Problems of Low Economic Growth, Economic Diversification, and Unemployment in Botswana

Topics: Economics, Unemployment, Economy Pages: 5 (1723 words) Published: September 19, 2013
AS AN ECONOMIST DISCUSS HOW THE 2013 BUDGET SPEECH HAS ADDRESSED OR NOT ADDRESSED THE PROBLEMS OF LOW ECONOMIC GROWTH, ECONOMIC DIVERSIFICATION AND UNEMPLOYMENT IN BOTSWANA

ECO 322 ASSIGNMENT

2/1/2013

OFENTSE JIMMY SEEMULE ID:201000445


INTRODUCTION
The budget speech is important information for the nation, and other countries, because it is able to attract both local and foreign investors, therefore it is imperative that issues addressed by the budget speech be clear, truthful and prise to acquire valid feedback regarding national progress which will help the nation to exact more effort in dealing with macroeconomic issues like unemployment and economic growth. The nation is informed about national progress every year via the budget speech, which addresses several issues of great national concern, mostly economic issues. The budget speech is also a review and a preview of financial issues regard economic growth, central bank reserve policies of local and foreign financial performance of the nation. Economic issues addressed by the budget speech are very sensitive issues, which relate to one another simply because they are dependent economic variables. If unemployment rates are high that can mean that there will be less contribution of employment towards national revenue through income tax, which will lead to low economic growth. If there is lack of performance from economic factors like diversification that if there is low diversification there can be low economic growth if the dominant sources of government (mining sector) fail to produce good results. The government is responsible to inform the nation on these issues through the budget speech, therefore there is need for analysis to ensure as to whether these sensitive issues have been really addressed or not. In my analysis will focus on problems of low economic growth, economic diversification and unemployment in Botswana.

DISCUSSION
UNEMPLOYMENT IN BOTSWANA
Unemployment is a major concern to the government and it is often given priorities when formulating national policies and strategies. The budget speech has addressed this issue, but failed to prove the effectiveness of the active and proposed employment policies to show that they has been progress. a wide range of policies and programmes, such as the Internship Programme, Youth Development Fund, LIMID, Youth Empowerment Scheme, Diamond Hub, Innovation Hub and Economic Diversification Drive, have been established to address issues of unemployment and job creation. Policies like the internship programme in which graduates are given opportunity to acquire practice in fields of their speciality, really helps to reduce unemployment although the wages given to participants are low. The youth development fund and other youth empowerment schemes have seen dedicated youths emerge with successful businesses. The youth of Botswana form a large portion of our population, and since they are our future, the budget speech does hint out that the government will continue to empower them through various programmes such as the Skills Development Programme aimed at identifying skills gaps and service providers with relevant programmes to bridge those gaps, the speech also addressed the other proposed policies aimed at creating employment, such policies include Multi-Sectoral Committee which among others will ensure full integration of youth matters into policies and programmes formulated by Ministries. In order the achieve enhanced economic growth the Botswana Qualification Authority is being established, to address issues of relevance, quality, accreditation, articulation, coordination and management of skills development programmes, as way of addressing problems of quality and advising the public on relevant qualification they can undertake, and this can also help reduce employment. The speech has also addressed proposed strategies like the Comprehensive Education and Training Strategic...
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