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  • Essay / Botswana's economy depends on diamond mining - 1277

    1. INTRODUCTIONIt is a well-known fact that Botswana's economy is based on mineral resources, particularly diamonds. Thus, since the economic crisis of 2008, the diamond market has not flourished as before, prompting the government of Botswana to find ways to diversify the economy and reduce its dependence on the mining sector . The country's main challenge now is to diversify its economy and reduce its heavy dependence on diamond revenues. Therefore, in 2010, the Economic Diversification Campaign was launched with the aim of finding ways to diversify the country's economy. According to Botswana's economic diversification strategy, "economic diversification means diversifying a country's sources of economic growth and income in such a way that the country becomes more or less equally dependent on all sectors of the economy." This means that an economy is diversified if no single sector can be chosen as a major driver of growth. LITERATURE REVIEWBotswana's economy remains heavily dependent on diamond mining, while the private sector, considered essential in the diversification strategy, continues to be superficial and narrow. , with low intersectoral diversity and weak production links. Lesego Sekwati (2010). This situation is compounded by the fact that there are many policies in the country that are supposed to encourage diversification, but they are not well implemented. Furthermore, monitoring of these policies has not been a priority, leading to a failure of diversification. Additionally, the lack of private sector development has contributed to the challenge the country faces in diversification. Economic diversification holds great potential to increase Africa's resilience and would help achieve and maintain...... middle of paper ...... when it comes to responding to economic developments that offer opportunities to strengthen diversification. Also with the development of the economic diversification strategy, some of the challenges the country faces in diversifying its economy. But governance issues must be taken into account because even with a diversification strategy, if no measures are put in place, all efforts will be in vain and constitute a waste of public funds which could be better used elsewhere.4. REFERENCES1. Government of Botswana (2011) Economic Diversification Drive Medium to Long-Term Strategy 2011 – 2016, Ministry of Trade and Industry, Gaborone.2. Sekwati, L. (2010). Botswana: a note on economic diversification. Botswana Journal of Economics 7(11), 79-85.3. United Nations OSAA (2011) Economic Diversification in Africa: Review of Selected Countries, United Nations.