Academic literature on the topic 'Informal sector (Economics) – Botswana'

<em>This study examined the phenomenon known as road side vending within the spatial arena of Gaborone city of Botswana. In clarifying the concepts employed in the study, a difference was made among the terminologies “street vendors” (mobile vendors moving all over within and about the streets), “hawkers” (mobile vendors moving both within and beyond the streets), and “road side vendors” (immobile vendors using road sidewalks and road/street corners for economic activities). The study employed a 15-item inventoryon the one hand, to elicit the factors that accounted for the recent phenomenal surge in road side vending in Gaborone and on the other hand, to highlight the expectations of the actors of this sector of the economy. The findings revealed that between 2012 and 2014, road side vending grew by 50% in Gaborone and 74% of Gaborone road side vendors were aged between 38-54 years, suggesting that this market is currently run by mature adults. The findings equally revealed that the growth of road side vending in Gaborone coincided with an era when unemployment began to be discussed within government circles, the press and in the streets of Botswana. This finding is supported by the literature which states that in general, the informal sector of the economy of less developed countries tend to grow under the impulse of unemployment and increasing poverty rate. The study ended with one major recommendation that called on the Gaborone City Council to use the instrumentality of learning to bring about the change it desires for Gaborone without excluding road side vendors from its Gaborone developmental blueprint.</em>

A quantitative framework of firm dynamics is developed where the size of the informal sector is determined by financial constraints and the burden of taxation. Improving access to credit for formal sector firms increases aggregate total factor productivity and output while reducing the size of the informal sector. Introducing size-dependent taxes reduces the gains from financial development as they incentivize firms to produce at a relatively limited scale. The aggregate effects of eliminating formal sector registration costs are positive but modest relative to previous theoretical models and the gains generated by financial development, and consistent with empirical evidence based on micro-level data.

Abstract We study the effects of domestic trade liberalisation on labour markets in Botswana. South Africa is the dominant member of the Southern Africa Customs Union. As such, when South Africa liberalised trade in the 1990s, this induced large and plausibly exogenous tariff reductions for the other customs union members, including Botswana. Using labour force surveys from Botswana spanning a decade, we find that trade liberalisation did not affect the relative size of industries in terms of employment. However, trade liberalisation had effects within industries. We find an increase in the prevalence of working in an informal firm and self-employment, but mixed evidence of effects on unemployment. Hours worked decreased in response to trade liberalisation, partially driven by the movement of workers to informal firms. Despite large increases in aggregate income, trade liberalisation is associated with a reduction in monthly income, but the results are imprecise. Our results also suggest that a positive export demand shock, the 2000 African Growth and Opportunities Act, is associated with a reduction in employment in informal firms in the clothing industry.

Purpose The purpose of this paper is to assess the management of the public sector health workforce in Botswana. Using institutional frameworks it aims to document and analyse human resource management (HRM) practices, and make recommendations to improve employee and health system outcomes. Design/methodology/approach The paper draws from a large study that used a mixed methods approach to assess performance of Botswana’s Ministry of Health (MOH). It uses data collected through document analysis and in-depth interviews of 54 key informants comprising policy makers, senior staff of the MOH and its stakeholder organizations. Findings Public health sector HRM in Botswana has experienced inadequate planning, poor deployment and underutilization of staff. Lack of comprehensive retention strategies and poor working conditions contributed to the failure to attract and retain skilled personnel. Relationships with both formal and informal environments affected HRM performance. Research limitations/implications While document review was a major source of data for this paper, the weaknesses in the human resource information system limited availability of data. Practical implications This paper presents an argument for the need for consideration of formal and informal environments in developing effective HRM strategies. Originality/value This research provides a rare system-wide approach to health HRM in a Sub-Saharan African country. It contributes to the literature and evidence needed to guide HRM policy decisions and practices

This thesis analyzes the estimation procedures and policy implications of an underground economy. In completing this task, we reviewed the techniques developed by Gutmann, Ferge, Tanzi, and others. Further attention was also given to the estimation processes, such as the survey approaches, used by various governments.
In analyzing the policy implications of an underground economy, we examined the effects of fiscal and monetary policy, the aggregate statistics, the exchange rate, and other equally important indicators. We concluded that the consequences of a large and growing submerged sector can be devastating to the economic variables.
Finally, this paper attempts to examine the Canadian underground economy. However, since the studies performed on the Canadian underground economy are limited, the task of both reviewing the literature, and determining the Canadian policy implications was perplexing. We concluded that there is a definite need for further study of the Canadian hidden sector.

