Development Studies Papers I & II 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, e.g. If a question asks ‘What are the causes of urbanization’, do not just write ‘rural-urban migration’ or ‘natural increase’ and leave it there, you must go further and show how these factors cause or lead to urbanisation. - In addition to the point above, do not use words like ‘it’, ‘they’, etc. to stand for the concept or phrase you are asked to talk about, e.g. if a question asks ‘What are the causes of urbanisation’ do not use ‘it’ to stand for ‘urbanisation’ for instance ‘It is caused by’ will immediately raise the question ‘what?’ - 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; 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’

Etc.
Compiled by: Maphane T Shashe River School March 2006

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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 -Higher incomes/wages -Higher productivity -More industries/factories -Better and improved technology -Higher levels of employment.

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WAYS OF MEASURING DEVELOPMENT Development can be measured through several ways notably social.          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.Development occurs when various systems interact to cause changes. economic & political.  Justice  Democracy  freedom 4 . of people engaged in agriculture SOCIAL INDICATORS Those elements that show the day to day welfare of the people. These include:        Gross national product Gross national product per capita (per head) Gross domestic product Calories intake Daily food supply Energy use No. ECONOMIC INDICATORS Those elements that show how people provide for their daily needs and generate wealth.

5 . It also refers to the quality of food i. In developed countries we have highly scientific and mechanised production thus low labour in agric. 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. expatriate workers & remittances (those who work outside). -Energy consumption It is measured in KGs of equivalents. -Gross national product this is the money value of all goods & services within & outside a country. i. solar power.ECONOMIC INDICATORS -daily food supply This refers to how often one has food within a day. It indicates the energy value of an average diet of a country. if GNP for 1998 exceeds GNP for 1997 we can say that a country is developing. So for a country to be regarded as a developed country people should have more meals as well as eating quality and balanced meals. This can be used to measure development i. In developed countries the food is balanced. gas. -Labour force employed in agriculture This is expressed as a % of the total workforce. the amount of power that can be derived from a KG OF coal whether it is produced by oil. It is calculated by dividing the total money GNP by the total population. In less developed countries we have traditional methods which are labour intensive hence a larger % of the labor force. e. nuclear power or otherwise. domestic use or telecommunications. If GDP for country D in 2004 exceeds for the same country in 2003. wood. -GNP Per Capita This is the money that each individual is entitled to get if the money is shared equally. it means a country is developing.e. -Gross domestic product the total money value of goods & services produced within a country. Goods and services (skilled manpower) outside a country include loans. -calories intake This refers to the energy value of the food eaten. grants. 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. If the opposite is true then the country is underdeveloped.e. LDCs have low energy consumption as production is highly traditional not scientific while in developing countries energy consumptions is very higher either because of industrialization.

g. -Education (adult literacy rate) This shows the % of adult population that can read and write. High IMR is due to lack of medical facilities etc. 6 .1: 52 Uganda …. telecommunications network & housing. the more a country is developed & the less they are the less a country is developed..25. -infant mortality rate The % number of babies/children who die before their first birthday per thousand populations. The higher it is the more developed a country is & the less it becomes the less developed a country is. Kenya …. -availability of social amenities/services Water. Mozambique is 51 years whilst developed countries have a higher life expectancy e.e.349million Uganda is the only country close to 1.g.8 million 19. The higher the dependency ratio the more the young group population is and the less developed a country is. The more these are available to an average..3 million 31. If IMR is high then the country is less developed.14 million 99% 39% 100% 18% 9% 39% 1% 1> >1 -Student-teacher ratio In 1981 the student-teacher ratio was as follows.L. This varies from one country to the other because of the inadequacy of health facilities and food supplies. 47% 15% 79% COUNTRY Kenya Ethiopia Tanzania 17. -dependency ratio This refers to the people under the age of 15 years as groups to those of the working group i. The less the dependency ratio the older the population is and the more developed a country is. electricity.SOCIAL INDICATIORS -life expectancy at birth This indicates the number of average years an individual is expected to live. 15 to 65n years.1: 452 Tanzania …1: 182 Angola ……1: 244 Population = 4.R. LDCs have a low life expectancy e. the UK is 92 years. the UNESCO requirement. If it is low then the country is developing. A.

clinics & health posts in various parts of the country.6% Doctor-patient ratio 1: 10 500 1: 20 810 1: 17 560 1: 58 490 1: 14 290 Access to safe water drinking 17% 35% 39% 6% 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. freedom here refers to freedom from social ills. if poor people are going to die (IMR high & low life expectancy).g.6% 14. -freedom People should have a chance to participate in the decision making process.1% 9. ethnicity. 1981 Kenya Uganda Tanzania Ethiopia Somalia Infant mortality rate 8. region etc. They should also have freedom of speech. They should not be discriminated because of colour. However.3% 14. GUIDELINES FOR POLITICAL INDICATORS  % people who vote in elections  % of women in managerial positions 7 .e. -democracy This is the government of the people by the people and for the people defined by Abraham Lincoln.7% 10. It is not easy to say how democratic a country is.HEALTH CARE This involves the establishment of hospitals. -justice This refers to fair treatment under law. justice should be delivered in the shortest possible time for justice delayed is justice denied. To some people democracy means having many political parties whilst to others it means popular participation in decision making at grass root level. choice & enterprise & as well as freedom of association. Political indicators include the following. Health care has an influence on the IMR & the death rate i. It is not easy to measure if a country has freedom because this depends on the ideology of a country. E. Democracy is whereby people have a say in the decision making in their country. People should be treated equally and taken to be the same under the law. ignorance & from poverty.

-high life expectancy People in developed countries are expected to live for longer period of time e. GDP &GNP/PI The economies are growing fast. 8 . Western Europe (Poland. Japan & New Zealand. food. They are in most cases self reliant in things like food production. -low death rates The death rate in developed countries is low due to high standards of living. taking a medical doctor to be a personal secretary. Human rights ratings are given to identify which country allows their citizens the greatest amount of freedom and access to basic human rights. -relatively high growth rates of GNP. Australia. on average the life expectancy is about 70 – 90 years.g. Characteristics of developed countries -high standards of living In these countries the quality & quantity of health facilities. -high GNP Per Capita Developed countries have a high distribution of the national income. For low birth rates – in developed countries the birth rates are low and in some cases it goes to zero. Misplacement means working in a category which you were not trained for e. manpower & skills.g. -low infant mortality The number of babies who die before their first birthday is low in developed countries. the Czech Republic & Yugoslavia). DEVELOPING & DEVELOPED COUNTRIES -DEVELOPED COUNTRIES These are mostly countries of Western Europe. These countries are economically advanced & sustained & experienced long time economic growth.g. These also include the economically advanced socialist countries such as the former Soviet Union. being employed to teach in a primary school while you were trained to teach in a secondary school. -low levels of unemployed. North America. education & other facilities are high. underemployed & misplacement Underemployed means employed in a lower section of the economy e.

