[How stupid can a person be? Well, this article is an example of idiocy in action. It is about Botswana. Botswana is the only truly successful Black country – since decolonisation. Diamonds were discovered in Botswana, and Botswana, being a close US ally, is also very pro-Capitalist. Hence Botswana did well.

Now some moronic Black journalist is talking about the “Freedom Charter” which was written in South Africa 50 years ago. The “Freedom Charter” is in reality a COMMUNIST DOCUMENT. It speaks of massive wealth redistribution, etc – which is what the ANC is busy with… and what Mugabe and others tried. “Sharing the wealth” is really the quickest way of destroying any nation and it ends up being a case of “Sharing the POVERTY”. Now this moron is suggesting it for Botswana. Where is this idiot’s mind? Can’t he see what happened across the border in Zimbabwe? Pardon me for saying this but I frankly think he should be shot in the head for being this dumb. Jan]

About a week ago, I was invited to speak at a dinner hosted by the Botswana Institute of Accountants. I wish to share with the larger society some of the issues that I identified as pertinent and worthy of greater interrogation.

On April 27, when South Africa celebrated Freedom Day marking the countries 11 years of majority rule, I was reminded of a document that was authored some 50 years ago. This old document, known as the Freedom Charter, states a number of political goals and aspirations that guided the freedom fighters. One of the goals was that THE PEOPLE SHALL SHARE THE WEALTH OF THE COUNTRY. This statement must have been motivated by a desire to attain egalitarian society, where all those who are willing and able to engage in productive economic activity, do get the opportunity to soil their hands in return for a resource that will guarantee them a life of dignity. The statement is further based on the assumption that the nation’s wealth, once created by the people, will be shared even with those who for one reason or the other are unable to participate in the process of wealth creation.

As citizens of Botswana, we need to reflect on both our success and failures in equitably sharing the wealth of our country. By any standard, we have outperformed most economies when it comes to the issue of wealth accumulation as a nation. We have been referred to as the shining example, the economic miracle, the giant of Africa and many other complimentary phrases as commentators sought to outdo each other in analysing our economy.

The facts are clear and support the accolades directed to Botswana. At independence Botswana was ranked among the 25 poorest countries in the world. Between 1966 and 1989 we had the fastest growing economy in the world. According to World Bank reports, Botswana’s Gross Domestic Product grew by an average of 13.9% per annum between 1965 and 1980, from 1980 to 1989 growth was 11.3%. As we all know, the growth was primarily fuelled by the mineral sector following the discovery of diamonds.

Amongst the many concepts coined by economists is the so-called “Trickle Down Effect.” In terms of this notion, it is assumed that development is a purely economic phenomenon, in which once high levels of growth in GDP and per capita income are achieved; the benefits will automatically trickle down to the masses in the form of jobs and other economic activities. The target is to attain high growth rates; issues of unemployment and inequality will sort themselves out in the process.

The experience of Botswana is a clear example that the trickle down theory of development does not always hold, if ever. With the phenomenal growth rates of the local economy, unemployment and poverty have remained high. More disturbing is the fact that we have some of the highest inequality indicators in the world. While there is debate on whether the situation is improving or worsening, there is consensus that unequal income distribution is the ugly face of our elegant economy. Available statistics indicate that for the period between 1970 and 1975, total income accruing to the lowest 20% of the population was 4%, while the share of income accruing to the top 20% of the population was a whooping 60%. By the year 1986, these numbers had changed nominally to 3.6% for the bottom 20% and 58.9 for the upper 20%. More recent studies still indicate a gini index of about 50%.

I do not wish to digress into the debate of why we have become internationally renowned champions of inequality, suffice to state that like most mineral led economies, there are structural constraints in the economy that are known to contribute immensely to this regrettable phenomenon. The mining industry is capital intensive and therefore offers minimal employment oportunities when contrasted with sectors like manufacturing.

My view is that a society that is characterised by a high incidence of poverty is a sick society. This is a sickness that should trouble all of us, accountants, economists, politicians etc… We the fortunate ones, fortunate enough to be guaranteed three or more meals a day, fortunate enough to afford a vehicle of our choice, fortunate enough to occasionally wine and dine at the plush hotels within our vicinity should pause and ask, what can I do to assist fellow brethren, who wallow in poverty and are not proud of their status in life, for there is no dignity in poverty.

In the Holy Bible, the book of 1st John Chapter 3, verse 17 reads as follows.

“But whoever has this world’s goods, and sees his brother in need, and shuts up his heart from him, how does the love of God abide in him.”

Next week, I propose to focus on why in my view Botswana needs to rethink its development strategy in the coming years in favour of the less privileged.

Source: AllAfrica.Com
URL: http://allafrica.com/stories/200505091102.htm…/p>