Economic Growth, Development, and Administration in Botswana: A Report

This report delves into the concepts of economic growth and economic development, differentiating between the two and illustrating with relevant examples. It examines the measurement of economic growth, particularly focusing on GDP and its limitations, while also exploring alternative methods. The report further investigates economic development, emphasizing its impact on the standard of living and analyzing the case of Botswana, including its GDP growth, unemployment rate, and fiscal policies. Additionally, the report defines development administration and its attributes, highlighting the importance of administrative development in addressing economic challenges such as corruption and promoting large-scale projects. The analysis includes discussions on the Solow growth model, Kuznets hypothesis, and Rostow’s five stages, along with the significance of liberalization, globalization, privatization, and public-private relationships in fostering economic outcomes. The report concludes by emphasizing the importance of strong monetary and fiscal policies for smooth international trade and financial activities.

Running head: Development planning and administration
Development planning and administration
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1Development planning and administration
Introduction
Through the study and analysis of economic concepts, it is possible to determine the
policies and factors that are going within the international economics so that growth and
development can be understand properly. However, in order to incorporate policies within the
international trade and theories it is important for the policymakers to apply various theories
of development economies. There is a significance difference among the economic growth
and economic development. Now it will be highly beneficial for the policymakers to
determine the policies if the factors that are differentiating the economic growth and
development is being understood. Economic growth and development is combination of
many sub concepts in the form of consumer satisfaction, employee satisfaction, GDP of the
country, per capita income of the country, employment and investment and many other
concepts are associated with them. The models of economic development and economic
growth mainly consists of Solow growth model and Kuznets hypothesis. However, Rostow’s
five stages of economic growth and development actually helps a country in knowing their
position within the world economy and how the country is performing in terms of various
index that are being present in the world economy. Taking the example of developmental
administrative, the overall economic activities of the country will be known and that will also
highlight the importance of policymakers and decisions that are being taken by the politicians
in the form of administrative and how the activities of the policymakers are interlinked.
Not only the concept of growth and development is important but also the concept of
liberalisation, globalisation, privatisation and public-private relationship is also important.
Now in order to indulge the concept of development within the world economy, these
concepts are actually helpful in order to indulge better level of economic outcome, it is
important to consider these concepts. This is because through the development of public
private relationship, it is important to estimate the bonding of the private and government in

2Development planning and administration
delivering the best solutions to the economic problems. The concept of backward and forward
moving is important for the development of better level of productivity and how the
economic activities are being entitled with the development of resources. On the other hand,
through the development of resource based distribution and resource channelization, it can be
seen that the position of country and the capability of country in maintaining the inequality
level and poverty level can be deeply analysed. Through the analysis of five major problems
that are portraying the world economy will be able to increase the solutions of mitigating the
problems that will definitely allow the economic activities to flourish. Through the
improvement in the concept of business administrative it is important for the whole economy
to establish strong monetary and fiscal policies that will smoothly run the international level
of trade and commerce within domestic and international border. For the overall development
of monitoring it will be important for the countries and world economy to smooth out the
financial activities.

3Development planning and administration
1. Define the concept of development. What is the difference between economic Growth
and development? Illustrate with relevant examples
Economic growth
The concept of economic growth is closely associated with the development of goods
and services over a specific period of time. However, one of the important thing regarding
economic growth is that the effect of economic growth will remove the impact of inflation.
Through the incorporation of economic growth, the expansion of the business is possible
through the improvement in the FDI and other kind of investment within the economy. The
rise in the capital is one of the consequences of economic growth. The increase in the capital
of the country through the economic growth is closely related with the development of
individual as the employee (Panayotou, 2016). Now there is a chance of employment getting
increased with the economic growth. With various level of investment coming into the
country, the scope of investment within Botswana will increase. Now with the increase in the
job opportunities for people within the African countries will definitely allow the country to
bring in high quality of resource that will definitely help the government in taking any kind of
decisions.
One of the main characteristics of the Botswana economy is that due to growth of two
major gas projects, the country is having less poverty but the incidence of inequality is very
much high within the country. The decrease in the poverty level is showing the positivity for
the Botswana economy (Chow, 2017). The growth of industries in form of big projects are
bringing more disposable income in the hands of people living in the economy. Due to an
increase in the disposable income, the consumers within the country is increasing their
demand. Now the immediate impact of the growth in internal demand will allow the