CHARACTERISTICS OF DEVELOPING COUNTRIES (LDCs) -high birth rates Since there is poor knowledge and use of contraceptives. -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. GNP & GNP/PI Economic growth in developing countries is very low because of lower investment. It ranges from 50 – 60 years & in some countries it is less. -low standards of living The provision of basic social amenities is not adequate hence poor standards of living. birth rates in developing countries are high & these leads to high population growth rates. and industrialized countries.-high adult literacy The % of educated adults in developed countries is high just around 95%.B. little diversification. -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. -reduced poverty Many people in these countries have enough to feed themselves. poor diets & generally low standards of living. This results in high standards of living. lack of capital & lower technology. N. They instead depend mostly on the secondary & tertiary sectors. group 7 countries. -adequate health facilities & medication Medical facilities in developed countries are enough & of high standard. -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). They specialize on large scale production than small scale production. The other name of developed countries is countries of the north. -diversified economies Developed countries do not have mono economies neither are they export oriented or heavily dependent on agriculture. -low growth rates of GDP. -inadequate health facilities & medicine 9 .

-reliance on agriculture (primary product) The majority of the people are dependent on agric for employment. -reliance on mono-economies Developing countries depend on one type of production/product. between rich and poor are not shown . -increased poverty Population growth rates in developing countries overwhelm economic growth hence low distribution of income & increased poverty.65. Problems of using GNP Per Capita as a measure of development . . Taiwan.It assumes that everyone is working and benefiting from the economy and ignores peoples’ happiness. 10 . There is little diversification of developing countries’ economies. south Korea. -high dependency ratio The number of people aged 15 and below (children) is high in developing countries.Government statistics may be inaccurate. This leads to high dependency ratio since there are more dependents than people who are productive. Economists only count goods and services marketed openly and recorded by government. India. Some of the members include Argentina.the difference within countries. China. There are more people aged 15 and below than people aged between 18. illegal activities. Many of the NICs such as Thailand. the social & environmental consequences of wealth. . -low per capita income The average wealth for each person in developing countries is low. These are countries which have rapidly industrialized in the recent years. The resources of a country are not adequate for the citizens. Egypt. NEWLY INDUSTRIALISING COUNTRIES (NICs) Another group of countries (division/category) has just emerged. Philippines.It ignores the quality of life. Indonesia & Malaysia are found in south-east Asia & are also known as the ‘Asian tigers’. especially if people hide the amount they earn in order to avoid paying taxes. Mexico & Turkey. This group is known as newly industrializing countries.it ignores the informal sector. Originally these countries belonged to the third world or less developed category but have recently graduated.Health facilities in developing countries are not enough & this leads to high infant mortality & high death rates. .Statistics may be outdated or used by certain writers to emphasize their own bias. There is little industrial production in developing countries hence primary production offers great job opportunities. Brazil. Hong Kong. Singapore. satisfaction or well-being. . drug trafficking & prostitution.

Categorization is not fixed since some countries were labeled as developing or less developed but have now graduated or industrialized e.g. Countries belonging to the eastern block or communist socialists block have liberalized (reformed/changed) their economies & are geographically reformed the Perestroika Mikael Gorbacheu.e. This referred to the least or less developed countries which are predominantly found in the southern hemisphere. or GDP which does not include investment from abroad. As a result of this uneven distribution some countries are developed & rich while others remain poor & underdeveloped. CRITISISM FOR DIVIDING COUNTRIES INTO FIRST.- Population figures are outdated because some countries cannot afford to make a census or inflate/reduce figures for political reasons. These countries were labeled that way by the Brandt report to the World Bank. Criticism is geographically incorrect since some countries like Australia are developed but found in the south. The categorization was over simplistic because no country could be said to be really non aligned. the newly industrializing countries (NICs). There are countries which are blessed to have some resources while others do not have such resources..g. some countries in the same category are economically better than others. On the contrary the developed countries were named the north because the majority of them are found in the northern hemisphere. The categorization was patronizing to some countries especially the west but offensive or prejudicial to others e. Categorizing countries as less developed is very derogatory because it implies that some countries feel they are much better than others. SECOND & THIRD WORLD These divisions are no longer relevant because countries are now mainly capitalists or mixed economies. It is better than raw GNP measurement which ignores the size of the population. However. the south. REASONS FOR DIFFERENCES IN DEVELOPMENT LEVELS -Resource distribution Natural resources are not uniformly distributed world wide.g. while some are geographically in the north but are very poor & less developed e. It highlights international wealth differences. Labeling or categorizing countries is also inappropriate because some categories are not homogenous i. The GNP of the world is generally rising hence some countries labeled less developed cannot remain so forever. Bangladesh. countries in the 11 . GNP Per Capita has some advantages which include the following. The data is available from the World Bank. It is a standardized measure which allows easy comparison between countries. 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.

It is because of this that some countries are generally richer than others since they have this natural advantage. one without wars or conflicts. This is caused by lack of money. Developed counties on the other hand are experimental. On the contrary developed countries often have development oriented governments which are willing to initiate development. -political will It is the willingness by those in authority to guide & direct development.gulf or middle east are blessed with oil which they export to other countries. The result is that the is & end up earning more foreign exchange. As a result of this they produce poor goods low in both quality & quantity. Italy. civil wars. machinery & skills of a society used in production. This slowed down development in the region boosted elsewhere especially in the United States of America. Spain & Portugal. mines & industries. transparent & democratic. 12 . Germany. On the contrary most underdeveloped countries are engulfed by political strife i.e.e. facilities & even the political will to experiment on modern technology. -technology This refers to tools. -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. 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. Belgium. In most LDCs the government lacks the willingness to guide their people into development. 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. they have capital. On the other hand Botswana is blessed with diamonds & natural conditions for the production of beef. facilities & the political will. -political instability Most developed regions of the world enjoy a political stable environment i. These countries stole & exported resources from the colonies to develop themselves hence they became more developed than their subjects. Canada & Britain where they provided cheap labour in the plantations. genocides & political anarchy & as a result they are preoccupied with political conflicts. -population pressure LDCs have 75% of the world population hence they spend more of their resources in providing for this population rather develop countries. France. 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. Their governments are legitimate. LDCs use simple & often traditional ways of production which are poor or less productive. Most parts of the world were colonized by European powers or countries notably Britain.

For instance when contraceptives were introduced to Botswana. people attached stigma to them. e. This is a result of the following. Botswana relies on beef and diamond. -trade restrictions: Consumer countries decide for Less Developed Countries what to do and when to do it.-trade patterns This refers to how countries relate in the buying & selling of goods to each other. they decide on the quota i. E.  Countries producing raw materials do not price them for themselves but rather the products are priced by the consumers.g.e.  LDCs concentrate on the production of primary goods (raw materials). tax on goods entering the country. Raw materials are cheap since they earn very little when sold in the world market hence LDCs gain little from foreign exchange. the number of goods or items a Less Developed Country should or should not fail to meet. When this product is existed prices fluctuate to the worst their economy becomes very poor. They can even make Developing countries erect quarantine camps or even slaughter livestock suspected of carrying a certain disease.e.g. -culture: This refers to the way people live and earn a living. 13 . Developed Countries also on the tariffs i.  Prices of raw materials are fluctuating & unreliable.  Zambia on Copper  Ghana on cocoa  Tanzania on sisal  Uganda on tea  Zimbabwe on tobacco  Kenya on coffee. Culture is generally conservative (do not allow change) and sometimes it slows down or prevents development since people are unwilling to take up innovations. rather than seeing them as new health services.  Mono economy – most LDCs rely on one type of good or product/one sector of production. LDCs fall in unfavourable terms of trade (they gain a little from international trade while they spend a lot).