In spite of the fact that informal traders in the informal economy are viewed as having the greatest prospects for creating jobs and absorbing the unemployed in developing countries, informal traders in Limpopo Province in general, and the city of Polokwane in particular, face various constraints that negatively affect them on a daily basis. The aim of the study has been to explore the constraints and opportunities of informal traders, using the city of Polokwane as a case study. The study has attempted to identify and describe constraints that affect informal traders in the Polokwane city, as well as factors that can enhance their development and growth. The study is exploratory, descriptive and qualitative in nature. Semi-structured faceto-face interviews were conducted to gather data. Findings of the study suggest that the government should improve the effectiveness of its support mechanisms by initiating targeted support programmes specifically tailored for informal traders at the survivalist level.

Includes bibliographical references.
The relationship between financial development and economic growth has received a lot of attention in economic literature. Most of the findings indicate a positive impact of financial development on economic growth. Despite its under developed financial sector since independence, Botswana has been experiencing a steady economic growth. This has been mainly attributed to mineral deposits which may not be sustainable in the long run. As is Government policy to diversify the economy away from mining, this paper analyses the contribution of financial sector development to economic growth in Botswana using econometric techniques such as the cointegration vector autoregression approach.

Bibliography: leaves 45-49.
There is considerable controversy on the role and impact of foreign direct investment (FDI) on economic growth in developing countries. Empirical studies show inconclusive results. For countries that rely heavily on a single commodity for the bulk of their export revenue, foreign investment is seen as a means by which export diversification can be promoted. Botswana relies heavily on diamond exports and the government has long realised the need for economic diversification. Measures which have been put into place to diversify the economy include a range of policies aimed at promoting sectors such as manufacturing, agriculture, financial services, tourism and construction. An investigation of whether the government's initiatives to diversify the economy are bearing fruit is thus necessary. This study attempts such an analysis by focusing on developments in the manufacturing sector. It examines the role and impact of FDI in Botswana's economy by investigating the pattern of investment and export behaviour of the country's foreign-owned manufacturing firms. More specifically, the factors that hinder or encourage FDI in the country are also investigated. The study uses survey and secondary data to examine these research problems. The findings from the survey data reveal that there is hope for the manufacturing sector in Botswana. The sector can become more export-oriented if problems like low labour productivity, the shortage of skilled labour and high interest rates charged by financial institutions can be attended to. In addition, foreign investors interviewed also felt that government incentives, particularly financial ones, primarily benefit citizen or domestic firms. The major policy recommendations that emerge are that the government should continue to encourage foreign direct investment as foreign firms are employment generating. Also, government should continue to promote the manufacturing sector and other non-mining sectors to diversify the country's production base. Moreover, incentives geared towards foreign investors, particularly exporters should be introduced.

Financial services to the poor are seen as a principal way to achieve goals of poverty reduction and job creation. This study explores the dynamic of microcredit clients with informal sector characteristics.

These characteristics include number of employees, registration status, having a permanent address, being based at home, being based in an open space, operating from a temporary place, and government support of businesses. In recent years, the informal sector on the West Bank has grown to become a major source of job creation for poor Palestinians. Using data collected by the author, this study finds that a majority of the responding microcredit clients are in the informal sector and some of them use microcredit to create a job for themselves because they had no alternative. There is some interest directed towards formal registration from lenders and borrowers, while general progress, in terms of formalization, is found to be fairly insignificant. Finally, we do not find that microcredit increases the probability of less informal sector characteristics acknowledged by microcredit clients. Therefore, while other factors may explain lack of formalization, microcredit is found not to provide enough stimulus on its own to lead questionnaire respondents away from the informal sector.

Bibliography: leaves 158-177.
The aim of the thesis is to use a particular set of informal sellers in central Cape Town to focus study on aspects of informal sellers that have not previously been given high priority in analysis of the informal economic sector. In so doing, insight into the perceptions of informal sellers (in terms of their work or informal selling situation) and an evaluation of the relationships between informal sellers, the formal sector and government authorities will be gleaned. The work is based on, and extends, data provided by an in-depth Cape Town City Council survey conducted in 1985. The specific objectives of the study are, firstly, to provide comparisons on the number of informal selling outlets over a one year time period. Secondly, to identify and analyse the characteristics and locations of informal selling outlets. Thirdly, to investigate and analyse the operation of the different types of informal selling outlets in some detail. In particular, the backward and forward linkages affecting such outlets will be the focus of attention. In addition, it is intended to establish the attitudes of the formal sector and government authorities towards informal sellers, and vice versa.

