INTRODUCTION TO DEVELOPMENT STUDIES

Paper I Examination Rules

- Do no repeat any term/phrase/word that you are asked to define in your definition e.g. you
cannot say ‘Rural-urban migration is the migration of people from rural to urban areas’

- List, give, mention, state only when you are asked to do so, i.e. do not list, give, mention or
state when you are asked to describe, discuss, explain, etc. However, link your point(s) to the
stem

- When asked to describe, discuss, explain etc. write in continuous prose giving full details

- Do not set yourself an item or substitute words in the question with your own, i.e. answer a
question the way it has been asked, e.g. when a question asks you to describe characteristics
of Developing countries do exactly that, write in details the features of Developing
countries.
Do not instead substitute Developing countries with ‘Third World countries’ or ‘Countries
of the South’ etc. because by so doing you are setting yourself a question i.e. you are not
answering the question the way it has been asked

- When asked to compare or contrast, always start with the former and move to the latter,
e.g. when a question asks you to compare ‘labour intensive mode of production’ to ‘capital
intensive’ always start every point you will raise with ‘labour intensive’ (the former) and
compare it to/with ‘capital intensive’ (the latter)
- Do not draw a table when you are asked to compare or contrast. The
table limits you to give full details of what you are asked to compare or contrast
e.g.
Labour Intensive Capital Intensive
- cheap - expensive
- simple technology - advanced/complex technology

- When asked to compare/contrast, do not write independent paragraphs of the concepts/terms

you are asked to compare/contrast, compare/contrast one factor to another

- Do not leave points undeveloped/hanging. Always write to the full and drive your points
home. Always link your points to what the question asks

- Your points must always have a stem and a locus, e.g. if a question asks you to ‘Discuss the
negative effects of rural-urban migration on rural areas’, the locus is the ‘rural area’ and the
stem is ‘negative effects of rural-urban migration’. This is to say that in all the points you
raise, the stem and the locus of the question must come out clearly in your answer.

- Avoid negative answering at all costs, e.g.

1) ‘GNP per capita is not a good measure of development because it does not include all
production’ instead write ‘GNP per capita ignores the informal sector of the economy;

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economists only count goods and services sold legally and / or marketed openly and recorded by
government’.
2) ‘Menstruating women are not allowed to pass through a herd of cattle so as to discourage
them from owning them cattle’ instead write ‘Menstruating women are forbidden to pass through
a herd of cattle so as to discourage them from owning cattle’.
3) ‘Labour intensive mode of production is not an expensive method of production’ instead write
‘Labour intensive mode of production is a cheap method of production’

- Always use opening sentences

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 MODULE 1

MEASURING AND INVESTIGATING DEVELOPMENT

What is Development?

The concept “Development” cannot be pinned down to one definition. In other words,
the word Development can be defined in number of ways, which include:
-It is the process of growth and change in societies that makes people richer, healthier,
better fed, more educated, happier and free.
-When societies change for the better
-when the economy grows
-Improvement in the standards of living of the people or when the quality of life of the
people improves
-when wealth is shared more fairly
-When more people participate in decision making
-It may also refer to more productivity or more goods for the people.

Countries of the world are divided into categories according to their development
characteristics. These categories include: Developed countries (DCs) or countries of the
North or the First World, the Second World, and Developing countries or Less
Developed Countries (LDCs) or Countries of the south or Third countries.

Developed countries (DCs) or the First World Countries or Countries of the North
include countries of western Europe e.g. France, Britain, Germany, Belgium, Sweden,
Spain etc, the United States of America, Canada, Australia, New Zealand, Japan, and
South Korea.

The Second World includes the former Socialist or Communist bloc such as the former
Union of Soviet Socialist Republics, China, Cuba, Yugoslavia, Czechoslovak etc.

The third world countries are the developing countries of the world i.e. mainly African
countries, Asia and Latin America (South America).

Countries of the world became divided or categorized into the first world countries,
second and third world countries after the second world war when western European
countries, USA and Canada adapted capitalism and called themselves the first world.

The former USSR, some eastern European countries, China, Cuba etc adapted socialism
or communism and called themselves the second world.

ASPECTS OF DEVELOPMENT

Development includes different areas of development concentrations normally referred to

as aspects of development. These include;

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 i) Social Development

This is when people have better standards of living and all their basic
needs have been meet; that is:
-Better and more shelter/housing
-Good and accessible health care/ more clinics and hospitals
-Access to education/more schools
-Enough healthy food for all
-Access to clean water.
-Clothing
People’s living standards should be raised/ upgraded through the provision, medicine,
water, etc. This can only be achieved through relevant economic growth processes e. g
using relevant technology, local resources & experiences to construct infrastructure.

It can also be improved through the exploitation of local natural resources e. g mineral
wealth, wildlife, forestry, etc. lastly it can be improved through the improvement of the
human resources i. e relevant education and training of a country’s citizens.

ii) Political Development

This is when people have freedom and justice, and more control over their lives.
A development process should create conditions necessary to the growth of people’s self
esteem. Self-esteem can be realized by establishing relevant social, economic & political
systems & establishment of institutions which provide dignity and respect.
Development should accord an individual the chance to choose what she/he wants to be.

People should be free from discrimination & should have the chance to develop their
potential i.e. to what they want to be. They should participate in the decision making
process at both local & national levels. They should be in a position to exercise their
rights. For Political development to be achieved, the following should be met;

-Freedom of expression, religion, association, movement etc

-Fair and impartial justice
-Democratic, free and fair elections
-Institutions and laws that protect people’s rights: that is the respect for human rights.

iii) Economic Development

-This is when the country produces more and gets richer/ wealthier.
It is characterized by:
-Wider range/choice of goods and services

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 -Higher incomes/wages
-Higher productivity
-More industries/factories
-Better and improved technology
-Higher levels of employment.
Development occurs when various systems interact to cause changes.

WAYS OF MEASURING DEVELOPMENT

Development can be measured through several ways notably social, economic &
political.

ECONOMIC INDICATORS

Those elements that show how people provide for their daily needs and generate wealth.

These include:

 Gross national product

 Gross national product per capita (per head)
 Gross domestic product
 Calories intake
 Daily food supply
 Energy use
 No. of people engaged in agriculture

SOCIAL INDICATORS

Those elements that show the day to day welfare of the people.

 Life expectancy
 Death rate
 Birth rate
 Dependency ratio
 Adult literacy
 Infant mortality rate (IMR)
 Student-teacher ratio
 Doctor-patient ratio
 School enrolment

POLITICAL INDICATORS

Those elements that show how people are involved in decision making & how their rights
are handled.

 Justice

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  Democracy
 freedom

ECONOMIC INDICATORS

-daily food supply

This refers to how often one has food within a day. It also refers to the quality of food i.
e. less developed countries a majority of people have a single meal a day and this meal is
not balanced & most of the time it is not there. In developed countries the food is
balanced. So for a country to be regarded as a developed country people should have
more meals as well as eating quality and balanced meals.

-Gross national product

this is the money value of all goods & services within & outside a country. Goods and
services (skilled manpower) outside a country include loans, grants, expatriate workers &
remittances (those who work outside). This can be used to measure development i.e. if
GNP for 1998 exceeds GNP for 1997 we can say that a country is developing. If the
opposite is true then the country is underdeveloped.

-Gross domestic product

the total money value of goods & services produced within a country. If GDP for country
D in 2004 exceeds for the same country in 2003, it means a country is developing.

-GNP Per Capita

This is the money that each individual is entitled to get if the money is shared equally. It
is calculated by dividing the total money GNP by the total population.

-calories intake
This refers to the energy value of the food eaten. It indicates the energy value of an
average diet of a country. The required world health organization standard is 3000
kilojoules & a country with less than this is less developed while one with more than this
is advanced.

-Labour force employed in agriculture

This is expressed as a % of the total workforce. In developed countries we have highly
scientific and mechanised production thus low labour in agric. In less developed
countries we have traditional methods which are labour intensive hence a larger % of the
labor force.

-Energy consumption
It is measured in KGs of equivalents, i.e. the amount of power that can be derived from a
KG OF coal whether it is produced by oil, gas, wood, solar power, nuclear power or
otherwise. LDCs have low energy consumption as production is highly traditional not

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scientific while in developing countries energy consumptions is very higher either
because of industrialization, domestic use or telecommunications.

SOCIAL INDICATIORS

-life expectancy at birth

This indicates the number of average years an individual is expected to live.
This varies from one country to the other because of the inadequacy of health facilities
and food supplies. LDCs have a low life expectancy e.g. Mozambique is 51 years whilst
developed countries have a higher life expectancy e.g. the UK is 92 years.

-infant mortality rate

The % number of babies/children who die before their first birthday per thousand
populations. If IMR is high then the country is less developed. If it is low then the
country is developing. High IMR is due to lack of medical facilities etc.

-dependency ratio
This refers to the people under the age of 15 years as groups to those of the working
group i.e. 15 to 65n years. The higher the dependency ratio the more the young group
population is and the less developed a country is. The less the dependency ratio the older
the population is and the more developed a country is.

-availability of social amenities/services

Water, electricity, telecommunications network & housing. The more these are available
to an average, the more a country is developed & the less they are the less a country is
developed.

-Education (adult literacy rate)

This shows the % of adult population that can read and write. The higher it is the more
developed a country is & the less it becomes the less developed a country is.

A.L.R. COUNTRY
47% Kenya 17.3 million 99% 18% 1%
15% Ethiopia 31.8 million 39% 9% 1>
79% Tanzania 19.14 100% 39% >1
million

-Student-teacher ratio
In 1981 the student-teacher ratio was as follows;
Kenya …..1: 52
Uganda …..1: 452
Tanzania …1: 182
Angola ……1: 244

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Population = 4.349million

Uganda is the only country close to 1.25, the UNESCO requirement.

HEALTH CARE
This involves the establishment of hospitals, clinics & health posts in various parts of the
country. Health care has an influence on the IMR & the death rate i.e. if poor people are
going to die (IMR high & low life expectancy). E.g.

1981 Infant mortality Doctor-patient Access to safe

rate ratio water drinking
Kenya 8.1% 1: 10 500 17%
Uganda 9.7% 1: 20 810 35%
Tanzania 10.3% 1: 17 560 39%
Ethiopia 14.6% 1: 58 490 6%
Somalia 14.6% 1: 14 290 33%

POLITICAL INDICATORS

It is very difficult to measure political indicators for it is not easy to say how democratic
a country is or the standard of justice in a country. Political indicators include the
following;

-democracy
This is the government of the people by the people and for the people defined by
Abraham Lincoln. Democracy is whereby people have a say in the decision making in
their country. It is not easy to say how democratic a country is. To some people
democracy means having many political parties whilst to others it means popular
participation in decision making at grass root level.

-freedom
People should have a chance to participate in the decision making process. They should
also have freedom of speech, choice & enterprise & as well as freedom of association.
However, freedom here refers to freedom from social ills, ignorance & from poverty. It is
not easy to measure if a country has freedom because this depends on the ideology of a
country.

-justice
This refers to fair treatment under law. People should be treated equally and taken to be
the same under the law. They should not be discriminated because of colour, ethnicity,
region etc. justice should be delivered in the shortest possible time for justice delayed is
justice denied.

GUIDELINES FOR POLITICAL INDICATORS

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  % people who vote in elections
 % of women in managerial positions
 Human rights ratings are given to identify which country allows their citizens the
greatest amount of freedom and access to basic human rights.

DEVELOPING & DEVELOPED COUNTRIES

-DEVELOPED COUNTRIES
These are mostly countries of Western Europe, North America, Australia, Japan & New
Zealand. These countries are economically advanced & sustained & experienced long
time economic growth. They are in most cases self reliant in things like food production,
manpower & skills.

These also include the economically advanced socialist countries such as the former
Soviet Union, Western Europe (Poland, the Czech Republic & Yugoslavia).

Characteristics of developed countries

-high standards of living

In these countries the quality & quantity of health facilities, food, education & other
facilities are high.

-high GNP Per Capita

Developed countries have a high distribution of the national income.

-relatively high growth rates of GNP, GDP &GNP/PI

The economies are growing fast.

-low levels of unemployed, underemployed & misplacement

Underemployed means employed in a lower section of the economy e.g. being employed
to teach in a primary school while you were trained to teach in a secondary school.

Misplacement means working in a category which you were not trained for e.g. taking a
medical doctor to be a personal secretary.

-high life expectancy

People in developed countries are expected to live for longer period of time e.g. on
average the life expectancy is about 70 – 90 years. For low birth rates – in developed
countries the birth rates are low and in some cases it goes to zero.

-low infant mortality

The number of babies who die before their first birthday is low in developed countries.

-low death rates

The death rate in developed countries is low due to high standards of living.

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-high adult literacy
The % of educated adults in developed countries is high just around 95%. This results in
high standards of living.

N.B.
The other name of developed countries is countries of the north, group 7 countries, and
industrialized countries.

-reduced poverty
Many people in these countries have enough to feed themselves.

-adequate health facilities & medication

Medical facilities in developed countries are enough & of high standard.

-diversified economies
Developed countries do not have mono economies neither are they export oriented or
heavily dependent on agriculture. They instead depend mostly on the secondary &
tertiary sectors. They specialize on large scale production than small scale production.

CHARACTERISTICS OF DEVELOPING COUNTRIES (LDCs)

-high birth rates

Since there is poor knowledge and use of contraceptives, birth rates in developing
countries are high & these leads to high population growth rates.

-high levels of unemployment

This is due to few job opportunities in developing countries since their economies grow
slowly while their population grows very fast.

-low standards of living

The provision of basic social amenities is not adequate hence poor standards of living.

-low growth rates of GDP, GNP & GNP/PI

Economic growth in developing countries is very low because of lower investment, little
diversification, lack of capital & lower technology.

-lower life expectancy at birth

The average age which a person is expected to reach is low in developing countries
because of poor medical facilities, poor diets & generally low standards of living. It
ranges from 50 – 60 years & in some countries it is less.

-high infant mortality rate

The number of babies who die before their first birthday per thousand live births in
developing countries is high because of poor health care & poor diet (nutrition).

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-inadequate health facilities & medicine
Health facilities in developing countries are not enough & this leads to high infant
mortality & high death rates.

-low per capita income

The average wealth for each person in developing countries is low.

-increased poverty
Population growth rates in developing countries overwhelm economic growth hence low
distribution of income & increased poverty. The resources of a country are not adequate
for the citizens.

-high dependency ratio

The number of people aged 15 and below (children) is high in developing countries. This
leads to high dependency ratio since there are more dependents than people who are
productive. There are more people aged 15 and below than people aged between 18- 65.

-reliance on mono-economies
Developing countries depend on one type of production/product. There is little
diversification of developing countries’ economies.

-reliance on agriculture (primary product)

The majority of the people are dependent on agric for employment. There is little
industrial production in developing countries hence primary production offers great job
opportunities.

NEWLY INDUSTRIALISING COUNTRIES (NICs)

Another group of countries (division/category) has just emerged. This group is known as
newly industrializing countries. These are countries which have rapidly industrialized in
the recent years. Originally these countries belonged to the third world or less developed
category but have recently graduated. Many of the NICs such as Thailand, south Korea,
Taiwan, Hong Kong, Philippines, India, Singapore, Indonesia & Malaysia are found in
south-east Asia & are also known as the ‘Asian tigers’. Some of the members include
Argentina, Brazil, Egypt, China, Mexico & Turkey.

Problems of using GNP Per Capita as a measure of development

- the difference within countries, between rich and poor are not shown
- it ignores the informal sector, illegal activities, drug trafficking & prostitution.
Economists only count goods and services marketed openly and recorded by
government.
- It ignores the quality of life, the social & environmental consequences of wealth.
- It assumes that everyone is working and benefiting from the economy and
ignores peoples’ happiness, satisfaction or well-being.
- Government statistics may be inaccurate, especially if people hide the amount
they earn in order to avoid paying taxes.
- Statistics may be outdated or used by certain writers to emphasize their own bias.

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 - Population figures are outdated because some countries cannot afford to make a
census or inflate/reduce figures for political reasons.

However, GNP Per Capita has some advantages which include the following;

- It is a standardized measure which allows easy comparison between countries.

- The data is available from the World Bank.
- It highlights international wealth differences.
- It is better than raw GNP measurement which ignores the size of the population,
or GDP which does not include investment from abroad.

CRITISISM FOR DIVIDING COUNTRIES INTO FIRST, SECOND & THIRD

WORLD
These divisions are no longer relevant because countries are now mainly capitalists or
mixed economies. Countries belonging to the eastern block or communist socialists block
have liberalized (reformed/changed) their economies & are geographically reformed the
Perestroika Mikael Gorbacheu.

The categorization was over simplistic because no country could be said to be really non
aligned. The categorization was patronizing to some countries especially the west but
offensive or prejudicial to others e.g. the south. This referred to the least or less
developed countries which are predominantly found in the southern hemisphere. These
countries were labeled that way by the Brandt report to the World Bank. On the contrary
the developed countries were named the north because the majority of them are found in
the northern hemisphere.

Criticism is geographically incorrect since some countries like Australia are developed
but found in the south, while some are geographically in the north but are very poor &
less developed e.g. Bangladesh. Categorization is not fixed since some countries were
labeled as developing or less developed but have now graduated or industrialized e.g. the
newly industrializing countries (NICs). The GNP of the world is generally rising hence
some countries labeled less developed cannot remain so forever.

Labeling or categorizing countries is also inappropriate because some categories are not
homogenous i.e. some countries in the same category are economically better than others.
Categorizing countries as less developed is very derogatory because it implies that some
countries feel they are much better than others.

REASONS FOR DIFFERENCES IN DEVELOPMENT LEVELS

-Resource distribution
Natural resources are not uniformly distributed world wide. There are countries which are
blessed to have some resources while others do not have such resources. As a result of
this uneven distribution some countries are developed & rich while others remain poor &
underdeveloped. Those with resources use the principle of comparative advantage
whereby they concentrate on the product in which they have raw materials in abundance
& perfect their production in order to earn more foreign exchange e.g., countries in the

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gulf or middle east are blessed with oil which they export to other countries. On the other
hand Botswana is blessed with diamonds & natural conditions for the production of beef.
It is because of this that some countries are generally richer than others since they have
this natural advantage.

-slavery & colonial legacy

Some countries especially in west Africa had between 13 & 19 million people sold into
slavery thus denying the region of its able-bodied personnel. This slowed down
development in the region boosted elsewhere especially in the United States of America,
Canada & Britain where they provided cheap labour in the plantations, mines &
industries. Most parts of the world were colonized by European powers or countries
notably Britain, France, Belgium, Germany, Italy, Spain & Portugal. These countries
stole & exported resources from the colonies to develop themselves hence they became
more developed than their subjects.

-political instability
Most developed regions of the world enjoy a political stable environment i.e. one without
wars or conflicts. Their governments are legitimate, transparent & democratic. On the
contrary most underdeveloped countries are engulfed by political strife i.e. civil wars,
genocides & political anarchy & as a result they are preoccupied with political conflicts.

-political will
It is the willingness by those in authority to guide & direct development. In most LDCs
the government lacks the willingness to guide their people into development. In most
cases this is the result of the fact that governments are lacking to command respect &
some are not even legitimate hence their lack of willingness to develop their countries.
On the contrary developed countries often have development oriented governments
which are willing to initiate development.

-technology
This refers to tools, machinery & skills of a society used in production. LDCs use simple
& often traditional ways of production which are poor or less productive. This is caused
by lack of money, facilities & even the political will to experiment on modern
technology. At times this is a result of the fact that these countries find it easy to depend
on the developed world than to experiment on their own technology. As a result of this
they produce poor goods low in both quality & quantity. Developed counties on the other
hand are experimental, they have capital, facilities & the political will. The result is that
the is & end up earning more foreign exchange.

-population pressure
LDCs have 75% of the world population hence they spend more of their resources in
providing for this population rather develop countries. In contrast developed countries
have 25% of the world population thus they spend spare money for their countries’
development & spend little for providing for a small country.

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-trade patterns
This refers to how countries relate in the buying & selling of goods to each other. LDCs
fall in unfavourable terms of trade (they gain a little from international trade while they
spend a lot). This is a result of the following;

 LDCs concentrate on the production of primary goods (raw materials). Raw

materials are cheap since they earn very little when sold in the world market
hence LDCs gain little from foreign exchange.

 Prices of raw materials are fluctuating & unreliable.

 Countries producing raw materials do not price them for themselves but rather the
products are priced by the consumers.

 Mono economy – most LDCs rely on one type of good or product/one sector of
production. When this product is existed prices fluctuate to the worst their
economy becomes very poor. E.g. Botswana relies on beef and diamond.

 Zambia on Copper

 Ghana on cocoa

 Tanzania on sisal

 Uganda on tea

 Zimbabwe on tobacco

 Kenya on coffee.

-trade restrictions:

Consumer countries decide for Less Developed Countries what to do and when to do
it, e.g. they decide on the quota i.e. the number of goods or items a Less Developed
Country should or should not fail to meet. Developed Countries also on the tariffs i.e.
tax on goods entering the country. They can even make Developing countries erect
quarantine camps or even slaughter livestock suspected of carrying a certain disease.

-culture:
This refers to the way people live and earn a living. Culture is generally conservative
(do not allow change) and sometimes it slows down or prevents development since
people are unwilling to take up innovations. For instance when contraceptives were
introduced to Botswana, people attached stigma to them, rather than seeing them as
new health services.

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 Difference between economic growth & economic development
-economic growth is the improvement/the increase of a country’s wealth (economic
indicators such as GNP Per Capita, employment).
Economic development is when all areas of human life i.e. political, social
&economic are made better or improved.

THEORIES OF DEVELOPMENT

A theory, according to the Longman Modern English Dictionary , is an organized body

of ideas as to the truth of something usually derived from the study of facts relating to it,
but sometimes as a result of exercising the speculative imagination. A theory is simply a
set of ideas offering an explanation about something or a scientific or social process.
Development on the other hand, refers to a positive in a country. It involves
improvements in the living standards of people which will make them better, happier &
free. Theories of development are attempts by various partners in the world to try &
explain how & why some countries are more developed than others basing on economic,
cultural, political & other sociological factors. Theories try to explain why some
countries depend on others.

Many theories that have been put forward are an attempt to explain & initiate the process
of economic development. It is however, unfortunate that there is no single theory which
fully explains the process of development. It is also very difficult for one to draw a
general conclusion from the experiences of some developed countries.

The only lesson that is learnt from these so-called developed countries is that growth &
development are a highly complex process. This is because they involve changes in
economic, social & political institutions. It is therefore established that there are loss of
economic development. No single theory can be used to explain the ways in which full
employment might be achieved in either developed or developing countries.

Since 1945 the world has been divided into 3 i.e. the capitalists/first world,
communist/second world, developing/third world. This situation has however, changed
with the USSR in the early 90’s. At the moment there are two prominent divisions i.e. the
north & the south or developed & developing. It should be noted that there are new
blocks emerging e.g. Newly Industrializing countries (NICs).

European development is linked with capitalism where raw materials & cheap labour
were needed for industrialization. This brought about colonialism (imperialism).
Europeans started settling in Africa, Asia & Latin America & used cheap labour to
produce raw materials to feed industries in their home countries. Colonialism started on a
massive scale & the industrialized countries experienced a great change in the structures
of their economies.

After the World War II the western economists believed that all countries in the world
could develop through trade & investment in industry & infrastructure. The idea of
division of labour & specialization became popular. The north specialized in industries

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while the south in the production of primary products. The south had to depend on the
north for manufactured goods. This therefore led to the divided world.

a)THE STAGES OF GROWTH THEORY OR MODERNISATION THEORY

This theory claims that the process of development is a transition between traditional &
modern/industrial societies. It was based on the belief that all societies will move forward
by becoming ‘modern’ in the same way as the countries of the north. For this reason the
theory suggests that developing countries should copy the development of the
industrialized countries. For this to happen the following should prevail;

 There should be division of labour where jobs become specialized.

 People should move from villages to cities i.e. urbanization.

 Subsistence agriculture should change to cash crop production & commercial

farming.

 There should be a political constitution according to which a government is

elected democratically.

 People should be prepared to change their traditional habits & take up new ideas.

 Formal education which stresses western values & capitalism should be taught.

 There should be mass production of cheap consumer goods. Wealth should trickle
down to everyone.

This theory was based on the fact that if enough capital is invested in industry &
infrastructure economy will grow & wealth will trickle down to everyone, standards of
living will therefore rise. This theory was influenced by Rostow’s theory of economic
growth. This theory (Rostow’s) suggests that GNP Per Capita would rise as a country
industrialized because more money could be made from manufactured goods than
primary products.

Implications
 The third world countries should invest a lot in industry & infrastructure.

 The LDCs should copy ideas from industrialized countries.

 People should be patient & not expect too much wealth until the economy grows
larger.

 There should be an educated workforce & scientific ways of production.

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Arguments for
The theory is supported on the ground that;

 The north developed because they industrialized& accepted the capitalists system.

 The newly industrializing countries such as Brazil, South Korea and Taiwan etc
copied from the north & have developed.

 Formal education is spreading & attitudes towards production are changing

Arguments against
 Capitalism is not the only way a country can develop in fact a planned or
socialist systems can also lift the economy.

 The capitalists system has brought about inequality.

 There has been a dual economy in the LDCs.

 Rural – urban migration has become a problem in developing countries.

THE DEPENDENCY THEORY

This theory came about in the 1960’s. it explains why the third world countries cannot
develop in the same manner as the industrialized countries. It claims that the process of
industrialization in the third world has been a way for the imperialists to get into the
developing economies. The dependency theorists that European powers or countries of
the north interrupted the development of Asia, Africa & Latin America while on the other
hand developing their own economies. They believe that through slave trade &
colonialism developed countries exploited or took the resources away from the third
world thus under developing the third world countries & using those resources to develop
themselves. Dependency theory argues that this exploitation is still happening today &
they call it neo – colonialism. Neo – colonialism is believed to be a new form of
colonization whereby even if the south is politically independent, it is still economically
dependent on the north. This is done through TNCs or MNCs, giving loans at high
interests & giving tied aids.

Dependency theorists also believe that the relationship between the developed &
developing countries is that of dependency whereby developing countries depend on the
developed countries economically. They also call this situation the legacy of colonialism.
This is because they believe colonialism created economies in third world countries based
on primary production while developed countries’ economies are based on secondary &
tertiary production. They also believe that a continuous disadvantage is created for third
world countries by international trade where developing countries sell primary products
at low prices while developed countries sell manufactured goods at high prices.

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Implications of the theory
 Less developed countries should break links/ties with the north & become self –
reliant.
 Developing countries should not borrow from the north but save & invest within
the country.

 LDCs should spend less on consumer goods.

 They should encourage local inventions & innovations & the use of appropriate
technology.

 Governments of developing countries should tell people to be patient,

hardworking & see the reason why a western or northern lifestyle is bad.

Arguments for
 Many countries in the developing world such as Egypt, India,
china, Mali & Zimbabwe were developed long before Europe.

 India used to produce better textiles than those in Europe/in the

north. However those industries which produced hand-woven cloth
were destroyed by Europeans so that Indians would have to buy
machines made from Britain or England.

 There is evidence that Latin American countries developed better

when they were isolated from Europe or the north during the first
& second world wars.

 Historical evidence shows how the slave trade severely damaged

African development.

 Third world countries are still largely dependent on selling primary

goods to the developed world.

 From the 1980’s third world countries have started paying heavy
interest charges to the north & this has severely hindered their
economic growth & reversed development.

Arguments against
 Some developing countries which had close links with the developed world have
recently successfully developed economically e.g. Taiwan, South Korea & Brazil
etc.

 Some third world countries which tried to break links & make their own
economic strategies have not been successful economically e.g. Tanzania.

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Advantages/strengths of this theory
 The theory looks at development as a whole i.e. political, social,
environmental & economic etc & not just economic aspects.

 The theory treats the world as one system or one entity i.e. showing how
countries are interdependent/connected.

 The theory makes people aware of the programmers of colonialism.

 It makes people understand that even when the colonists were given
independence once again economic & political powers remain in the hands
of the developed countries.

Disadvantages/weaknesses of the theory

 It is evident that third world countries cannot raise enough capital on their own in
order to break links.

 If third world countries were to break links, they would lose all the benefits of
international trade.

 If the developing countries were to make their own food, this will probably be a
less sufficient way of using resources.

 In a global village (the world linked together in many ways) it is almost

impossible to break communication links.

 Third world countries’ people often aspire/desire the way of life of the north &
would refuse if their governments required them to stop importing goods from the
developed world.

THE SUSTAINABLE DEVELOPMENT THEORY

It refers to social, economic and political growth which can be kept on going indefinitely.
In other words it is the kind of development which would not compromise/jeopardize the
chances of the future generation meeting their own needs. According to the sustainable
development theorists, the kind of development that has happened in the developed
countries which has been based on exploiting other people & countries is no longer
desirable. They also believe that it is no longer possible for everyone to modernize in the
same way the north has done. They believe that the resources available on earth are being
irrevocably destroyed by over-population, industrialization & excessive pollution. The
theory is based on the principles of;
- dividing the world’s resources equally between the north & south
- using appropriate technology to reduce environmental degradation
- people controlling their population size

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 - Wise use of resources through recycling, re-growing, re-using & reducing the rate
of exploitation of resources.