Since 1945 the world has been divided into 3 i. The north specialized in industries 14 .g.e. happier & free. political & other sociological factors. The only lesson that is learnt from these so-called developed countries is that growth & development are a highly complex process. changed with the USSR in the early 90’s. This brought about colonialism (imperialism). according to the Longman Modern English Dictionary . the north & the south or developed & developing. It is also very difficult for one to draw a general conclusion from the experiences of some developed countries. It should be noted that there are new blocks emerging e.e. Europeans started settling in Africa. employment). 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. After the World War II the western economists believed that all countries in the world could develop through trade & investment in industry & infrastructure. is an organized body of ideas as to the truth of something usually derived from the study of facts relating to it. THEORIES OF DEVELOPMENT A theory.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. social & political institutions. Economic development is when all areas of human life i. This is because they involve changes in economic. This situation has however. At the moment there are two prominent divisions i. Many theories that have been put forward are an attempt to explain & initiate the process of economic development. communist/second world. It involves improvements in the living standards of people which will make them better. The idea of division of labour & specialization became popular. It is therefore established that there are loss of economic development. Colonialism started on a massive scale & the industrialized countries experienced a great change in the structures of their economies. cultural. political. but sometimes as a result of exercising the speculative imagination. unfortunate that there is no single theory which fully explains the process of development. the capitalists/first world. social &economic are made better or improved. refers to a positive in a country. It is however. Newly Industrializing countries (NICs). developing/third world. A theory is simply a set of ideas offering an explanation about something or a scientific or social process.e. European development is linked with capitalism where raw materials & cheap labour were needed for industrialization. No single theory can be used to explain the ways in which full employment might be achieved in either developed or developing countries. Asia & Latin America & used cheap labour to produce raw materials to feed industries in their home countries. Theories try to explain why some countries depend on others. Development on the other hand.

This therefore led to the divided world. Wealth should trickle down to everyone.  People should move from villages to cities i. urbanization. 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. 15 .  People should be patient & not expect too much wealth until the economy grows larger.while the south in the production of primary products. Implications  The third world countries should invest a lot in industry & infrastructure.  Subsistence agriculture should change to cash crop production & commercial farming.  Formal education which stresses western values & capitalism should be taught. For this to happen the following should prevail.  There should be mass production of cheap consumer goods. 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. standards of living will therefore rise.  There should be an educated workforce & scientific ways of production. The south had to depend on the north for manufactured goods.  People should be prepared to change their traditional habits & take up new ideas. This theory was influenced by Rostow’s theory of economic growth.e. 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.  There should be a political constitution according to which a government is elected democratically. 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.  There should be division of labour where jobs become specialized.  The LDCs should copy ideas from industrialized countries.

They also call this situation the legacy of colonialism.Arguments for The theory is supported on the ground that. Dependency theory argues that this exploitation is still happening today & they call it neo – colonialism.  Rural – urban migration has become a problem in developing countries. This is done through TNCs or MNCs. 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.  The capitalists system has brought about inequality. 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 newly industrializing countries such as Brazil.  There has been a dual economy in the LDCs. Neo – colonialism is believed to be a new form of colonization whereby even if the south is politically independent. giving loans at high interests & giving tied aids. it is still economically dependent on the north. 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.  The north developed because they industrialized& accepted the capitalists system. The dependency theorists that European powers or countries of the north interrupted the development of Asia. South Korea and Taiwan etc copied from the north & have developed. 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.  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 DEPENDENCY THEORY This theory came about in the 1960’s. 16 . 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. Africa & Latin America while on the other hand developing their own economies.

Arguments for  Many countries in the developing world such as Egypt. India used to produce better textiles than those in Europe/in the north.  Developing countries should not borrow from the north but save & invest within the country.g. Mali & Zimbabwe were developed long before Europe.      Arguments against  Some developing countries which had close links with the developed world have recently successfully developed economically e.Implications of the theory  Less developed countries should break links/ties with the north & become self – reliant.  Governments of developing countries should tell people to be patient.g. South Korea & Brazil etc.  LDCs should spend less on consumer goods. 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. 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. 17 . Tanzania. hardworking & see the reason why a western or northern lifestyle is bad. India. 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. Taiwan.  Some third world countries which tried to break links & make their own economic strategies have not been successful economically e. There is evidence that Latin American countries developed better when they were isolated from Europe or the north during the first & second world wars.  They should encourage local inventions & innovations & the use of appropriate technology. china.

social. industrialization & excessive pollution. If the developing countries were to make their own food. They believe that the resources available on earth are being irrevocably destroyed by over-population. 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. According to the sustainable development theorists. The theory is based on the principles of. Disadvantages/weaknesses of the theory • It is evident that third world countries cannot raise enough capital on their own in order to break links. THE SUSTAINABLE DEVELOPMENT THEORY It refers to social. They also believe that it is no longer possible for everyone to modernize in the same way the north has done.Advantages/strengths of this theory • The theory looks at development as a whole i. the kind of development that has happened in the developed countries which has been based on exploiting other people & countries is no longer desirable. The theory makes people aware of the programmers of colonialism. they would lose all the benefits of international trade. economic and political growth which can be kept on going indefinitely. In a global village (the world linked together in many ways) it is almost impossible to break communication links. this will probably be a less sufficient way of using resources. environmental & economic etc & not just economic aspects.e.using appropriate technology to reduce environmental degradation 18 . • • • The theory treats the world as one system or one entity i.dividing the world’s resources equally between the north & south . political. In other words it is the kind of development which would not compromise/jeopardize the chances of the future generation meeting their own needs. 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. showing how countries are interdependent/connected. . • • • • If third world countries were to break links.e.

Arguments against  Contrary to this theory’s expectations new mineral & fuel deposits are still being discovered. The theory makes people aware of the dangers facing the world.   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.  The technology & inventions are solving some of the problems mentioned by this theory e. greenhouse effect & global warming & the ozone layer depletion.  Modern has reduced death rates consequently making the world’s population grow very fast.  Disadvantages/weaknesses 19 . Arguments for  Industrialization uses up non-renewable resources & pollutes air. distraction of wildlife species. water & air. re-using & reducing the rate of exploitation of resources. re-growing. making fuel for car from sugar cane.  Some people mainly from the north have more than their fair share while those from the south are unable to meet their basic needs.  The growth of towns & the building of roads & industries has used up land with little remaining for food production.  It makes people realize that they are facing the same situation as they are living in the same habitat. Advantages/strengths of this theory  The theory makes people realize that conservation is necessary. World agreements have been made to protect those in danger. pollution of soil.- people controlling their population size Wise use of resources through recycling. water & land badly.g. It has been realized that in some countries population growth rates are reducing.

c) Emphasizing economic growth first. b) Putting political improvement first. . . free & regular elections. the people may expect the rise to be sustained. New sources of minerals & fuels may be discovered hence there will be no need to worry about the depletion of the existing ones. a) Emphasizing social improvements for everyone first & let the people share the wealth that has been created equally. The strategies are. basic human rights & participation by everyone. building of schools.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. Possible results/outcomes . 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. houses & hospitals. Difficulties/problems of this strategy .Once the living standards of people rise. Emphasizing social improvement first This strategy is whereby a country makes sure that everyone’s basic needs are met & there is provision of employment.  New technology may help countries to improve food supply. political rights 7 economic growth.With people working hard GNP will rise.People’s quality of life will improve with specific reference to women & children.Lack of capital may force the country to borrow hence getting into debts. 20 .Good education & health will mean that people will work better & be productive. 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. .  Countries may succeed on agreeing on ways of sharing resources more equally.A country’s standards of living standards will rise. hospitals & houses. . reduce pollution & make synthetic products to replace natural resources. ALTERNATIVE STRATEGIES The main elements of development are social improvement. . .It is difficult to generate/find capital for investment in social infrastructure such as schools. This can be done through ensuring that there is democracy.