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government to relax its policies so that that imports of foreign and high quality of goods can
be done with ease (McCombie & Thirlwall, 2016).
They are consuming highly qualified foreign goods and the country continuously will
not be able to import throughout the time. Time will come when their foreign exchange
reserves will come to an end and in that situation, Botswana has to use its own resources to
develop high quality of products (Herndon et al. 2014). This policy is called import
substitution policies. International trade and export import is mainly coined as export
promotion. Since the growth of the economy is highly visible thus the economic growth is the
most watched economic indicators.
Measurement of economic growth
It is important for every country to measure the economic growth. One of the most
important way of measuring economic growth is the GDP of the country. Significance of
GDP is lying in the fact that it includes all the finished goods and services that are being
counted as the final products. Now the GDP is not including the value of raw materials that
are being involved within the manufacturing of goods and services (Law & Singh, 2014).
Through some of the economists claim that the impact of GNP is more crucial compared to
the GDP as GNP captures the amount of money that are being sent to the foreign countries.
Most of the economists claims that the real GDP is more important because of the fact it
eliminates the effect of inflation from the nominal calculation of GDP.
GDP doesn't include unpaid services. It leaves out child care, unpaid volunteer work,
or illegal black-market activities. It doesn't count the environmental costs. For example, the
price of plastic is cheap because it doesn't include the cost of disposal. This is the reason why
GDP will not count the cost of impact of plastic use in well-being of society (Bryson et al.
2018). This is the main reason why the GDP is not considered as the best method of growth

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measurement. Now in order to increase the efficiency of the growth measurement some other
advanced method of measuring economic growth.
Economic development
Many classical economists’ claims that economic growth and economic development
is more or less same to same but there is thin line of difference among both the terms. The
term economic development is mainly helping in the growth of standard of living. The
economical and standard of living for the people is the main difference for the whole country.
Now most of the government of the developed nations are only focussing on the development
of country but most of them forget about the standard of living of the countrymen
(Burghouwt et al. 2016). For example, the country of Botswana is mainly characterised by
high growth of income and have successfully registered as country with fastest growth. Real
economic growth happened in the year 2018 was around 4.4% in 2018 and it has been
predicted the growth will stay around 4% till 2021 (worldbank.org, 2019). According to the
National Development Plan 11 or NDP 11, the fiscal spending has been mostly done on
inclusive growth, job creation and tackling poverty.
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
-10
-5
0
5
10
15
1.9888
0.251
6.07
4.626
2.706
4.557
8.3648.277
6.245
-7.652
8.564
6.048
4.456
11.343
4.149
-1.698
4.304
2.908
4.454
GDP growth of Botswana
Figure 1: GDP growth of Botswana

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(Source: data.worldbank.org, 2019)
The unemployment of Botswana is around 17.7% and the GINI coefficient is around
0.52 that is the highest in the world economy. Almost 9% of the GDP is being spend on
education. Currently the economy of Botswana is one of the most unequal countries in Sub-
Saharan Africa. Botswana growth has been fuelled by movement from agriculture to service
sectors. Most of the government policy and the revenue is being directed towards the
resistance of flood and draught. Now in order to bring in more amount of income in the hands
of the Botswana industry should develop (Panizza & Presbitero, 2014). The policymakers
need to identify the resources that are available within the country to flourish. Through the
involvement of services, the expansion of big projects will definitely allow the economy to
grow that will definitely increase the development of oil and diamond exporting companies.
In order to grow and develop it is important for the overall development of resources.

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Reference list
Panayotou, T. (2016). Economic growth and the environment. The enviro
Chow, G. C. (2017). Capital formation and economic growth in China (pp. 1186-1221).
BRILL.
McCombie, J., & Thirlwall, A. P. (2016). Economic growth and the balance-of-payments
constraint. Springer.
Cingano, F. (2014). Trends in income inequality and its impact on economic growth.
Herndon, T., Ash, M., & Pollin, R. (2014). Does high public debt consistently stifle economic
growth? A critique of Reinhart and Rogoff. Cambridge journal of economics, 38(2),
257-279.
Law, S. H., & Singh, N. (2014). Does too much finance harm economic growth?. Journal of
Banking & Finance, 41, 36-44.
Panizza, U., & Presbitero, A. F. (2014). Public debt and economic growth: is there a causal
effect?. Journal of Macroeconomics, 41, 21-41.
Aghion, P., Comin, D., Howitt, P., & Tecu, I. (2016). When does domestic savings matter for
economic growth?. IMF Economic Review, 64(3), 381-407.