Arguments for
 Industrialization uses up non-renewable resources & pollutes air, water &
land badly.

 Modern has reduced death rates consequently making the world’s

population grow very fast.

 The growth of towns & the building of roads & industries has used up land
with little remaining for food production.

 Some people mainly from the north have more than their fair share while
those from the south are unable to meet their basic needs.

Arguments against
 Contrary to this theory’s expectations new mineral & fuel deposits
are still being discovered.

 The technology & inventions are solving some of the problems

mentioned by this theory e.g. making fuel for car from sugar cane.

 It has been realized that in some countries population growth rates

are reducing.

 World agreements have been made to protect those in danger.

Sustainable development theorists have stated that development is taking place at the
expense of the environment & many global economical problems are being experienced
such as soil erosion, pollution of soil, water & air, distraction of wildlife species,
greenhouse effect & global warming & the ozone layer depletion.

Advantages/strengths of this theory

 The theory makes people realize that conservation is necessary.

 It makes people realize that they are facing the same situation as they are living in
the same habitat.

 The theory makes people aware of the dangers facing the world.

Disadvantages/weaknesses
 New sources of minerals & fuels may be discovered hence there will be no
need to worry about the depletion of the existing ones.

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  New technology may help countries to improve food supply, reduce
pollution & make synthetic products to replace natural resources.

 Countries may succeed on agreeing on ways of sharing resources more

equally.

ALTERNATIVE STRATEGIES

The main elements of development are social improvement, political rights 7 economic
growth. It is in this li9ght therefore that three different strategies of development can be
used depending on which one a person considers to be the most important. The strategies
are;

a) Emphasizing social improvements for everyone first & let the people share the
wealth that has been created equally.
b) Putting political improvement first.
c) Emphasizing economic growth first.

Emphasizing social improvement first

This strategy is whereby a country makes sure that everyone’s basic needs are met &
there is provision of employment, building of schools, hospitals & houses.

Possible results/outcomes
- A country’s standards of living standards will rise.
- People’s quality of life will improve with specific reference to women & children.
- Good education & health will mean that people will work better & be productive.
- With people working hard GNP will rise.
- Improvement in the quality of life due to good life and education will eventually
make people realize the importance of reducing birth rates hence reducing
population growth.

Difficulties/problems of this strategy

- It is difficult to generate/find capital for investment in social infrastructure such as
schools, houses & hospitals.
- Lack of capital may force the country to borrow hence getting into debts.
- Once the living standards of people rise, the people may expect the rise to be
sustained, which is difficult to happen

Putting political development first

In this strategy a country gets/gives everyone political right & gets everyone to
participate &n decide for themselves. This can be done through ensuring that there is
democracy, free & regular elections, basic human rights & participation by everyone.

Possible outcomes
- Every citizen will take part in the decision making processes in his/her country.
- There will be equal opportunities for all.

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 - The country’s wealth will be shared more equally.
- Conflicts/disputes will be settled amicably through negotiations & mutual
understanding rather than war.

Difficulties/problems
- People may demand too much too quickly since they are given the platform to
express themselves.
- Involving everyone in the decision making may slow down the process.
- Where everyone is involved a lot of compromise is needed.

Going for economic growth first

This is whereby a country creates wealth before it decides who gets it & how it can be
shared. This is done through a number of ways such as;

# investing at a high rate

# Mobilizing people & resources through government or the market

# opening the country to foreign investment for developing trade

Possible results
- a country’s GNP per capita will rise.
- It is expected that some people will be richer than others while wealth will
gradually trickle down to everyone.
- The country will experience a possible balance of trade.
- The country’s export value will improve/increase so that the country can afford to
import as much as they need.
- The countries male/female citizens will enjoy job opportunities.

Difficulties/problems
- It is difficult for a country to get capital for investment.
- A country’s exports will face a tough time in breaking into the public markets.
- Foreign investors may end up controlling the country’s economy.
- Social stratification may occur in the country with some people becoming richer
& richer while the other getting poorer i.e. wealth may not trickle down.
- Even though they may be jobs opportunities, wages may be low.
In conclusion the above strategies have both advantages & disadvantages hence there is
no easy way to develop. It is upon individual countries to choose an appropriate strategy
from the three for itself.

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 MODULE 2
PRODUCTION
This is when one employs resources to make goods & services in order to satisfy human
needs & wants. It can also be defined as the process of combining resources to make
goods & services which people want & are prepared to pay price. Production is the act of
transforming natural resources into more useful commodities.

Goods – tangible products of labour used to satisfy needs & wants

Services – intangible products of labour used to satisfy human needs & wants

Needs – necessities of life or those things which man cannot survive without e.g. food,
clothes, clean safe drinking water & shelter.

Wants – things man can survive without but only needs them to make life more
enjoyable. They can also be referred to as luxuries e.g. TV, car, computer & cell phone

FACTORS OF PRODUCTION
These are inputs that are necessary for goods & services to be made. They are things
which are necessary for the making of goods & services to take place. Economists have
identified four factors of production namely; land, labour, capital &
entrepreneurship/enterprise.

LAND
This refers to all physical & natural resources on the earth surface, below & beneath the
earth surface, in the waters of the rivers & seas e.g. soil, minerals, water, vegetation,
animals, relief, air & radiation.

LABOUR
This refers to all physical & mental human effort which is directed at the production of
goods & services.

CAPITAL
This refers to machinery, money & manmade assets used in the production of goods &
services.

ENTERPRENEURSHIP
This refers to the willingness to take risk & manage production.

Production involves bearing risks & the uncertainty for it to take place. The one who has
to take the responsibility to organize all other factors of production, to start production is
called an entrepreneur.

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LAND
Land has two properties i.e. it is fixed & it is limited in supply. Land is fixed, it is
immovable; it cannot be moved from one place to another. Land is also limited in supply
meaning it cannot be increased or reduced. It is naturally occurring & therefore man’s
efforts cannot increase it to match his needs.

Conservation of land
Land is a natural resource & it is scarce because man cannot extend it, therefore man
should try to conserve land. Conservation of land means using land wisely or more
sparingly. Conservation can be done through aforestation, contour planting, ploughing,
recycling and re – use, cleaning the environment, safe & proper waste disposal.

LABOUR
Labour has been defined as all human efforts both physical & mental used for the
production of goods & services. Labour involves human beings & therefore labour
cannot be bought or owned. It is the services of labour that can be hired without. Labour
economic activities cannot take place because it is labour that makes natural resources
available to us as useful products/goods. Labour is both a factor of production & of
consumer production. Labour can be skilled, semi – skilled &unskilled.

Skilled labour – when someone has received training for the performance of a particular
job e.g. medical doctors, engineers and teachers

Semi – skilled labour – when someone has little training to perform a particular task

Unskilled labour – when someone has no education and training to perform a certain task
e.g. a labourer.

DIVISION OF LABOUR
- The breaking down of complex tasks into simpler operations.
- It also refers to allocating people or labour different tasks to perform.
- It is the breaking down of the production process so that each worker can
undertake a part
- When work is shared between different people
Division of labour can be based on gender or sex as is the case in traditional
communities.

SPECIALISATION OF LABOUR
- Concentrating on a particular task which one can do better than anything else by
himself or herself

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Advantages of Division of labour & Specialization

- Proficiency
When one specializes in one particular job or task after some time he/she becomes
proficient & good at that particular job. In other words with specialization one stands a
better chance of mastering whatever task he does because he/she performs the same task
over & over again e.g. a teacher of mathematics will be more proficient as a result of the
experience he gains from teaching the subject time & again. This helps increase output or
improved results.

- It saves time
Specialization saves time because the workers involved do not move from one task or
area to another.

- Learning is made easier & there is a great accomplishment of knowledge & skills
concerning that particular task or operation.

- There is a greater opportunity to use machinery. This is so because with specialization

it would be easy to use machinery since the machine will be working in a single
operation.

- Mass production is possible with specialization. The use of machinery makes it

possible to produce goods in large quantities & large units quickly.

- Improvement of quality at lowest costs with specialization & machinery & the quality
of goods can be improved without incurring too much cost.

- Cheaper training costs. It is easier and cheaper to train a worker in one process only
than in all processes

- It allows for maximum use of tools, as no tool will lie idle because all tools will be
used at the same time

- It makes the employment of specialists possible

- Less fatigue
Machines do not get tired & are always prepared to do the work day & night provided
they are fueled & serviced. This saves man from getting exhausted from hard work which
often reduces productivity as well as leading to production of poor quality goods.

- It saves skills

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Since people specialize in areas or jobs that are suitable for them, they do not waste skills
in areas where they lack interest. Repetition or revision enhances skills since practice
makes perfect.

- It leads to exchange of goods & services. Specialization makes people interact &
exchange what they have for what they need.

Disadvantages of division of labour & specialization

- Repetition brings about boredom or monotony. When one continuously does a single
operation or activity the job becomes boring & monotonous & with time the person may
become frustrated or lose interest hence low productivity.

- Specialization increases interdependence. This means that when people or firms or

countries specialize they become more & more dependent on one another for those things
they do not produce e.g. a bakery depends on yeast producing factory & flower milling
companies. The problem with interdependency is that a problem that affects will
automatically affect others, for instance, in the earlier example if workers of a yeast
producing company go on strike then they will be no production of bread & flower will
not be sold, such a situation will delay or lower production.

- Decline in skills & craftsmanship. With specialization the use of machines is high &
workers only do a small or a remote part of the work. Machines replace human skills &
initiate it as a result the worker is denied a chance to use his/her skills to design a good
quality product.

- Risk of unemployment. Specialization has led people to do a particular type of job &
this increase the rate of unemployment. If a worker loses his job because of expulsion or
because the company closes down the chances of that worker getting a different job
altogether are low hence he/she becomes unemployed. With specialization skills are not
easily transferable from one job to another, i.e. with specialization, it is not easy to
change or swap jobs.

- Inequality. Specialization has led to inequality between workers especially the

management cadre & the general worker or the lower cadre which usually brings
misunderstanding at work.

WHY DO COUNTRIES SPECIALISE ?

- Increased production
Countries specialize to increase their output. It is believed that if countries specialize in
different areas or on different products, they will have increased production.

- International trade
Countries specialize in producing different products in order to exchange or trade. In so
doing they get foreign exchange.

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- Geographical location
As a result of different locations of countries on the world map, they are blessed with
different natural resources. Countries therefore specialize according to the natural
resources found in their location e.g. Botswana specializes in diamond mining because of
the availability of diamond in this location.

- Climate
Climatic conditions also determine a country’s area of specialization especially
agricultural produce. Some products cannot grow in dry conditions so a country like
Botswana cannot grow those products.

WHY DO INDIVIDUALS SPECIALISE

-INTEREST-; Individuals specialize in different areas of production because interests

differ so they try to specialize in areas that they like or prefer.
Individuals specialize to make products efficient because when people specialize in
producing different goods and services there will be increased production.

SKILLS -individuals specialize because skills differ everyone cannot be skilled in the
same areas of production. So they specialize according to there skills i.e. the job they can
do well if they get train.

TO INCREASE THEIR LIVING STANDARD

Today’s world is very competitive so individual specialize in order to improve their
standard of living. They do this by considering the market demands and specialize
accordingly.

REMUNERATION
This means the reward for work rendered or done. The more the remuneration the higher
the supply of labour because people will be happy & willing to work.

EFFICIENCY OF LABOUR

This refers to how productive labour is. It can also be referred to as the output per worker
per unit time.;

- Education & training

Workers will do better on a job if they have received adequate education & training
necessary to carry out the job e. g. a trained teacher is likely to produce good results than
an untrained teacher.

- Working conditions
Efficiency of labour is highly influenced by the condition under which work is carried
out. Places of work should be conducive enough to encourage efficient production e.g.
there should be adequate ventilation & lighting in the place of work.

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- Welfare services
For labour to be efficient workers should be well catered for e.g. workers should have
good sickness basics such as the Botswana medical aid scheme & other welfare facilities
such as sports fields for workers, work canteens, gratuity & allowances to maintain their
high morale towards their work.

- Co – operating factors
This refers to other factors i. e. land & capital with which labour is working. It is
important that other factors of production should be properly combined in their right
proportion & should be at the right places to make labour more efficient e. g. there should
be enough land, adequate raw materials & machines & a cordial relationship as well the
management.

- Motivation
Workers should be highly motivated to encourage high productivity. They should be
satisfaction & workers should be positively encouraged so that they can do the job
happily e.g. some companies give bonuses to workers during Christmas.

ENTREPRENEURSHIP

This is the willingness of a person to take risks & start production. For production to be
carried out there should be labour, land & capital. However the production process will
not take place if there is no one to take care or organize the above- mentioned factors.
The individual who co – ordinates the activities/ process of production is known as an
entrepreneur.

THE ROLE OF AN ENTREPRENEUR

- Coordination/organization
The entrepreneur is also called the organizer. He/she plays an important role by
organizing & coordinating all the other factors of production. He/she makes sure that
people under him/her do the work they are assigned to do very well. He/she also makes
sure that all things needed for production are properly arranged.

- Decision-making
The entrepreneur takes decisions concerning the business e. g. he/she decides on what
should be produced, how it should be produced & where it should be produced.

- Management
The entrepreneur manages the activities of production by making sure that the vital
decisions are made & carried out effectively. The entrepreneur should be there to
supervise all activities going on.

- Risk bearing

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The entrepreneur is a person who undertakes production with the view to make profit &
profit is anticipation at the end of production. The entrepreneur is also known as the risk
bearer. He bears all the risks of production because business involves risks & the success
of a business depends on the principles of factors. When profit is made the entrepreneur
enjoys it but if there is a loss he suffers.

CAPITAL
- CIRCULATING OR WORKING CAPITAL
This is a type of capital that changes its form during the process of production. It could be
in the form of money, raw materials & finished goods e. g. Tshimologo has P500, she
uses her money to buy raw materials (timber) & she makes chairs from the timber & she
sells the chairs to get money then uses the money to buy more timber & the production
process continues.

The importance of this type of capital is that it makes sure that there is an on – going
process of production. If there is no working capital, production may be interrupted or
delayed. The concept of working capital is important because the producer needs capital
or money during the production process.

FIXED CAPITAL
This is fixed because it doesn’t change its form e.g. buildings, machines e.t.c

SOCIAL CAPITAL
This is a type of capital that facilitate production indirectly e.g. social capital could be the
capital used to build & enquire a clinic for workers in a mine.

CAPITAL ACCUMULATION – It means the creation or acquisition of capital. For

capital to be created it has to be saved. Saving is the money put aside after it has been
earned. It is not spent immediately. Savings can be spent in two ways;

- Investment
This is when it is spent on things that will further create capital e.g. I have P500 & I use it
to buy seeds to grow & sell, I will likely create more capital because I may end up having
P800 after selling.

- Consumption
This is when one uses money on consumables i. e. things that get finished e.g. shoes,
clothes & perfumes. It is money spent in such a way that it does not create further wealth.

CAPITAL CONSUMPTION – The frequent or constant use of capital equipments like

machines or buildings. With time they lose some of their value & this is known as
depreciation e.g. a building that is old may require a few repairs, so when we talk of
capital consumption we are referring to the use of capital equipment. A businessman may
talk about:

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- Gross investment
The total cost of items (capital before it depreciates)

- Depreciation cost
The value that is lost as a result of usage.

- Net investment
This is the gross investment depreciation

There are two types of production namely;

- direct production
- indirect production

DIRECT PRODUCTION
It occurs when one satisfies his/her needs & wants entirely by him/herself without the
assistance of other people. This type of production is very inefficient because the
producer has to leave one task to perform others without mastering the first.

INDIRECT PRODUCTION
This type of production occurs when people co – operate with others to produce goods &
services they need. In this type of production an individual no longer produces a whole
product by himself. People specialize in one aspect of production e.g. a blacksmith
produces iron tools while a baker produces bread, this type of production has lead to
specialization & division of labour.

STAGES OF PRODUCTION (SECTORS)

Levels or sectors of production refer to the different stages of the production process
which goods undergo when being created or made. For a good to be ready to be utilized it
has to be put into a transformation process. The transformation process can be divided
into four stages namely:
- Primary sector
- Secondary sector
- Tertiary sector
- Quaternary sector

PRIMARY PRODUCTION
This is the first level of production which is concerned with the extraction of raw
materials. At this stage, raw materials are extracted without being changed in form. This
include extractive processes such as all branches of farming, mining, quarrying & fishing
e.t.c

SECONDARY PRODUCTION
This is the process of changing raw materials into finished goods ready for use or
consumption. Secondary production can be divided into two namely;
- processing

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 - manufacturing

Processing – the act of adding value to raw materials so that they can be more useful
products e.g. meat processing, leather processing, processing of diamonds e.t.c

Manufacturing – the act of transforming raw materials into completely new products
e.g. polish making, jewellery making, furniture making, making clothes e.t.c

TERTIARY PRODUCTION
The process of getting finished goods to the consumers or it is the provision of services to
the consumers e.g. transportation, wholesaling, insurance, security, education,
advertisement & banking e.t.c

QUARTENARY PRODUCTION
This is a sector which deals with the provision of information technology (IT) &
technical o r professional service. As countries develop, the economy becomes complex,
telecommunications & computers become vital for the exchange of knowledge.
Information becomes the basic product; the key to wealth & power e.g. inter net,
electronic banking, laboratory, research e.t.c

Countries or producers decide on the volume or size of each sector to be set up. Such a
decision is usually based on the country’s comparative advantage i.e. the resources it has
that other countries may lack e.g. large mineral deposits, abundant energy supplies, rich
farm land, well trained workers & others. For many years most developing countries had
a comparative advantage only in primary goods because of the natural resources they
have.

Methods of Production
There are two modes of production which are;
i. Labour intensive production
ii. Capital intensive production

a) Labour intensive production

This is a way/process of making goods which emphasizes on the use of a lot of human
effort.

Advantages

- It creates employment to a large number of people

- It is cheap to run and maintain
- It provides people with the opportunity to train on the job
- It causes less pollution/destruction of the environment
- It requires little skills to enter or run

Disadvantages

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  Production is slow because human beings get tired more than machines
 Some labourers are not dedicated; sometimes they do not come to work,
sometimes they organize strikes
Countries where it is used are socialist countries and less developed countries.

b) Capital intensive production

This is a process of making goods, which emphasizes on the use of a lot of machinery/use
of advanced technology.

Advantages

 There is a greater opportunity to use machinery

 Production of quality goods
 It encourages mass production (large quantity of goods e.g. the use of harvesting
machine)
 Very few skilled people are needed hence a reduction in the cost of labour
 Labour acquires skills of operating machines

Disadvantages

 It is expensive to use and cannot be used by poor developing countries

 It creates unemployment because machines replace labour
 The cost of acquiring capital is high
 It results in pollution of the environment

Differences between labour intensive & capital intensive modes of production

Labour Intensive Capital Intensive

- cheap/small amount of capital needed - expensive/large amount of capital needed
- simple technology used - complex/advanced technology
- less environmental damage/pollution - leads to pollution
- promotes human interaction - leads to alienation
- encourages craftmanship - reduces craftsmanship
- suited for small scale production - large scale production
- uses local skills & knowledge/low costs - requires technical know-how/high costs
of wages because of manual & unskilled of wages because of highly qualified &
workers skilled workers
- common in subsistence production - commercial farming
- uses more human power/creates a lot of - uses more machinery/capital,/creates
employment opportunities large scale unemployment because of use
of machinery
- poor quality work produced - high quality goods produced
- slow method of production - quick & efficient method of production
- tiresome because work is strenuous & - work made lighter & more enjoyable

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heavy because of use of machines
- creates lots of skilled manpower
- mass production makes goods cheaper

TECHNOLOGY
This refers to the tools & machinery of a society & the skills to make them. It comes
from the Greek word …….. meaning to make. It is concerned with a way of doing things
& the type of machinery employed. It goes hand in hand with the skill of using a machine
or implement or tool.

Technological development
From time immemorial, man has had a way of doing things. Even before the coming of
the Europeans into Africa. Africans built their own shelter, made their own implements,
made their clothes & produced pieces of art. As societies advanced, man’s technology
also advanced. Man began to make new machines & advanced in new methods of
production. The advance in methods of production reduced the cost of production hence
an increase in productivity.

Types of technology
Technology can be classified into three categories namely;
 Simple technology
 Intermediate technology
 Complex technology

- Simple technology
This is the first of all technology & it is a crude way of doing things e.g. using a
traditional hoe for cultivating land. It is sometimes known as traditional technology.

- Intermediate technology
This is a mid or transitional way of doing something. It is not simple nor is it fully
advanced e.g. using an ox-drawn plough to cultivate land.

Characteristics

This technology is suitable for medium scale production

Production here is still for subsistence though there is need to produce some surplus
The technology is less expensive & requires unskilled to semi-skilled manpower

- Complex technology
This is an advanced way of doing things that many economies strive for. However, it is
not often possible to reach this stage because of development constraints these constraints
include the following;

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 - Lack of capital
- Lack of skilled manpower
- The nature of production i.e. small or large scale

Appropriate Technology / Relevant Technology

1. The skills, machinery/tools that are best suited to a particular locality,
which the locals will be able to afford and maintain
2. “Technology that is the most useful and efficient to people at a particular
place and time” (Beare, J. 2000:34)
3. “The development of smaller scale industries that suit the resources of the
less developed countries” (Morrish, M. 1988:165)

A number of factors have to be considered when employing appropriate technology. It

would be inappropriate for a (subsistence) farmer in a developing country like Botswana
to use a tractor because the farmer cannot afford to buy and maintain it, let alone to raise
money for fuel to keep it running. Besides, the land owned by the subsistence farmer is
too small to economically or efficiently use a tractor. What would d be appropriate for
this farmer is to use an ox-drawn mouldboard plough or hoe because the technology
employed would not only be cheaper but easier to use and maintain.

Factors Determining Appropriate/Relevant Technology

- Level of development

Developed countries tend to focus their attention on complex technology because they
can afford it and are able to give people specialized training on how to maintain and
operate it. Developing countries on the other hand tend to employ intermediate and
simple technologies because they best suit conditions that prevail in such countries; they
are relatively cheaper, easy to operate and maintain.

- Education and skills

Complex technology requires highly educated personnel and specialized training to

operate and maintain. Thus complex technology is appropriate to developed countries
because they can afford it and able to train people in specialized tasks of operating and
maintaining it. Intermediate and simple technologies on the other hand require lower
levels of education and training/skill (a characteristic of many developing countries to
operate and maintain, thus they are appropriate to developing countries.

- Availability of capital

34
Complex technology does not come cheap, it is expensive to buy and maintain. Some
complex technologies require special buildings to operate in and as such it is only the rich
and developed countries that can afford it while poor developing countries can only
afford simple and intermediate technologies.

- Employment creation

Developing countries like Botswana have high rates of unemployment and it would
therefore be appropriate to use simple and intermediate technologies because they are
labour intensive. Complex technology is inappropriate for developing countries because
at times machines do the work that otherwise could be done manually thus displacing
people from their work, hence unemployment.

- Availability of raw materials

The production of a particular good or service is determined by the availability of raw

materials at a local level. For large-scale plants production is only justified if there is a
large local reserve of the raw material and the raw material is of high quality. In most
countries there is limited occurrence of large deposits of high-quality raw materials but
an abundance of small deposits of raw materials, often of an inferior quality. Small-scale
deposits of raw materials despite being inferior in quality are often suited to small-scale
technologies. For example, a basic steel industry can be developed in most developing
countries using readily available supplies of raw materials such as scrap metal.

- Running cost of the technology

Relevant technology must have low running costs, especially in terms of fuel. Advanced
technology needs fuel which is not available in non-oil producing countries. It also needs
spare parts which might need to be imported.

- Demand
The market for the technology must be large and willing to adopt it. Relevant technology
must conform to local attitudes and traditions for it to be readily accepted. Other factors
such as the availability of infrastructure, distribution costs and government policy might
limit of enhance the diffusion of a new innovation.

- Flexibility
Relevant technology should be of low risk to the users, easy to teach and demonstrate,
easy to repair and tested under local conditions

- Environmental risk/Adaptability
The technologies of industrialized countries are not always suited or easily adaptable to
the socio-economic and environmental conditions of developing countries.
Environmental risks arising from technological and developmental decisions impinge on
individuals and areas that have little or no influence on those decisions. Relevant
technology must be environmentally sound and must take into account the interests of

35
individuals and areas that have little or no influence in their design, making and
application.

- Sustainability
In order for technology to be relevant it must be able to serve the needs of the society
over a long period of time.

Advantages of appropriate technology

- It creates employment for local communities

- It is cheap to buy and maintain
- It makes use of available local resources
- It produces relevant goods and services for local communities
- It promotes local development and it improves the living standards of local
communities

Disadvantages of appropriate technology

- It produces low yields in developing countries since the appropriate technologies

employed are slow in production

Development of appropriate technology in Botswana

T he main aim of appropriate technology is not to replace Botswana’s traditional

industries but rather to develop them so that they are more competitive. Appropriate
technology uses locally available resources, preferably renewable ones and aims to
effectively use waste products through recycling, thus preserving the environment. For
appropriate technology to work properly, it must serve the needs of the people at a price
they can afford.

In Botswana, the link between appropriate technology and economic development is

beginning to gain recognition through the efforts of Botswana Technology Centre
(BOTEC), Rural Industries Innovations Centre (RIIC) and Rural Industries Promotion
Company (RIPCO). The main aim of these organizations is to assist the people of
Botswana to identify appropriate technology choices. They design and promote
technologies that are best suited to conditions prevalent in especially rural areas in
Botswana. By using readily available resources and knowledge, the BOTEC, RIPCO and
RIIC constantly evaluate, and where necessary, adapt new technologies to meet the needs
and challenges specific to Botswana.

Following are examples of appropriate technology developed by Botswana Technology

Centre (BOTEC):

1. A solar hearing aid

36
This is a high power body-worn hearing aid suitable for use by people with moderate to
severe hearing losses. It combines solar and hearing aid technologies to make a solar
rechargeable hearing aid that never needs replacement batteries.

Special features
It harnesses and stores 4 hours of the sun’s energy that powers the hearing aid for 1 week
of use. It has an on/off volume control on the top of the case. It costs a fraction of most
battery-operated hearing aids. It is economical and easy to maintain, user friendly and
environment friendly.

How to operate
Leave it in the sun for 4 hours once a week. Then clip discreetly away inside a shirt
pocket and use in the same way as any other body-worn hearing aid. Solar aid does not
have to be exposed to the sun while in use.

2. Wetlands technology:
Constructed wetlands technology is a relatively new method for wastewater treatment.
The aggregates act as a flow medium for the waste water. As it flows through the
medium and interacts with the plant roots, treatment takes place, resulting in stable safe
final effluent. The polished water may then be used safely for such activities as irrigating
gardens at the individual compounds.

Natural wetlands often occur in some low-lying areas and are known by such names as
swamps, marshes, bogs, fens, etc. Their occurrence is typified by intermittent dry and wet
conditions, or as a transition between the perennially dry land mass and the wet water
bodies such as lakes, etc. They support unique and well-adapted flora and fauna, some of
them being endangered species.
Natural wetlands have been found to exhibit properties that remove a wide range of
pollutants from wastewater. This provides an effective, an environmentally friendly and
low-cost option for wastewater.