21 .Even though they may be jobs opportunities.Involving everyone in the decision making may slow down the process.e. . Going for economic growth first This is whereby a country creates wealth before it decides who gets it & how it can be shared. . . It is upon individual countries to choose an appropriate strategy from the three for itself.It is difficult for a country to get capital for investment. .Social stratification may occur in the country with some people becoming richer & richer while the other getting poorer i.It is expected that some people will be richer than others while wealth will gradually trickle down to everyone.The country’s export value will improve/increase so that the country can afford to import as much as they need.There will be equal opportunities for all.The country will experience a possible balance of trade.Possible outcomes .Conflicts/disputes will be settled amicably through negotiations & mutual understanding rather than war. In conclusion the above strategies have both advantages & disadvantages hence there is no easy way to develop. wealth may not trickle down. This is done through a number of ways such as.Every citizen will take part in the decision making processes in his/her country.The countries male/female citizens will enjoy job opportunities. Difficulties/problems . . . .People may demand too much too quickly since they are given the platform to express themselves. . . . .The country’s wealth will be shared more equally. .Where everyone is involved a lot of compromise is needed.a country’s GNP per capita will rise. # investing at a high rate # Mobilizing people & resources through government or the market # opening the country to foreign investment for developing trade Possible results . wages may be low.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. Difficulties/problems . .

soil. clean safe drinking water & shelter. minerals. capital & entrepreneurship/enterprise. Production is the act of transforming natural resources into more useful commodities.g. land. animals. Wants – things man can survive without but only needs them to make life more enjoyable.g.PRODUCTION This is when one employs resources to make goods & services in order to satisfy human needs & wants. LABOUR This refers to all physical & mental human effort which is directed at the production of goods & services. LAND This refers to all physical & natural resources on the earth surface. below & beneath the earth surface. CAPITAL This refers to machinery.g. money & manmade assets used in the production of goods & services. They can also be referred to as luxuries e. ENTERPRENEURSHIP This refers to the willingness to take risk & manage production. vegetation. Economists have identified four factors of production namely. relief. It can also be defined as the process of combining resources to make goods & services which people want & are prepared to pay price. labour. The one who has to take the responsibility to organize all other factors of production. car. air & radiation. water. computer & cell phone FACTORS OF PRODUCTION These are inputs that are necessary for goods & services to be made. 22 . Production involves bearing risks & the uncertainty for it to take place. clothes. 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. They are things which are necessary for the making of goods & services to take place. to start production is called an entrepreneur. TV. food. in the waters of the rivers & seas e.

Conservation can be done through aforestation. Land is also limited in supply meaning it cannot be increased or reduced.g. It is the services of labour that can be hired without. . a labourer. LABOUR Labour has been defined as all human efforts both physical & mental used for the production of goods & services. Conservation of land means using land wisely or more sparingly.Concentrating on a particular task which one can do better than anything else by himself or herself 23 . Labour economic activities cannot take place because it is labour that makes natural resources available to us as useful products/goods. recycling and re – use. medical doctors. ploughing. It is naturally occurring & therefore man’s efforts cannot increase it to match his needs. Labour involves human beings & therefore labour cannot be bought or owned. DIVISION OF LABOUR .The breaking down of complex tasks into simpler operations. therefore man should try to conserve land. contour planting.g. . it is immovable. Conservation of land Land is a natural resource & it is scarce because man cannot extend it.e. it cannot be moved from one place to another.When work is shared between different people Division of labour can be based on gender or sex as is the case in traditional communities. cleaning the environment. Land is fixed. Labour can be skilled. 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. Labour is both a factor of production & of consumer production. safe & proper waste disposal. semi – skilled &unskilled. it is fixed & it is limited in supply. Skilled labour – when someone has received training for the performance of a particular job e. SPECIALISATION OF LABOUR .LAND Land has two properties i.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 .

It saves time Specialization saves time because the workers involved do not move from one task or area to another. . 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. .Learning is made easier & there is a great accomplishment of knowledge & skills concerning that particular task or operation. This saves man from getting exhausted from hard work which often reduces productivity as well as leading to production of poor quality goods.It makes the employment of specialists possible . It is easier and cheaper to train a worker in one process only than in all processes .There is a greater opportunity to use machinery.Cheaper training costs. 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.Less fatigue Machines do not get tired & are always prepared to do the work day & night provided they are fueled & serviced. .It allows for maximum use of tools. . This helps increase output or improved results.Mass production is possible with specialization. . as no tool will lie idle because all tools will be used at the same time . This is so because with specialization it would be easy to use machinery since the machine will be working in a single operation.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. a teacher of mathematics will be more proficient as a result of the experience he gains from teaching the subject time & again.g.It saves skills 24 . .

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. 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. i. . they will have increased production.International trade Countries specialize in producing different products in order to exchange or trade.Since people specialize in areas or jobs that are suitable for them.It leads to exchange of goods & services. . The problem with interdependency is that a problem that affects will automatically affect others.Risk of unemployment. with specialization. Specialization has led people to do a particular type of job & this increase the rate of unemployment. 25 . It is believed that if countries specialize in different areas or on different products.Increased production Countries specialize to increase their output. Specialization makes people interact & exchange what they have for what they need. such a situation will delay or lower production. Repetition or revision enhances skills since practice makes perfect. In so doing they get foreign exchange. . Disadvantages of division of labour & specialization .e. .Inequality. With specialization skills are not easily transferable from one job to another. 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. for instance. Specialization has led to inequality between workers especially the management cadre & the general worker or the lower cadre which usually brings misunderstanding at work. 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.Decline in skills & craftsmanship. WHY DO COUNTRIES SPECIALISE .Specialization increases interdependence. a bakery depends on yeast producing factory & flower milling companies. . 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. they do not waste skills in areas where they lack interest. it is not easy to change or swap jobs.Repetition brings about boredom or monotony.g.

Some products cannot grow in dry conditions so a country like Botswana cannot grow those products. The supply of labour depends on the following factors *THE SIZE OF TOTAL POPULATION-This is very important because the larger total population the greater supply of labour. It does not mean the total population .Geographical location As a result of different locations of countries on the world map.It excludes dependents.e. TO INCREASE THEIR LIVING STANDARD Today’s world is very competitive so individual specialize in order to improve their standard of living.The supply of labour is determined by the number of workers and the average working ho each worker. the job they can do well if they get train. they are blessed with different natural resources. a child might decide to specialize in accounting so that he can help his father who owns a number of businesses. children and the aged .. They do this by considering the market demands and specialize accordingly. Individuals specialize to make products efficient because when people specialize in producing different goods and services there will be increased production. THE SUPPY OF LABOUR It refers to the number of people who are eligible to work in a particular country. Countries therefore specialize according to the natural resources found in their location e. So they specialize according to there skills i. .Climate Climatic conditions also determine a country’s area of specialization especially agricultural produce. SKILLS -individuals specialize because skills differ everyone cannot be skilled in the same areas of production.g. DIFFERENT ACCESS TO RESOURCES People specialize because of the resources available to them e.g. The size of the total population set the upper limit of the supply of labour. WHY DO INDIVIDUALS SPECIALISE -INTEREST-. *THE AGE COMPOSITION OF THE POPULTION 26 . Individuals specialize in different areas of production because interests differ so they try to specialize in areas that they like or prefer. Botswana specializes in diamond mining because of the availability of diamond in this location.

