence on apartheid South Africa. SADC embraced the newly democratic South Africa as a member in 1994 and has a broad mandate to encourage growth, development, and economic integration in Southern Africa. SADC's Trade Protocol, which was launched on September 1, 2000, calls for the elimination of all tariff and non-tariff barriers to trade by 2008 among the 11 signatory countries. If successful, it will give Botswana companies free access to the far larger regional market. SADC's failure to distance itself from the Mugabe government in Zimbabwe has diminished the number of opportunities for cooperation between the U.S. and SADC.

Tourism

Tourism plays a role in Botswana. A number of national parks and game reserves, with their abundant wildlife, are a top draw for tourists.

Botswana is the setting for the popular mystery series by Alexander McCall-Smith, The No. 1 Ladies' Detective Agency, and was also the location for the 1980 movie "The Gods Must Be Crazy".

Labor

Botswana is in the process or formulating an Action Program on the Elimination of child labor, which is expected to be adopted in the period 2006-2007.

Foreign relations

Botswana puts a premium on economic and political integration in Southern Africa. It seeks to make SADC a working vehicle for economic development, and promotes efforts to make the region self-policing in terms of preventative diplomacy, conflict resolution, and good governance. It has welcomed post-apartheid South Africa as a partner in these efforts. Botswana joins the African consensus on most major international matters and is a member of international organisations such as the United Nations, the Commonwealth of Nations and the African Union (AU).

Demographics

Culture

Education

  • University of Botswana

References
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Miscellaneous topics

  • Communications in Botswana
  • Foreign relations of Botswana
  • History of Botswana
  • Military of Botswana
  • The Botswana Scouts Association
  • Transport in Botswana

External links

Government

News

Overviews

Directories

Tourism


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