Advantages of wetlands
- They can be built and operated at less expense than other wastewater treatment
options
- They utilize natural processes (plants and micro-organisms) for treating and
renovating wastewater. No operational chemicals / inputs, hence fewer costs
- They require less high-tech tools or equipment because the methods are low-tech
- The processes are less sensitive to varying environmental / seasonal changes

Efforts by Rural Industries Innovation Centre (RIIC)

The Rural Industries Innovation Centre (RIIC) in Botswana also develops appropriate
technology. Some of the technologies developed by the center include:
1. Bio-gas technology: This technology is relevant to Botswana because it uses cow
dung which occurs in large quantities since there are many cattle in Botswana
2. Solar water heater: RIIC has developed the solar water heater technology that
converts solar energy into electricity. This technology is relevant to Botswana

37
 because the country lies in the tropics where there is plenty of sunshine. In
addition, this technology is cost effective, easy to use and repair, thus relevant to
the country. This helps to reduce dependence on the environment for fuel wood
which often involves the cutting down of trees, thus leading to environmental
degradation
3. Solar cookers/bakers: The solar cookers/bakers developed by RIIC convert the
sun’s energy (which is plenty in tropical countries such as Botswana) into
electricity. This technology is cheap, easy to use and repair. This also helps
reduce dependence on the environment for fuel wood, thus reducing deforestation
and the resultant environmental impacts.
4. Rural electrification: The use of solar energy to produce electricity is relevant in
Botswana because the country lies in the tropics where there is plenty of sunshine.
This technology is cheap and more relevant in rural households where incomes
are low.
5. Wastewater treatment technology: This technology involves the use of river sand
to treat wastewater. This technology is relevant to Botswana because river sand is
available locally in large quantities, it is also cheap and easy to use.
6. Water tanks technology: RIIC designs water tanks that are used for rain
harvesting. This technology is suitable to Botswana, which is drought prone.
7. Water desalination: RIIC has designed the technology to treat salty water obtained
from underground to make it suitable for human and livestock consumption. This
technology is relevant to Botswana because salty underground water would
otherwise remain an idle resource if left untreated, in spite of the fact that there is
shortage of water in Botswana.
8. Animal drawn pumps: These are quite suitable in rural Botswana because they are
drawn/pulled by animals (they do not require fuel in order to run).
9. Windmills: RIIC has developed the windmill technology to pump underground
water. This technology is relevant to an oil-deficient country such as Botswana
because the mill is propelled/driven by wind (it does not need fuel to run). It is
also cheap, easy to use and repair.
10. Brick moulding machines: These can be used by small-scale to medium-scale
brick producers. This technology is relevant to Botswana because it is easy to
operate and easy to repair.
11. Farming implements: The farming implements such as ploughs and planters
developed by RIIC are simple, cheap and easy to use, therefore they are suited to
local conditions because most of the people are subsistence farmers, who lack
capital (to buy tractors) and modern farming skills.
12. Leatherworks: This technology is relevant to Botswana because it uses a locally
available raw material (leather) which is obtained from livestock, which are kept
by most Batswana.
13. Metallurgy: The smelting of iron to make simple implements such as hoes and
axes is a relevant technology to Botswana because these are common tools used
in rural Botswana
14. Draughtmanship: RIIC trains locals to make house plans. This is relevant to
Botswana because it equips locals with skills that are needed in the country and

38
 helps reduce unemployment because after training the draughts man can start their
own small business to earn a living and probably create employment.
15. The rim oven:

What is a rim oven? Special features Installation and

maintenance

The rim oven is made from - Use firewood, so - The rim oven comes
two truck rims welded suitable for use in in a kit form, with
together. It stands on three rural areas the wheel rims ready
legs and has a hinged steel - Can bake a batch of welded together and
door. The outer casing and 9 loaves in 1 hour the door shelves in
chimney are made of mud - Uses scrap wheel place
and brick, which maximizes rims, so protects the - The entrepreneur
efficiency, and there are environment builds the
two baking shelves inside. - Can be constructed surrounding brick
on site by the and mud
entrepreneur construction
- The oven should be
kept clean and in
good repair
- The door hinges and
latch should be oiled
regularly

ECONOMIES OF SCALE
This refers to an increase in production which yields more than proportionate output. It is
the aspect of increasing the size of production which leads to falling average costs. It is
believed by economist that the “larger the size of the firm, the more the output in
production and the less the cost of production”. Economists believe that the increase in
quantity of production. There are two types of economies of scale namely:

- Internal economies of scale

- External economies of scale

Internal economies of scale

These are specific advantages to one firm which result from an increase in the scale of
production, in the firm itself irrespective of what is happening outside the firm. His is a
situation whereby a producer decides to increase the production because of what is
happening in other firms. Here the basic argument is that, changes that take place within
the firm are not as a result of influence of other firms.

39
Example;
A soap producing industry can decide to produce on a large scale because many people
need soap and by producing more, the company is likely or is going to make more profit.
The firm therefore builds a very big house or factory, employs more specialized people
and installs very big machines which will alternatively increase the quantity of soap
produced per day or in a week. These are the changes which takes place within the firm.

Factors contributing to internal economies of scale

- Technical economies
If a company or a firm decides to embark on a large scale of production, they should
make sure that they have more specialization skills of both members of staff and
machines used because the more they specialize the more efficient they would be. A large
business can afford to buy bigger and modern machinery because it produces enough to
run them full time at a full capacity.

- Increased dimensions
There should be increased dimensions within the firm to encourage large-scale
production. If the capacity of a machine is increased, production will be increased while
the cost of managing the machine will be reduced but if one increases the number of
small machines with the aim of increasing production then the average cost of
maintaining and managing these machines will increase.

- Research and development

A large firm has a greater advantage over small ones in the matter of research. A large
firm can spend large sums of money on the employment of scientists yet these expenses
will only be a small part of the total costs. Research improves the quality of production
and services of the firm. In order to encourage large scale production within the firm
there should be research to help the firm introduce changes which are necessary.

- Indivisibility of plant and under-utilization of factors of production

The firm should have a balanced team of machines to facilitate production. Some
machines are such that they can be effectively be used at a minimum level of output and
this minimum level may well be too large for a small firm and the machine cannot be
divided into smaller units.

- Marketing economies
In large scale production, marketing and selling of the goods is very important and as
such large firms have special buyers and special customers who buy from them e.g.
Royal & Sefalana who issue licenses to their special customers. The control of quality is
important because it encourages quick marketing. A large business can afford to advertise

40
on large scale e.g. on TV and national newspapers. Such advertisements reach many
customers and are more cost-effective than small advertisement on local produce. The
products manufactured can be marketed all over the country therefore if a business is bad
in one area it can still rely on other busy areas.

o Packaging costs – there should be good packaging of the goods to avoid

unnecessary breakages and waste

o Transport costs- transport rate should be reasonable in order to attract customers

to the firm e.g. Builders world, Ellerines, Beares, Savells, Supreme

- Risk bearing economies

Larger firms can reduce the risk of trading when they diversify their products so that
when demand for one item falls the company could make up with another product which
is in demand. Diversification of markets is also good for companies. They should have
branches especially across the country or outside the country e.g. Shoprite, Barnetts,
Score and Mr. Price. This is necessary so that when there is a fall in one market a steady
rise in the others helps the company to keep on progressing.

- Financial economies
Financial economies discuss the ways in which large companies benefit from large scale
production as far as raising money for the business concerned (financial matters). Large
firms stand a better chance of getting loans from the banks and other financial institutions
at lower interest rate. This is because they have a lot in stock to sell in large quantity and
have high turnover rate. It is not considered a risk providing them with financial help
because the assets could pay for the loan if they fail to meet their obligations.

External economies of scale

These are changes taking place in a particular firm as a result of the influence or changes
in other firms. In other words, these are advantages that are experienced or gained by a
firm as a result of factors outside the firm.

Factors contributing to external economies of scale

- Labour
A pool of local labour force skilled in various techniques used in the industry may
develop used in the industry may develop in an area where many firms are concentrated,
this helps to reduce a firm training costs and makes recruitment easier.

- Information and co-operation

Information may be shared by firms in the same industry particularly against foreign-
based companies. Countries may also combine resources into research facilities or use
very scarce on time-sharing basis.

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- Auxiliary services
Subsidiary industries may establish themselves in areas where major industries are highly
concentrated to provide services to major industries e.g. they may provide raw material
components and services such as banking and transportation etc.

- Education and training

Some industries provide specialist facilities to develop the knowledge and skill of the
manpower in the industry e.g. computer skills/specialist or cleaning specialists.

- Disintegration
Heavy concentration of firms producing goods in an area may lead to individual firms
specializing in a simple process or the manufacturing of a single component e.g. in the
cotton industry, one firm/company is responsible for spinning, another for weaving,
another for colouring and the other is responsible for spinning, another for weaving,
another for colouring and the other is responsible for making finished products from the
cloth.

- Reputation
An area may develop a reputation for a successful production which may help/benefit the
firms there.

- Commercial facilities
Service industries tend to develop a good knowledge of the needs of the industry in their
area and as a result provide specialized facilities e.g. insurance and security firms found
appropriate ways of providing special facilities to other industries.

DISECONOMIES OF SCALE
They are disadvantages/problems that a firm experiences as a result of an increase in the
scale of production. In other words, an increase in the scale of production reaches a point
where it brings about problems/disadvantages to the firm. As the firm grows in size, the
management structure becomes increasingly complex and problematic and the
administrative costs increase. All these are management problems resulting from the
complex nature of the management system. These problems may include;

- Coordination
Large firms are usually sub-divided into specialized departments/units e.g. he sales
department, the purchasing department and the customer service department etc. as these
departments increase in number and size, it becomes more and more difficult for
management to coordinate their activities.

- Control
Management usually performs two basic functions which are taking decisions and
ensuring that these decisions are carried out (controlled). As the firm grows, it becomes

42
very difficult for management to control all the workers i.e. to see to it that everyone is
doing what they supposed to do and doing it well.

- Communication
It refers to the transfer of information and this is a two way process. It consists of passing
orders down the line to subordinates and also getting feedback on their difficulties and
problems. When the firm is large, keeping everyone informed on what is required of them
and on what is happening elsewhere in the firm is a serious challenge/problem for the
management.

- Morale
When a firm grows in size it faces the problem of maintaining the morale of a large
number of employees. The spirit of willing co-operation becomes larger. It becomes
difficult for management to make an individual worker in a labour force of thousands to
fulfill an important part of the firm. This results in individual workers lacking interest and
identification with the firm and regards it with hostility.

- Prices of inputs
As the firm grows in size, the demand for raw materials, labour, energy, transport and
other factors of production will increase while the supply of those factors will be limited.
In an attempt to acquire more of these factors the firm may find itself bidding up the
prices of those inputs.

External diseconomies of scale

A firm will experience external diseconomies of scale when the industry to which it
belongs becomes bigger/larger i.e. a firm may face disadvantages because of an increase
in the size of an industry to which it belongs. These include:

- Shortage of labour
As the industry grows, firms will find it difficult to acquire labour with appropriate skills
and this may result in individual firms bidding up wages to try and attract more labour or
hold on to their existing supplies.

- Increased costs of raw materials

An increase in the demand for raw materials may also bid up prices and cause costs to
rise.

- Shortage of land
As the industry grows, land for expansion becomes increasingly scarce and more
expensive both to purchase and to rent.

- increased transport costs

Transport costs may also rise because of increased congestion.

43
ECONOMIC PRODUCTION SYSTEMS
TYPES OF ECONOMIES

A n economic system is the organizational & institutional structure of an economy

which include the nature of resources, ownership & control that is private & public.
It also means the strategy or approach of production a particular country can adopt. The
following are the major economic systems;

i. Subsistence economy
ii. Capitalist/market economy
iii. Socialist/command/planned economy
iv. Mixed economy

- Subsistence economy
This is an economic system practiced in most primitive subsistence societies where every
household or village takes care of its needs directly or with some internal exchange
commonly known as trade by barter. However, this kind of exchange was mainly internal
& had little or no involvement with the outside world. Such a society produces its own
food & clothing. This is in accordance with social customs & traditions. Trade by barter
had some disadvantages like;

- Perishable goods like vegetables & fruits got rotten very fast
- Some individuals were cheated because it was difficult to exchange equal amount
of goods that were of the same value e.g. it is difficult to exchange rice & potatoes
that are worth the same amount
- There was a problem of double co-incidence of wants
- It was difficult to find people who were willing to accept

- Capitalist/market economy
This type of economy allows individuals to own their resources such as land, industries,
and air lines & shipping lines etc. the government plays little or no part in economic
system, so they do not interfere in private businesses of the individual.

44
Main characteristics or features of capital economy

- Private property
This means that individuals have the right to own & control of their property as they
wish.

- Freedom of choice
This means that people are free to use their resources as they like. They can start any
business type that they like & consumers are free to buy land from anybody.

- Self interest
Because capitalism encourages private ownership of resources, individuals in the society
are usually self-centre. By this we mean individuals would get involved in businesses for
their own benefit.

- Competition
This society (capitalist) encourages anyone to get their own business & this result in
competition because so many people own the same business.

- Reliance on price system

The capitalist system relies on the price system & the price system is determined by
demand & supply. However, if there is scarcity the businessman will have limited supply
& this will force the price to rise. On the other hand, when there is a surplus, the
businessman will reduce the prices in order to attract customers.

- Limited role for the government

In the capitalist system there is little or no interference from the government in
businessman’s affairs. The government only makes sure that rules & regulation about
trading licenses, payment of taxes & employment etc.

- Socialist/planned economy
Socialist economy encourages states ownership of the means of production. It is a direct
opposite of the capitalist system. In this type of economy all the economic activities are
owned by the government. They have a central planning committee that provides
solutions to the economic problems of the people.

Characteristics of socialist economy

- State ownership
The government is in charge of all the means of production & they belong to the
government as well.

45
- Government as an entrepreneur
The government owns all the businesses in a country so the government bears the risks of
production. This means that the government suffers all losses & enjoys all profits.

- Collective interests
Individuals work for the interest of the state in a group. There is no selfishness.

- Competition
There is no competition because the government owns all the means of production so that
they do not compete with anyone.

- Centralized planning
Since it is the business of the state to manage the economic resources in a socialist
economy, there is a centralized planning committee that plans the economy in the interest
of the people.

- Price control
The central planning controls prices. Prices are not determined by demand & supply.

Advantages of socialist/planned economy

 The socialist economy’s main aim is to satisfy basic needs such as clothing, food
& shelter, security e.t.c. The government can use the country’s resources to solve
problems or to achieve certain goals which individuals may not have achieved on
their own e.g. good houses.

 The socialist economy makes it possible for goods & services to be available to
everyone & not only to those who have money.

 Since everyone’s basic needs are provided, crime level is very low

Disadvantages

 This type of economic system does not respond to individual wants; it

concentrates on the basic needs for everyone.
 When the planning committee makes mistakes, the whole country suffers
 Production is slow because people work harder when they work for themselves
than when they work for the state
 Sometimes the socialists are not technologically efficient because the government
prefers to use human labour instead of machines
 This type of economy does not give people a chance to use their own ideas

- Mixed economy
This is an economic system that combines elements of free enterprise (capitalism) &
government planning (socialism). It is a combination of both private & government
ownership of the means of production. This type of economic approach allows

46
individuals to own businesses which can be called private enterprises & the government
to own businesses which can be called public enterprises/ public sector e.g. parastatals
such as BHC, BPC, BOTEC & BOCODOL.

In a mixed economy, the government provides essential services such as education &
defense & subsidizes the production of goods & services by forming companies. The
private sector produces all other goods & services but it is regulated by the government to
protect the consumers.

Advantages

 Individuals are allowed to have their own enterprises & this encourages hard work
since they want to improve their standards of living
 It leads to high level of competition & this brings about high quality goods
 Since the government owns businesses, if they are successful the profit is used to
improve the country
 Since the government intervenes in this economic system, it helps protect
consumers from unscrupulous business people
 Prices are reasonable because of competition
 Both government & individuals complement each other’s efforts of improving the
country’s economy/development

Disadvantages

- If competition is excessive, some companies will decline or lose out

- In a situation where the government does the same type of business as individuals,
individuals may lose because people will buy from the government since it is
slightly cheaper
- If the public enterprise is not successful, this will be a great waste of the country’s
resources
- Corruption is likely to be high because some individual businessmen may bribe
some government officials so that the law can favor them
- The public sector is usually less efficient since people do not put much effort
when they work for the government
- Government can discourage individual innovation & initiative
- Monopolies may still arise if the government control is very weak

Characteristics of;

Capitalism Socialism Mixed Economy

- private property - public property - both
- freedom of choice & - state guided choice - choice
enterprise

47
 - competition - production of uniform - competition
products
- self interest - public interest - self/public interest
- profit motive - self interest - profit motive
- supply & demand - prices determined by govt. - prices determined by
determine prices supply & demand + state
regulation
- private planning - central planning - private planning

ENTERPRISE
It is a business activity developed & managed by an individual or a group of individuals
to offer goods & services to the market.

It can also be defined as an organization i.e. factory, firm or business unit which brings
together factors of production in order to sell a product for profit.

TYPES OF ENTERPRISES

- Sole trader/proprietorship
A business owned by an individual in his or her (legal) name or has a trading name (not
legal name). It can be described as an enterprise that is owned & controlled by one person
who is solely responsible for managing the business with or without the assistance of an
employee.

Characteristics

 It is owned by one person

 The owner provides/borrows all the capital
 The owner takes all the profits
 He/she carries all the risks
 The sole trader usually manages the business alone
 The business owner must chooses a legal name & register with the registrar of
names as well as the receiver of revenues

Advantages

 The business is simple, quick & cheap to start & end

48
  The owner can make decisions quickly as there is no one else to consult or please
 The business can adapt easily to changing circumstances
 The owner gains all round experience in managing a business
 The owner is keen for the business to succeed & so will work very hard
 The business is small enough for the owner to have close personal contact with
customers
 The owner takes all the profit
 The business is not taxed separately as the owner pays tax on income received
from the business

Disadvantages

 It has unlimited liability therefore if the business debts cannot be paid, its
creditors can take away business asserts together with the owner’s personal
asserts
 If the owner dies or becomes insolvent then the comes to an end
 Capital is limited to what the owner can provide & borrow unless its owner is
wealthy the business may not have enough to survive emergencies & to grow
 Small businesses have higher unit costs than big firms since they order goods in
smaller quantities from suppliers & do not qualify for discounts
 The owner may not be good at all the tasks in the business & may not be able to
afford the services of experts such as accountants & lawyers
 It is usually difficult for a sole trader to attract good staff because the business is
too small to offer job security & promotion opportunities
Examples of sole proprietorships are cafes, spaza shop, hair dressers, tailors & shoe
makers.

- Partnership
This is an association consisting of two to twenty who agreed to contribute money, labour
& skills to a business for the benefit of all & to share the profits & losses.

Types of partnership

a) Limited partnership
This is a special kind of partnership whereby a partner contributes to the company but
does not share in the work or management of the business. This should have a written
contract. In this type of business the partner is only liable for the amount of capital he/she
has contributed.

Characteristics

 A partnership agreement can be made verbally

 For safety reasons, a partnership can have a lawyer draw up a written contract, a
partnership agreement or articles of partnership

49
  The partnership contract will include details of how the partnership will be
managed, how much capital each partner will contribute

Advantages

 A partnership is simple, quick & simple to start & earn

 The partners are free to make their own arrangements since there is no law to
decide how the partnership should be managed
 More capital is available than in a person business
 It is easier to obtain credit or borrow more money than in a sole partnership
 Each partner contributes skills & can specialize if they choose & this leads to
greater efficiency
 Each partner has a strong personal interest in this business & will work hard to
make it to succeed
 The work load, expenses & responsibilities are shared
 The business itself is not taxed but the individual partners pay tax on income
received from the business

Disadvantages

o The business does not have a legal personality

o Partners have unlimited liabilities i.e. together & individually they are personally
responsible for the business, debts
o If one partner is incompetent or dishonest, the other partners could lose money
o Partners may disagree on how to manage the business
o The business has poor continuity because it may end if a partner dies, retires or
withdraws from the partnership
o Decisions may take time because all partners must be consulted
o The law allows only 20 partners; they could not contribute enough capital for a
really big business

b) Unlimited partnership
This is a kind of partnership whereby all the partners contribute capital, share in the work
& management of the business & are liable to the debts of a company.

- Private limited company

This is a business entity with a legal personality owned by shareholders.

Characteristics

- The owners buy shares i.e. small equal proportions which entitle them to part
ownership of the company
- The people who own shares are joint owners of the company & are called
shareholders

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 - Shareholders enjoy limited liability
- The company’s name must end in the two words (proprietary) limited usually
abbreviated as (Pty) Ltd
- It can sell shares by approaching individuals, but not to the general public
- Shareholders in a private company have direct control over the company
- The company is managed by at least one director who is elected by the
shareholders
- Shares of a private company are not freely transferable without the agreement of
the other shareholders

Advantages

i. A private company is legally a separate entity & that gives it certain rights which
are recognized by the legal system (courts)
ii. The owners enjoy a limited liability which means their personal asserts are not at
risk
iii. Selling shares avail the company with an opportunity to raise more capital though
they do not sell this to the public
iv. The company has a greater chance of continuity since shares can be sold to
someone else in the event one shareholder dies & the company lives on
v. Shareholders have direct control over the company’s affairs & their views are
heard at the Annual General Meeting (A.G.M.)
vi. The founders of the company have an opportunity to retain control over the
company by holding a majority of its shares
vii. The business is highly taxed on profits but shareholders are not taxed individually
on dividends received
viii. A private company is not obliged to disclose certain information to the public

Disadvantages

 Legal procedures that have to be followed when establishing & running a private
limited company
 It is a complicated & expensive procedure to establish a private limited company
 A private company cannot raise as much capital as it wished to since it is not
allowed to sell shares openly to the general public (on the stock exchange)
 The ability of a shareholder to sell his or her shares is impossible since for
him/her to transfer his shares to a new investor, the new investor must be
approved by the existing shareholders
 A private limited company has the burden of employing an auditor in addition to
an accountant in addition to an accountant since its accounts must be audited
annually
 There is no privacy in the company’s financial dealings because a copy of audited
accounts is sent to the registrar of companies where it can be available to anyone
 It is more expensive to set up a private limited company than it is to set up a sole
proprietor business or partnership

51
- Public limited company
It is a corporation association of at least two persons which is registered with the registrar
of companies & owned by shareholders who have limited liabilities. In this name the
word public means that the general public is welcome to buy shares in the company.

Characteristics

i. It is a separate legal entity with its own existence independent from that of its
owners
ii. Information regarding the company is made available to the public through a
prospectus – a prospectus is an invitation to the public to buy shares in the
company & it provides details on the shares available, the price of shares & future
prospects
iii. The word limited means that the liability of the company is limited to its total
resources (instruments & asserts)
iv. It is controlled by a board of directors who are elected by shareholders of the
company
v. The daily duties of managing the company are done by the managing director or
general manager whereas policy matters are handled by the board of directors

Advantages

 Shareholders enjoy limited liability, hence the public can invest money without
putting their asserts at risk
 Shares in a public limited company are freely transferable in the stock market
therefore shareholders can sell all or any of their shares to any person without
having to seek approval from other shareholders
 The company is assured of continuity once it is formed since it can only be
bought since it can be bought to an end through the right process of the law
 It can raise as much capital as possible through the sale of shares & debentures to
the public in the stock exchange
 The company can afford to undertake projects that are large enough to benefit the
whole country
 As a large business the public limited company can benefit from the economies of
scale
 The company attracts the best staff because it can pay high salaries & offer good
chances of promotion
 The large size of the company allows it to buy the latest & most modern
equipments & technology

Disadvantages

- It is a long, slow, complicated & expensive process to establish a public limited

company
- Once it has been established, the company must comply with many regulations

52
 - Since shares are freely transferable, it is possible for outsiders (e.g. another
company) to take over control of the business
- Raising capital can be expensive as it involves paying commissions to stock
brokers
- Public limited companies may grow so big that it becomes difficult to control
- There is little secrecy regarding finances of the company since it is a must that its
accounts be published annually
- Decisions can be delayed because of the large amount of bureaucracy

Joint ventures
A joint venture is when two or more business firms cooperate in a particular project for
their mutual benefit. These firms only cooperate on that project & this does not affect the
ownership of their organizations. Joint ventures remain separate businesses.

Advantages

a. The business can save costs & enjoy economies of scale

b. Joint ventures can undertake large & expensive projects which a single firm might
not be able to afford on its own
c. They offer customers more choices

Disadvantages

i. There is less independence of each business to make its own decision s

ii. Disagreements may arise between businesses which are not used to working
together
iii. Decisions take longer as there are more people to consult

- Co - operatives
They are a voluntary form of business organization in which people come together to
increase their buying power & access to resources. The most popular form of co-
operative is farmers’ co-operative. The co-operative’s capital is divided into shares. The
co-operative must be registered with the registrar of co-operative societies.

Advantages

 An individual member of the co-operative must buy at least one share which must
cost at least P1. 00.
 A trade co-operative must have a minimum of 25 members
 A trade co-operative must only have a minimum of 25 members
 A farmers’ co-operative must have farmers as members & just needs a minimum
of seven members
 Members share profits equally

53
  The liability of members is usually limited
 Members have the power to elect the board of at lest 3 directors who manage &
control the co-operative

Disadvantages

 Each member of the co-operative has one vote, no matter how many shares they
hold
 Management is sometimes of poor quality since the co-operative does not have
the capacity to wire experts
 It might be difficult for the co-operative to raise enough capital

- Public enterprises/public corporation/state

corporation/parastatals

It is a business organization that is owned & controlled by either the central or local
government & is established by the act of parliament.

Characteristics

o It has a separate legal identity/legal entity

o It is run or managed by a board of governors or directors which is appointed by &
answerable to the minister responsible
o The general policy is decided by the government in consultation with the board of
governors/directors
o There are no private shareholders in a public enterprise

Advantages

 Through state enterprises, the government can control the provision of essential or
strategic goods & services such as electricity, telecommunication, rail transport &
housing e.t.c
 Public enterprises are usually big hence they enjoy economies of scale which
trickle down to the public in the form of cheaper goods & services
 Public enterprises have the interest of the public ‘at heart’ & tend to provide
cheaper goods & services
 They provide employment security to a large number of local people
 They help implement government policies
 Unlike private firms/businesses, they provide comprehensive services meant to
cover the whole country
 They are a source of income to government

Disadvantages

54
  Some of these companies are inefficient & wasteful & usually operate below full
capacity
 They are usually affected by far too much bureaucracy & ‘red tape’
 Public enterprises are too expensive to run & overstretch the tax payers’ money
 Workers do not usually identify with the enterprise & therefore do not use their
initiatives hence inefficiency

- Multi – National Corporations/Trans – National

Corporations (MNCs/TNCs)

These are enterprises or companies that have operations in many countries or they are
companies that have their offices/headquarters in their home countries usually the
industrialized/developed countries & have subsidiaries or branches in more than one
country.

Characteristics

 Most multi-national corporations are public limited companies

 They are some of the largest companies in the world worth several
millions if not billions of dollars
 They employ thousands of workers around the world
 The decision making process is controlled from the head office

Advantages

- Multi-national corporations pay tax which boosts the government’s income

- they provide the much needed jobs/employment around the world
- they bring business knowledge, skills & technology with them to th3e host
country
- they bring foreign exchange to the host country by selling their goods abroad
- they provide vital goods & services to individuals as well as to other companies
- they usually have world-wide contact which the host country can use to boost its
export trade
- they can achieve great economies of scale because of their size

Disadvantages

a) They tend to exploit underdeveloped economies through monopolistic practices

b) Multi-nationals usually bring their own experts instead of training the local
personnel to participate in important decision making in companies that operate in
their own country

55
 c) They can prevent the transfer of technology to the host country by making sure
that research facilities remain only in their home countries
d) These companies drain away the host countries’ wealth by taking back with them
all the profits made in the host country
e) Their policies are drawn up by the parent company & as such do not take into
account the conditions prevailing in the host country
f) Multi-nationals are too rich & too powerful for some governments to control
g) It is often difficult for governments to find out exactly what these companies are
doing & how much profit they are making
h) Multi-nationals often interfere in the host countries’ political affairs

Strategies used by the govt. of Botswana to improve production and development

The main objective of the govt. of Botswana is to have a productive nation to enhance
development, and raise Batswana’s living standard to have a healthy and productive
nation by 2016.
The govt. has therefore set to look at the socio-economic aspect of people to have a fully-
grown nation by coming up with strategies like: Citizen Empowerment, Localisation, and
Privatisation.

Citizen Empowerment
- It is the creation of opportunities and suitable environment for locals to participate
fully in the socio-economic development of their country
- Offering a number of policies or programs to the people for them to be
responsible for their own socio-economic standard

Steps taken by the government of Botswana to promote citizen empowerment

The establishment of policies like
- Citizen Mortgage Assistance Equity Fund (CMAEF) – to allow citizens to buy
shares in citizen owned companies in order to prevent the company falling onto
the hands of non-citizens
- Citizen Entrepreneurial Development Agency (CEDA) – to have improved access
to finance and entrepreneurial training
- Remote Area Dwellers Program (RADP)
- Universal free education
- Reservation and price control for citizen owned contractors

Advantages of citizen empowerment

- Offers financial help to the people / citizens
- It equips citizens with required skills for running a business
- Price control means almost everyone will be able to afford the set one
- Buying shares by the citizens means localizing the industry and or the work force

Disadvantages of citizen empowerment

- Poor business skills – as a result of being ignorant and lack of commitment
- Corruption and nepotism
- Citizens may become too dependent on the government

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 - Insufficient revenue to assist citizens
- Poor management – resulting in the company being mortgaged and or being
liquidated
- Fronting

Localization policy
- The process of promoting citizen labour and enterprise / The process of giving jobs
or businesses to citizens

Localisation of labour
- This refers to the replacing of expatriate workers (foreigners) with citizens
- The process of allocating jobs or positions to the citizens of the host country
which were previously held by foreigners
In this case, Botswana appoints citizens in to all the areas/positions previously occupied
by foreigners e.g. teachers, doctors, engineers, etc.