with time people working for more hours will get tired and productivity will be low. . g.g. The average working week recognized by the International labour organization [ILO] is a 40hour week for instance the supply of labour provided by 20 people working 40 40hrs is the same as the supply of labour of 40 people working for 20hrs . . . Places of work should be conducive enough to encourage efficient production e. Therefore two countries may have the same population with most necessarily having the same supply of labour *THE WORKING POPULATION This refers to the number of people who are eligible or legally acceptable for full time employment Botswana legal working age is [65] therefore this countries working population falls between [16] and[65] working population differ\wary from country.Education & training Workers will do better on a job if they have received adequate education & training necessary to carry out the job e. workers should have good sickness basics such as the Botswana medical aid scheme & other welfare facilities 27 . For labour to be effective the following factors need to be considers. It can also be referred to as the output per worker per unit time. there should be adequate ventilation & lighting in the place of work. The more the remuneration the higher the supply of labour because people will be happy & willing to work. Labour is efficient if the workers have been able to achieve something reasonable within a given time. EFFICIENCY OF LABOUR This refers to how productive labour is.Welfare services For labour to be efficient workers should be well catered for e. With a minimum working age of [16] has or is likely to have more supply of labour than a country with a minimum working age of [18].This refers to the age groups or the proportion of each age group in a country’s population.Working conditions Efficiency of labour is highly influenced by the condition under which work is carried out. a trained teacher is likely to produce good results than an untrained teacher. WORKING WEEKS AND HOLIDAYS The supply of labour is determined by the averages number of hours a person is prepared or is available to work per week.g. REMUNERATION This means the reward for work rendered or done. It is not enough for workers to work for hundreds of hours without achieving something. The more young and able bodied people you find in country the more the supply of labour.

Motivation Workers should be highly motivated to encourage high productivity. . THE ROLE OF AN ENTREPRENEUR . work canteens. For production to be carried out there should be labour. He/she makes sure that people under him/her do the work they are assigned to do very well. how it should be produced & where it should be produced. there should be enough land.g. He bears all the risks of production because business involves risks & the success of a business depends on the principles of factors.Co – operating factors This refers to other factors i.Decision-making The entrepreneur takes decisions concerning the business e. adequate raw materials & machines & a cordial relationship as well the management. he/she decides on what should be produced. They should be satisfaction & workers should be positively encouraged so that they can do the job happily e. ENTREPRENEURSHIP This is the willingness of a person to take risks & start production. However the production process will not take place if there is no one to take care or organize the above.Coordination/organization The entrepreneur is also called the organizer. . g. land & capital with which labour is working.Management The entrepreneur manages the activities of production by making sure that the vital decisions are made & carried out effectively.such as sports fields for workers. . The entrepreneur should be there to supervise all activities going on. The entrepreneur is also known as the risk bearer. e. He/she also makes sure that all things needed for production are properly arranged. g. gratuity & allowances to maintain their high morale towards their work. land & capital.Risk bearing The entrepreneur is a person who undertakes production with the view to make profit & profit is anticipation at the end of production. 28 .mentioned factors. some companies give bonuses to workers during Christmas. He/she plays an important role by organizing & coordinating all the other factors of production. . . When profit is made the entrepreneur enjoys it but if there is a loss he suffers. The individual who co – ordinates the activities/ process of production is known as an entrepreneur. 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.

t.CIRCULATING OR WORKING CAPITAL This is a type of capital that changes its form during the process of production. g. machines e. 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. If there is no working capital.c SOCIAL CAPITAL This is a type of capital that facilitate production indirectly e.CAPITAL . production may be interrupted or delayed. FIXED CAPITAL This is fixed because it doesn’t change its form e. P50 t Money Finished goods Raw materials The importance of this type of capital is that it makes sure that there is an on – going process of production. buildings. social capital could be the capital used to build & enquire a clinic for workers in a mine.g. It could be in the form of money.g. Tshimologo has P500. raw materials & finished goods e. 29 . The concept of working capital is important because the producer needs capital or money during the production process.

A businessman may talk about: . a blacksmith produces iron tools while a baker produces bread.g. 30 . .direct production . People specialize in one aspect of production e. . For capital to be created it has to be saved.Gross investment The total cost of items (capital before it depreciates) .Investment This is when it is spent on things that will further create capital e.CAPITAL ACCUMULATION – It means the creation or acquisition of capital. things that get finished e. I will likely create more capital because I may end up having P800 after selling. Saving is the money put aside after it has been earned. With time they lose some of their value & this is known as depreciation e.g. shoes.indirect production DIRECT PRODUCTION It occurs when one satisfies his/her needs & wants entirely by him/herself without the assistance of other people. e. It is not spent immediately. CAPITAL CONSUMPTION – The frequent or constant use of capital equipments like machines or buildings. . clothes & perfumes. INDIRECT PRODUCTION This type of production occurs when people co – operate with others to produce goods & services they need.Consumption This is when one uses money on consumables i. so when we talk of capital consumption we are referring to the use of capital equipment. a building that is old may require a few repairs. This type of production is very inefficient because the producer has to leave one task to perform others without mastering the first.Depreciation cost The value that is lost as a result of usage. It is money spent in such a way that it does not create further wealth. .g. this type of production has lead to specialization & division of labour. I have P500 & I use it to buy seeds to grow & sell.Net investment This is the gross investment depreciation There are two types of production namely. In this type of production an individual no longer produces a whole product by himself.g. Savings can be spent in two ways.

large mineral deposits.c SECONDARY PRODUCTION This is the process of changing raw materials into finished goods ready for use or consumption.c Countries or producers decide on the volume or size of each sector to be set up. making clothes e.Primary sector . insurance.Tertiary sector . telecommunications & computers become vital for the exchange of knowledge.t. the resources it has that other countries may lack e.t.t.e. polish making. laboratory. For a good to be ready to be utilized it has to be put into a transformation process. For many years most developing countries had a comparative advantage only in primary goods because of the natural resources they have. . mining. security.c TERTIARY PRODUCTION The process of getting finished goods to the consumers or it is the provision of services to the consumers e. wholesaling. electronic banking. research e. processing of diamonds e. raw materials are extracted without being changed in form. At this stage.g. abundant energy supplies. advertisement & banking e. The transformation process can be divided into four stages namely: . Information becomes the basic product. furniture making. leather processing. well trained workers & others.LEVELS 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. quarrying & fishing e.c Manufacturing – the act of transforming raw materials into completely new products e. jewellery making. inter net.manufacturing Processing – the act of adding value to raw materials so that they can be more useful products e. transportation.g. Secondary production can be divided into two namely. rich farm land. As countries develop.processing .Quaternary sector PRIMARY PRODUCTION This is the first level of production which is concerned with the extraction of raw materials. the economy becomes complex. 31 .g. the key to wealth & power e. Such a decision is usually based on the country’s comparative advantage i.g.Secondary sector . education. This include extractive processes such as all branches of farming.t. meat processing.t.g.c QUARTENARY PRODUCTION This is a sector which deals with the provision of information technology (IT) & technical o r professional service.

