Saturday, April 14, 2007

Knocking on Heavan's door in Africa? Parallels between Botswana and the U.S. migrant experience

The United States and Botswana may have nothing in common historically or culturally; however, there is an interesting parallel in their experience of immigration patterns: both countries kept their borders wide open, as they beneffited from the skilled migrants entering the country. Yet, increasingly surrounded by poorer countries, the uncontrollable influx of unskilled migrants tests their tolerance:

Botswana has traditionally used wide incentives to build an open immigration approach to develop the country as it was plagued with a severely underdeveloped infrastructure, a want of start-up capital and --key in this aspect--a largely unskilled workforce. By keeping its doors open to foreign skilled workers, it has managed to diversify the economy, attract foreign direct investment and achieve applaudable economic growth. Yet this wealth also fosteres an educated and skilled fdomestic workforce, decreasing the country's dependance on skilled immigrants.

Simulatenously, an uncontrollable influx of illegal, unskilled workers from Zimbabwe, escaping the dire economical, social and political situation there, have flooded Botswana and severely put the traditional welcoming culture and political openness to test. Among rising Zenophobia, and increasing government restrictions on immigration-- will the country be able to preserve its traditional oppeness that has droven its economic growth?

For more info see
Botswana's Changing Migration Patterns

Tuesday, March 13, 2007

An unlikely competitor

Thanks to India’s blazing success in outsourcing, developing states all over the world are searching the same magical solution to improve their often-struggling economies. India becomes much searched for country, as delegates from around the world are looking for advice from experts that run its hundreds of call centers, into-tech support operations, and back-office processing facilities.

Among those is an unlikely competitor indeed:

Botswana, a little landlocked country on the African continent—a continent not much looked to in the search of outsourcing opportunities— which suffers from an HIV epidemic that affects about one third of the work force, is now advancing into the competitive outsourcing market.

Botswana, with only 2 million people, has nevertheless some things going for it: It has been a stable democracy in the region, its good governance has given it the honorable status of least corrupt nation in Africa, and its government is bend to use its English language skills to build call centers to pave the way to economic growth. Smart economic management and incentives, such as offers to exempt foreign businesses from value-added taxes; a flat 15% corporate tax rate guaranteed until 2020, and unbeatable, 200% credit on employee training programs, are making Botswana a pleasant location for business. Botswana may indeed evolve to be an unlikely competitor in the outsourcing market.

Tuesday, February 6, 2007

Holidays-- pleasure for the rich countries only

Botswana is one Africa’s fastest growing, most dynamic economies. Much of its economic growth has been fueled by mineral extraction, principally diamond mining: one of its major export commodities, it accounts for 70-80% of its exports and thus for roughly one third of its GDP. Diamond revenues together with smart macroeconomic management have enabled Botswana to enjoy a high level of social services such as health, education, water supply.
But this distorted development remains a curse: Botswana, though its growth has been fantastic, has become highly dependent on its diamond exports. Failing to establish a diversified economy, it continues to suffer from high unemployment and low growth in other sectors. Thus the actual portrait of the Botswana economy is much less rosy then the growth rate suggests.
Leisure thus remains far away for the Botsawanian people: the government noted that its numerous holidays and subsidies have made Botswana less competitive in the region and the global market. Its low productivity and competitiveness thus slows investment in the economy and growth of other sectors. Paid holidays remain a pleasure for the rich in the struggle for global competitiveness.