This chapter reflects on the relationship existing between the state and the informal sector in Botswana. Despite embracing global calls for inclusive human settlements, the relationship between the state and the informal sector in Botswana equivocates between hostility and tacit recognition. This ambiguity is explained in terms of two overlapping stances, namely, the elitist and exclusionist natures of the country's settlement planning legislation. Botswana's settlement planning legislation plays a significant role in the creation of the informal sector, yet the existence of this same sector would not be openly embraced. Relying on the concept of human rights and justice implied in calls such as “just cities,” “right to the city,” and “sustainable livelihoods,” this chapter makes a case for coproduction of interventions with a view to establishing inclusive and sustainable human settlements that recognize the unavoidable nature of the informal sector.

This report maps the African landscape of Open Science – with a focus on Open Data as a sub-set of Open Science. Data to inform the landscape study were collected through a variety of methods, including surveys, desk research, engagement with a community of practice, networking with stakeholders, participation in conferences, case study presentations, and workshops hosted. Although the majority of African countries (35 of 54) demonstrates commitment to science through its investment in research and development (R&D), academies of science, ministries of science and technology, policies, recognition of research, and participation in the Science Granting Councils Initiative (SGCI), the following countries demonstrate the highest commitment and political willingness to invest in science: Botswana, Ethiopia, Kenya, Senegal, South Africa, Tanzania, and Uganda. In addition to existing policies in Science, Technology and Innovation (STI), the following countries have made progress towards Open Data policies: Botswana, Kenya, Madagascar, Mauritius, South Africa and Uganda. Only two African countries (Kenya and South Africa) at this stage contribute 0.8% of its GDP (Gross Domestic Product) to R&D (Research and Development), which is the closest to the AU’s (African Union’s) suggested 1%. Countries such as Lesotho and Madagascar ranked as 0%, while the R&D expenditure for 24 African countries is unknown. In addition to this, science globally has become fully dependent on stable ICT (Information and Communication Technologies) infrastructure, which includes connectivity/bandwidth, high performance computing facilities and data services. This is especially applicable since countries globally are finding themselves in the midst of the 4th Industrial Revolution (4IR), which is not only “about” data, but which “is” data. According to an article1 by Alan Marcus (2015) (Senior Director, Head of Information Technology and Telecommunications Industries, World Economic Forum), “At its core, data represents a post-industrial opportunity. Its uses have unprecedented complexity, velocity and global reach. As digital communications become ubiquitous, data will rule in a world where nearly everyone and everything is connected in real time. That will require a highly reliable, secure and available infrastructure at its core, and innovation at the edge.” Every industry is affected as part of this revolution – also science. An important component of the digital transformation is “trust” – people must be able to trust that governments and all other industries (including the science sector), adequately handle and protect their data. This requires accountability on a global level, and digital industries must embrace the change and go for a higher standard of protection. “This will reassure consumers and citizens, benefitting the whole digital economy”, says Marcus. A stable and secure information and communication technologies (ICT) infrastructure – currently provided by the National Research and Education Networks (NRENs) – is key to advance collaboration in science. The AfricaConnect2 project (AfricaConnect (2012–2014) and AfricaConnect2 (2016–2018)) through establishing connectivity between National Research and Education Networks (NRENs), is planning to roll out AfricaConnect3 by the end of 2019. The concern however is that selected African governments (with the exception of a few countries such as South Africa, Mozambique, Ethiopia and others) have low awareness of the impact the Internet has today on all societal levels, how much ICT (and the 4th Industrial Revolution) have affected research, and the added value an NREN can bring to higher education and research in addressing the respective needs, which is far more complex than simply providing connectivity. Apart from more commitment and investment in R&D, African governments – to become and remain part of the 4th Industrial Revolution – have no option other than to acknowledge and commit to the role NRENs play in advancing science towards addressing the SDG (Sustainable Development Goals). For successful collaboration and direction, it is fundamental that policies within one country are aligned with one another. Alignment on continental level is crucial for the future Pan-African African Open Science Platform to be successful. Both the HIPSSA ((Harmonization of ICT Policies