sometimes they do not come to work. Advantages  There is a greater opportunity to use machinery  Production of quality goods  It encourages mass production (large quantity of goods e. which emphasizes on the use of a lot of machinery/use of advanced technology. 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. Labour intensive production ii. sometimes they organize strikes Countries where it is used are socialist countries and less developed countries. 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  Production is slow because human beings get tired more than machines  Some labourers are not dedicated. 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 32 . i.g. b) Capital intensive production This is a process of making goods.Modes of Production There are two modes of production which are.

slow method of production .simple technology used .mass production makes goods cheaper TECHNOLOGY This refers to the tools & machinery of a society & the skills to make them. man has had a way of doing things. made their clothes & produced pieces of art.tiresome because work is strenuous & heavy Capital Intensive .cheap/small amount of capital needed .uses local skills & knowledge/low costs of wages because of manual & unskilled workers .reduces craftsmanship .requires technical know-how/high costs of wages because of highly qualified & skilled workers .uses more human power/creates a lot of employment opportunities . It comes from the Greek word …….high quality goods produced .uses more machinery/capital./creates large scale unemployment because of use of machinery . man’s technology also advanced.encourages craftmanship .work made lighter & more enjoyable because of use of machines .less environmental damage/pollution .common in subsistence production . Man began to make new machines & advanced in new methods of 33 .creates lots of skilled manpower . made their own implements.complex/advanced technology . As societies advanced. It goes hand in hand with the skill of using a machine or implement or tool. It is concerned with a way of doing things & the type of machinery employed.leads to pollution . Technological development From time immemorial. Even before the coming of the Europeans into Africa.leads to alienation ..expensive/large amount of capital needed .poor quality work produced . meaning to make.suited for small scale production .large scale production .quick & efficient method of production .commercial farming .promotes human interaction .Differences between labour intensive & capital intensive modes of production Labour Intensive . Africans built their own shelter.

g. small or large scale Appropriate Technology / Relevant Technology 1. The advance in methods of production reduced the cost of production hence an increase in productivity. 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 . 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. using a traditional hoe for cultivating land. the land owned by the subsistence farmer is too small to economically or efficiently use a tractor.Intermediate technology This is a mid or transitional way of doing something. Besides. using an ox-drawn plough to cultivate land. However. The skills. 2000:34) 3. • Simple technology • Intermediate technology • Complex 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.g.e. it is not often possible to reach this stage because of development constraints these constraints include the following. What would d be appropriate for 34 . Types of technology Technology can be classified into three categories namely. It is not simple nor is it fully advanced e. 1988:165) A number of factors have to be considered when employing appropriate technology. “The development of smaller scale industries that suit the resources of the less developed countries” (Morrish. J.Complex technology This is an advanced way of doing things that many economies strive for. machinery/tools that are best suited to a particular locality. It is sometimes known as traditional technology.Simple technology This is the first of all technology & it is a crude way of doing things e.production. Lack of capital Lack of skilled manpower The nature of production i. . M.

easy to operate and maintain.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.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. In most countries there is limited occurrence of large deposits of high-quality raw materials but 35 . 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. . thus they are appropriate to developing countries. it is expensive to buy and maintain. 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. 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. 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. .Availability of raw materials The production of a particular good or service is determined by the availability of raw materials at a local level. Developing countries on the other hand tend to employ intermediate and simple technologies because they best suit conditions that prevail in such countries. .Availability of capital Complex technology does not come cheap. hence unemployment. they are relatively cheaper. 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.Education and skills Complex technology requires highly educated personnel and specialized training to operate 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.

. For example. Advanced technology needs fuel which is not available in non-oil producing countries.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. a basic steel industry can be developed in most developing countries using readily available supplies of raw materials such as scrap metal. .an abundance of small deposits of raw materials. 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 repair and tested under local conditions .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.Running cost of the technology Relevant technology must have low running costs. 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 36 . especially in terms of fuel. Environmental risks arising from technological and developmental decisions impinge on individuals and areas that have little or no influence on those decisions. . easy to teach and demonstrate. Small-scale deposits of raw materials despite being inferior in quality are often suited to small-scale technologies. making and application. Other factors such as the availability of infrastructure. often of an inferior quality.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. It also needs spare parts which might need to be imported. Relevant technology must be environmentally sound and must take into account the interests of individuals and areas that have little or no influence in their design.

thus preserving the environment. As it flows through the medium and interacts with the plant roots. Appropriate technology uses locally available resources. For appropriate technology to work properly. The aggregates act as a flow medium for the waste water. It has an on/off volume control on the top of the case. It combines solar and hearing aid technologies to make a solar rechargeable hearing aid that never needs replacement batteries. The main aim of these organizations is to assist the people of Botswana to identify appropriate technology choices. It costs a fraction of most battery-operated hearing aids. 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. the BOTEC. A solar hearing aid This is a high power body-worn hearing aid suitable for use by people with moderate to severe hearing losses. user friendly and environment friendly. treatment takes place. and where necessary. preferably renewable ones and aims to effectively use waste products through recycling. resulting in stable safe 37 . Rural Industries Innovations Centre (RIIC) and Rural Industries Promotion Company (RIPCO). adapt new technologies to meet the needs and challenges specific to Botswana.- 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. 2. Wetlands technology: Constructed wetlands technology is a relatively new method for wastewater treatment. RIPCO and RIIC constantly evaluate. By using readily available resources and knowledge. Following are examples of appropriate technology developed by Botswana Technology Centre (BOTEC): 1. It is economical and easy to maintain. it must serve the needs of the people at a price they can afford. the link between appropriate technology and economic development is beginning to gain recognition through the efforts of Botswana Technology Centre (BOTEC). In Botswana. They design and promote technologies that are best suited to conditions prevalent in especially rural areas in Botswana. Special features It harnesses and stores 4 hours of the sun’s energy that powers the hearing aid for 1 week of use. Solar aid does not have to be exposed to the sun while in use.

This technology is relevant to Botswana because the country lies in the tropics where there is plenty of sunshine. Natural wetlands often occur in some low-lying areas and are known by such names as swamps. This technology is cheap and more relevant in rural households where incomes are low. 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. Solar water heater: RIIC has developed the solar water heater technology that converts solar energy into electricity. Their occurrence is typified by intermittent dry and wet conditions. it is also cheap and easy to use. marshes. thus relevant to the country. They support unique and well-adapted flora and fauna.They can be built and operated at less expense than other wastewater treatment options . thus reducing deforestation and the resultant environmental impacts. etc. 38 .They require less high-tech tools or equipment because the methods are low-tech . No operational chemicals / inputs. or as a transition between the perennially dry land mass and the wet water bodies such as lakes. This helps to reduce dependence on the environment for fuel wood which often involves the cutting down of trees.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. Advantages of wetlands . Some of the technologies developed by the center include: 1.final effluent. an environmentally friendly and low-cost option for wastewater. 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 relevant to Botswana because river sand is available locally in large quantities. 6. In addition. This provides an effective. bogs. some of them being endangered species. This technology is suitable to Botswana. Natural wetlands have been found to exhibit properties that remove a wide range of pollutants from wastewater. 4. Water tanks technology: RIIC designs water tanks that are used for rain harvesting. this technology is cost effective. fens.They utilize natural processes (plants and micro-organisms) for treating and renovating wastewater. The polished water may then be used safely for such activities as irrigating gardens at the individual compounds. hence fewer costs . Wastewater treatment technology: This technology involves the use of river sand to treat wastewater. easy to use and repair. This also helps reduce dependence on the environment for fuel wood. etc. 5. which is drought prone. easy to use and repair. thus leading to environmental degradation 3. This technology is cheap. 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.

