Macroeconomics of Botswana Research Paper Example | Topics and Well Written Essays - 1250 words

Macroeconomics of Botswana - Research Paper Example ional firm of diamond contracted a ten-year agreement with Botswana to shift Botswana’s sorting of rough stone and division of trading by 2013, from London to Gaborone. This transformation will help support the decline of industry of diamond in Botswana, (Norda?s, Gilbert and Gloria 52). The economic freedom of Botswana ranges to about 70.6, achieving the 30th position of the freest economy in the index of 2013. It has an average score of 1.0 point grater that 2012 mainly because of progressive improvements in liberty from economic corruption and government expenditure management. The country is the second in forty-six nations in the region of Sub-Saharan Africa and has average score greater than the global and regional averages. The economy of Botswana is expanding mainly due to foreign investment fueled by reduced taxes, stability in political structure and climate and an extensively educated labor force. Botswana is a better example in extensive natural resources endowments , (Phirinyane 23). Corruption level is low in Botswana and an independent judiciary enacts agreements efficiently and safeguards property rights. A relatively efficient regulatory environment and open trade policies have underpinned competitiveness, whereas exports of diamond have reinforced effective foreign exchange flows. The department of finance is effectively developed, with a reliable central bank as well as minimal interventions by the government. Even though, the public debts are still low, the administration has attempted consolidation of fiscal to lower increased deficits of the global meltdown. The outstanding external level of debts of Botswana remains low and sustainable based of surpluses of perennial budget and extensive external policies of debts, irrespective of its current... This paper explores the economy of Botswana with specific emphasis on market labor, economic growth, taxes, debts and key factors, that impact economic growth of the nation. Botswana has been among the top popular world’s economic rate of growth starting independence. Nevertheless, the growth of economy was slow in 2009, with thirty percent decline of industrial sector, after the worldwide crisis minimized the Botswana’s diamonds demand. Even though, the Botswana witnessed economic recovery in 2010, the growth of GDP has similarly reduced. Via fiscal discipline as well as proper management, the country regenerated itself from the slowest economically growing nation and attained a middle-income nation with about sixteen thousand and eight hundred dollar GDP per capita by 2012. The economic freedom of Botswana ranges to about 70.6, achieving the 30th position of the freest economy in the index of 2013. It has an average score of 1.0 point grater that 2012 mainly because of progressive improvements in liberty from economic corruption and government expenditure management. The country is the second in forty-six nations in the region of Sub-Saharan Africa and has average score greater than the global and regional averages. The economy of Botswana is expanding mainly due to foreign investment fueled by reduced taxes, stability in political structure and climate and extensively educated labor force. The labor market of Botswana experiences constraints like increased unemployment levels and mismatch among supply and demand of labor.