Advantages of localisation
- It promotes the socio-economic development of locals
- It is part of asserting a country’s independence
- It helps in making people believe in themselves and not always show respect to
foreigners
- It is part of retaining our culture and restoring our national pride
- Saves money in wages paid out to expatriates
- Helps create jobs for locals

Disadvantages of localisation
- The foreigners replaced are not always happy with the situation
- It might ruin the relations that prevailed between countries
- Locals might be inexperienced in performing certain tasks

Steps taken by the Botswana government to promote localisation policy

- Major steps have been taken on the science and technical based field…areas that
were marginalised before
- The expansion of facilities at the University of Botswana and also the elevation of
the former Polytechnic to Faculty of Engineering of the university
- In-service training for Batswana officers
- Introduction of ten year basic education
- Promotion of vocational education

- Privatization of parastatals
- It is the sale of publicly/state owned assets to (private) individual or company
ownership
- Selling shares of a business owned by the state to the individuals

57
Why Privatize (Reasons for Privatization)
- To reduce the role of the state in the economy in order to allow it to concentrate
on the essential task of governing
- To release limited state resources for the financing of other demands….in the area
of human development (education, health, sanitation, etc.)
- To increase the spur of competition and promote economic efficiency in fostering
well functioning markets
- To accelerate the national development process - raising revenue for the
government
- To generate new investment especially foreign investors
- To promote wider share ownership, thus shifting ownership away from the state
and large institutions towards individuals

Advantages of Privatization

 The sale of state assets generates a great deal of income for the government
 Privatization improves services & efficiency for industries & allows enterprises to
charge competitive prices i.e. it increases efficiency because of competition and
profit motive
 It reduces political interferences which may affect the performance of enterprises
 It encourages ‘property owning democracy’ in which more people would have a
steak in the success of the economy
 It also increases profit since profit becomes a more important objective
 Privatized enterprises offer new services & diversify hence giving consumers a
wide choice
 It increases investment (expenditure is increased to bring more profit) i.e. it
accelerates economic growth by stimulating entrepreneurship
 It increases participation by citizens in ownership of national assets
 It reduces public sector bureaucracy
 It helps empower citizens where such sales are restricted to citizens
 It considerably reduces prices and public sector budget deficit through enhancing
the quality of goods and services

Disadvantages

 Privatization is expensive i.e. government spends enormous amounts of

the tax payers’ money on expensive TV adverts advertising each sale

 Some public monopolies have become private monopolies which exploit

their positions

 Nationalized industries tend to be duplication of resources in the private

industries

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  Privatization does not always increase share ownership i.e. few locals may
afford to buy shares from public companies

 Many of the nationalized enterprises are important for the development of

the nation hence to put them in private hands might jeopardize their existence &
that of the nation

 It may lead to a hike in the prices of goods

 When privatizing, companies reorganize their internal structure in order to

cut costs & improve efficiency hence they shed jobs (loss of jobs)

 It is a threat to public interest, because profit goes to private owners and

not to the whole nation

 Corruption and nepotism may arise from the fraudulent politicians and
bureaucrats who might unfairly sell companies to themselves and their relatives at
meager prices

What are foreign reserves?

These are funds / income / revenue that accrue to a country as a result of balance of
payment surplus.
- This means it is money or profit that is realized after the country pays for its
imports
- The money is in the form of foreign currency i.e. money from other countries in
the form of hard currencies like the US dollar, the British pound, the Japanese
Yen, etc.
- These funds are invested abroad
- The Bank of Botswana administers the funds on behalf of the country

Foreign Reserves as an Investment

- International Financial Markets: The money has been ploughed into the
International Financial Markets using International Financial Brokers. The money
has been used to buy shares, bonds and equities. The investment has been mainly
in the world’s major financial markets in Europe, North America and Japan. The
country earns profit from these investments

59
 - Interest: The foreign reserves as savings accrue (earn) interest that is paid to the
country
- Foreign Exchange Earner: The foreign reserves are effectively the country’s
second largest foreign exchange (foreign currency) earner after diamonds. This
comes from the profits from investments and interest accrued from abroad
- Enhancement of the country’s credit worthiness: The huge foreign reserves
Botswana possesses give it financial credibility to deal with international financial
institutions and countries. This means the country can easily borrow money for
development projects from abroad
- Securing the country’s financial future: Foreign reserves are savings or a form of
obtaining from consumption. This is a conscious move by the government to put
aside money for future generations or crises. The government could easily have
these surplus funds to embark on meaningless prestige projects i.e. splashing
money around, but it chooses not to instead.
- Capital for diversifying the economy: The foreign reserves have created a
financial pool for Batswana entrepreneurs. The funds are made available to
investors through the National Development Bank, CEDA and Botswana
Development Corporation (BDC). This is an attempt by government to diversify
the economy from over dependence on diamonds.

Conclusion
Foreign reserves are very important to Botswana’s economy present and future. They
have brought a lot of economic stability to the country and continue to earn the country a
lot of invaluable foreign exchange. The challenge for Botswana is to try and diversify the
economy away from diamonds.
Another big challenge will be to avoid the path followed by other African countries, i.e.
the plunder of their foreign reserves. The people should not lose focus of the precarious
economic position the country is in. If the prices of diamonds plummet, an economic
crisis might face the country if foreign reserves are not managed properly.

Ways by which the Botswana government can raise revenue for investment
- Taxation (employees, businesses, goods entering Botswana, etc.)
- School fees / cost sharing
- Loans / grants
- Imposing fines and penalties
- Production and selling
- Exporting goods (foreign trade)
- Invitation of TNCs / MNCs
- Direct foreign investment
- Privatisation

What the Botswana government is doing to promote a culture of investment

- Lowering tax / tax holidays
- Lowering inflation
- Affordable water, electricity, etc
- Political stability

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 - Low interest loans
- Training in business skills
- Selling shares / bonds

RURAL DEVELOPMENT
R ural development refers to the improvement of the standard of living of the people in
remote areas/country side. Rural development is normally associated with the
improvement or modernization of agriculture. It is concerned with eradication of poverty
or inequalities amongst the rural people & between the rural & urban areas.

Aims of rural development

- eradication of absolute poverty

- to reduce inequality in the distribution of rural income & economic opportunities
- prevents rural – urban migration
- increase the capacity of rural sector to speed up economic growth

Traditional rural societies

T raditional rural societies almost completely depend on the natural development & the
level of technology. Land ownership was communal & the chief or traditional leader

61
held the responsibility of distribution of land. He was custodian of community property.
Private ownership of land was not allowed. Division of land was based on set roles. This
means that agricultural activities were divided into males & females e.g. herding cattle
were done by a man while weeding was done by a woman.

Traditional societies were innovative. The type of tools that were used in a traditional
society were simple but suited for their particular purposes. These include hoes, pangas,
axes, spears, knives & these were cheap implements. Agriculture was seasonal i.e. the
cultivation of crops was only done in wet seasons. Crop cultivation was entirely
dependent on rainfall. As a result of this system the failure of rainfall might result in total
crop failure.

Traditional societies could be identified as follows;

- Hunter-gatherer community
This type of community lived directly from their natural environment which provided
wild plants & game (animals) for food. These also provided for their basic needs such as
tools, weapons, clothing & temporary shelter. This community lived a nomadic life
moving from place to place when necessary. Such communities in southern Africa were
the Khoikhoi & san while in central Africa was the pygmies.

- Nomadic pastoralists
On the plain & veld areas communities started herding livestock. These people kept
moving with their livestock to places where there was water & grazing. These
communities became known as nomadic pastoralist. Their animals provided milk, meat,
and skin & at times used as transport either for riding or carrying property. Such
communities in southern Africa were the Khoikhoi while in east Africa were the Masai &
in West Africa were the Fulani.

- farming communities
A dramatic change in the lives of rural societies or people occurred when people learned
how to grow crops. This made it possible for a large population to be fed & for people to
lead a sedentary life. In places where there were good soils & plenty of rainfall, growing
of crops was practiced extensively. Continuous growing of crops on the same piece of
land led to loss of fertility hence the development of a technique known as shifting
cultivation. In some areas, people developed of shifting cultivation known as slash &
burn. All traditional communities were based on forms of subsistence farming. This is a
form of farming whereby farmers produce to feed their families only.

Subsistence farmers produced enough for their own needs & not for sale. Any
surplus/left-over will be exchanged for other goods that are not produced by that
particular farmer. In subsistence farming, farms usually cover small areas of land.
Traditional methods of farming are used in this system e.g. broadcasting of seeds. Labour
is usually provided by family members rather than hired workers. Simple tools are used
in this kind of farming. The farmer relies on natural inputs such as; cow dung, crop
residues & rainfall for his/her farming.

62
Production of surplus which often occurs was the beginning of some rural economy
based on specialization & trade. The type of trade which developed was the barter system
i.e. exchange of a good for another. In traditional societies, land was held in common by
the community. This is a form of ownership known as communal ownership of
land/communal land tenure. The chief was the custodian of land or he owned land on
behalf of the community. Traditionally, people believed that they had the right to use land
& not own it. Land could be used but it was not bought or sold (no private ownership of
land). The chief was responsible for allocating land.

The traditional agricultural system was based on the three-site system. This system
involved;
 Village
 Land
 Cattle post
The activities of the people rotated around these sites. The movement of people was
based on seasonal migration between these sites.

However, this type of traditional system has been altered by colonialism. A number of
changes occurred as a result of colonialism. Colonists brought with them new forms of
agriculture & practices which affected the traditional system. With the coming of
colonists, Africans were dispossessed of their land & a new land tenure system was
introduced. A cash economy i.e. an economy based on money was introduced & Africans
were forced to work for European masters.

Village Land

Cattle
post

63
First, colonists grabbed land from Africans through forceful means or tricky concessions,
then privatized the use of land hence a new land tenure system. Africans were pushed
into the unproductive or barren parts of the country. Africans soon found themselves
slaves & squatters on land that originally belonged to their forefathers. Life in those parts
of the country where Africans found themselves became more difficult because they
could no longer produce sufficient food for themselves. In east & southern Africa,
African reserves or homeland (Bantustans) were introduced to isolate Africans from
white communities.

This resulted in shortage of land for subsistence farming, overcrowding & starvation.
Colonists took land from Africans in order to;
 Get minerals & other resources
 Give land to European settlers
 Export cheap African labour
 Set up plantations to grow raw materials for European industries

The land that was taken from African communities was the best land. This resulted in
shortage of farmland & peasant farmers (subsistence farmers) found it difficult to feed
themselves. Rural poverty became common. The situation forced them to migrate to
mines, plantations & factories. It was the beginning of the migrant labour system. The
result of this is that families left behind soon found it difficult to produce & as a result
Africans found themselves locked in a vicious cycle of poverty.

The Vicious Cycle of Hunger

64
 Small
Lack of
energy
good food
resources

Low output Little work

The Vicious Cycle of poverty

65
 -Poor
Lack of equipments
money -Poor
resources

Low
Low or no
production
income
per acre

The vicious cycle of poverty is a self-sustaining situation whereby the poor find
themselves poorer & poorer. Without resources especially money to buy equipments &
new inputs, it is hard to produce very much. This means producers have very little to
invest in future productivity & the cycle continues.

66
The Savings Vicious Cycle

Low
Low savings
investment

Low stocks
Low output
of capital
and income
goods

The Vicious cycle of small market

Lack of
Low specialization
savings & economies
of scale

Low
Low
stocks of
output and
capital
income
goods

Other causes of rural poverty include;

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- Lack of alternative income
Farmers do not have other ways of obtaining money since farming does not provide
enough work for the people in the rural areas. It is therefore necessary that rural
industries should be introduced to employ people & improve the rural economy.

- Population pressure
As population increases rapidly, pressure is created on land supply. Land available for
cultivation & settlement becomes scarce. This weakens the rural economy & causes
rural-urban migration.

- Lack of skills & technology

Rural areas often have few educational institutions hence rural dwellers or farmers lack
modern education or access to information. They have few opportunities to learn about
new innovations/technology.

- Unequal access to land

In rural areas, land may be unevenly shared. Rich farmers may have more land than poor
farmers & unwilling to sell/rent their land to the kindles. Commercial farmers may buy
small farmers out of their land in order to extend their farms. This situation makes it
difficult for some rural people to earn a living.

- Lack of money for investment

Farmers need money to buy new tools, machinery or experimenting with new breeds in
order to increase production. However, it is often difficult for small farmers to get loans
since banks & other moneylenders prefer to lend money to large profitable businesses.

- Environmental degradation
The poorer the people, the more harmful their activities are on the environment. Poor
people will destroy the vegetation through over harvesting of forests for wood & over
cultivation of land without any inputs for fertility.

- Soil erosion
Poor farmers use poor methods of farming which lead to soil erosion. This is very
dangerous to the future of the rural dwellers.

- Deforestation
A lot of forests & other plant species are lost due to the stress that is exerted by the rural
population.

- Overgrazing
Improper farming techniques such as overstocking leads to loss of pastures

- Pollution of water resources

Lack of proper water management & sewage disposal will lead to pollution of water
needed for drinking. The water is also depleted/overused.

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- Malnutrition and a general poor health
Food shortage & poor diets lead to malnutrition of children & people in rural areas, hence
the occurrence of diseases such as marasmus, kwashiorkor other nutritional related
diseases. The standard of health in rural areas will also be low hence infant mortality will
be high.

- Rural – urban migration

Poverty will contribute to people moving or leaving rural areas to urban areas in search of
jobs or job opportunities & a better standard of living. In this situation, it is young &
able-bodied people who migrate to urban areas & leave the very young & very old to take
care of agriculture.

- Stress on family unit

The family unit is put under stress when members migrate to urban areas especially men.
This is because women will be left to carry heavier responsibilities i.e. they combine their
duties with those left behind by their men.

Colonialism:
The policy by one country to take over power in another country or other countries. In
Africa, the dominating powers were mainly the imperialists from the west notably
Britain, France, Germany, Portugal and to a less extent Italy. Countries of the North
partitioned Africa at the Berlin Conference in what is commonly referred to as The
Scramble for Africa.

Impacts of Colonialism of Africa

Positive impacts
- Introduction of cash economy & cash crops e.g. maize
- Infrastructure development e.g. railways
- Western / modern education
- Modern health
- Unity: political and economic e.g. the use of the Rand by the BOLESWASANA
countries and all British colonies becoming members of The Commonwealth and
SACU of 1910
- Large scale production
- Christianity / civilization
- Market linkage

Negative impacts

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Economic
- Land dispossession e.g. Tuliblock, Gaborone, Lobatse & Ghanzi blocks, Tati
Company in the Francistown & North East areas
- Over utilization of limited farmland
- Taxation (hut, dog, poll tax)
- Loss of African initiative / craftsmanship
- Concentration on raw material production / mono-economies
- Large-scale extraction of goods / natural resources
- A change in the direction of trade – International trade
- Decline in farm work
- Servitude / slavery

Social / Political
- Acculturation (loss/erosion of the African culture)
- Detribalisation (urban area / town)
- Colonial legacies / neo-colonialism
- Controversial boundaries
- Divide & rule notion
- Shunning of traditional customs and beliefs etc.

Aspects of rural development

Positive
- Cheap products
- Non-polluted environs
- Cultural bounded lifestyles (fashion)
- Extended family structure (social security)
- Familiarity / kinship ties

Negative
- Culture constantly changes
- Rural neglect (suffering from political, social, economic and moral neglect)
- Overworked soils
- Rural poverty

The rural economy

The rural economy can be divided into two;
- Peasant/subsistence (small scale farming)
- Commercial/large scale farming

- Subsistence / Peasant farming

The growing of crops and rearing of livestock to feed the family. There is no surplus
produced if any is produced it will be exchanged with other goods needed.

Characteristics

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  Farms are small & labour intensive
 Labour is provided by members of the family
 The use of animals to assist labour is common
 Technology used is simple
 Technology used is simple
 Method of production used is traditional & usually poor
 Farmers rely on natural inputs such as needed rain, crop residues & animal
dropping
 Ownership of land is communal
 Very little effort & skill is needed to run this type of farming

- Commercial farming
It is the growing of crops & rearing of livestock for sale.

Characteristics

 Labour is usually provided by paid/hired workers

 Crops & animals are raised for sale or export
 Chemical fertilizers & pesticides are used
 Hybrid varieties are used in this type of production e.g. exotic breeds
 Technology used is complex e.g. combined harvesters & tractors
 Farms are usually owned by companies or rich individuals
 A lot of money is earned by selling hat have been produced
 A lot of skill & effort is needed in running this type of production
 Production is of large scale

The nature of rural development

For an effective rural development to occur, the following should be observed;

 Rural development should get access to easy-to-maintain appropriate capital

technology
 Rural development should be oriented (addressing the need of the people)
 It should be self reliant
 Environmentally sustainable
 People should be the authors of their own development

Schemes and policies for rural development

The government must introduce new policies that will improve the lives of poor rural
people. Some of them must include the green revolution in agriculture. This refers to

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increase in productivity made possible by a package of new methods or hybrid plants
introduced to improve yield per hectare.

For the green revolution to succeed, many changes are necessary. These are;

 High yielding hybrid seeds

 Artificial fertilizers & pesticides
 Water reservoirs (local dams)
 Irrigation
 New method of cultivation
 Co-operation between farmers
 Agricultural extension services
 Improved local infrastructure
 Banking & credit facilities
 Price control by the government
- Loans, credit schemes and small rural projects
The government should provide farmers with credit facilities with credit facilities from
which they can obtain loans at fair interest rates e.g. in Botswana the NDB provide
farmers with money to improve their agriculture. CEDA is another credit scheme which
gives grants to people who want to start small businesses such as poultry farms. Other
programmes include;

 ALDEP which provide subsides to farmers to buy agricultural implements &

fence their fields.
 ARAP (accelerated rainfed arable programme) which pays farmers for the amount
of land cultivated. The programme encourages farmers to produce & to be self-
sufficient.
 SLOCA which encourages farmers to form a group in order to get money to
improve their livestock, it usually finances projects such as dips. The government
also encourages farmers to develop small rural projects such as the building of a
local dam to conserve water for use in dry seasons.

- Farmers’ co-operatives

 Co-operatives are a group of farmers who own resources together. Farmers are
encouraged to form co-operatives for the following reasons;
 Buying machinery
 Sharing the costs
 Benefits
 Buying inputs such as fertilizers & fuel in bulk at a cheaper price
 To sell their produce together in one market so as to share the transport costs
 For farmers to get advice & share ideas or so that they can invite government
officers to teach them a certain idea together
 So that the government can help them with money or finance if they are a group

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- Collective farming
Farmers are encouraged to join their land together & work it as one large farm. This is a
collective system or communal system e.g. in Tanzania there is ujamaa.

- Resettlement schemes
During colonialism, white farmers allocated themselves large fertile plots of land. After
independence, some countries started resettlement schemes I order to change land
ownership/land distribution so that everyone has access to land. Resettlement schemes
are also related to land redistribution e.g. the Zimbabwean land redistribution.

In Botswana, resettlement schemes such as the New Xade programme is meant to give
the concerned people social services & for them to give way to tourism. However, land
reforms without good facilities cannot bring rural development.

Strategies for rural development

- modernizing livestock farming
In modernizing livestock farming the following should be done;
 Drilling boreholes
 Rotating pastures to avoid overgrazing
 Fencing areas to grow fodder crops for livestock
 Developing new livestock breeds which give more milk or more meat
 Building dipping tanks for pest prevention & developing efficient veterinary &
extension services

- Improvement of water supplies

It is important/vital in rural development to have proper & enough water supplies. Water
is essential for good health & survival. Clean safe pipe drinking water should be available
for people in rural areas.

- Irrigation schemes
This can take two forms which are;
- Small scale irrigation
- Large scale irrigation

a) Small scale irrigation

At village level, irrigation can be quite simple. Villagers can dig irrigation channels from
upland streams to irrigate their fields. This can help to grow more food for them.

b) Large scale irrigation

This type of irrigation is costly & needs advanced technology. It is capital intensive. This
type is suitable for cash crop farming & it needs construction of large dams which can
also be used for generating hydro-electricity. Villagers can also benefit from this scheme.

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However, large scale irrigation schemes are not without any side effects or disadvantages.
Such problems include the following;
 When damming a river, farmers down stream will have little or no water at all.
Dams flood land & may force people to abandon their land remaining landless.
 desalination of land resulting from evaporation
 Silting of dams may result
 Electricity generated from that scheme may be used to benefit areas elsewhere
rather than the local area

INTEGRATED RURAL DEVELOPMENT

This means combined rural development. It has got the following objectives;

 Modernizing farming
 Providing basic social services
 Reducing dependency on urban economies
 Raising the rural people’s standards of living

Integrated rural development is a development which occurs by considering all factors

i.e. changing in such a way that all factors are taken care of. It is an improvement in all
aspects of the rural economy. In integrated rural development, there must be
transformation of the whole structure of rural economy & not improving agriculture only.

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 Non-agricultural
industries

Water resources
Storage markets
management

Integrated rural
development

Provision of social
Land reforms
services e.g. clinics

Modernizing
farming

For integrated rural development to be achieved, the following should be considered;

 The development must take account of the interests of the whole community &
not just a few individuals e.g. the land owners, the rich or the powerful.

 Changes in one part of the system must correspond with the needs of all other
parts e.g. the introduction of a new cash crop should not reduce the food supply
for the locals or damage the soils.

 The development should be interdependent with systems outside of it e.g. the

rural economy should aim to meet many local needs such as clothing, footwear &
building materials.

 Development should be adaptable & suitable so that it can solve internal problems
e.g. population growth & external problems like falling market prices.
N.B the government should always work with local communities & never
impose schemes without consulting them.

 Integrated rural development also need co-operation & self help as people must
work together to provide for their own benefit e.g. a village dam or a community
hall. Such projects give the people a great sense of achievement.

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It is essential for certain things to be done in order for rural development to be
totally/truly integrated. These include the following;

o Land reforms
o Redistributing land in order for everyone to have equal access for it
o Helping/providing land for the landless
o Giving farmers secure use or ownership of their plots of land
o Giving women the same rights s men
o Forming farmers’ co-operatives

- farming modernization
The aim is to adopt old methods, introduce new ones & use appropriate technology in
order;
 Produce more traditional food crops
 Raise cash crops for the market
 Provide extension services
 Increase food self-sufficiency
 Provide credit schemes

- Water resources
 Providing clean, safe, piped drinking water
 Helping the villagers to construct dams
 Providing water at village level is the most important service because it improves
health, saves time & work & improves livestock

- Social services
Education & health services are very important since they give people advice on
preventing diseases & illnesses, death & on birth control. Education is also vital
especially for women for getting access to information on how to lead a healthy life.
Social services include;
 Clinics for feeding the malnourished, maternity & immunization programmes
 Schools for providing basic literate skills
 Tarred roads to help the producers to reach the market & to gain advice from the
export

- Telecommunications network
Such things as telephone, taxes & the internet are necessary for telecommunication
between places.

- Storage & marketing skills

These are important for planning & managing crops & surplus produced. If necessary, the
government should control prices so that they are fair & reliable. Marketing boards such
as BAMB should be provided so that farmers can market their goods or produce.

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- Rural industries & services
Setting up industries in rural areas since it increases income-generating opportunities.
Financial assistance progames such as CEDA in Botswana help people to start up
industries.

The role of women in rural development

The traditional role of women in a rural society has been that of a home maker and food
producer. Men & women had different roles based on gender. However, there were
customs & beliefs which discriminated against women such s women being discriminated
against women such as women being considered as inferior to men. In rural areas, women
carry out 90% of the domestic chores.

o Women take care of agriculture through ploughing, weeding & harvesting.

o They provide employment by starting income generating ventures such as tuck
shops & selling beer
o Most women are engaged in community projects such as the building of VDC
houses, dams, community hall etc
o Women are also involved in fund raising activities such as sponsored litter
campaigns
o Women play an important role in village such as VDC, PTA & health committees

URBANIZATION
This is an increase in the proportion of people living in towns & cities (urban areas,
conglomerates) as opposed to the countryside (rural areas)

URBAN AREA: It is a place where 75% or more of the population is engaged in non-
agricultural activities. It can be defined according to size, function & form

Example of settlement by size

Settlement population

Isolated dwelling 1 – 10 cattle post

Hamlet 11 – 100 lands
Small village 101 – 500 Chadibe, Majwaneng
Large village 501 – 2000
Small town 2001 – 10 000

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Large town 1001 – 100 000
City 100 001 – 1000 000
Conurbation 1000 001 – 10 000 000
Megalopolis 10 000 000 - & above

FUNCTION; whether most people depend on agriculture or non-agricultural activities

RURAL – URBAN MIGRATION; This is the movement of people from rural areas to
urban areas. This is common in developing countries. Most of the migrants are young,
thus starting their families in urban areas & causing more increase in the proportion of
people living in urban areas through natural increase.

URBAN – URBAN MIGRATION; This is the movement of people from one urban
centre to another e.g. from New York to Washington or from Lobatse to Gaborone. This
is much more common in the developed world.

URBANISM; this is the tendency by people to lead an increasingly urban way of life.

URBAN GROWTH; this is the increase in the physical size of a town or city.

Cause of urban growth:

- affluence
- cheap land in the periphery
- development of infrastructure
- expensive rented accommodation in the city center
- pollution
- urban decay
Problems caused by urban growth;
- commodification of land
- urbanism
- cultural erosion
- detribalism
- deforestation
- ruralisation of urban areas
- pollution
- traffic congestion
- loss of ancestral land

PRIMATE CITY; This is an urban area whose population is at leas twice or double that
of the second largest in a country.

Characteristics of a primate city;

- An area where govt. would normally set up its administration e.g. parliament /
cabinet
- An area where a national university and technical training schools are located

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 - Has the best infrastructure and communication networks and most of the financial
investments
- An area where many govt. departments and private companies’ headquarters are
found

Causes of urbanization
There are two main causes of urbanization i.e. natural increase & rural – urban migration.

Natural increase
This is whereby the population increase is caused by birth rate being higher than death
rate. It is calculated by subtracting the death rate from the birth rate.

Natural increase is a major factor of growth in the oldest cities of the industrialized world
e.g. London & New York experience 1% growth yearly mainly due to natural increase. In
Africa, although natural increase is far less than migration, it still plays an important role
towards growth of towns & cities. This can be contributed to:
i. Improved health facilities
ii. Improved diets
iii. Improved water & sanitation
iv. Improved standards of living

Migration
Here, migration refers to the process of moving from one place to another with the
intention of staying at the destination permanently or for a reasonable length of time.
Migration can be permanent or temporary.

Permanent migration; this is when people move from one area to another without the
intention of returning to their place of origin.
Internal migration; this is when people move within the same territory or country e.g.
rural – urban migration or urban – urban migration.

External permanent migration; this is the movement of people outside their country of
origin to another country without the intention of coming back.

Temporary migration; this is when people leave their places of origin for a short period
of time.

RURAL – URBAN MIGRATION

This is usually due to push & pull factors.

Push factors
These are conditions or circumstances that force people to migrate. Such conditions can
either be social, economic or political.

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Social push factors
 Lack of improved social amenities such as education, modernity (bright lights)
 The desire to break away from traditional life e.g. tribal or family feuds & witch
craft e.t.c
 Rapid population growth due to lack of knowledge with regards to birth control
measures
 Rural poverty

Economic push factors

 Poor farming methods e.g. monocropping (which leads to poor harvest),
overgrazing
 Lack of economic opportunities such as employment or investment
opportunities
 Mechanization of agriculture – when modern machinery is used in
agriculture, cheap unskilled labour is not needed. This leads to
unemployment & people decide to go elsewhere
 Prices of goods are generally high in rural areas

Political push factors

 Wars e.g. the Yoruba wars of the 19th century which forced people
to congest in towns

PULL FACTORS
These are good prospects that attract or entice people to migrate to towns & cities. These
can also be categorized into social, economic & political factors.

Social pull factors

 Improved social amenities e.g. recreation, entertainment, health & education e.t.c
 Chances of finding better relationships
 Opportunities of modernity offered through television, radio & cinema e.t.c

Economic pull factors

 High opportunities of finding better jobs or self – employment
 Cost reducing advantages of agglomeration & economies of scale
 Proximity to a variety of cheap goods, transport, skilled personnel e.t.c

Political pull factors

 Security offered in towns e.g. turbulent countries like Angola, the
best security is offered in important towns like Luanda than rural
areas

EFFECTS OF MIGRATION ON RURAL AREAS

These effects can be divided into positive & negative:

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Positive effects

 Migrants send part of their money home – in some case4s this is

the only source of real income in the rural areas. Families are able
to buy sugar, tea, flour, maize meal, pay school fees e.t.c with
money

 Migrants who work in foreign countries send remittances in the

form of foreign exchange e.g. Batswana miners, farm workers &
domestic workers in South Africa send rands home

 Migrant workers bring in new skills, good ideas, technology e.t.c

when they come back to their communities

 Migrants can invest their income in rural areas e.g. building shops,
running public transport e.t.c by so doing they create employment
in rural areas
 In the absence of some members of the family, there are few
mouths to feed

 Migrants may be admired in rural areas because they bring new

lifestyles & knowledge of different languages

Negative effects

 Migration deprive rural areas the much needed labour in agriculture since most of
the migrants are able – bodied men & women of 15 – 45 years

 Migration has resulted in the change of division of labour in rural areas. The
production of food from tilling to cooking is now left entirely to women. Some
women even look after livestock

 Family life is disrupted. The discipline of children usually done by fathers is now
taken by the mothers. Some children (especially boys) become too difficult to
discipline which may result in juvenile delinquency

 There is an imbalance in sex ratio. Many migrate leaving women, as a result

many marriages collapse (infidelity becomes a norm & sexually transmitted
diseases like AIDS spread quickly)

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  The traditional way of life suffers. New bad influences from urban areas spread
quickly e.g. dikgosi have lost respect & the mophato system has faded away

 Women’s work load increases as they have to do family work, paid work &
community work

EFFECTS OF MIGRATION ON URBAN AREAS

Migration results in rapid urbanization (the tendency of having more in urban areas than
rural areas at a rate which the national economy cannot cope with or sustain). This rapid
urbanization brings in all sorts of problems e.g.