with the wheel rims ready welded together and the door shelves in place The entrepreneur builds the surrounding brick and mud construction The oven should be kept clean and in - - 39 . 12. 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). Special features Use firewood. 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. This technology is relevant to Botswana because it is easy to operate and easy to repair. 11. 8. This is relevant to Botswana because it equips locals with skills that are needed in the country and helps reduce unemployment because after training the draughts man can start their own small business to earn a living and probably create employment. The rim oven: What is a rim oven? The rim oven is made from two truck rims welded together. It is also cheap. Water desalination: RIIC has designed the technology to treat salty water obtained from underground to make it suitable for human and livestock consumption.7. which are kept by most Batswana. 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). so suitable for use in rural areas Can bake a batch of 9 loaves in 1 hour Uses scrap wheel rims. easy to use and repair. cheap and easy to use. which maximizes efficiency. therefore they are suited to local conditions because most of the people are subsistence farmers. Brick moulding machines: These can be used by small-scale to medium-scale brick producers. Windmills: RIIC has developed the windmill technology to pump underground water. It stands on three legs and has a hinged steel door. 9. Leatherworks: This technology is relevant to Botswana because it uses a locally available raw material (leather) which is obtained from livestock. The outer casing and chimney are made of mud and brick. Farming implements: The farming implements such as ploughs and planters developed by RIIC are simple. 10. and there are two baking shelves inside. so protects the environment Can be constructed on site by the entrepreneur Installation and maintenance The rim oven comes in a kit form. 15. who lack capital (to buy tractors) and modern farming skills. 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. 13. Draughtmanship: RIIC trains locals to make house plans.

production will be increased while 40 . The firm therefore builds a very big house or factory. 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. employs more specialized people and installs very big machines which will alternatively increase the quantity of soap produced per day or in a week.- 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. Factors contributing to internal economies of scale . Economists believe that the increase in quantity of production. in the firm itself irrespective of what is happening outside the firm. the company is likely or is going to make more profit. Example. If the capacity of a machine is increased. It is the aspect of increasing the size of production which leads to falling average costs. the more the output in production and the less the cost 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. A soap producing industry can decide to produce on a large scale because many people need soap and by producing more. It is believed by economist that the “larger the size of the firm. These are the changes which takes place within the firm. . Here the basic argument is that. changes that take place within the firm are not as a result of influence of other firms.Technical economies If a company or a firm decides to embark on a large scale of production.Increased dimensions There should be increased dimensions within the firm to encourage large-scale production. A large business can afford to buy bigger and modern machinery because it produces enough to run them full time at a full capacity. His is a situation whereby a producer decides to increase the production because of what is happening in other firms.

Barnetts. 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. Builders world.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). Beares. Ellerines. In order to encourage large scale production within the firm there should be research to help the firm introduce changes which are necessary. Savells. Royal & Sefalana who issue licenses to their special customers.Indivisibility of plant and under-utilization of factors of production The firm should have a balanced team of machines to facilitate production. Supreme .g. . Large 41 . o Packaging costs – there should be good packaging of the goods to avoid unnecessary breakages and waste o Transport costs. The control of quality is important because it encourages quick marketing. They should have branches especially across the country or outside the country e.Research and development A large firm has a greater advantage over small ones in the matter of research. 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.g. . A large business can afford to advertise on large scale e. Shoprite. .g. . Research improves the quality of production and services of the firm. on TV and national newspapers. 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. 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. Price. 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. Diversification of markets is also good for companies.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. Score and Mr.Marketing economies In large scale production.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.g. Such advertisements reach many customers and are more cost-effective than small advertisement on local produce.transport rate should be reasonable in order to attract customers to the firm e.

one firm/company is responsible for spinning. External economies of scale These are changes taking place in a particular firm as a result of the influence or changes in other firms. . . they may provide raw material components and services such as banking and transportation etc. . This is because they have a lot in stock to sell in large quantity and have high turnover rate.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.g. another for weaving. .firms stand a better chance of getting loans from the banks and other financial institutions at lower interest rate. . .Auxiliary services Subsidiary industries may establish themselves in areas where major industries are highly concentrated to provide services to major industries e. these are advantages that are experienced or gained by a firm as a result of factors outside the firm. another for weaving.g.Reputation An area may develop a reputation for a successful production which may help/benefit the firms there.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. Factors contributing to external economies of scale . this helps to reduce a firm training costs and makes recruitment easier. another for colouring and the other is responsible for making finished products from the cloth. another for colouring and the other is responsible for spinning. In other words. 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. computer skills/specialist or cleaning specialists. Countries may also combine resources into research facilities or use very scarce on time-sharing basis.Education and training Some industries provide specialist facilities to develop the knowledge and skill of the manpower in the industry e.Information and co-operation Information may be shared by firms in the same industry particularly against foreignbased companies. in the cotton industry.g.Commercial facilities 42 .

transport and other factors of production will increase while the supply of those factors will be limited. 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. the purchasing department and the customer service department etc.Control Management usually performs two basic functions which are taking decisions and ensuring that these decisions are carried out (controlled). labour.Morale When a firm grows in size it faces the problem of maintaining the morale of a large number of employees. It consists of passing orders down the line to subordinates and also getting feedback on their difficulties and problems.g. DISECONOMIES OF SCALE They are disadvantages/problems that a firm experiences as a result of an increase in the scale of production.Coordination Large firms are usually sub-divided into specialized departments/units e. insurance and security firms found appropriate ways of providing special facilities to other industries. . he sales department. it becomes very difficult for management to control all the workers i. the demand for raw materials. In an attempt to acquire more of these factors the firm may find itself bidding up the prices of those inputs. energy. As the firm grows in size. All these are management problems resulting from the complex nature of the management system. . In other words. This results in individual workers lacking interest and identification with the firm and regards it with hostility. It becomes difficult for management to make an individual worker in a labour force of thousands to fulfill an important part of the firm. to see to it that everyone is doing what they supposed to do and doing it well. When the firm is large. . 43 . The spirit of willing co-operation becomes larger.Prices of inputs As the firm grows in size. it becomes more and more difficult for management to coordinate their activities. These problems may include.Communication It refers to the transfer of information and this is a two way process.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. As the firm grows. an increase in the scale of production reaches a point where it brings about problems/disadvantages to the firm.e.g. . the management structure becomes increasingly complex and problematic and the administrative costs increase. as these departments increase in number and size. .

The following are the major economic systems. 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. ECONOMIC PRODUCTION SYSTEMS TYPES OF ECONOMIES A i. ii.Shortage of labour As the industry grows. It also means the strategy or approach of production a particular country can adopt. iii. n economic system is the organizational & institutional structure of an economy which include the nature of resources. However. this kind of exchange was mainly internal & had little or no involvement with the outside world. Subsistence economy Capitalist/market economy Socialist/command/planned economy Mixed economy .e. This is in accordance with social customs & traditions. a firm may face disadvantages because of an increase in the size of an industry to which it belongs. ownership & control that is private & public.Shortage of land As the industry grows. . land for expansion becomes increasingly scarce and more expensive both to purchase and to rent. .External diseconomies of scale A firm will experience external diseconomies of scale when the industry to which it belongs becomes bigger/larger i.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.Increased costs of raw materials An increase in the demand for raw materials may also bid up prices and cause costs to rise. Such a society produces its own food & clothing. These include: . 44 . iv.increased transport costs Transport costs may also rise because of increased congestion. Trade by barter had some disadvantages like. .