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data.worldbank.org. (2019). Retrieved 26 August 2019, from
https://data.worldbank.org/indicator/NY.GDP.MKTP.KD.ZG?
end=2018&locations=BW&start=2000
worldbank.org. (2019). Overview. Retrieved 26 August 2019, from
https://www.worldbank.org/en/country/botswana/overview

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2. Define the concept of development administration? What are the main attributes of
Development administration?
Development administration
Administrative development is basically formation of rules and regulations that are
readily accepting the flaws within any economic system. The main aim of this administrative
development is to minimise the rate of crimes and criminal offences that are happening
within any country. Through the development of activities that are based on economic
confidences and economic growth, the policymakers can identify sets of controlling measure
that actually minimises the overall development of economy. Moreover, through the better
level of understanding of the gaps it will be easy to indulge the development of country. Now
when a country starts to grow, the growth of capital starts to come. Along with the growth of
the capital the inequality also increases within the economy. Now this is one of the important
reason behind the growth of corruption level within the country. It is important for the
country to minimise the level of corruption within the economy. The concept of the
development administration is mainly associated with the development of projects and other
large scale activities that will increase the overall development of the country. In 2017, the
total amount of population in the country of Botswana is around 22.9 lakhs and the amount of
population is high compared to other countries like Tanzania and Zambia.
About 9% of GDP is being spent in the education purpose. This is one of the factor
behind the poor growth of economic activities within the country. Moreover, due to lack of
educated employees, most the developed countries gets fear to invest heavily in the Sub-
Saharan African countries. Apart from education level, the country of Botswana is having
high rate of disease that are deadly in nature and mostly the area is covered with uneducated
person the lack of medicine access to the country is making situation worse. Now most of the

10Development planning and administration
government in the Botswana is having less money to bring the economy under deep scanning.
It is important for the country to bring in strong collaboration with the private parties to
invest so that both education and employment opportunity for the country can increase. The
rate of both administrative and state corruption is very much high in the country. In one of the
survey made by Ética Botswana (2001) consisting of 1200 people almost 25% of the people
claimed that they have been the victim of the corruption.
Of those, 31% paid less than $6, 45% paid $6-60, and 22% had to pay $60-600, which
is a substantial amount of money in Botswana where the GDP per capita is only $300. The
most common area of demand for money is health (30%), education (27%) and police (21%).
This is showing the fact that due to lack of improvement in the education and the business
scenario of the country, the policymakers are failing to bring in high quality of projects so
that economy can grow. On the other hand, in the recent years, the poverty level has
decreased and the inequality level is rising is main concern for the country.
Attributes of development administration
According to Edward Weidner development administration is kind of action oriented
and goal oriented activities. This kind of activities will have a certain objectives and in order
to fulfil those objectives, it is important to stick with particular activities. As per Fainsod, the
development administration is the carrier of innovating values. Now in order to highlight the
growth it is absolutely important for developing countries to follow the path of modernisation
and industrialisation that is shown by the developed nations. Even the establishment of
machinery is kind of development administration and it is done mainly to help the country
grow as per its capability. Along with the government it is also responsibility of the private
companies to indulge the development administrations. Some of the attributes that are closely
related with the development administration are discussed as follows.

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1) Change oriented
Most of the policies that has been taken by the government responding to
development administrations is more or less should be change oriented. This is because the
development of resources will mainly highlight the development of the country that is based
on the long run objectives. Both the socio-economic and political changes should be brought
in within the development strategy of the government that has been taken for the Botswana.
This includes better income opportunities for the people living within the economy and as
well as the development of country should also indulge high growth in the long run. This is
an important concept because of the fact that in order to increase the development of resource
based activities, the country of Botswana will be aiming to bring down high class of
economic activities. The status of the economy should be maintained and it is important to
bring in high grade of development within the time frame.
2) Result oriented
The development administration is mainly done based on the result oriented. This is
mainly done in order to increase the development of FDI into the economy of Botswana so
that the flourish of the economy can be highly induced. The result should be development of
industries, education level, and poverty level. Through the incorporation of result, it is highly
satisfying that nowadays government of Botswana will be to introduce better quality of
business environment. Setting up the special economic zone is basically helping the economy
of Botswana to increase the production ability.
3. Client oriented
Positive objective of the development administration is its commitment to meet the
future demand of the economy by belonging the required needs into an upbringing structure.
Sometimes before the big project to come, the government actually plays significant role. The