 Pressure on social amenities such as hospitals, schools, clinics e.t.c

 Increased crime & social unrest e.g. strikes, boycotts e.t.c
 Shortage of clean water; provision of water supply is overstretched because of
demand for both domestic & industrial use
 Sanitation becomes poor, sewage systems are overflowing e.g. Cairo is trying to
cope with a population 10 million with a sewage system meant for 2 million
 There is shortage of housing; this result in squatter settlements & the
development of shantytowns. At times houses are available but are very
expensive to the majority of the people. Land is also very expensive & buying it
becomes a problem or unaffordable.
 Unemployment becomes skyrocketing

SOLUTIONS TO PROBLEMS OF RAPID URBANISATION

Solutions to the problems of rapid urbanization are theoretically not difficult to find.
Practically they have that they are not really effective. One therefore has to say that they
are perceived rather than real. Anyway the following can be considered as possible
solutions:

-Development of the rural areas; government should invest in agriculture, improve

social amenities, find alternative energy sources to make rural areas a better place to live
in. it should also endeavour to set up industries in rural areas to create employment,
encourage people (by offering loans & grants, tax holidays e.t.c.) to invest in rural areas.

- Decentralization of government structures; government departments should be opened

in rural areas.

- Rural – urban migration; rural areas close to towns & cities should be encouraged to
start businesses that will supply the urban areas with necessities such as firewood, crafts,
poultry & vegetable production.

- Government population; the government should introduce a legislative tool which will
encourage people to limit their families e.g. one child policy & legalization of abortion

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- The government should also provide free contraceptives & educate people on their use
& the dangers of large families.

THE URBAN ECONOMY/SECTORS OF EMPLOYMENT

People who migrate to urban areas usually find employment in the formal/informal
sectors of the economy.

The economy of the city/urban area is made up of two distinct types of sectors hence it is
known as a dual economy. These sectors are:

THE FORMAL SECTOR

This is a part of the economy which is organized by large firms & the government.

Characteristics

- Work takes place in modern & permanent buildings

- Business is done according to the business laws of a country
- Workers get regular wages or salaries
- Workers often have a written contract with the employers
- The employees can belong to trade/workers union
- The employees are protected by the employment laws of the country
- Jobs offered need educational & technical skills

THE INFORMAL SECTOR

This is whereby a business is done on a small scale & work is done in temporary
workplaces, people’s homes, in the streets & at the market place.

Characteristics

 People work for themselves (self employment) or provide small services for other
people
 Wages are irregular
 Employees are non-unionised
 Informal sector activities are illegal and therefore employees’ jobs are legally
unprotected

Types of jobs in the informal sector

 Trading at the market

 Street vending
 Selling in small quantities
 Mending clothes & shoes
 Selling cooked food
 Selling home brewed beer & running shebeens
 Mending car punctures

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  Cleaning & wind screens
 Selling newspapers & publications
 Hair dressings & barber shops

Advantages
The informal sector has some advantages to the underprivileged.

 It provides an opportunity for unskilled self employment e.g. reselling things

which have been bought cheaper
 A chance to use natural skills e.g. repairing goods
 An opportunity to form social networks e.g. village associations or religious
groups
 The opportunity to develop the informal sector into a successful business
 It provides workers with a chance to acquire skills which might enable them to get
jobs in the formal sector
 The informal sector provides cheap goods which can be bought by the poor

The importance of the informal sector in development

o It makes life easier for migrants who came to urban life for the first time
o It provides work, shelter & support for migrants
o It provides contact between home areas & the new city life
o The informal sector stimulates development

Links between the formal and the informal sector

The two sectors are interdependent hence they form a dual economy.

A dual economy is whereby two distinct types of economy exist at the same time e.g.
formal & informal sector existing together

Their relationship involves the following:

 The informal sector provides the formal sector with a training g ground for new
comers, who learn new skills
 Some of the people working in the informal sector provide services to the formal
sector e.g. Selling food or repairing shoes
 The formal sector also serves as a market for goods from the informal sector

Differences between formal and informal sectors of the economy

Formal Sector Informal Sector

- business run according to law - business is illegal
- workers have written contracts with their - workers have verbal contracts with their
employees employees
- jobs need education & technical skill - jobs require unskilled labour
- regular & guaranteed wages - wages are irregular
- employees work for someone - self employment/free entry job/do small

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 services for others
- workers can belong to trade unions - non unionized
- workers protected by the legislation or - illegal & therefore workers are
state laws unprotected by law
- takes place in buildings/permanent place - takes place at home/streets/temporary
structures
- operates on large scale - operates on small scale
- pays tax - owners take all the profit

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INDUSTRIALIZATION
This is the setting up of such organizations which deal with large scale production of
goods using complex machinery & mechanical energy.

It can also be defined as the growth of large mechanical production.

In other words, industrialization is the process of setting up companies which process raw
materials, manufacture goods & provide services using complex or advanced technology.

- However, industrialization in Europe started in the early 19th century

- In Britain (UK), inventors were trying on new ways of improving the process
involved in the production of textiles
- Water and electricity were used to speed up the production of clothes & wool.
This new technology enabled production of large quantities of cloth. Ample
labour was provided by laid off farm workers who have been rendered useless or
jobless by similar inventions in the farming sector. By the end of the 19th century,
most countries of Western Europe, North America & Japan had started
industrialization.

Strategies for industrialization

There are two broad strategies which have been successfully used by many industrialized
& newly industrializing countries (NICs). They are import substitution industrialization
(ISI) & export oriented industrialization (EOI). These strategies can be implemented
through multi-national corporations, local companies & joint ventures e.t.c.

Import substitution industrialization (ISI)

This is whereby a country starts making goods for itself instead of importing from
elsewhere or other countries. A deliberate effort is usually done to promote local
industries through;

 Putting high tariffs on imported goods

 Providing loans & grants to local people by the government
 Encouraging students to specialize in science & technology, so as to provide the
much needed skills

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  Starting national research centres to encourage technical inventions
 Inviting MNCs to invest in the country
 Controlling the workers so as to ensure stability at the workplace
 Protecting individuals’ property, rights thus reducing fear from the private
companies that their asserts may be rationalized
 Providing the necessary infrastructure such as telecommunications network,
water, power, roads e.t.c
 The government investing directly in heavy industries which are of strategic
importance or which cannot attract private investors
 Maintaining a peaceful political environment to encourage investment

Advantages
 Creates employment for the local people
 It creates & expands the industrial sector hence improving the country’s
infrastructure
 It increases the country’s GDP
 It creates self-sufficiency in the country through the production of goods &
services which the country did not have at the beginning
 It saves foreign exchange by reducing expenditure on imports
 It creates a positive balance of trade & possibly a trade surplus
 Industries provide training for the local people
 Raw materials mare processed locally instead of being exported in their raw state,
fetching low prices

Disadvantages
 Goods produced are sometimes of poor quality when compared to imports
 Some locally produced goods are more expensive than imported goods
 It is often difficult to finance these industries hence countries rely on foreign aid
 These industries still find themselves dominated by foreign expertise
 The domestic market is often too small for a profitable income
 There is a tendency for local people to develop a taste for foreign goods hence
despise locally made goods

Countries using import substitution are; South Korea, Singapore, Taiwan, Brazil &
Argentina.

Export oriented industrialization (EOI)

This is whereby a country develops industries directed towards producing goods &
services in high demand in other countries.

This is done for the following reasons:

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  To generate the highly required foreign exchange
 To create job opportunities for the locals
 To encourage economies of scale i.e. to produce more for a bigger market &
being able to reduce the production costs while making good profit
 To encourage research, innovation & development of skills
 To make more profit by using cheap labour and export goods which may not find

a market locally

Advantages
 It creates employment for the local people
 It generates foreign exchange for the government
 The local industrial sector is expanded & local resources are utilized efficiently
 It creates a link between a country & other countries
 The government revenue is improved from such sources as tax
 It improves the country’s GNP

Disadvantages
 Locally produced goods face a tough competition in the outside market
 Locally produced goods experience a problem of trade barriers such as tariffs
(money charged on goods entering a country)
 Lack of finance to develop such industries hence a reliance on foreign aid
 Lack of skilled manpower & poor technology lead to a reliance on foreign
expertise & dependency on the developed world hence neo-colonialism

TYPES OF INDUSTRIES
Industries can also be categorized into large scale or small-scale industries.

Small-scale industries (small is beautiful)

This refers to production which is done in small quantities & involves the production of
things such as craftwork i.e. sculpture, carving, pottery, basketry e.t.c

advantages
 It generates income to small producers
 It creates employment in the rural areas

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  It utilizes local resources i.e. raw materials & skills
 It is rural based hence reduces rural – urban migration
 It brings about rural development
 It is domestic market oriented i.e. it produces to sell locally

disadvantages
o Goods produced are sometimes of poor quality
o Industries face unreliable markets/poor marketing strategies
o This type of industry has a problem of poor management e.g. whereby
managers misuse capital
o Financial constraints i.e. it faces problems of financing

Large-scale industry
This is production which involves making more goods at the same time using complex
machinery & mechanical energy involving a lot of money

Advantages
 Mass production is encouraged
 It creates economic links whereby an existing industry leads to the existence of
many more other industries
 It brings about economies of scale
 The quality of goods produced is high due to competition
 Large scale industries train labour
 It leads to the development or the improvement of the country’s infrastructure
 It creates employment opportunities

Disadvantages
 It is very costly or expensive
 Destruction of the environment e.g. SO2 from the Selebi Phikwe mine
 Heavy reliance on foreign market & foreign finances than the domestic one
 Shortage of domestic skilled manpower of workers
 Loss of craftsmanship
 Irrelevant projects

Characteristics of modern industry

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Modern industrial production is complex & highly mechanized. In order to industrialize,
a country must have natural resources (land), human resources (labour), financial
resources & entrepreneur skills to help in production of goods & services. Here are some
of the characteristics;

Raw materials; these may determine the location of an industry e.g. industries using
large quantities of bulky raw materials such as cement factory, brick work, iron making,
iron making will be located near their source of raw materials. Industries processing
perishable may also be influenced by the location of raw materials e.g. fruit & vegetable
canning.

Advanced technology; modern industries complex technology. The machinery is very

complicated & expensive & it requires special skills to produce & repair it.
Mechanization; industries also require factory buildings, machinery & various types of
equipment.

Division of labour & specialization; for the factory to be more efficient & to make
products within a short period, it needs to allocate its workers different tasks. In other
words, each worker has to specialize on a small part of the whole task.

Automation and robotics; in modern industries, most of the machine processes are
controlled by computers. Such industries are called high tech industries. In such
industries goods are not handled by people at all during the whole production process.
Only a few highly skilled workers are required to ensure that the machine does its work
properly.

Feminization of the labour force; in industries today, women are increasingly doing
jobs that were regarded as men’s jobs & consequently their numbers are consequently
increasing. There are good reasons for this which include; increased mechanization has
done away with much heavy duties, women excel in work requiring precision & delicacy
of touch. They also appear to tolerate long hours of machine, minding better than women
do; mass production has destroyed in many industries the need for traditional
craftsmanship.

Synthetic products; new technology has made it possible to replace natural products
with artificial ones e.g. synthetic fibre & synthetic rubber made from hydro-carbons
derived from petroleum.

Sub – contraction; as a result of high specialization in industries, some companies find it

increasingly hard to complete some tasks alone. They therefore hire some companies to
do part of the job for them hence sub – contraction.

Co – ordination of specialized tasks; large scale industries are made of large numbers
of independent specialists e.g. in a mining industry, there are people specializing in
engineering, research, sales, accounting, marketing, human resources e.t.c. a large
complex management team is necessary to coordinate tasks.

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EFFECTS OF INDUSTRIALIZATION

Industrialization & development are closely linked.

ARGUMENTS FOR;

 Through industrialization, the country can produce more goods & services so the
GDP will increase

 More jobs can be created hence there will be different kinds of jobs for the local

 The government can collect more money from taxes to be spent on welfare
services

 The standard of living will rise since people will have more choices

 When a country has its own industries, it is more independent & does not have to
depend on other for many things

 Industries create more surplus capital for further investment

ARGUMENTS AGAINST;
 People have to change their of life, move into cities & often lose touch
with family & friends
 Work has to match the face of machines
 Some jobs are repetitive & boring & some people may get stressed &
dislike their work
 People may become greedy for more & more goods & wealth becomes
more important than human relations
 Traditional culture may be lost or changed as people acquire foreign
cultures
 People may forget the importance & craft production

EFFECTS ON THE ENVIRONMENT

i. Large cities grow around the industries often with problems of poor housing,
overcrowding, bad sanitation, diseases & pollution e.t.c
ii. Waste materials from industries pollute land, air & water
iii. Industries tend to use up natural resources like minerals & fossil fuels which are
non-renewable
iv. Building of industries tend to destroy large areas of forests, hence deforestation &
loss of bio-diversity

Successes and challenges of newly industrializing countries (NICs)

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Newly industrializing countries are those states with new/recent fast growing industries.
These are third world countries which started industrializing after the Second World War.
Examples of NICs include South Korea, Brazil, Egypt, Argentina, Singapore, Hong
Kong, Taiwan, Mexico, Spain, Greece, Portugal, Yugoslavia, e.t.c

CASE STUDY - BRAZIL

- it is one of the few examples of successful industrialization by a country of the

south
- she managed that with the help of her motor industry through which she was able
to implement both import substitution & export oriented industrialization
strategies
- Brazil invited MNCs such as ford, Volkswagen & general motors to build
industries in its territory. These industries were attached through grants, loans &
flexible rules allowing companies to take their profit home
- a 200% tariff was levied on all important cars making them three times expensive
in brazil
- the government gave loans to Brazilian companies to set up support companies
such as battery companies, tyre companies, wire companies e.t.c
- the government built heavy industries such as steel mills to supply car industries
with locally made steel
- the government also developed infrastructure such as roads, railways, sea ports &
imported oil for fuel

Benefits
- jobs were created
- new technology was brought in the country
- research & design were created for new inventions
- the standard of living rose
- the export market grew
- profits were used to diversify production

problems
o The gap between the rich & the poor widened
o Workers worked for a long time but were paid very little
o Urban poverty increased
o Workers were not allowed to strike
o Working conditions were crowded & unhealthy
o Serious damage was caused to the equatorial forests & tribal cultures
o The country struggled to pay back its loans due to high interests
o Corruption grew since money was stolen or misused by leaders

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 o Severe imported inflation became common in the country e.g. due to a rise in
petrol prices

Advantages that NIC’s have for industrialization;

- good supply of raw materials
- reliable communication networks
- ready / available market
- low wages / child labour / large pool of cheap labour
- appropriate technology
- appropriate skills
- able to produce simple goods for lower prices
- workaholics e.g. Hong Kong, South Korea, etc.

WOMEN AND DEVELOPMENT

A woman is a female human species. This is the term that refers to the female gender of
the human species.

Men & women have some physical or biological differences, however these differences
do not mean they are not equal. They include:
 Height
 Weight
 Body shape
 Sexual anatomy

Societies view women & men differently & this varies from culture to culture since these
differences are constructed by society. These social differences are sometimes based on
biological differences so that it makes them seem more important than they really are. In
reality men & women have similar abilities. If given equally, men & women can usually
do the same work.

The role of women in traditional society

In traditional society, men & women played different roles based on gender. The
woman’s role was:
 Childbearing: Having & looking after children. Women were not only expected
to bear children for their partners, but also to care for them till they had grown up,
especially the moulding of their daughters into responsible adults
 Taking care of members of the extended family
 They were custodians of culture, tradition & morality
 Community work: Women were expected to attend funerals (where they were
expected to cook) and were also involved in religious activities. They also had to
build houses for the chiefs/rulers
 Domestic work: Women were usually seen as homemakers who did the cooking
for the family. Women had to fetch water and firewood, cook and feed family

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 members. They were expected to sweep the compound, wash clothes for babies,
children and every male member in the family.
 They cared for the sick
 They cared for the aged
 Agriculture: They ploughed & looked after the field. They were involved in
weeding, harvesting and storing of crops. Looking after livestock especially in
families that had been affected by the migrant labour system.

Men on the other hand were expected to do heavy work/duties or work that usually
require a lot of physical strength. Traditional societies were generally male dominated or
patriarchal. However, roles done by men & women are not fixed by nature or by fate but
came from customs & traditions. A new generation learns their roles from a generation
before them. Young children learn what roles they are expected to play by being told or
watching what others do.

Traditional values, customs, practices, taboos & myths

Their impact on women’s position in society:
 Culturally men paid bride price for their wives; however this had consequences of
its own, men viewed this as buying the women & the result was to treat women as
their properties

 The woman is overburdened with domestic work as she has to remain at home
thus denying her the opportunity to advance in public life

 Low paying jobs are reserved for women as they are thought to be the weaker sex

 Women were forbidden to ask their husbands where they were from & this made
women to appear as servants & men .as masters.

 Women had access to land through their husbands, brothers or sons, as a result
women had little or no property.

 Women were forbidden the right to make decisions concerning right to sell
property & decision making on fixing bride price for their daughter.

 It was a taboo for women who were nursing young children to mingle with the
public. They were confined to the house for a certain period of time. It may be 3
or 4 months.

 It was a taboo for menstruating women to sit on chairs & this gave men the
opportunity to monopolize certain rights over women.

 Menstruating women were forbidden to pass through a herd of cattle, so as to

keep away from owning them

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  Women or girls were believed to be good or to be too busy being mothers hence
men were given priority over women/girls in education i.e. women were
forbidden to go to school as they were thought incapable of learning because of
the belief that they had smaller heads/brains

 It was also believed that women had small heads hence their brainpower was less
& this resulted in women’s ideas being thrown out through the window (ignored).

 It was also believed that Eve was made out of Adam’s rib so women are second to
men. This again gave men dominance over women.

All cultural practices & beliefs including taboos deprived women of their rightful place in
society. In general, men had more power than women. Women often had a lot of power
with the family but had little official power in the wider society. World distribution
favoured men than women since men had more access to property & land than women.

Colonization and its impact on the position of women in society

Colonialism brought about a lot of changes in the lives of traditional African

communities. These changes were economic, political or social but they affected men &
women differently. During colonialism, African women suffered tripartite (3 way)
oppression. They suffered as women, black women & as colonial objects.

Land Dispossession

 Africans were pushed into infertile reserves where production of food became
difficult. This became more of a burden for women because they were expected to
produce food for the family.

Commercial/cash crop farming

 Colonialism introduced commercial farming/cash crop farming which resulted in

men being recruited from their homes to work in the farms. With men away in the
farms, women had to even more work for growing food in the family. Since men
worked in the farms, they could now handle cash/money which women did not
have access to.

Increased wok load for women

 Colonialism also brought about industries, factories, mining & cities & this
resulted in more men being recruited from rural areas to provide labour. This left
women with extra responsibility i.e. combining their own tasks with those that
used to be done by men e.g. women became heads of families & they were settled
with the burden of bringing up children alone, they found it difficult to control the
boy-child which resulted in an increase in juvenile delinquency.

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Migrant labour system

The migrant labour system brought a lot of suffering for African women.
- Men were more migratory than women hence the rural areas were left with sex
ratio imbalances & these resulted in family breakdowns. It encouraged
promiscuity/adultery in the sense that men developed extra marital affairs in the
cities & women on the other hand were also tempted to commit adultery where
some ended up having children with men who weren’t their husbands. This
marriage break down led to female headed families and / or single parent families
- Women were prohibited to live with their husbands in towns, mines, farms and
plantations
- Women were forced to play a double role in the family, both as a father and as a
mother thereby increasing their workload. Discipline in the family especially of
the boy child became a problem and this led juvenile delinquency
- Less food was produced in agriculture leading to malnutrition and starvation in
rural families because of the absence of able-bodied men
- Migrant workers brought back diseases and infected their wives, e.g. STDs, TB,
etc
- Decision-making was delayed because women still had to wait for their husbands
to make important decisions, e.g. sending children to school, arranging marriages,
a daughter’s wedding, decide on the sale of livestock, etc.

Education

 When schools were set up during colonialism, more boys than girls went to school
hence men became literate than women & ended up holding important decision
making positions – more men were able to get better paying jobs & administrative
position with women providing less paid labour. When men were recruited to
work in the mines, factories & cities, women & children remained in the reserves
where they suffered more & more hardships.

Political / voting right

 Voting was restricted to males while women were disenfranchised (not allowed to
vote). It took a long time even for white women to be allowed to vote – in African
communities neither men nor women had political rights.

Emerging Roles of Women

Today women’s status has improved:

- They have access to credit schemes e.g. F.A.P., C.E.D.A. etc. They can set up
businesses and own property. The Land Board gives women equal access to land
- They hold leadership positions e.g. in schools, members of parliament, cabinet,
etc. However, women leaders are still in the minority despite the fact that they
form the majority of the population.

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 - Girls are allowed to go to schools and follow the same curriculum as boys.
Women can now train in almost any field they desire just like their male
counterparts.
- Laws have been passed to ensure that women are not oppressed or discriminated
against
- Women now make decisions concerning family planning. They are free to talk to
their husbands about how many children they would like to have. As a result,
families nowadays are generally smaller
- Some women prefer to have single-parent families. This has led to an increase in
female-headed families. This has been facilitated by educational, professional and
economic independence by women, the right to property ownership, women’s
rights, etc.
- Women now do same jobs as men, i.e. they can now compete on an equal
platform with men for a job. There is also an equal pay for same jobs irrespective
of gender. However, they still occupy low paying jobs such as home maids,
secretaries, etc.

The role played by women in the politics of southern

Africa

Pre-independence

Women played very important roles in the political set-up of southern African
communities.

 They occasionally ruled as queens even though most rulers were men e.g. Queen
Mantatisi of Batlokwa.

 In some countries such as Kenya, Mozambique, Angola & Namibia, women took
part in the struggle for independence & often fought side by side with men.

 Some women leaders even fought against colonial conquest e.g. Queen Ndinga of
Angola against Portuguese.

 Women were also arrested, murdered & even shot during the struggle/resistance
against colonialism. During wars for independence women provided hide – outs
or protection for guerillas or freedom fighters. They provided the freedom fighters
vital information on enemy movements. They also nursed the wounded soldiers &
provided food & water for the armies.

 In South Africa, women like Mrs. Winnie Mandela and Mrs. R. Sobukwe led
other women against discriminatory apartheid laws. They instigated other women
to stage demonstrations/marches and in the long run formed Women’s
Movements.

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  Women formed over 25% of the cadres of the Zimbabwean African National
Union Liberation (RAWLA)

In other parts of Africa, women constituted a significant proportion of the liberation army
e.g. in the Ethiopian revolution of 1991 women constituted 30% of the liberation army.
At independence the traditional view about women’s roles had been changed/challenged.
The liberation struggle changed people’s lives. Women had proved that they could do
such jobs as fighting, repairing cars or taking charge of an organization just as well as
men do. Women started insisting on having the same rights as men. Eventually they
achieved changes in the constitution & the new constitution allowed men & women to
vote.

Post independence era

In post-independence, southern African schools had increased enrolment & both girls &
boys had the same opportunity to education.
However, with the influence of the traditional view, the curriculum in schools tended to
be gender biased with more science based subjects given to male pupils & languages &
home management given to female pupils. On the same reason fewer girls were able to
get access to education opportunities even fewer making it beyond primary education. In
the same manner, very few women found it difficult to access modern technology to
make their lives easier. Even at independence the majority of women still find themselves
in rural areas where there are poor educational facilities & poor agricultural production.

After the experience of the struggle and at independence, women were determined to
fully participate in the development of their new nations. They are decision-makers in
parliament, cabinet, schools, Non-governmental Organizations, etc. Political parties have
women members. Women hold leadership positions even at village level, e.g. Kgosi
Mosadi Seboko. They also have voting rights.

The role of women in the formal & informal sectors of the economy

Women provide essential labour in the informal sector. However, more men are
employed than women.

i. Women find themselves occupying junior positions in their work places. Men
occupy most senior positions in the formal sector.

ii. The informal sector is mainly in the hands of women doing such jobs as hawker’s
business, selling brewed beer, running shebeens, designing/knitting
dresses/clothes & selling vegetables in an open market. Other examples include
shopkeepers, cooks in restaurants & housemaids.

iii. Women find themselves with little options but to offer labour in the informal
sector because most of the jobs in the formal sector are biased towards males.

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 iv. The other reason is that few women than men have skills. In the formal sector,
women offer mainly secretarial work& being a bank teller. They always tend to
offer assistance to men who will be holding administrative positions.

v. Few women make it to administrative positions. This may be a result of the fact
that very few girls make it beyond secondary education. Women find themselves
excluded from technical jobs such as engineering, surveys & architecture e.t.c

Women do much of the work in rural areas because they are the majority in the rural
population. They do 80% of the activities in rural areas. They provide employment by
starting up income-generating ventures such as tuck-shops, selling vegetables & poultry
farms e.t.c. Most women often carry out extra-unpaid jobs in the communities such as
organizing projects, building community dams, community health projects e.t.c. They are
also engaged in drought relief projects & they also raise funds for community projects.

The national policy on women & development as espoused in NDP 7, will involve
women as equal partners in the nation’s economic & social developments. A focus on
women in isolation could obscure differences amongst women as a group & also between
men & women. The growth of the economy, social justice, national self-reliance &
sustainable development, resuscitates the participation of both men & women. We are
aware that men & women have the following:

 The role they play in the household & in society in general

 The rights & privileges given to them by traditional customs & the legal system
 Their access & control over strategic resources
 Their interests in different development activities

Women and rural development

While the gender distribution in urban areas is almost even, women are the majority in
rural areas & are a key resource & an important planning factor in the development
process. Women’s tasks in the rural areas are concentrated in three crucial areas namely:
i. Domestic work within the household
ii. Subsistence agriculture
iii. Income generation
Their contributions to the national domestic product are frequently undervalued because
many of the economic activities are usually performed women who lack statistical
visibility; as a result women are the forgotten producers in the national economy.

The household maintenance tasks are mainly done by women. Food preparation is time
consuming & firewood is the source of energy. It is estimated that about 95% of the rural
population depend on firewood for their household energy needs. This dependency to a

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large extent is caused by the severe constraint to switch to other fuels given women’s low
income.

One of the main constraints on women productivity is related to the labour time involved
in their daily house maintenance, tasks & childcare. Once this is reduced, it implies some
possible diversion to income generating activities or development projects. The budget
studies have indicated that tasks such as fuel collections, water fetching, food processing
& preparation can account for the better part of an adult woman’s extremely long
working day. Allocation of such resources would therefore have immediate beneficial
effects.

Women’s organizations in Botswana

Just like in any other country in the world, women in Botswana have organized
themselves for change. Some of their organizations include:
 Emang Basadi
 Metlhaetsile
 WAR (Women Against Rape)
 BCW (Botswana council of women)

Botswana Council of Women (A Welfarist Organisation) Welfare: Help given to people in need
This is a National Non-Governmental Organisation that was formed in 1965. Its
objectives include:
- To provide affordable nursery school services for women to freely go to work or
be self-employed
- To provide women and the youth with skills development training for income
generating activities and self-sufficiency for poverty alleviation
- To encourage responsible citizenship, power sharing and equal economic
opportunities
- To provide education on HIV/AIDS in order to empower women with the ability
to negotiate with their partners for safer sex
- To encourage women to participate in self-help projects
- To facilitate the establishment of skills development centers in the villages
- To advocate and lobby for the eradication of forms of discrimination against
women and the girl child.

Achievements
- The Botswana Council of Women has established over 33 Nursery Schools all
over Botswana. These schools provide Day Care and food for children while their
mothers are at work
- It successfully established a Goat Rearing Project in Ditlharapeng. This generates
some income that is invested back into the project
- They offer six months’ courses on dressmaking and fashion design. At least 20
people are trained every year

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 - At least another 20 people are trained every year on linen making (curtains,
comforters, cushions, etc). These are one months’ courses
- BCW has trained people on hair dressing – the correct use of chemicals, plaiting
and styling

Emang Basadi (A Lobbyist Organisation) Lobby: attempts to influence legislators/law makers

This was formed in 1986. Its goals include:
- Identifying women’s most urgent problems and trying to address them
- Increasing public awareness of women’s issues
- Lobby for the removal of all barriers that hinder the advancement of women, i.e.
it identifies laws that discriminate against women and lobby the government to
either amend them or remove them altogether

In 1994, Emang Basadi launched a Politic Education Project that was contained a
Women’s Manifesto. Among other things, the Women’s Manifesto aims at:
- Increasing the number of women in parliament and local government to 25%
- Reinsuring that political party platforms include commitment on women’s issues
and concerns
- Educating women on the connection between voting and improving their living
conditions, and
- Promoting an awareness of women’s political under representation as well as
informing them on the neglect of their needs

Effectiveness
- Emang Basadi has managed to hold Voter Education Seminars to bring the
issues outlined in the women’s manifesto to community level
- Before the 1994 elections, workshops were held to assist women candidates from
all political parties. Women candidates were trained on handling campaigns
especially on public speaking, fund raising and identifying key national and local
issues
- Women’s issues have been included in the political manifesto of Botswana’s
Political Parties
- Representation of women in parliament has gone up and we now have women
cabinet ministers
- The number of women councilors has also increased as well as the number of
women chiefs in the House of Chiefs
- Women are increasingly assuming leadership positions in government and the
private sector

Challenges faced by women’s organizations:

- Shortage of funds
- Male stereotypes
- Domestic violence and abuse
- Rape
- Little representation in the government e.g. councils, parliament
- Pull Her Down Syndrome: jealousy from fellow women

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 - Susceptibility to diseases due to women’s anatomy

Women’s Role in the Prevention of HIV/AIDS and other

Communicable Diseases

Botswana is being crippled by the HIV/AIDS epidemic. If the war against HIV/AIDS is
to be worn, women should be at the forefront. Gone are the days when women were
viewed just as ‘transmitters’ (Moreno 1997 p.302).
In Botswana,
- The Botswana Council of Women trains trainers through workshops to become
peer educators on HIV/AIDS awareness and prevention
- The Young Vulnerable Women seeks to mitigate/fight the spread of HIV/AIDS
and prevent teenage pregnancies. It engages in basic training on skill development
and on the publication of Youth Magazines that contain information on HIV/AIDS
- The Kagisano Society Women’s Shelter Project is a voluntary non-profit
making organization that believes in the equality of mankind. It strives for a
violent free society. It aims to assist women and children who are survivors of
domestic violence by providing temporary accommodation. It pioneers
community responses to gender crisis, sexual violence and HIV/AIDS
- The Botshabelo Rehabilitation Centre embarks on community mobilization,
education and information on HIV/AIDS and sexual violence. It helps victims or
survivors of sexual violence with user-friendly clinical intervention to reduce
trauma. It also empowers men to be fully involved in the fight against HIV/AIDS.
The target groups are children, the youth and women.

