29 January, 2007
Botswana Ranked 3rd In Africa On Global Competitiveness Index

The World Economic Forum Report has ranked Botswana 81st on the Global Competitiveness Index 2006-2007.
The report states that, "Botswana has been relatively successful, ranking 81st, the third best performance in sub-Saharan Africa after South Africa (45th) and Mauritius (55th). The report further says that the government succeeded in using its wealth from key natural resources and diamonds to boost the country's growth rate. On Institution and Infrastructural development Botswana ranked 37 and 46 respectively."

"Key to Botswana's success were its reliable and legitimate institutions, ranking a high 18th worldwide for wastefulness of government spending, and 26th for public trust of politicians. Botswana is known to be one of the countries with the lowest levels of corruption and graft in Africa. The transparency and accountability of public institutions has contributed to a stable macroeconomic environment, efficient bureaucracy, and market-friendly regulation," the report states.

However, an economist at the University of Botswana said the rankings should be taken with a pinch of salt. "Botswana can do better," he said. We need to establish a robust financial market, reduce inflation, and keep the cost of investment capital moderate. The rankings means that we have better liberated our markets and have relaxed our financial regulations adding, "We should encourage export led production and benefit from our competitiveness instead on being importers only," he said.

He also said to become more competitive and attract foreign investors we need to make a deliberate effort to diversify the economy and develop a market for other goods and services.

The World Economic Forum is an annual meeting where top politicians meet CEO's of big companies and scholars to discuss the economic problems of our age.

Swiss Professor Klaus Schwab started the World Economic forum in 1971, and invited European chief executives to Davos to discuss business strategy.

Over the years the event widened its agenda and attracted ever more prominent guests, which in turn made it interesting for yet more influential participants. The forum is now run as a not-for-profit member-based organisation.

The paying members are about 1,000 big companies, while non-business participants attend meetings for free.

By Benedice Sibanda - Correspondent
MMEGI MONITOR; 29/01/07