average real GDP growth has been almost 10% for the period of
1960–2000, while real GDP per capita growth was above 7%. In contrast
to many other African countries, Botswana has a competitive and
market-friendly economic environment, and it is believed that most of
the institutions operate effectively and the rule of law/democracy prevails.
The country has sound legal system, strong educational policies,
sound infrastructure and one of the best credit risks in the continent.
One of the country's most appreciated attribute is its open door policy
(friendly market environment) to its neighbours and the world at
large. Its central geographical positioning in Southern Africa plays a
very pivotal role. This success story is notwithout challenges of unequal
income distribution, lack of prudent financial management, HIV AIDS,
unemployment and poverty. In order to overcome these obstacles, the
country's leadership has introduced several programmes like the
National Development Plans, youth empowerment and poverty eradication
schemes to name a few. Nonetheless, the literature (Wakeman-
Linn and Wagh, 2008) argues that government dominance in the
African capital markets crowd out the private sector resulting in narrow
and illiquidmarkets. They further noted that African financialmarkets are
bank oriented and as a result investment in projects that need longterm
financing is compromised. Unfortunately, Torre and Schmukler
(2007) observed that in emerging economies, the implementation of
financial integration ismore focused on the banking sector and less consideration
is given to the capital markets yet the African Development
Bank (2010) advocates that developed capitalmarkets are highly needed
to facilitate FDI inflows. Botswana, as most African countries, is
characterised by a narrow and very illiquid capital market and financial
market integration may help to broaden and deepen the country's
markets. Furthermore, the country's envisaged economic diversification
strategy provides an opportunity for private sector inclusion and less
government dominance in building sustainable economic growth.
Continuous efforts to develop both the public and private sectors are
underway and the future seems bright for Botswana at this stage.
average real GDP growth has been almost 10% for the period of1960–2000, while real GDP per capita growth was above 7%. In contrastto many other African countries, Botswana has a competitive andmarket-friendly economic environment, and it is believed that most ofthe institutions operate effectively and the rule of law/democracy prevails.The country has sound legal system, strong educational policies,sound infrastructure and one of the best credit risks in the continent.One of the country's most appreciated attribute is its open door policy(friendly market environment) to its neighbours and the world atlarge. Its central geographical positioning in Southern Africa plays avery pivotal role. This success story is notwithout challenges of unequalincome distribution, lack of prudent financial management, HIV AIDS,unemployment and poverty. In order to overcome these obstacles, thecountry's leadership has introduced several programmes like theNational Development Plans, youth empowerment and poverty eradicationschemes to name a few. Nonetheless, the literature (Wakeman-Linn and Wagh, 2008) argues that government dominance in theAfrican capital markets crowd out the private sector resulting in narrowand illiquidmarkets. They further noted that African financialmarkets arebank oriented and as a result investment in projects that need longtermfinancing is compromised. Unfortunately, Torre and Schmukler(2007) observed that in emerging economies, the implementation of
financial integration ismore focused on the banking sector and less consideration
is given to the capital markets yet the African Development
Bank (2010) advocates that developed capitalmarkets are highly needed
to facilitate FDI inflows. Botswana, as most African countries, is
characterised by a narrow and very illiquid capital market and financial
market integration may help to broaden and deepen the country's
markets. Furthermore, the country's envisaged economic diversification
strategy provides an opportunity for private sector inclusion and less
government dominance in building sustainable economic growth.
Continuous efforts to develop both the public and private sectors are
underway and the future seems bright for Botswana at this stage.
การแปล กรุณารอสักครู่..