In addition to the roles by women organizations above, women also:

- Take part in general HIV/AIDS awareness and prevention campaigns
- They are engaged in the implementation of HIV/AIDS awareness campaigns at
the work place. They ensure that all at work have access to and are provided with
sufficient and up to date information on HIV/AIDS
- They encourage parent to child discussions at the family level
- They help counsel the sick at family / ward / village level
- They help build and man orphanage centers
- They represent other women in national organizations such as NACA
- They raise awareness against abuse and rape
- They mobilize funds for the sick, the needy and the susceptible

Problems faced by Women in Botswana

Although there are efforts to economically empower women and to remove all forms of
discrimination against them and the girl-child, women still face multiple problems. These
include:
- Violence against women: Some men beat their partners for no apparent reason.
Sometimes women are prevented from phoning or visiting relatives and friends.

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 Female partners are usually shouted at, or told that they are ugly, useless or bad
mothers. Female partners are often accused of sleeping around
- Rape is on the increase. At least more than five females are forced into sexual
intercourse everyday
- In rural areas where women literacy rate is low, men/husbands deny
women/wives rights to acquire land, immovable property and to advance their
career opportunities. This takes away the rights of a woman as a decision maker
hence the woman is basically reduced to the level of a minor.
- Women’s social status is still relatively low because there are still some cultural
and traditional values which look at women as only child-bearers
- High teenage pregnancy causes great concern. In most cases these pregnancies
are unplanned and cause the girl-child to drop out of school. This drop out of
school acts as a barrier to educational and career advancement by women
- Women’s health and survival is threatened by the spread of HIV/AIDS
- Female enrolment in vocational and technical institutions lags far behind that of
men
- There are still gender gaps in employment opportunities that still contribute to
the disparity in income between men and women
- There is still unequal access to production resources. Access to land may be
difficult for some women
- Female-headed families are on the increase. Women are sole breadwinners in
such families; as such they have to engage in income generating activities for
child survival and development. There is little time to spend with the children at
home. Where the woman did not receive enough education and training, her
chances of employability are limited and the family may suffer from poverty.
Child discipline especially the boy-child may be a problem and this may lead to
delinquency.
- The number of women in positions of power is very limited. Local level politics
still perceive men as the sole legitimate heirs to positions of leadership.
- Women’s involvement in business is limited to small-scale activities in the
informal sector mainly due to financial constraints.
- Some women are forced by circumstances to indulge in prostitution or
commercial sex work

Some possible solutions to women’s problems

 Women must be equally educated to take good jobs
 All jobs must be equally available as they are to men
 Men must learn to share the responsibility of domestic work with women
 Women should have fewer children to have time to develop children
 Women must be respected & treated the same as men
 There should be workshops to educate people on the importance of a life free
from gender violence. Stern measures should be taken against those who
physically, sexually and emotionally abuse women

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  There should be standing sub-committees that review laws and assess their
gender implications. Laws that discriminate against women must be dealt away
with
 Promote deliberate measures to appoint women to decision-making positions in
the government, the private sector and parastatals
 Strengthen policies that support women’s participation in domestic and foreign or
external trade
 Promote women’s reproductive health and rights. Government should collaborate
with NGOs to promote safe delivery, ante and post-natal care. Intensify education
on the dangers of teenage pregnancy
 With regard to education and skills development, the education system should be
designed to create gender awareness right from the primary school level
 Promote research activities that will sensitise women on issues that affect their
status
 Formulate policies that protect women workers employed in rural and urban
informal sectors. Then there should be monitoring procedures to ensure that such
policies are followed

Disparities in Wealth Distribution between

Women and Men in Botswana
Men in Botswana are wealthier than their women counterpart because of the following
reasons:
- Men have had technical skills for a long time. When colonialists introduced
education, more boys than girls were taken to school
- With training and education, men learnt about ways of accumulating (wealth)
money which they later invested in other areas.
- Men have always owned property e.g. land, cattle, etc.
- Many years of leadership have made men to be better decision-makers. This has
helped them to use their money wisely

Female-headed households:
- These are families where only the mother is present as a parent and/or
breadwinner
- Are families where the mother is taking care of the children alone
- They are families consisting of the mother and her children (or child)

Causes of female-headed households:

- Marital problems leading to / resulting in divorce / men leaving the family for
another woman
- Death of the father / man / male partner
- It might be as a result of incest / adultery / illegitimate children
- Having a child or children out of wedlock (before getting married)
- The choice to have a child or children and remain single
- Educational, professional, economic independence by women

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AIDS: Acquired Immune Deficiency Syndrome
- A disease caused by a virus (HIV – Human Immuno Virus) that attacks the body’s
defence mechanism, which stops the body from defending itself against infections
- A state in which the body’s defence mechanism has been defeated leaving the
body vulnerable to infections

Positive effects of HIV/AIDS on Botswana’s development:

- Few mouths to feed
- Training of personnel
- Development of infrastructure
- Creation of employment
- Inflow of capital
- Improvement of technology
- Encourages use of contraception thereby helps control population growth
- Mushrooming of businesses

Negative effects of HIV/AIDS on Botswana’s economic development:

- Loss of skilled labour force / leads to a decline in production / low productivity
- An individual’s illness may result in the death of a breadwinner in the family
- Increased expenditure on health and community projects / redirection of
government funds to care for the infected/sick/orphans
- Possible decreased level of international investment
- Decline in population, thereby decreasing the pool of labour

How the Botswana government is addressing the HIV/AIDS scourge:

- Giving out free contraception
- (Sex) education in schools, clinics, hospitals, and the media e.g. Talk Back, Re
Mmogo, etc.
- Setting up AIDS committees at work places e.g. District Multi-Sectoral AIDS
Committee (DMSAC)
- Cooperation with foreign helpers e.g. Bill and Melinda Gates Foundation
- Subsidized medication / ARVs in clinics and hospitals
- Research into cure e.g. Harvard AIDS Research Centre at Princess Marina
Hospital
- Home based care
- Supplementary feeding
- Setting up testing centers e.g. Tebelopele Voluntary Testing Centres
- HIV testing by public figures

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 POPULATION
This is the number of people living in a geographical entity at any particular time. The
geographical entity can be a village, town, country or continent.

The study of population is called DEMOGRAPHY. Every country in the world with
encouragement of the United Nations organization counts its every ten years.

Counting people is known as census. Conducting a population census is important

because:

-it helps in development planning i.e. a serious government should have full knowledge
of the population size, structure & distribution so that there is fair allocation of resources.

- Knowledge of the population structure will enable the government to prioritize its
development efforts. E.g. in LDCs where a large population of the population is below 15
years, the government’s priority might be to build schools.

POPULATION TERMINOLOGY

Birth rate
The number of babies born per 1000 people in a given year (crude birth rate)

Death rate
The number of people who die per 1000 people in a given year (crude death rate)

Growth rate
The pace at which the population is increasing in a given year due to the net migration &
natural increase

Fertility
The actual reproductive performance of an individual, couple, group or a population

Dependency ratio

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The proportion of the economically dependent part of the population to the economically
part

Doubling time
The number of years required for a population of an area to grow twice its present size
given the current rate of population

Natural increase
The surplus of births over deaths in a population in a period of time

Population projection
Computation of future generations in population size, given certain assumption about
future trends in the rates of fertility, mortality & migration

Natural decrease
The deficit of births over deaths in a population in a population in a given period of time

Population pyramid
A special type of bar chart that shows the distribution of a population by age & sex

Optimum population
A population that matches the availability of resources in a country or when the available
resources match the existing population

Over population
When there are too many people for the available resources

Under population
When people are too few to make full use of the available resources

Population distribution
How a population is spread over area or the spread of population over a geographical area

Population growth
The increase of the total number of people

Population composition/structure
How many males & females are there in each age group

Population pressure
As population grows the increased number of people puts pressure on existing resources

Migration
Movement of people from one area to another: this can be temporary or permanent or it
can over long or short distances.

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Fertility rate
The average number of children a woman would expect to have if she lives throughout
her childbearing years (normally up to 45 yrs

Defacto population
Number of people present in a country at the time of conducting a census or number of
people actually living in a country

Dejure population
Number of people in a country including those temporarily resident outside, absentees

Life expectancy
The average age people in a given country or area are likely to live to

Census
A population count or numeration to find out how many people there are in a country

Population explosion
The rapid growth of population that threatens to deplete available resources

Population varies from one area to another. The world’s most populated counties are
India & china, approximately 1 billion people each. The United States has about 240
million, Nigeria- 100 million, south Africa -36 million & Botswana about 1.7 million.
Today’s problem is not so much the size of the world’s population but its growth rate is
accelerating faster than before. It has been estimated that at the time of Christ the world
population was below 300 million. By the 18 th century it had reached 600 million & by
1820 it was about 1000 million. At the beginning of the 20 th century it was about 2 billion
& by the mid 20th century it was over 3 billion. By the 21st century it was estimated to
have reached 6.2 billion

The above statistics shows that whereas the world’s population once doubled in 1700 yrs,
now it doubles in 30 yrs or less. This figures show that everyday there are more than 300
000 extra mouths to be fed. More than 12 000 are added every hour so that in 500 yrs
there would be no or less room on the surface of the earth if the present trend continues.

The average annual growth rate of the world’s population is about 2%. This may sound
little but it involves huge numbers & rapid expansion. However, this growth is not evenly
spread throughout the world. In some regions it is sluggish almost to a point of non-
existence while in other it is fast. Generally the developed countries have far lower
growth rates than the LDC’s. Western Europe has an average growth rate of 0.6% per
annum. In most parts of Asia, Africa, Latin America the growth rate is 3%while countries
such as France are worried that their population is not growing fast enough. However, the
main concern of the whole world is the need to balance population growth with the
available resources such as land, food, water, shelter etc. the only way to achieve this is
to return to a growth rate much smaller or nearer 2% per annum.

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Every country in the world with the encouragement of the U.N. counts its people every
10 yrs. The counting of people is important for the following reasons:

-it helps in development planning. A serious government should have full knowledge on
population size, structure and distribution of its people so that there is fair allocation of
resources

-knowledge of population structure will enable the government to prioritize its

development efforts e.g. in less developed countries where a large proportion of the
population is below 15 yrs the government’s priority might be to build more schools
Determinants of population growth

Birth rates
The most common index of fertility is the crude birth rate. This is the ratio between the
number of births in a single year & the total population in a 1000. it is expressed as a
number per 1000 e.g. Tanzania has a birth rate of 30 which means that 30 babies are born
per 1000 population & it can also be expressed as 3% per annum. Generally birth rates in
developed countries are less, just below 20 per 1000 & in LDC’s they are high ranging
from 30-40 per 1000 or even more e.g. Lesotho has a highs birth rate of 40 per 1000. it is
tempting to believe that birth rate are linked to economic advancements

Death rates
This is the ratio between the number of deaths & the total population & it is expressed
per 1000. it is common measure of mortality. Just like birth rates there appears to be a
link between death rate s & economic development. The lowest death rates are associated
with region of generally high standards of living i.e. developed countries whereas the
highest are associated with economic background regions. The most important
determinant factor of growth is the difference between crude birth rate & crude death rate
usually referred to as natural increase. The higher the natural increase, the higher the
population growth & the lower the natural increase the lower the population growth

Factors that influence birth rates

Demographic structure
The character of a population age & sex composition. Countries or regions with a higher
proportion of young adults will tend to have high birth rates while countries with a high
proportion of children or aged will tend to have low birth rates.

Education
Generally speaking the advance the level of education reached the small will be the
average size of families. With education comes knowledge of birth control, greater social
awareness of a wide choice of contraceptives. This factor may also be linked to class of

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social standing. Lower classes are on average less educated & have larger families than
middle & higher classes

Religion
Some of the world’s religions such as Islam encourage large families while others such as
the Roman Catholic Church actively oppose any form of contraceptives

Social customs
In a number of cultural groups, concepts of marriage vary / differ. In some customs
polygamy is practiced & this contributes to high birth rates. In some places such as India
where most are Hindus, marriages of girls had traditionally been at the age of 16 & have
had their first children at the age of 18 & others in the next 25 yrs.
Diets & health
The poorest & most undernourished people of the world tend to have the highest birth
rate. Unfortunately high birth rates often led to poverty which maintains malnutrition
which leads to poor or lack of energy to do work which leads to low income / output thus
maintaining a vicious circle of poverty. It is also common that countries with high levels
of mortality have high levels of fertility. It is believed that parents in these countries
deliberately have many children to ensure that if some dies others remain.

Politics
War can also act as a natural limit to population. However, in most cases, birth rates are
more closely linked to politics e.g. during the 1930’s Germany encouraged high birth
rates through state boundaries or even medals to prolific couples

Factors influencing death rates

Demographic structure
Areas or countries where the population structure has a high proportion of men than
women they tend to be high death rates than areas where the proportion is the reverse

Medicine or health care

The better the medical services & supplies the lower the death rate. Medical care is
measured in ratios of doctors to patients in a given area. E.g. on average developed
countries have 50 times more doctors to patients than LDC’s do. In some central African
countries there is only 1 doctor to 70 000-80 000 patients

Social class
Poorer sections of the population usually have higher death rates than richer sections. The
reason may be that the poorer sections are less privileged, living in poor houses, poor
sanitary conditions & are unable to afford a balanced diet or adequate medical treatment

Occupation
Certain occupations are more dangerous than others & therefore leads to greater number
of deaths e.g. coal miners are more vulnerable to accidents & also prone to respiratory

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diseases such as pneumonia & T.B. others include quarry workers, miners & asbestos
workers

Place of residents
Generally birth rates are higher in urban areas than in the countryside.

Factors that affect Population distribution and density

1. Climate is probably the most important because it determines the natural

vegetation and crops that will grow. Areas that are too hot, too cold or too dry are
avoided. Some climates are more attractive to man than others.
2. Relief- low lying and flat or gently undulating areas are the best for settlement
and agriculture. Coastal plains tend to be the most densely settled areas along with
basins and deltas of large rivers. Mountainous regions are usually sparsely
populated.
3. Soils- good soils for agricultural purposes usually attract dense populations while
poor soils i.e. unsuitable for agriculture are often sparsely populated.
4. Water- people need permanent sources of water supply hence such areas will
densely than those with scarce water supply.
5. Mineral resources- the presence of can cause a high population density in areas
that would normally be sparsely populated due to great wealth attainable.
6. Natural vegetation- dense tropical vegetation hinders settlement. In the past
people settled in areas where the vegetation yielded food. People looked for
vegetation which could support livestock and man.
7. Industries- attract job seekers.
8. Natural disasters- areas of earthquakes, volcanoes, drought, disease floods etc
are avoided.
9. Communication routes- people settle in places with good communication
infrastructure.
10. Politics- people avoid politically unstable areas; refugees move to stable areas.

11. Historical decision- sometimes settlements are started by historical accident.

Demographic transition model (theory)

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This is a model / structure that try to explain how changes in birth rates & death rates
have influenced either a growth or a decline in population. This model can help predict
how the population can change in future. The structure is based on the experiences of
countries of the north in the last 250 yrs. There is evidence that some countries of the
south like Sri Lanka have followed a similar pattern. The model identifies a transition or
change manifested in four stages

The Demographic Transition Model

Stage 1 Stage 2 Stage 3 Stage 4

From earliest times - 1740 1740 - 1880 1880 - 1940 1940 – to date

Stage 1: HIGH FLACTUATING

Death & birth rate was slightly higher than the death rate for most of the time. The
population grew slowly because the difference between the birth & death rate was barely
little

Reasons for high birth rate include:

-high infant mortality: which made parents to have many children to ensure that some
survive

-the use of children as a source of labour for agriculture

-old age security: children were regarded as security for the old

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-traditional beliefs & customs: some traditional beliefs encourage high birth rates e.g. it
was believed that having a large number of children was a sign of virility & wealth

-lack of contraceptives & knowledge on birth control: in primitive societies,

contraceptives were not common or were rarely used hence people could have a large
number of children which they have not planned for

-lack of education: traditional societies lacked modern education which means that they
did not understand the dangers of having large families

Reasons for high death rates include:

-out-break of killer diseases: a large number of people died because of frequent outbreak
of killer diseases such as plaque, T.B. small pox etc.

-lack of scientific medical knowledge: the absence of scientific knowledge of controlling

diseases meant that a lot of people died from diseases which could otherwise be
prevented or cured

-poor sanitation, personal hygiene & poor diet: most people diet because of poor
conditions in which they lived coupled with poor hygiene or cleanliness of their bodies.
They were also attacked by various nutritious related diseases because of lack of proper
or balanced diets

Stage 2: EARLY EXPANDING

During this stage or period the birth rate remained higher while the death rate began to
decline / fall quickly. As a result of the decline in death rate population began to grow
rapidly

Reasons for a fall in the death rate

-improved public health: medical care which include vaccines, hospitals, doctors &
scientific inventions were introduced

-improved sanitation: clean water & improved sewage systems had also been introduced
-improvement in food production: food production became improved in terms of quality
& quantity

-improved transportation: transport network became improved which made it easy for
food & doctors to reach places where they are badly needed

-a decrease in child mortality: this meant that a large number of children could now reach
adulthood

Reasons for the remaining high birth rate

-customs & traditions: some people still hold unto traditional believes which encourage
large families.

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-lack of education: a large number of people still lack education & as a result do not have
knowledge or understand the use of contraceptives

-children are still useful as a source of labour for agric

-parents are still not certain whether their children will survive to adulthood

Stage 3: LATE EXPANDING

During this stage the birth rates began to fall quickly. The death rate stopped falling but
stayed almost the same. The population continued to grow but at a slower pace

Reasons for the fall in birth rates

-family planning: the use of contraceptives became popular with sterilization, abortion &
government incentives also contributing

-education: the level of education had improved & people are aware of the use of
contraceptives & the dangers of having large families. Children have to go to school
hence they became more of a burden to their family than assert

-law forbidding child labour: in many countries at this stage laws had been introduced
which stop the use of the of children as a source of labour & force them to go for school
(compulsory education)

-the fall in infant mortality: better living conditions, hygiene, healthier diets & good
medical care had led to a fall in infant mortality thus it was no longer necessary for
parents to have many babies

Stage 4: LOW FLUCTUATING

During this stage both the birth rate & death rate remained low. Even though the
population is high, it is growing slowly because the difference between the birth rate &
death rate is small. It is anticipated that in this stage there will be a zero population
growth (Z.P.G.). Countries of Western Europe have reached this stage. The Z.P.G. means
that population will neither grow nor decline

POPULATION STRUCTURES & PYRAMIDS

The population of a country contains different age & sex groups. There are young,
middle-aged & obviously males & females. Population structure refers to how the
composition of a country is, in terms of sex & age. The structure helps to identify for
example, the age group in the majority & problems that may be encountered. A study of
the population structures of many developing countries shows that there are many young
people (below 15 years) who need to be cared for. The population structure can consider
the following:

Ethnicity i.e. which tribe/nation people come from

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Employment i.e. an employment structure can also be used to illustrate the population
structure

Sex structure: this is usually measured by a sex ratio (i.e. the number of males to 100
females) e.g. in 1971 in Botswana, there were 84 males to every 100 since many young
men had gone to work in mines in South Africa. In 1991 there were 92 males to 100
males in Botswana because the government of South Africa had stropped employing so
many foreigners.

The age structure: this shows the distribution of age groups e.g. in 1991 the age structure
in Botswana was as follows: 0-14 > 43.6%, 15-64 > 51.5%, 65+ > 4.9%. The information
on population structure can better be represented by a population pyramid.

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POPULATION PYRAMIDS
This is a pyramid-like structure/graph which illustrates the age & sex information about a
country’s population. It is a graphical representation of the population structure of a
place. This is simply two histograms: one for males & the other for females, put back to
back. The age groups are shown on the vertical axis, & the percentages of population are
shown at the bottom, the males are shown on the left & the females are shown on the
right.

Population pyramid for developing countries

Pyramids for developing countries have a concave shape which then has a broad base & a
narrow apex. Abroad base indicates a very high birth rate. Over half the population falls
below the age of 19 & these are the economically inactive part of the population. The
pyramid shows a rapid fall upwards in each age group which indicates a high death rate
including infant mortality and a low life expectancy with a low percentage of people who
can expect to live beyond 65 years. The low life expectancy is indicated by a narrow apex
or top. This type of population pyramid is usually referred to as bottom-heavy. With a
large proportion of the population being young & economically inactive, the dependency
ratio is very high. The young people put a strain on the government budget or resources
to provide facilities such as schools.

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POPULATION PYRAMID FOR A DEVELOPED COUNTRY

 The base is narrow or constricted indicating low birth rates. This shows that a
small proportion of the population is under the age of 15 with a large proportion
in the middle ages i.e. 15 – 65 years. This is an indication that family planning is
effectively used.

 The middle of the pyramid is broad, signifying a large proportion of the

population of working & economically active people. In this case therefore the
dependency ratio is very low.

 There are more people or a significant number of people over 65 years indicating
high life expectancy. Developed countries’ main worry will be to provide old age
pension rather than to provide schools.

WAYS OF REDUCING HIGH BIRTH RATES IN DEVELOPIJNG COUNTRIES

 Encourage the use of birth control measures & family planning

 Provision of free contraceptives

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 Improvement of the status of women & their positions in society

 Provision of free education for all

 Paid maternity leave for all

 Discouraging early marriages

 Legislation of abortion or sterilization

WHY IS IT DIFFICULT TO CONTROL HIGH BIRTH RATES IN

DEVELOPING COUNTRIES

 Lack of enough medical facilities to provide the services needed.

 Lack of education/ poor education

 Lack of capital [money]

 Religious beliefs which encourage large families

 Ignorance of the use of contraception

 The use of children to provide labour in agriculture

 Isolated areas or communities i.e. population is wide spread or scattered and there
is little awareness in rural areas

REASONS FOR RAPID POPULATION GROWTH IN DEVELOPING

COUNTRIES

 Birth rates are much higher than death rates

 Improved medical facilities leads to a fall in infant mortality rate

 Contraceptives are rarely or improperly used

 Improved food supply & drinking water also reduce infant mortality rate

 Polygamy & early marriages lead to large families

 Religious beliefs

 Traditional beliefs which regard large families as a sign of prestige

 Lack of education

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  The desire for boys

 Old age security – parents have children so that they will look after them when
they are old

OVER POPULATION
This is when the population is more than the resources it can cater for.

SIGNS/INDICATORS OF OVER POPULATION

 High population growth rate

 Low life expectancy

 Lack of food, starvation & poor diets

 Low GNP per capita

 Lack of health & educational facilities

 Crime, begging & other social ills

 Shanty settlements or towns

 Low standards of living

 Unemployment

 Lack of housing, crowding & poverty

 Diseases, lack of clean water & poor hygiene

 Soil erosion, desertification & other forms of environmental degradations

UNDER POPULATION
This is a situation where there are fewer people to make full use of the resources
available.

PROBLEMS OF UNDER POPULATION

* Shortage of labour

* Under – development of infrastructure

* Dependence on other countries for goods, services & skilled labour

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* A small market for goods & services produced locally

* A small economy & low GDP

SOLUTIONS FOR UNDER POPULATION

 Encourage immigration
 Discourage emigration
 Encourage large families
 Encourage education for skilled labour

SOLUTIONS FOR OVER POPULATION

 Improvement on technology so that the population becomes more efficient

 Improvement in agricultural production so as to have more food

 Improvement of infrastructure such as roads & telecommunications

 Application of new scientific in agriculture to boost food production e.g.

the use of fertilizers & genetically modified seeds

 Establishment of industries so as to provide employment & income

 Improvement in social amenities such as schools, health facilities e.t.c

 Introduction of birth control measures e.g. the use of contraceptives &

education on family planning

 Policies to limit the number of children

 Provision of education & employment to women

 Improvement of the status of women e.g. through employment &

recognition of women’s rights

NATIONAL POPULATION POLICY

A piece of legislature or a strategy by a government to regulate or control population. A

number of governments use different policies to regulate their population. Such policies
include: the one-child policy, whereby a law is used to restrict a family to have only one
child. A country, which has implemented such policy, is China. In that country the
government also gives incentives such as free education & family benefits to reinforce
this law. Abortion is also available & legalized.

ADVANTAGES OF HAVING A POPULATION POLICY

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  The population growth rate can be controlled to match the rate of development &
resources

 Policies can lead to a reduction of poverty by allowing development to keep pace

with population growth

DISADVANTAGES

 People’s freedom of choice is limited or restricted

 Women may be forced to have abortion even if they are unwilling

 Strict policies may result in unbalanced population

 Population policies can encourage female infanticide (killing of the female fetus)

 An aging population may result in fewer children.

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 HEALTH
The manifestation of development in the human body. It refers to the condition of the
human body in terms of fitness.

Good health is a state of complete physical, mental & social well being & not merely the
absence of the disease.

FACTORS ACCOUNTING TO POOR HEALTH

Unhealthy diet
Food should be enough & balanced. A faulty diet is responsible for ill health throughout
the world. A balanced diet means food that provides the right amount of nutrients for the
needs of the individual & it should contain all the food substances.

Unhygienic diet
Food & water should be covered, if there is poor sanitation & food is not covered, germs
& bacteria can easily infect the human body. Some of the diseases associated with
unhygienic conditions are diarrhea, typhoid, cholera & dysentery e.t.c

Poor living condition

If people live in a small area where there is congestion, diseases spread easily e.g. T.B.,
eye & skin diseases. Poorly ventilated areas also lead to poor health.

Stress
When a person consistently worries they become stressed. A lot of factors can lead to
stress & this include:

*Unhealthy diets *poverty

*Unemployment *alcoholism
*Drug abuse * mental problems

Lack of resources
If basic resources are not available it is difficult to stay healthy. Basic resources are food,
water; shelter e.t.c. ill health weakens the body hence it becomes vulnerable/prone to a
variety of diseases. People begin to work less & earn less hence they fail to meet their
basic needs & eventually they are trapped in a vicious cycle of poverty.

EFFECTS OF POOR HEALTH

People

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Children to concentrate & learn, adults cannot work hard to lose their jobs e.g. retirement

Country
Generally production goes down including GNP. The country becomes poor. The
government begins to assist the poor hence resources are further drained.

Waste resources
More money is spent on medical care & less is spent on other equally important services
such as education, infrastructure, telecommunications & power.

VICIOUS CYCLE OF POVERTY

Vicious cycle of poverty

Low resistance to ill health

Diseases

Cannot work hard

Malnutrition; lack
Of minerals or proteins
Low productivity

Poverty

MEASURING HEALTH

- A number of doctors per 1000 inhabitants

- The number of hospital beds per 1000 people
- Life expectancy at birth
- Average calorie intake
- Infant mortality rate

FACTORS THAT INFLUENCE GOOD HEALTH

-sanitation, nutrition, entertainment, education & education, provision of clean water free
from impurities

TYPES OF DISEASES

A) Bacterial & viral; AIDS, Syphilis, polio, TB, cholera

b) Diseases carried by animals; malaria, fever, blindness, bilharzias, SARS, sleeping

sickness

STRATEGIES FOR BETTER HEALTH

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CURATIVE METHOD
It refers to the provision of nurses & doctors to cure the ill & the injured. Clinics &
hospitals are provided for this purpose.

PUBLIC/ PRIMARY HEALTH CARE (PHC)

The ability to know about health & the provision of good health in the family as well as
the community is known as ‘primary health care’.

STRATEGIES
*Diet *waste management
*Housing *environment
*Health education
*Water provision
*Sanitation

- Diet
People ought to eat a balanced diet & this is food with all nutritional requirement e.g.
carbohydrates, vitamins & minerals.

