Rethinking Botswana's Economic Diversification Policy: Dysfunctional State–Market Partnership

Abstract

This paper examines economic policy implementation in Botswana. A key element in the government's model of economic development consists of private sector development policies grouped under the broad goal of economic diversification, and aimed at reducing the country's dependence on diamond mining. Botswana's successful management of its macroeconomy and the persistent stagnation of private sector development present a perplexing paradox. The evidence points to the need for Botswana to go beyond macroeconomic planning and focus on restructuring the public sector and reorienting implementation processes to foster a more coherent collaborative network within the agencies and ministries of the public sector, as well as forging a more robust partnership with the private sector.

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