<strong>GoB</strong>-<strong>UN</strong> <strong>POP</strong> <strong>2010</strong>-<strong>2014</strong>1.2.2 NDP10 Mid-Term Review11. The MTR of the NDP10 made observations onthe economic outturn and future prospectsand their implications in relation to theattainment of NDP10 objectives and set a wayforward in relation to priority interventions. TheNDP10 MTR retained the thematic prioritiesand instead focused on the consolidation ofthemes, reprioritising projects and strengtheningmanagement and accountability for results.12. The NDP10 MTR observed that during the firstthree years of NDP10 the economic growthrate was lower than the projected growth rate.13. The Focus Areas were consolidated into fourthemes and consequently into four ThematicWorking Groups (TWGs), namely: Employmentand Economy; Social Upliftment; SustainableEnvironment; and Governance, Safety andSecurity. In each of the thematic areas, challengeswere identified and theme-specific priorities setfor the remainder of the NDP10 term.Refer to figure below:Employmentand EconomySustainableEnvironmentNDP10Thematic AreasSocialUpliftmentGovernance,Safety and Security14. In each thematic area the NDP10 MTR provides a listof priority actions and projects for 2013 to 2016. Theseinclude: policy reforms; implementation of specificprojects; strengthening of project managementand accountability; and improved coordination,especially in relation to cross-cutting issues. The analysisand listing for each thematic area provides a basisagainst which support projects can be formulated.15. A set of issues identified as critical for NDP10going forward were identified and these are:Accelerating economic growth; Economicdiversification; Employment creation and povertyeradication; Macro-economic stability andglobal competitiveness; Governance and factorproductivity; Sustainable use of the environment;and Disaster management. Refer to figure below:NDP 10 MTR Critical Issues• Accelerating economic growth• Economic diversification• Employment creation andpoverty eradication• Macro-economic stability andglobal competitiveness• Governance and factor productivity• Sustainable use of environment• Disaster management2 The Development Context and<strong>UN</strong> Strategic Value2.1 Development Context andNational Priorities16. The Economy: <strong>Botswana</strong> remains one ofAfrica’s success stories, having transformeditself from a Least Developed Country Status(LDC) at the time of independence in 1966 toa Middle Income Status within three decades.This transformation was propelled mainlyby effective use of revenues from mineralresources such as diamonds. Real per capitaincome rose from US$250 in 1960 to US$4,800in 2008 (in constant 2000 US$) and to $7,168in 2011 6 . Notwithstanding this impressivetrack record of robust economic growthand political stability, <strong>Botswana</strong> faces seriouschallenges related to chronic unemployment,high poverty levels in relation to its per capitaincome level and income inequality. The rateof unemployment is estimated at 17.8 percentand the proportion of people living below thepoverty datum line declined from 30.6 percent62013/14 Budget Statement8 <strong>GoB</strong> - <strong>UN</strong> <strong>POP</strong> <strong>2010</strong> - <strong>2014</strong>
<strong>GoB</strong>-<strong>UN</strong> <strong>POP</strong> <strong>2010</strong>-<strong>2014</strong>in 2003 to 20.7 percent in 2009 (Statistics<strong>Botswana</strong>, 2011). With a Gini coefficient of 52.2,income inequality is very high (IMF, 2012).17. Available data show that poverty has a strong ruraldimension, reflecting the attendant disparities in thequality of economic opportunities and services.Poverty also has a gender dimension, thoughnot too pronounced at the aggregate level.The high prevalence of poverty is attributablein part to the country’s narrow economicbase and adverse climatic conditions. It isalso attributable to constraints on access toemployment, productive resources, includingland and financial services, for the poor andvulnerable people.18. The overarching challenge for <strong>Botswana</strong> is howto make growth inclusive. Inclusive growth isvery relevant for <strong>Botswana</strong> in several respects,especially in light of increasing unemployment(in particular youth unemployment), pervasivepoverty and high-income inequalities in theface of high growth. A more equal distributionof income allows for more economic stability,more sustained economic growth, and healthiersocieties with stronger bonds of cohesion andtrust. Recent IMF research affirms this finding.Promoting inclusive growth involves adopting aholistic sustainable human development (SHD)policy framework that is pro-people, pro-jobs,and pro-nature.19. One of the key determinants of sustainable humandevelopment lies in adopting a structuredapproach that ensures that all stakeholders -central government, local government, business,civil society and co-operating partners within thedonor community - play their roles effectively tocreate conditions necessary for local economiesto achieve rapid, inclusive and sustainableeconomic growth. The key driver of this process isLocal Economic Development (LED). LED systemsand processes are designed to effectivelycoordinate the interaction of local actors and theinterface between national and local institutions,ensuring that nationally developed goals arelocalised and acted upon. It is difficult to envisionnational development goals without success atthe local level. Implicit to LED is the notion thatnational development is, in a pervasive way, anaggregation of local achievements.20. Millennium Development Goals: Progresson the Millennium Development Goals (MDGs)has been impressive with 10 of 14 targetseither achieved or likely to be achieved by2015. Challenges remain in relation to: theprevalence of underweight children under5 years of age; child mortality; maternalmortality; and tuberculosis incidence. The HIVand AIDS epidemic has been a major factoraffecting progress in these areas. The country lost20 years in which it sought to bring the epidemicunder control. Thus, compared to a 1990 base, thecountry has regressed. However, when examinedfrom the AIDS-related peak, there have beenconsiderable reductions in maternal and childmortality.21. Economic Diversification: Diamonds accountfor an estimated 60% of government taxrevenue. It is expected that diamond revenueswill stagnate in 2017 and a change tounderground mining to extract diamonds maybe needed. The effect of such a change willbe to reduce government revenues therebyaffecting the ability of the state to providesocial services. Enhancing the participationof citizens in the economy of the country is akey priority for the Government of <strong>Botswana</strong>.The Government’s strategy includes creatingopportunities in the formal sector as well asopportunities for the expansion of informalactivities. Central to the drive to create jobsis economic diversification. Recognising therisks of over-dependence on the mining sector,<strong>Botswana</strong> has as one of its key priorities thediversification of the economy. The NDP10 MTRfound that some diversification has occurredbut further measures are needed to reduce thedependence on government-related projects.22. Poverty Reduction: Data from the <strong>Botswana</strong>Core Welfare Indicators Survey (BCWIS) for2009/<strong>2010</strong> suggests that <strong>Botswana</strong> has reduced<strong>GoB</strong> - <strong>UN</strong> <strong>POP</strong> <strong>2010</strong> - <strong>2014</strong> 9