- Local health service

This are in most cases clinics staffed by doctors & nurses. Clinics provide a number of
services which include the following; antenatal (pre – birth) classes for pregnant mothers.

*Immunization to prevent diseases

*Information on child development
*Family planning services & guidance on safe sex
*Treatment of illness & injuries

- Water & sanitation

It involves ensuring that water is suitable for drinking. Dirty water accounts for poor
health (ill health).

- Environmental health
Industries pollute water, soil & air & this is a health hazard. There should be laws in
place to regulate the whole process.

- Health education
Information can be passed through a number of ways e.g. in schools, churches & children
can teach each other on various health services e.g. through PACT

ROLE OF GOVERNMENT ON HEALTH ISSUES

Governments are normally responsible for the health of their citizens. They provide
health services at affordable prices. Communities are also responsible for good health e.g.
there are health committees in some communities such as the ‘home based care’.

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HEALTH SYSTEMS
There are two systems namely;
- modern medicine
- traditional medicine

TRADITIONAL MEDICINE
This is a craft of providing treatment, establishing causes of illnesses, preventing their
reoccurrence & protecting patients against evils such as witchcraft. In other words it is a
way of diagnosing diseases & prescribing treatment using unscientific means or methods.

CHARACTERISTICS

 It is often surrounded with mystery

 It cannot be experimented with

 Its methodology cannot be verified

 It is based on a system of beliefs

 It is surrounded by a lot of mystery

 Its intricursis are claimed to be beyond the range of ordinary knowledge

 It is associated with rituals performed in secret places

 It uses natural herbs in their raw forms

 Traditional medicine personnel are known by a variety of names such as witch

doctors, magicians, herbalists, medicine men e.t.c

 Traditional doctors claim to possess supernatural powers given to them by

supernatural forces

 They claim to be in constant contact with supernatural powers through their

dreams & spirits

 Traditional medicine goes hand in hand with taboos on the part of the patient &
the doctor

 During medication the doctor uses some weird sounds & words which he claims
to be sacred

 The healer ‘s dress is a unique designed outfit or attire

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ADVANTAGES

 Traditional healers have big knowledge &understanding of their patients, local

environment, cultural codes & history of the local people

 Traditional doctors all know the attitudes of the people & their organization &
will be able to have a psychological impact on them
 The medicine is cheap or readily available for them than some modern medicine

DISADVANTAGES

 It cannot be experimented with & the methodology cannot be verified

 There is a high use of unscientific measures e.g. the amount of medicine to be

taken & how regular it has to be taken

 There is high use of unhygienic instruments e.g. razor blades & needles that are
not sterilized

 There is a lot of secrecy surrounding its performance & knowledge hence it

cannot be easily learnt by everyone

MODERN MEDICINE
This is a way of using scientific methods of diagnosing diseases. It is based on a number
of related & complicated facts.

Diagnosis – procedures that are used or put in place to determine the nature & cause of
illness/disease.

Drugs – substances that affect/influence ways in which the body functions & they treat
diseases.

Vaccines – they are medicines helping the body to develop immunity against diseases.

X-rays – electromagnetic ray gadgets that penetrate the body to produce a picture of the
affected area. They enable the health officer to study the inside of the body.

Transplants – replacement of damaged/ill organs

Transfusions – transfer of blood or any other fluid from a donor to a recipient

Surgery – treatment through operation. It is complicated & needs specialized surgical

doctors.

ADVANTAGES

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  It is scientific, can be experimented with & is based on tried & tested procedures

 The personnel used have some medical no-how (knowledge & skills)

 There is use of modern way of diagnosing diseases

 Instruments used are clean & well kept

 The dosage is carefully controlled & safe

DISADVANTAGES

 Hospitals are expensive to build

 Doctors are expensive to train

 Drugs are costly to make/to buy

 It is complicated & needs complex technology & skills

 If prescriptions are not properly done, it can be dangerous to the patient

 It fails to cure some diseases e.g. AIDS, cancer, mental illness & epilepsy

 Chemicals, drugs & other substances can be dangerous to the environment

THE IMPACT OF HIV/AIDS ON BOTSWANA’S HEALTH SYSTEM & ECONOMY

Negative effects
- Botswana remains the hardest hit in sub-Saharan Africa with an estimated prevalence
rate of 38.6%. The most affected are the able bodied, educated young people. The social
games of yester years (high life expectancy, low infant mortality rate, high standards of
living) have been reversed by this scourge, for instance life expectancy has dropped from
69 to 39.

- More money is spent on the health sector than on other sectors of development such as
education & job creation.

- More expatriate medical personnel are recruited, increasing government on health, to try
& address the problems caused by this scourge. A lot of money is spent on programmes
such as P.M.T.C.T. & drugs such as AZT & anti – retroviral drugs & on research &
equipment. In addition to this problems, productivity has been severely affected due to
absenteeism by sick workers e.g. at the mines, factories, plantations, government offices
& even in hospitals & medical institutions there are some people who have been infected.

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- Medical, life insurance & other related schemes have their funds over – used due to
continuous claims

- Productivity is further affected due to workers taking day-offs to attend funerals of their
colleagues & family members or to nurse the sick relatives. Those who are no longer
healthy enough are normally given light duties, thus being under-utilized.

- The scourge has increased the number of orphans in the country making it difficult to
provide needs for these children.

- More government associations had been diverted towards projects on caring for an ever
increasing number of orphans. Some less fortunate children have been abused or fallen
victim to a number of malicious acts of unscrupulous members of the community. Some
have found themselves heads of their families/breadwinners. All in all the scourge of
HIV/AIDS has had far reaching effects on the affected country. It has caused emotional
stress on surviving members of the infected persons.

- The costs involved for the caring of the sick & eventually burying the dead have been
immense on the affected families.

WAYS BY WHICH THE HEALTH SYSTEM IS ADDRESSING THE HIV/AIDS

SCOURGE IN BOTSWANA

The government of Botswana through the ministry of health has been put in place several
measures for prevention, treatment, care, support & reduction of HIV/AIDS on
individuals, families & the community. Some of the measures are:

 Multi sectoral approach (all sectors of the society included). Under the National
AIDS Coordinating Agency (NACA) headed by the AIDS coordinator

 NACA aims to improve accessibility to comprehensive prevention, care &

support to anyone. It also aims to improve access to treatment of opportunistic
diseases such as T.B., S.T.Ds, diarrhea & pneumonia e.t.c

 The government has also introduced Anti – Retroviral Therapy to the public for
all people living with HIV/AIDS legible for treatment.

 The government has also step-up efforts to equip health sectors & institutions
with adequate facilities to be able to handle the challenge of the scourge e.g. by
recruiting more nurses from outside the country & building facilities such as
clinics equipped with giving the anti-retroviral drugs.

 It has also introduced the PMTCT programme for expectant mothers

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  Government is also mobilizing support from international donors & governments
to fund efforts of fighting the HIV/AIDS scourge e.g. the Bill & Melinda gates’
fund, capacity building projects funded by ACHAP is done in partnership with the
government of Brazil.

 The government has set up a research & testing centre known as the HAVARD
(PARTNERSHIP) INSTITUTE.

 Communities have been mobilized to set up & handle home based care patients
who are chronically/terminally ill.

 Government has encouraged NGOs & CBOs to participate in the fight against the
HIV/AIDS scourge & facilitates the formation of such NGOs e.g. Tshireletso

AIDS awareness centre, COCEPWA, BOTUSA.

EDUCATION
The teaching and/or training of mind & character

There has never really been any argument over the link that exists between education &
development, although education in itself is not a universal recipe for economical &
social progress.

Education is fundamental element in the development equation. This does not that
education automatically brings about development but it allows societies to unlock their
potential to expand their horizons and to adapt to a changing world. What is realized is
that one of the fundamental purposes of education is to enhance economic and social
development.

Education is considered a merit good, having a high social value & is regarded too
important that it is provided free or is heavily subsidized. To that effect governments are
involved in its provision rather than leaving it entirely to free market forces. The purpose
of giving a student a good education is to help the student:

 To live a full & happy life

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  To be able to work & earn a living

 To get on with other people well

 To solve problems in one’s life & in the society

 To think things out for oneself or to have an independent mind

 To make good & informed decisions

Education is a social process by methods of which knowledge is transmitted from the

ageing generation to the emergent generations. This transmission of knowledge is done
through informal & formal means. Education is always considered crucial to a
community, society or nation in that it ensures continuity, stability & survival of such a
group. It is through education that vital skills, fundamental traditions, crucial societal
values are indoctrinated in the emergent generations.

Education is a continuous process for the individual. It facilitates development of his/her

intellectual & rational thinking. It is also important for ensuring his/her contribution to
the development of his/her society. It ensures conformity to the norms of his/her society.

Education is important in bringing about many aspects of cultural change in that it

stimulates creative thinking & action in society.
Finally education encourages encompasses the whole range of societal activities such as
spiritual, traditional, material & emergent aspects of society.

Education differs from other services because it basically benefits the individual i.e.
improving the living standards & the quality of life of the individual. It does not offer
immediate returns to society who sponsors it. It absorbs a proportionately larger part of
the economic resources of a society i.e. the 1997 budget in Botswana P1.1 billion. Why is
this so? It is because societies need systems capable of passing on the accumulated
knowledge which provides an essential basis for creativity & progress.

The process of education is long, involving primary, secondary & tertiary levels. Society
however considers it a worthwhile long term investment & reaps rewards in the long term
such as having better qualified manpower.

One of the measures of development is percentage adult literacy. Literacy is the ability to
read, write & numeracy. Percentage adult literacy rate is the percentage of literate people
in the adult population from over 15 years & above.

TRADITIONAL EDUCATION
Traditional education is as old as mankind. It has been practiced by all human societies at
one time or another during their formation & development. It started in childhood
through puberty & cultivated through adulthood of an individual. The life of an
individual in society acted as classroom & society at different levels was the teacher.

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In this chapter, since human societies are too varied, only traditional African education as
was practiced in sub-Saharan Africa will be evaluated. This bias is due to similarities that
existed in this region in the pre-colonial period.

CHARACTERISTICS
- Use of local language
Traditional education used local language as its medium of instruction. This made
learning easier as it was the mother’s language of the students of a particular society.
- Conformity
Like other types of education, it laid emphasis on individual conformity to the norms of
that society.

- Initiation
This was a major aspect of traditional education & was considered as a certification for
acceptance into the adult world.

- Apprenticeship
This education taught practical skills & trades through apprenticeship. Students emulated
master crafts men more like the present systems on job training.

- Teachers
Despite the existence of master craftsmen, society as a whole participated in moulding
the required character of an individual.

THE BASIS OF TRADITIONAL AFRICAN EDUCATION

Traditional education was founded on the basic principle of preparing the young for adult
life in society. It was based on the economic, social, religious as well as cultural values of
a particular society.

Its curriculum was very broad but encompassed those activities that made society
function smoothly. It laid emphasis on respect for all elders in society regardless of their
social or economic status. It promoted good manners & beliefs acceptable to society. It
upheld the importance of virginity before marriage, failure of which was a great shame to
the individual & the family concerned. Although no rules were written down, society
upheld collective responsibility in educating children. Every therefore was expected to
actively participate in bringing up cultured children. It was mostly involuntary & did not
have written guidelines to follow.

Traditional education was responsive to threats both natural & man – made. Droughts,
floods or wars usually broke out. When such things broke out, everyone had to learn new
skills of survival or skills to overcome these threats & avoid disasters. Punishment, some
very severe, was an acceptable part of teaching. It was apportioned as a deterrent measure
against disapproved behavior. Approved behavior was rewarded accordingly.

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Traditional education covered both theoretical & practical aspects of learning although
buildings now referred to as schools did not exist. Teachers had no formal training but
there were peer groups, parents, relatives in the nuclear & extended family as well as all
the elders in society. As mentioned elsewhere in this chapter, learning started at a tender
age & continued till death. This meant that sometime teachers themselves became
learners when the situation dictated. It offered no examinations & awarded no certificates
of achievement or attendance.

Another area where traditional education was formal was the initiation period. This took
place when boys & girls reached puberty or came of age (bogwera & bojale). This was
characterized by separating the initiates from the village. Boys were isolated from the
girls & remained in these isolated camps for different periods of time depending on the
tribe. In these initiation camps, different rites were expected to be performed by the
initiates such as abstinence from certain activities & food. Brutal but necessary ordeals
such as circumcision were performed. This was the climax of the initiation school
because it was meant to train them how to endure pain. it was also an examination & a
screening exercise in that it served as an elimination process for the outfit.

Formal indoctrination was also conducted during initiation. Here, sacred traditions of the
society & its love were inculcated into the initiates. In addition, expected behavior,
morals & the place of religious activities were given at this stage. They were taught roles
as men & women, their responsibilities towards their husbands & wives, children &
society with regard to family as a unit in society.

The teachers & performers were the medicine men & priests. They were rewarded gifts
after the successful completion of the initiation school. The end of the initiation school
was masked by colourful initiation ceremony where boys were initiated to manhood &
girls to womanhood.

PROBLEMS OF TRADITIONAL EDUCATION

 It should be acknowledged that traditional education did serve its objectives. It

satisfied the needs of an individual talent & ensured his/her service to the
community & the eventual survival of his society. There were however serious
shortcomings in this type of education especially with regard to modern times
which require modern ways of doing things.

 Each tribe tended to maintain & protect its language zealously. As a result, there
was a lack of development of a common uniting language for tribes in any given
geographic area.

 Each tribe tried as much as possible to keep to itself & mistrusting neighbors. As
a result. There was limited interdependency between tribes. This showed &
limited diffusion of innovations, skills & ideas amongst tribes of a given area.

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  All tribes & individuals were conservative to a very large extent. They resisted
change & were suspicious of new intentions or ideas. As a result they relatively at
the same level of development for very long periods of time.

 Faced with new challenges such as colonialism, Christianity & modern or new
ways of living that it introduced, traditional education failed to respond
adequately & was consequently obliterated.

 Traditional education depended solely on memorization & oral tradition. Writing

& other means of recording were unknown in most African societies. This meant
that a lot of information was forgotten & lost as time went by. It also meant that
nothing was stored for future reference. This was a drawback because it was not
possible to keep newly acquired knowledge, innovations & skills.

ELEMENTS OF FORMAL TRAINING IN TRADITIONAL SOCIETY

Traditional education did not only teach the young moral values but taught skills in
handicraft industry (the method of instruction was apprenticeship). The young
understudying the professional or master craftsmen in a number of trades (this is more
like the present system where an apprentice motor mechanic understudies a qualified
mechanic for a number of years to learn that trade). So there were apprentice blacksmiths,
apprentice herbalists e.t.c
- HERBALISTS
These specialized in finding medicinal herbs in their environment which were used to
cure a lot of diseases. The medicine men were sometimes referred to as witchdoctors.
They were the occult scientists of their days. They treated the sick, protected the
individual society against evil, petitioned the gods for help in times of need. This was a
trade that needed continuity.

- WOOD WORKING
Master Wood workers, (blacksmiths & metal workers) curved statues of animals, people
& spirits of gods. Some were ornamental & some with religious connotations, solving
problems of human knowledge. It tries to build up a body of scientific knowledge by
experimenting, making empirical observations & then making reasoned generalizations.
The results of findings could be verified, that is similar experiments should yield similar
results later elsewhere.

- INNOVATIONS
It stimulates innovative thinking which encourages discovery, invention, making
changes & introduction of new ideas be it material or non-material in society.

- INDIVIDUAL
It emphasizes individual development. It is essentially beneficial to the individual but
society eventually benefits by having a better educated workforce (workers & teachers).
Most people consider formal education as a pre-requisite to individual economic, social
& political advancement in society.

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- EXAMINATION
These are considered essential to modern education. They are conducted to test the
acquired knowledge & skill. They are also meant to objectively eliminate the weak from
the next higher stage of learning since it is hierarchical in structure.

- CERTIFICATE
This is a recognized documentary evidence awarded to those who successfully complete
a stage of learning. It allows the individual to proceed to the next stage or higher stage or
acceptance in the world of work such as industry or services.

- SCHOOL
This is a purpose or specially designed institution where children go to learn. It has a
physical structure i.e. buildings & support facilities such as playgrounds. A school may
be called other names depending on the levels of learning that they offer i.e. college,
institute or university. It is equipped with professional teachers who are trained for that
purpose. Generally formal education includes primary, secondary & tertiary institutions.
They are hierarchical in structure, are interdependent & are based on standard curricula
formulated by the government. The programme of instruction is based on academic terms
& years, a student has to progress from the lowest level to the highest.

HOW EDUCATION CONTRIBUTES TO DEVELOPMENT

 Basic education improves worker performance in industry & agriculture. It
provides necessary skills for self-employment & entrepreneurship. Moreover it
trains the workers of the future.

 Education can help prevent diseases that are linked with human behavior such as
AIDS.

 It can help prevent degradation of the environment because it creates awareness of

the environmental issues & develops a sense of awareness.

 On birth control, education helps delay marriage age. Females with basic
education tend to have fewer children than those who lack education. The chances
of survival of offsprings also increase with increased female education.

 Education is important in developing human resource. An educated person can

take part in the political, social & economic decision making in his local area or
country. Besides illiteracy allows & encourages participation. Education also
helps the spread of technology.

 Another reason is that education increases health education & chances of adopting
family planning methods.

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  Above all, it brings about personal fulfillment & reduces poverty.

EDUCATION IN BOTSWANA
Formal education is organized on a 7 – 3 – 2-year systems from 1998. This was
reorganization from the previous 7 – 2 – 3 system. It is projected that by the year 2003,
50% of students would go to senior secondary school education from the 203 network of
CJSS. There are 27 senior secondary schools at the moment. Education is provided at
zero cost to all Batswana from standard one to form five.

In tertiary education, the government operates a system of grants/loans starting from

1995. The system is primarily based on the manpower needs of different sectors of the
economy. Students following areas of critical manpower shortage i.e. more technical &
science based professional disciplines receive more generous financial support. These are
deemed essential to the development of the country. Educational requirements also take
into account other variables – scarcity or shortage of manpower in different fields,
localization, length & affinity of acquiring training e.t.c

Provision of universal education to a nation is very expensive because schools have to be

built, equipped, maintained & teachers trained, housed & paid for their labour. Private
schools can alleviate the situation by working in partnership with the government. Private
schools however, are expensive; they are owned & run by business people who need to
make profit. There are a number of private schools in Botswana mostly located in urban
areas. Most of them are primary schools that offer English as a medium of teaching from
standard one, secondary schools are fewer. The table below gives an idea of the education
establishments in 1997:

primary 700
secondary 261
vocational 40
Primary teacher training 4
Secondary teacher training 2
university 1

NON – FORMAL EDUCATION

This is the type of education which takes place outside school & has no age limit.
Learning takes place at any convenient place such as outdoors, in someone’s home or
workplace. Certification may be part of this schooling but examinations are not given
much importance. The stress is on whether the student can do the task rather than write
about it.

EXAMPLES OF NON – FORMAL EDUCATION

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Non formal education can take some of the following forms:

- Literacy classes
This involves teaching adults with little or no schooling how to read & write. Trained
teachers or community members could be involved in literacy classes.

- Agricultural education
Agriculture extension workers visit farmers to instruct & demonstrate farming skills such
as growing crops, raising animals, applying fertilizers & other things. In Botswana they
are called Agricultural demonstrators.

- Health education
A good example is the knowledge that is imported to mothers at the antenatal & postnatal
clinics by nurses. Mothers are taught things such as how to feed & take care of babies.

- Learning circles
Learning circles are groups of people who meet to share their skills & teach one another.
Women particularly are very active in learning circles & may meet to improve their
sewing or cooking skills or to learn weaving & tailoring.

ENVIRONMENTAL EDUCATION ON THE DEVELOPMENT OF BOTSWANA

Modern development brings about many negative environmental by – products &

practices. Examples include industrial & agricultural pollution, motor vehicle emissions
as well as littering. The government through the department of curriculum development
& evaluation has designed a curriculum for environmental education. This is to help the
children to see & understand the pros & cons of taking care of the environment.
Education can give skills to students which will enable them to take positive actions in
their lives. It teaches them awareness of & sensitivity to the world around them,
knowledge of how the environment functions, how environmental problems arise & how
they can be resolved.

Education develop attitudes that embrace a set of values & feelings of concern for the
environment & the motivation for active participation in environmental improvement &
practice, skills for identifying, investigating & resolving environmental problems &
issues.

PARTICIPATION – to encourage students to become actively involved in using their

acquired skills in taking proactive steps to rectify environmental problems

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POLITICS AND DEVELOPMENT
Explanation of concepts,

- Development; - when society changes for the better; when the economy grows,
standards of living rise, quality of life improves, wealth is shared
fairly & more people take part in decision making (Stuart, 1996)

- Politics - making decisions & distributing resources (Stuart, 1996)

- State - an embracing term which refers to the interaction between all players
In the political bickering, the government (legislature, judiciary &
Executive), the civil society, civil service & the private sector (Clark,
1995)

- Government - who gets power, what authority he yields, how does he get into
power, how legitimate is this government & to whom is he/she
Accountable to (Martinussen, 1997)

GOVERNMENTS OF THE WORLD

MONARCHY

This is a system of government where the head of government is a king or queen, e.g.
Swaziland & Morocco.

Characteristics

 Leadership is hereditary

 Head of government is a king or queen

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NB. Over time monarchy has become irrelevant & has since been replaced by
Constitutional monarchy, where the head of government is a prime minister & is elected,
e.g. Lesotho.

PARLIAMENTARY/REPRESANTATIVE DEMOCRACY/MULTI-
PARTY DEMOCRACY

This is a system of government where people are elected to go & represent others in
council or parliament for a limited.

Characteristics

 The people can choose their leader

 Representatives are accountable to people
 There are guaranteed basic freedoms before the law (freedom of speech, press,
movement, association & free trial)
 The laws apply to everybody (equality before the law)
 There is more than a single political party/constitutional & legal opposition
 Universal suffrage/everybody is free to vote after a specific age – Botswana at the
age of 18 years
 Periodic/regular elections – Botswana after 5 years
 The party with a majority becomes the leader of a country
 Limited use of force
 Citizenry participation in politics by joining political parties

Advantages

 There is popular participation in decision making

 Basic freedoms are guaranteed
 Development is relevant to the people it is intended to help
 There is accountability, transparency & decisiveness
 The constitution is upheld

Disadvantages

 Elections are costly (time consuming & financial wasteful)

 Clientalism – a coterie of party – ‘whos’ emerge & recycles itself into power
 Rent seeking – development projects become election baits than genuine people’s
wants
 Parties are formed along tribal, ethnic, religious, racial & other divisive
tendencies/national unity sacrificed & compromised
 Political turmoil because of indecisive election results or election rigging
 Consultation of people at grassroots is delay-full & a financial waste
 Abuse of freedom of speech into character assassination k& mud slugging

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ONE – PARTY STATE

A country where there is a single party & it’s the ruling party

Characteristics

 There is a single political party

 They may be elections, but candidates would be from the same party
 Opposition is illegal & officially suppressed

Advantages

 Unity is important – they claim parties may sacrifice unity

 They prevent tribal conflicts
 There is continuity - a party can plan for longer periods for it is guaranteed a
continuous reign
 Development comes first – people need to be developed first & democracy comes
later
 The system is seen as synonymous to African tradition
 It avoids social class formation
 Costly elections are avoided

Disadvantages

 Basic freedoms are denied

 Irrelevant development
 No answerability & transparency
 Popular participation unknown – all dictated from above
 Corruption may be high within the government

DICTATORSHIP/AUTOCRATIC STATES

- Control of power machinery & of them willy-nilly

- Use of force to crush opposition
- There is rule by decrees – without use of laws (constitution)

The role of the government

 Economic growth
 Nation building
 Educating citizens
 Caring for the environment
 Representing people abroad/international relations
 Social justice
 Keeping the peace at home

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  Planning development
 Providing health care

Interaction of economic, social & political aspects of development; this interaction can
either facilitate the realization of the above or frustrate development resulting in the
following negative aspects of development:

o Over-development of the state – mismatch between capacity &

responsibility
o A predatory state
o Expanded government bureaucracy
o Ambitious projects/gigantomania
o Clientalism
o Rent seeking
o Corruption
o Excessive government spending
o No financial accountability & transparency
o Mono economies
o Debt induced social reforms
o Kleptocracy – state stealing from itself
o Indebted militarization – mass expenditure in the military
o Weak government/poor development elite
o No state autonomy
o No insulation of the bureaucracy
o Unimpressive civil & economic performance & legitimacy
o Economic interest Vs other interests at the core of everything
o Emphasis on human developmen

MOBILIZATION OF RESOURCES

a) Mobilization of economic resources

 Government can acquire revenue through the following:

 Taxes e.g. income, sales, corporate & import duty
 Licensing
 Running lotteries
 Production & selling
 Imposition of fines & penalties
 Foreign trade
 Invitation of TNCs
 Direct foreign investment
 Land reforms
 Provision of lending facilities
b) Non – economic resources
 Human resource development

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  Political will from the leadership
 Provision of a political serene environment

DECISION MAKING PROCESSES

a) Bottom up approach/grassroots decision making
When people from the bottom, either at council, village & kgotla level make suggestions
which are then carried up by the authorities

b) Top – down approach/trickle down effect approach

-When decision making is centrally based or when decision are made at the top & passed
down to people through extension workers

NON GOVERNMENTAL ORGANISATIONS (NGOs) IN DEVELOPMENT

Autonomous, privately set up non-profit making institutions that support, manage &
facilitate development action.

Characteristics

- privately set-up, structured & sufficiently autonomous

- non – profit making
- support development (Kane 1990: 14-15)

Types of NGOs

a) Relief & Welfare Agencies (RWFs)

- Those that provide the needy with a service or a need e.g. Missionary societies & the
Red Cross
b) Technical Innovation Organizations (TIOs)
- Those which operate their own projects to pioneer new improved approaches to
Solving problems & which tend to remain specialized in their chosen field e.g.
The Grarameen Bank & Women against Rape
c) Public Service Contractors (PSCs)
- Northern funded NGOs which work closely with southern governments & aid
agencies e.g. Foundation of Education with Production. These are often contracted
to implement components of official programmes because of their size & flexibility
d) Grassroots Development Organizations (GDOs)
- Locally based southern NGOs whose members are poor & oppressed & which
Attempt development process e.g. Thari ya Banana of Molepolole
e) Popular Development Agencies (PDOs)
-Northern NGOs & southern intermediary counterparts which concentrate on self-help,
social development & grassroots development, e.g. YWCA
f) Advocacy Groups & Networks (AGNs)

NGOs’ roles include;

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  Providing for the unprovided for/marginalized/serving the poor
 Shaping national policies
 Advocate for just development
 Popular participation
 Empowerment
 Poverty alleviation
 Mobilization, lobbying & advocacy

Strengths
 Effective identification of community needs
 They enjoy legitimacy from the communities they are found
 Serving the poor (because of their physical base)
 Popular participation
 Innovativeness
 Small scale/small is beautiful
 Commitment of staff

Weaknesses

Leadership problems:
a) NGO staff resent & impedes strong leadership
b) Irreplaceability of charismatic guru-like leaders, which leads to a decay & death
of NGO because of no replication
Legitimacy problems:
a) Criticism of one another rather than collaboration & this fosters isolationism
Staff problems:
a. Recruitment is one of staff who can follow orders & be awe to the leader
b. Inter staff rivalry between local & foreign staff
Project design:
Projects do not really benefit the poor, but benefits the easiest to reach.
 Local elite domination of decision making
 No innovativeness, but extension of tried & tested services
 Limited replicability
 Limited technical ability from staff
 Learning disability
 Irregular documentation of experience & subjective if any
 Little attention spared to impact studies
 Problems of accountability
 No challenge on the effectiveness of the project, but concentration on wrong
aspects
 Inadequate planning, organization & management
 Inadequate staff training
 Small scale might mean insignificance, powerlessness & disconnectedness

NGO – government relations

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According to Thomas (1992), the relations come in threefold:
a) Complimenting the state – when NGOs participate in providing services which the
state would otherwise not be able to produce:
- When NGOs requires only the freedom to get on with their chosen tasks
- Its actions are not hampered by those of the government
- Their actions does not influence areas of development planning & delivery
- Government feels neither threatened nor challenged
- NGOs actions are not incompatible with governments

b) Opposing the state – the opposition can be direct or through various pressure groups
- NGOs theory differs with that of the government
- Common in military dictatorships, e.g. china, Philippines under Marcos, Chile under
Pinochet or Bangladesh under Ershad.

c) Reforming the state – NGOs can represent interest groups & negotiate with the
government to improve policies

COMMUNITY BASED ORGANIZATIONS

1. All grassroots based organizations involved in development (Esteva, 1998)

2. NGOs which have risen autonomously in communities & which aim to bring
about self reliant development (Meintjies, 1994) e.g. farmers’ associations, church
groups, burial societies, youth clubs, development committees & project
committees

Functions

- vehicles through which community participation takes place

- technical skill provision e.g. bee keeping & brick laying
- administrative skill dispensation i.e. keeping proper records, conducting meetings
& time management
- learning to resolve conflicts & solve problems together
- provision of prima4ry action in community

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THE PRIVATE SECTOR
These are all players (usually the propertied/monied) who invest their money in the
development of a country. These include:
i. Sole trade
ii. Partnerships
iii. Companies
iv. Trans – national corporations
v. Direct foreign investment
vi. Joint investors

Why the private sector?