in Sub-Saharan Africa)3 project and WATRA (the West Africa Telecommunications Regulators Assembly)4, have made progress towards the regulation of the telecom sector, and in particular of bottlenecks which curb the development of competition among ISPs. A study under HIPSSA identified potential bottlenecks in access at an affordable price to the international capacity of submarine cables and suggested means and tools used by regulators to remedy them. Work on the recommended measures and making them operational continues in collaboration with WATRA. In addition to sufficient bandwidth and connectivity, high-performance computing facilities and services in support of data sharing are also required. The South African National Integrated Cyberinfrastructure System5 (NICIS) has made great progress in planning and setting up a cyberinfrastructure ecosystem in support of collaborative science and data sharing. The regional Southern African Development Community6 (SADC) Cyber-infrastructure Framework provides a valuable roadmap towards high-speed Internet, developing human capacity and skills in ICT technologies, high- performance computing and more. The following countries have been identified as having high-performance computing facilities, some as a result of the Square Kilometre Array7 (SKA) partnership: Botswana, Ghana, Kenya, Madagascar, Mozambique, Mauritius, Namibia, South Africa, Tunisia, and Zambia. More and more NRENs – especially the Level 6 NRENs 8 (Algeria, Egypt, Kenya, South Africa, and recently Zambia) – are exploring offering additional services; also in support of data sharing and transfer. The following NRENs already allow for running data-intensive applications and sharing of high-end computing assets, bio-modelling and computation on high-performance/ supercomputers: KENET (Kenya), TENET (South Africa), RENU (Uganda), ZAMREN (Zambia), EUN (Egypt) and ARN (Algeria). Fifteen higher education training institutions from eight African countries (Botswana, Benin, Kenya, Nigeria, Rwanda, South Africa, Sudan, and Tanzania) have been identified as offering formal courses on data science. In addition to formal degrees, a number of international short courses have been developed and free international online courses are also available as an option to build capacity and integrate as part of curricula. The small number of higher education or research intensive institutions offering data science is however insufficient, and there is a desperate need for more training in data science. The CODATA-RDA Schools of Research Data Science aim at addressing the continental need for foundational data skills across all disciplines, along with training conducted by The Carpentries 9 programme (specifically Data Carpentry 10 ). Thus far, CODATA-RDA schools in collaboration with AOSP, integrating content from Data Carpentry, were presented in Rwanda (in 2018), and during17-29 June 2019, in Ethiopia. Awareness regarding Open Science (including Open Data) is evident through the 12 Open Science-related Open Access/Open Data/Open Science declarations and agreements endorsed or signed by African governments; 200 Open Access journals from Africa registered on the Directory of Open Access Journals (DOAJ); 174 Open Access institutional research repositories registered on openDOAR (Directory of Open Access Repositories); 33 Open Access/Open Science policies registered on ROARMAP (Registry of Open Access Repository Mandates and Policies); 24 data repositories registered with the Registry of Data Repositories (re3data.org) (although the pilot project identified 66 research data repositories); and one data repository assigned the CoreTrustSeal. Although this is a start, far more needs to be done to align African data curation and research practices with global standards. Funding to conduct research remains a challenge. African researchers mostly fund their own research, and there are little incentives for them to make their research and accompanying data sets openly accessible. Funding and peer recognition, along with an enabling research environment conducive for research, are regarded as major incentives. The landscape report concludes with a number of concerns towards sharing research data openly, as well as challenges in terms of Open Data policy, ICT infrastructure supportive of data sharing, capacity building, lack of skills, and the need for incentives. Although great progress has been made in terms of Open Science and Open Data practices, more awareness needs to be created and further advocacy efforts are required for buy-in from African governments. A federated African Open Science Platform (AOSP) will not only encourage more collaboration among researchers in addressing the SDGs, but it will also benefit the many stakeholders identified as part of the pilot phase. The time is now, for governments in Africa, to acknowledge the important role of science in general, but specifically Open Science and Open Data, through developing and aligning the relevant policies, investing in an ICT infrastructure conducive for data sharing through committing funding to making NRENs financially sustainable, incentivising open research practices by scientists, and creating opportunities for more scientists and stakeholders across all disciplines to be trained in data management.