 Capitalist ideology hang-over

 Profit driven
 Responsive to the law of demand & supply
 Efficient in guaranteeing needs & wants

Impact of private sector on development

a) Positive

 Quality production
 Efficiency in production & distribution
 Less red tape/bureaucracy
 Profit oriented production
 International linkages
 Broad skill base/experience in production
 Advance resource mobilization/resource availability

b) Negative

 Wasteful duplication of products

 Waste of resources through the discarding of out of fashion products

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  Unemployment because of automation & robotics
 Mushrooming of monopolies/oligopolies & cartels
 Sacrifice of national security & integrity

A comparison of government & private sector strategies

Government nationalization policies
Joint venture approach

References
Clark, J, Democratizing Development, the Role of Voluntary Organizations, Earth Scan
Publications, London, 1995
REGIONAL INTEGRATION, INTERNATIONAL
TRADE AND FOREIGN AID
Definition/description
Since the world of the 2nd world war, several countries have voluntarily made efforts to
integrate economically for mutual benefit. The objectives of such integration include:
promoting prosperity, to maximize economic growth, to establish financial stability in the
region and contribute towards the expansion of regional trade and consequently regional
development.

- Regional economic groupings may be political association, customs unions with

free trade inside the group and a standard external tariff or economic communities
which in addition to being customs unions have also extensive arrangements for
economic cooperation in other ways – modern usable examples are the
Commonwealth, the ECOWAS, SADC, crucial for mutual economic assistance
and the EEC now EU.

Related concepts
Common market, customs unions, colonial frontiers, specialization, tariffs, factor
endowments, mobility of labour, quotas, redistribution of resources and regional
development.

- Smallness of market especially in the developing world calls for integration –

purchasing power is often weak.

- Low cash income – desire to expand or enlarge markets.

- Colonial powers divided up Africa into small geographical units often described
as ‘pocket handkerchief states’ – difficult to stand on their own in terms of
manufacturing.

- Economic integration ‘promotes economic growth or development, especially in

Africa, Latin America and Asia.

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 - Economic integration may be a common market – meaning an area through which
goods and perhaps factors of production are free to move without interference
from customs duties or other restrictions while usually a common external tariff is
set up against goods coming in from outside.

Beyond common market, countries may run common services together, such as railways
or posts, same central bank and currency, common tax system or plan new industries
together.

The economic, political and social dimensions of regional co-operation

Although there are various types of regional integration, the general aims are to promote
more trade between its members, to generate a great amount and share of external trade
and raise the standards of living of the populations of member states. In short, the
economic motive overriding. Some of the forms of economic integration are as follows:

Free trade area – no tariffs or quotas between other member countries. Each of the
member countries unilaterally imposes tariffs on non member countries.
Customs union – free trade between member states but all members must operate a
common external tariff on imports from non member countries. A good example is the
Southern African Customs Union (SACU).

Common market
This is a customs union which in addition to free trade in goods and services also allows
a free movement of factors of production (labour and capital) between member states.
Economic union – this organization includes all the features of a common market but it
also requires member states to adopt common economic policies in such matters as
agriculture, transport and taxation e.g. the European Union.

POLITICAL
Aside from economic pursuits, regional integration also serves as a mutual political
forum to articulate the voice of the regional grouping. Politics is an integral part of
regional co-operation. It has become common for regional economic groupings to
promote such as peace, democracy, good governance and other pertinent issues as they
arise.

SOCIAL
Regional integration is also social in the sense that the interaction of people within a
regional grouping takes at a social level. It is imperative to harmonize the economic
pursuits and ideals with the social ramifications within a region. Thus the issues of
cultural similarities, differences, language and other factors have to be taken on board
and complement the primary economic goals.

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One of the aims of SADC is in fact to consolidate historical, social and cultural ties
among the southern African region.

Political advantages countries with similar interests

1. Presenting a united front: often speak with one voice in international affairs.
ECOWAS fighting to stop UN sanctions on Liberia.

2. Larger administrative units: greater efficiency is ensured administering or

planning for larger rather than small units.

3. Wiping out colonial frontiers: frontiers/borders of many developing countries

drawn by colonial powers according to their political interest. Often such
boundaries do not fit any sensible geographical, tribal or economic pattern e.g. the
case of Somalis, into French, British, Italy and some in Kenya, Ghana/Togo,
Nigeria/Cameroon, Botswana/Namibia, etc.

Economic advantages

Specialization – common market countries benefit from specialization. Each produces

according to comparative advantage e.g. one on machines/tractors, another in textiles
while another in insecticides.

Economies of scale – several small countries come together to form common market so
as to enable large industries to operate without any losses.

Attraction of new capital and enterprise – new investors are attracted and larger MNCs as
well thus prices could be brought down through competition and large scale production
of goods or services e.g. SADC region

Operation of common services – e.g. telecommunications, airways, rail and road

transport as well as power. These are not advantages associate with a large market but
with states combining to operate these common services as one unit.

Increased competition – poor/third world countries often have fewer firms with
monopolistic, non – competitive positions due often to complacency or stifles efficiency.
Coming together often means more firms in the region or efficiency assured due to
competition.

Mobility of factors – where there is close economic integration the factors of production
can move freely, especially labour and capital. However, often workers in one country
would object to competition from immigrants from other territories, as this would tend to
keep their wages down.

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 The role of regional co-operation in the development of
Southern Africa
Regional co-operation is a worldwide phenomenon. In Africa there are many regional
groupings for its many geographical and cultural regions.

ECOWAS – Economic Community of West African States

EAC – East African Community
COMESA – Common Market for East and Southern Africa
CEEAC – Community of Central African States

Southern Africa
In southern Africa, two regional communities come into focus: SADC and SACU. SADC
which metamorphosed from a coordinating conference (SADCC) in 1980 to a community
in 1992 has 14 members.
Among the aims of SADC are to increase trade among member states, to integrate the
region equitably and to use resources to promote national and regional policies. The
ultimate aim for the SADC region is to move towards complete economic integration and
promote development within the region.

Beyond the purely economic objectives, SADC has developed into a strong regional
community to deal with other pertinent issues as diverse as the promotion of peace,
democracy, regional security and coordinated fight against crime and drug peddling.
Various protocols have been signed to implement such policy areas. Consider for
example, the SADC states intervention which sanctioned South Africa and Botswana to
intervene in the mutiny and breakdown of law and order in Lesotho in 1996.

SOUTHERN AFRICAN CUSTOMS UNION (SACU)

Members of SACU are Botswana, South Africa, Lesotho, Namibia and Swaziland.
SACU was formed in 1910 and it has played an important role in southern Africa. Before
the advent of a mineral led economy in Botswana, revenue from SACU was an important
contributor to the country’s GDP. In 1981/2, SACU provided 37% of Botswana’s
government revenue. The figure was much higher for Swaziland (60%) and particularly
Lesotho (71%).

Despite the income from tariffs, South Africa dominates SACU portionately. It is the
treasurer and obliges other member states to trade with South Africa because they must
get all their imports through it. The other countries cannot set up their own import duties.
South Africa’s economic might has virtually made it impossible for Botswana to
industrialize. For weaker economies like Lesotho, the revenue from SACU would be a
viable source of revenue to fund its development projects.

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Has regional co-operation succeeded in southern Africa?
Since its inception in 1980, the pertinent question that has been posed is whether SADC
has been successful. Some of the achievements are the following;

 Many projects have been implemented. By 1990, 490 projects had been
implemented worth $6.3 billion.
 The SADC trade protocol of early 2000 increased intra-region trade by 22%. It is
expected to increase to 35% by 2008.
 Foreign assistance has continued to flow from various organizations as the EU
and governments like the USA
 There has been an improved investment climate, though dominated by one
country; South Africa, since the establishment of finance and investment sector in
1995
 Peaceful cooperation has generally been a way of life between states at least
before the DRC crisis. Diverse countries have to cooperate as one family.

Failures
The SADC has had its share of problems and failures:
 Considering the period since its inception, the southern African region should
have achieved more. Poverty is still pervasive.
 Trade relations by SADC countries are much stronger outside the region than
between members, this defeats regional integration
 Some countries’ economic position has worsened over the years despite SADC
e.g. Malawi, Zambia, Mozambique and now Zimbabwe.
 South Africa is still the dominant economic power in the region despite talk of
equitable development within the region
 Bilateral trade relations among SADC countries often take precedent over
regional co-operation
 Political instability has continued to plague some member countries such as
Angola, for this reason development has been compromised.

Challenges facing SADC

 Political tensions as for example in Angola still persist. The DRC crisis has
excruciated instability in the region.
 Most economies are largely agriculturally based with small national incomes,
reliant on international aid and have severe international debt problems. Zambia’s
external debt is about $6 billion
 Tariffs and trade barriers still exist within member countries and jealousy among
countries in trade relationships still exist. Consider the quarrel over the use of the
rail line between Botswana and Zimbabwe and South Africa’s intrigue over
Botswana’s car assembly industry
 South Africa as the dominant economic power has the potential stifle and
dominates the flow of goods from less efficient industries in other countries

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What is the way forward for regional co-operation in southern Africa
In light of the challenges facing regional economic integration, what is the way forward?
Obviously there is an imperative to strengthen regional co-operation in southern Africa.
The following are suggestions for strengthening regional co-operation:

a) Economic front
 There is need to diversify the narrow production and export base in most SADC
countries towards industrialization because with this there will be increased intra
– SADC trade
 For regional trade to bear fruition there must be increased investment in the
region to increase economic growth and produce more goods and services for
exchange within the region
 There are disparities in economic performance within the ranks of trade with
some countries such as Botswana, Namibia and South Africa off than others. This
situation is inimical to regional co-operation
 Heavy foreign debts in some member countries have militated economic growth
in these countries. Naturally, such countries will give first priority to domestic
problems rather than regional economic problem
 Trade barriers which have been pervasive in the SADC region need to be cleared
before countries can truly think of strengthening the region, in particular the
question of tariffs.

b) Political front
Regional economic integration presupposes a healthy political climate, and it is initially
in the political sphere that economic ideals can be best achieved. It is therefore important
for SADC countries to have a united political front in order to succeed as a region despite
the diversity in governments within the region. The most important way forward is to
build democracy and good governance. A stable, conflict free and democratic
dispensation in a region helps to attract foreign investment which is pivotal for economic
growth. The despotism in Zimbabwe for example, attempts to stifle the press recently and
the attempts to reverse democracy in Malawi and Zambia set a bad precedent.
SADC countries must co-operate and defend the institution of democracy and good
governance for the good of the region and prevent the region from plunging into chaos,
war and instability as evidenced by other parts of Africa.

Botswana as a member of the southern African region

Botswana is a member of the SADC region, whose population is about 200 million with a
combined GDP of 180 billion dollars. In terms of economic performance, Botswana
ranks as one of the countries with a steady economic growth averaging 6% per annum
and with healthy foreign reserves. The country’s economic miracle has been attributed to
a good macro economic policy and the fortune of possessing abu8ndant diamonds which
catapulted the country from one of the poorest at independence in 1966 to a consistently
good economic performer.

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With a population of about 1.4 million only, Botswana is greatly disadvantaged in its
desire to industrialize. Membership to SADC, by which the country can have access to a
large market, can help the country to industrialize and diversify its economy. With its
already healthy economy, Botswana can take advantage of its membership’s high
investment rating; stable government and a fairly well developed infrastructure are
positive attributes which can push it to higher development levels.

Problems/difficulties of political integration

Regional integration is often fought with different social or political ideologies
incompatible with smooth unification e.g. Kenya, Tanzania and Uganda – Tanzania
socialist while Kenya capitalist united – such marriage difficult to thrive. Guinea in West
Africa declared it could not pursue regional alliance due to her purely socialist approach
to issues. Poor new nations often have too many internal squabbles to grapple with let
alone countenance regional socio-economic and political coalition.
Problems of economic integration
1. Uneven distribution of new industries - unfortunately industries tend to
concentrate themselves in far places because of the external economies of scale.

2. Uneven distribution of costs of protection – some are advanced industrially while

others are not.

3. Difficulties of joint planning – it is not easy to get independent states to work

together on research for new industries without knowing to which country each
new industry will be allocated or to get them to pool information on what might
be done.

4. Poor communication – most transport networks in Africa seem to follow a similar

pattern. From the point of raw material to the coats of point of export. This legacy
still lingers on.

5. Fears of fiscal (tax) redistribution – richer nations within the union tend to
harbour the pain of having to share their wealth with others.

INTERNATIONAL TRADE
According to John Stuart Mill, international trade makes possible ‘a more efficient
employment of the productive forces of the world’. Specialization performs similar
functions in national and international economies. The heterogeneous nature of land
makes the concept of interdependence all the more important – since natural resources of
the world are very unevenly distributed.

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International trade originated on the basis of nations exchanging their products for others
which they could not produce for themselves. Therefore it can be referred to as the
exchange of goods and services between nations. International trade arises because;
 the production of different kinds of goods requires different kinds of resources
 various types of economic resources are unevenly distributed throughout the
world
 the international mobility of resources is extremely limited

Since it is very difficult to move resources between nations, the goods which embody the
resources must move. One of the basis for international trade is that no country is entirely
self sufficient in the world. This is due to the unevenness in the distribution of gifts of
nature over the world, differences in climate, geological formation and inequality in the
natural ability of the people as a result of differences in skills acquired by those who have
had the opportunity of proper education and training.

Related concepts
Balance of trade, balance of payments, trade deficit, comparative advantage, surplus,
exchange rates, specialization, production, distribution, consumption, imports, exports,
primary products, developing countries, resources and devaluation.

Advantages of international trade

 It makes a country acquire goods and services that it has limitations of acquiring
by its own human and physical resources
 It has made it possible for new skills, managerial and entrepreneurial services to
follow to developing countries from developed countries
 It enables developing countries t gain technological knowledge from the
technically advanced countries
 It makes possible for many business people in developing countries to set up
exporting industries. Standards of living will increase due to the increased
household income
 It increases specialization which leads to mass production. This results in prices
being lower
 Developing countries gain access to international markets for their primary
products like cocoa, rubber, coffee, cotton and minerals such as copper,
diamonds, gold, and oil etc
 Introduction of new range of manufactured goods has served as an incentive for
people to work harder to earn more money to pay for all these things e.g. cars,
televisions, video, radios and other electronic gadgets
 Poorer countries are able to move their proceeds from exports to buy capital
goods which could not easily be produced at home. Wiser governments are able
also to accumulate capital which is an important ingredient in economic growth

Limitations/disadvantages of international trade

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Trade internationally, is said to benefit the richer countries more than the poor. Free trade
benefits unequal partners breeds ‘master servant’ relationships in trade. Poor countries
supply raw materials which the advanced economies strengthen their industrial base
through constant supply of raw materials.

- International trade leads to interdependence. In times of war when the supply of

sources of essential goods are closed down, the standards of living will be low
- It can lead to an unbalanced economy because each country concentrates all its
resources on the production of its best products
- It may lead to over production of some goods and this will result in depression (a
period of little economic activity, and many people are poor or without jobs)
- It breeds competition, international jealousy and mistrust
- International trade often makes it difficult for poorer countries to change their
pattern of trade – constant suppliers of raw materials
- International trade has left most of the poorer countries with largely agricultural
economies thus stifling industrialization which could promote cumulative growth
- Disparities between the prices of primary products and finished goods further
compounds the situation

International trade leads to increased living standards for the participating countries
through the practice of comparative advantage. It has been argued though, that
unrestricted free trade can have adverse effects on certain countries and particular groups
of people hence the imposition of certain trade restrictions.

International trade takes place for a number of reasons; one being that countries have
different factor endowments either in the form of raw materials, minerals or skilled
personnel and advanced technology.

Poorer countries tend to suffer in international trade due to factors which often affect the
supply of primary products which do not affect manufactured goods e.g. weather or other
natural influences such as pests and diseases reducing exports in order to prevent the
price from falling, brazil did so with coffee experts in the 1930s. Quotas could also be
used as well as buffer stock schemes.

- Tariffs disturb and restrict the free movement of goods and services, aborts the
advantages of specialization and exchange, prevent the optimum use of scarce
factors of production. Tariffs reduces and could even shut off trade altogether
between two countries.
- Eminent economists have suggested that international trade can be a positive
force in economic development. Trade can be instrumental in offering opportunity
for specialization and the division of labour. It increases the productivity of the
available resources.
- International trade widens the extent of the market, includes entrepreneurs to
innovate, to make greater use of machinery and to facilitate specialization and the
division of labour.

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 - International trade promotes international competition – entrepreneurs are
compelled to contrive means of reducing costs.
- International trade increases real income; ensures high levels of savings and
investment. Entrepreneurs and exporters tend to have high savings propensities.
- International trade has an important educative effect. It is the means whereby
skills and technology are transferred from one economy to another. It also
suggests new wants to consumers and inculcates new tastes, which encourage the
consumer to work harder.

PROTECTIONISM

Various goods ad services have a number of policies that are formulated to interfere with
the free flow of international trade. These policies are referred to as protectionist policies.
This is because these policies are used to protect local industries from foreign
competition. The whole network of measures used is referred to as protectionism. These
policies prevent consumers from taking full advantage of international trade. They also
restrict he free flow of goods and services across international borders

Types of protection

1. Tariffs (import duty) – these are taxes put on imports to increase their prices.
These taxes make imports more expensive to buy, hence discouraging buyers
from buying foreign goods as they will be more expensive than locally produced
goods. This is done to protect local industries and also generate state avenue.
2. Quotas – this measure limits the quantity of imports that can be brought into a
country by importers every year. This limits the consumer’s choice of goods,
forcing them to buy locally produced goods.
3. Exchange controls – international t6rade involves foreign currency exchange.
This is used by government to limit the amount of money needed to pay for
imports. This reduces the free-flow of goods and services.
4. Economic nationalism – this measure leads to discrimination in favour of home
producers. The government may decide to use health and safety regulations to
limit the type and quantity of goods imported into the country. For example, the
government may not allow cattle from a foot and mouth infected country to cross
into Botswana.
5. Political boundaries – these regulate the flow of goods and services into a
country. Traders have to cross at certain points in order to declare their goods.

Reasons for protectionism

 To keep incomes and employment at a high level. The more goods and services a
country produces to satisfy domestic and external demand, the higher the incomes
and the employment will be.
 To protect infant industries. A newly et up industry may be at a disadvantage
compared to similar industries overseas e.g. the long established manufacturing

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 industries of south Africa have an advantage over those recently set up in
Botswana. The government of Botswana therefore prevents the import of
particular manufactured goods so that the new industries can become properly
established.
 To raise revenue. Taxing imports and exports is a way of raising revenue.
Developing countries rely heavily on this revenue because other forms of tax are
unable to raise sufficient money for government expenditure.
 To correct an unfavourable balance of payment. Higher tariffs and strict
exchange control regulations can be used to reduce imports.
 To make a country self-reliant. In order to enable a country to provide for all its
basic needs particularly in times of war, local industries are protected and given
chance to develop by imposing tariff on outside products.
 To prevent dumping. Dumping refers to the selling of goods in foreign markets at
prices below those charged in the home market. The main aim of foreign
producers is to establish a monopoly in the importing market. Local producers
will be driven out of the market by the low prices. As soon as the field is empty,
the foreign producers raise and enjoy profits. Therefore countries in which the
goods are being dumped would impose high tariffs on those goods.

Disadvantages of protectionism

 Sometimes local industries develop slowly because there is no fear of foreign

competition. This leads to a waste of economic resources because money has been
invested in order to achieve economic development.
 Protectionism narrows the market – trade with other countries becomes difficult
due to the restrictions imposed. This narrows the market because trade can only
be conducted with those countries with few restrictions.

Attempts made to protect developing countries from international trade

Currently the relationship between the developed and developing countries in trade
leaves developing countries at a disadvantage. Developing countries export primary
commodities e.g. raw materials and import manufactured goods. This pattern is a result of
colonialism and it has made it difficult for third world countries to earn foreign exchange
to develop industries. As a result, developing countries have tried to come up with reform
systems collectively.

 International price agreements – developing countries want all countries to keep

prices of primary products stable and to link changes in prices for raw materials to
changes in prices for manufactured goods. This means that if the price of
manufactured goods rise, the price of primary products should also rise.
 Producer cartels – the best known cartel is OPEC. Before it was formed, oil
producing countries were not able to control the prices of oil that were always
changing. They were competing for the sale of oil. Each wanted to sell at a lower
price in order to sell more. Prices of oil were always low while prices of
manufactured goods imported by the oil producing countries were always

155
 increasing. When OPEC was formed, these countries were able to sit together and
agree on oil prices and as a result oil for OPEC countries was not able to be sold
at lee than agreed prices. They were also able to limit the supply which made it
possible for them to keep prices of oil at higher prices.
 Regional cooperation schemes – many countries are coming together in an
attempt to overcome existing international trade patterns e.g. SADC. Its members
coordinate their projects to ensure that they produce a particular commodity for
the whole region. In this way, countries in the region can trade with each other
instead of trading with Europe. This can help them change the present pattern of
trade.

BARTER SYSTEM
Before colonialism, countries in Africa used to practice bartering. This refers to the
exchange of goods without the use of money.

Disadvantages

- It is difficult to find the right person to exchange what is wanted at the right time
- Trade is limited because of the need to carry goods on long distance and in large
amounts
- It is very difficult to measure the value of goods exchanged and as a result people
never know how much their goods will buy

FREE TRADE
This refers to the absence of barriers/restrictions in international trade. It is usually
characterized by few or no import tariffs which enables the forces of demand and supply
to work.

Advantages of free trade

 World production is increased because countries are enabled to use their resources
in the best possible way
 Each country can enjoy a wider variety of goods and services leading to higher
standards of living
 It promotes international competition which helps in keeping down. Most
countries support the general Agreement on Tariffs and Trade (GATT) which
attempts to reduce the barriers to international trade

Disadvantages of free trade

i. Free trade may increase world production but this often helps some countries
more than others. That is, those with a lot of resources will benefit more.
ii. Ease access to resources will lead to exploitation
iii. Greater mobility of labour from area tom area will leave other countries with few
skilled human resources

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BALANCE OF TRADE
The balance of trade shows the value of goods sold and brought by a country during a
given period, usually a year.

A positive or favourable balance of trade means that a country is exporting more goods
than importing them in money terms e.g.
Exports – P5 billion
Imports – P4 billion
The surplus is P1 billion

A negative balance of trade indicates that the value of imported goods is greater than that
of exported goods e.g.
Exports – P4 billion
Imports – P6 billion
The deficit is P2 billion

TERMS OF TRADE
This refers to the rate at which exports buy imports. If the terms of trade decline or fall,
they can be described as unfavourable. If they have risen, they can be described as
favourable. Over the years, terms of trade in developing countries have declined mainly
because they export primary products and they are not as profitable as selling
manufactured goods. The effects are as follows:

1. Terms of trade in developing countries are falling due to unstable prices. They
export more to buy few manufactured goods.
2. Developed countries still dominate world trade even after colonialism
3. Most of the demand for raw materials comes from the north. When the north goes
through technological changes, the south is affected because the demand for
primary products may go down.

BALANCE OF PAYMENT
A country’s balance of payment shows the relationship between a country’s receipts from
others and the payments to others. It is classified into the current account, the capital
account and the monetary movement account.

- Current account
The current account shows the present income and expenditure of a country with the rest
of the world. The items of the current account are further classified into visible and
invisible items. If the total value of visible and invisible exports exceeds the total valu8e
of visible and invisible imports, a country is said to have a balance of payments surplus
on current account. If the total value of visible and invisible exports is less than the total
value of visible and invisible imports, a country is said to have a balance of payments
deficit on current account.

- Capital account

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The balance of payments is also affected by capital movements which may be made by
private individuals or firms or government agencies. There are four reasons for capital
movements from one country to another:
- For investment abroad
- As loans
- For safety
- As a gift from one country to another

- The monetary movement account

This part of balance of payments tells us how the balance on both current account and
capital account taken together is settled. In other words, the monetary movement account
tells us how a deficit is financed or surplus is used up. A deficit on combined current and
capital account can be paid in several ways:
- By borrowing money from developed countries or IMF
- By selling foreign investments
- By exporting minerals
- By receiving a gift from another country

The above can also be done to correct a short term deficit of about a year or two which
may be caused by a sudden need for raw materials or failure of an export crop. Though
that is the case, in order to correct a long term deficit, a government may be forced to
reduce imports or increase exports by adopting one or two of the following methods:

a) Deflationary policy
This can involve the following;
i. Reducing bank lending
ii. Raising interest rates
iii. Increasing taxes
iv. Cutting government expenditure
The aim of this method is to cut down domestic demand and reduce imports. When
demand is low, prices tend to go down and exports are more attractive to foreign buyers.

b) Control of imports
Imports are controlled by tariffs and quotas.

c) Exchange controls
A government can reduce the amount of foreign exchange currency bought and sold.
Since foreign payments are made in foreign currencies, this will reduce imports. It is an
effective method of controlling the quantities of imports.

d) Devaluation
This involves lowering the exchange rate between a country’s currency and other
currencies e.g.
$1 = P3
An American importer could buy 1/10 of beef costing P3000 per tonne for
$1000. If the pula is devalued so that $1 = P4, the American buyer now

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 pays $750 for one tonne of beef at the new exchange rate. In other words,
the value of pula has gone down in relation to the pound. This will
encourage the American to buy more goods from Botswana. At the same
time, it is now more expensive to pounds therefore it will be expensive to
import American goods. As a result, devaluation keeps the prices of
imports more expensive and that of exports cheaper.

FOREIGN EXCHANGE
This is what economists call money that is acceptable to all countries, such as American
dollars and British pounds. Countries can bring foreign exchange through;
- Trading with foreign countries
- Investing in foreign countries
- Allowing foreign investors to set up companies e.g. multinationals

FOREIGN AID
In addition to export earnings and private foreign direct and financial investment, the
final major source of third world foreign exchange is public bilateral and multilateral
development assistance, known also as foreign aid. In other words Foreign aid is
assistance from outside.

A country or organization that gives aid is a Donor. On the other hand one that gets or
receives aid is a Recipient.

Related concepts
Multinational donor agencies, tied aid, grants, technical assistance, bilateral aid,
multilateral aid, resources, political motivation, economic motivation

Types of Aid

a) Bilateral Aid
b) Multilateral Aid
Forms of Aid

a) Gifts of consumer goods

b) Loans and grants
c) Direct investment
d) Technical and direct assistance
e) Education
f) Trade
Why donors give aid

Primarily because it is in their political strategic and/or economic self interest to do so.
Cold war

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Moral and humanitarian desires to assist less fortunate e.g. (emergency food relief
programmes). Economic considerations are often advanced as follows:

Foreign exchange constraints

 External finance (both loans and grants can play a vital role in supplementing
domestic resources in order to relieve savings or foreign exchange bottlenecks)
 Growth and savings – external assistance facilitates and accelerates the process of
development in developing economies by generating additional domestic savings
 Technical assistance – high level manpower transfers to assure that aid funds are
most efficiently utilized to generate economic growth

FOREIGN ECONOMIC ASSISTANCE

Many development economists are of the view that inflows of foreign aid or resources
could boost domestic savings, thereby permitting higher rates of capital formation and
improved levels of material welfare.
Motives for aid
This has been categorized into two broad areas:
- Donor oriented
- Development oriented

Four motives for granting aid to developing countries (1992):

- The political importance of the recipient country to the donor country
- Cold war factors
- The recipient country’s need for aid and its need for aid and its growth
performance
- The availability of other alternative sources of assistance
Bilateral aid does not significantly depend on recipient need, but for multilateral aid,
recipient need to provide a reasonable explanation of aid allocation.

Reasons/advantages of aid
 Aid can help developing countries in need (emergency assistance) and help for
long term development
 Aid helps governments and developing countries to provide needed infrastructure
e.g. roads, schools, water and bridges etc
 Where finance is lacking, aid can assist in removing ‘bottlenecks’ to development
 Aid is a means of expressing care and concern for fellow humans especially from
the rich to the poor
 Uneven distribution of the world resources among the regions calls for
redistribution and aid plays that role
 Aid helps establish links between countries and consequently enhance
international understanding and world peace
 Aid encourages and facilitates mobility of labour to where it is most needed. It
also enhances technology transfer.
 It fosters the concept of interdependence by allowing ‘haves’ of the world to lend
a helping hand

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Arguments against aid

 Aid on bilateral basis is often used by richer and powerful nations to consolidate
their might
 Aid does create dependency syndrome making weaker governments depend on
stronger ones
 ‘Tied aid’ assures northern manufacturers ready markets for their products. It also
erodes a poor country’s maturity and independence
 Aid tends to divert attention from trade
 Aid reinforces master – servant relations in international affairs and fosters
superiority – inferiority attitudes
 Aid strengthens world inequality and endorses the economic, political and social
might of richer countries over poor ones

In addition to their endeavour to promote world trade, the developing world has extended
considerable amount of direct economic aid to other countries. Since World War II, funds
have been utilized especially for reconstruction purposes, but in more recent years much
has been given to developing nations. Here again, aid has been both direct and indirect
through international financial institutions – IMF, IBRD, and ADB.

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