. if there is scarcity the businessman will have limited supply & this will force the price to rise. so they do not interfere in private businesses of the individual.Self interest Because capitalism encourages private ownership of resources.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. 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. industries. payment of taxes & employment etc. The government only makes sure that rules & regulation about trading licenses. . Main characteristics or features of capital economy .Reliance on price system The capitalist system relies on the price system & the price system is determined by demand & supply. 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. . and air lines & shipping lines etc. However. 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 . .g.Socialist/planned economy 45 . .- 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.Private property This means that individuals have the right to own & control of their property as they wish.Capitalist/market economy This type of economy allows individuals to own their resources such as land. when there is a surplus. On the other hand. the government plays little or no part in economic system.

.Centralized planning Since it is the business of the state to manage the economic resources in a socialist economy. good houses. There is no selfishness. Prices are not determined by demand & supply. there is a centralized planning committee that plans the economy in the interest of the people. . They have a central planning committee that provides solutions to the economic problems of the people.g.Collective interests Individuals work for the interest of the state in a group.  Since everyone’s basic needs are provided.State ownership The government is in charge of all the means of production & they belong to the government as well. 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. . security e.Socialist economy encourages states ownership of the means of production.Competition There is no competition because the government owns all the means of production so that they do not compete with anyone.c. Advantages of socialist/planned economy  The socialist economy’s main aim is to satisfy basic needs such as clothing.Price control The central planning controls prices.  The socialist economy makes it possible for goods & services to be available to everyone & not only to those who have money. food & shelter. .t. crime level is very low Disadvantages 46 . Characteristics of socialist economy . This means that the government suffers all losses & enjoys all profits. In this type of economy all the economic activities are owned by the government.Government as an entrepreneur The government owns all the businesses in a country so the government bears the risks of production. . It is a direct opposite of the capitalist system.

In a mixed economy. if they are successful the profit is used to improve the country  Since the government intervenes in this economic system. This type of economic system does not respond to individual wants. This type of economic approach allows individuals to own businesses which can be called private enterprises & the government to own businesses which can be called public enterprises/ public sector e. The private sector produces all other goods & services but it is regulated by the government to protect the consumers.  When the planning committee makes mistakes.g. 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 47 . 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. the government provides essential services such as education & defense & subsidizes the production of goods & services by forming companies. some companies will decline or lose out In a situation where the government does the same type of business as individuals. it concentrates on the basic needs for everyone. 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 . 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. parastatals such as BHC. BOTEC & BOCODOL.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. BPC. individuals may lose because people will buy from the government since it is slightly cheaper If the public enterprise is not successful.

prices determined by supply & demand + state regulation .Sole trader/proprietorship A business owned by an individual in his or her (legal) name or has a trading name (not legal name). 48 .choice . TYPES OF ENTERPRISES .self/public interest .state guided choice .supply & demand determine prices . Capitalism .prices determined by govt.central planning Mixed Economy . .profit motive .e.profit motive .production of uniform products .public interest . It can also be defined as an organization i.competition .competition .private planning Socialism .both .self interest .self interest . firm or business unit which brings together factors of production in order to sell a product for profit.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. factory. 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.- 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.freedom of choice & enterprise .private property .public property .

labour & skills to a business for the benefit of all & to share the profits & losses.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 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. 49 . . tailors & shoe makers. spaza shop. hair dressers.Partnership This is an association consisting of two to twenty who agreed to contribute money.

a partnership can have a lawyer draw up a written contract. In this type of business the partner is only liable for the amount of capital he/she has contributed. how much capital each partner will contribute Advantages  A partnership is simple.e. together & individually they are personally responsible for the business. This should have a written contract. 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. debts o If one partner is incompetent or dishonest. Characteristics    A partnership agreement can be made verbally For safety reasons. 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. 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.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. a partnership agreement or articles of partnership The partnership contract will include details of how the partnership will be managed. retires or withdraws from the partnership o Decisions may take time because all partners must be consulted 50 .

Characteristics The owners buy shares i. ii. iii.G.M. A private company is legally a separate entity & that gives it certain rights which are recognized by the legal system (courts) The owners enjoy a limited liability which means their personal asserts are not at risk Selling shares avail the company with an opportunity to raise more capital though they do not sell this to the public 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 Shareholders have direct control over the company’s affairs & their views are heard at the Annual General Meeting (A. vi. 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 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. . 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. v.o The law allows only 20 partners.Private limited company This is a business with a legal personality owned by between 1 & 50 shareholders.e. vii. share in the work & management of the business & are liable to the debts of a company. viii. iv. 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.) The founders of the company have an opportunity to retain control over the company by holding a majority of its shares The business is highly taxed on profits but shareholders are not taxed individually on dividends received A private company is not obliged to disclose certain information to the public 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. v. Advantages  Shareholders enjoy limited liability.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 . ii. It is a separate legal entity with its own existence independent from that of its owners 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. In this name the word public means that the general public is welcome to buy shares in the company. 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 52 . iv. Characteristics i. the price of shares & future prospects The word limited means that the liability of the company is limited to its total resources (instruments & asserts) It is controlled by a board of directors who are elected by shareholders of the company 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 iii.

iii. ii. Joint ventures remain separate businesses. it is possible for outsiders (e.Joint ventures A joint venture is when two or more business firms cooperate in a particular project for their mutual benefit. The business can save costs & enjoy economies of scale b. Advantages a. Joint ventures can undertake large & expensive projects which a single firm might not be able to afford on its own c.g. slow. complicated & expensive process to establish a public limited company Once it has been established. They offer customers more choices Disadvantages i. 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. These firms only cooperate on that project & this does not affect the ownership of their organizations. the company must comply with many regulations Since shares are freely transferable. There is less independence of each business to make its own decision s Disagreements may arise between businesses which are not used to working together Decisions take longer as there are more people to consult 53 . 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 .

Co . The most popular form of cooperative is farmers’ co-operative. the franchisee has access to expert guidance on a number of managerial & operational functions  Franchising is very much favoured by the banks & therefore loans are more readily available to a franchisee than an independent business  Franchises enjoy a common advertisement Disadvantages o It is costly to establish a franchise & to maintain the payment of the royalty to the franchiser o There are a number of restrictions in terms of selling areas o The franchiser has a strong demand to keep up high standards of living of quality & cleanliness o The rights to a franchise can be withdrawn if standards are not upheld .operatives They are a voluntary form of business organization in which people come together to increase their buying power & access to resources. The co-operative’s capital is divided into shares. The co-operative must be registered with the registrar of co-operative societies.. training & advertising The franchisee agrees to follow the rules of the franchiser Advantages  There is a greater chance of a business with a franchisee succeeding than with an independent business  The package offered through a franchise allows the entrepreneur to avoid months or years of costly trial & error  The business set up is usually well established & has an unaccepted image that customers are familiar with the product even if the franchise outlet is new  If problems arise. Advantages 54 .franchising This is whereby a large business (franchiser) allows another business (franchisee) to use its brand or name in return for a starting payment & a continuing share in the profits. equipment. Characteristics • • • • The franchiser is usually a very large business often a multi-national corporation/trans-national corporation The franchisee is usually a sole trader or a small business & even medium & large businesses An agreement is drawn between the franchiser & the franchisee which include financial agreement.

 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  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

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 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 • • • • 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 56

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 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 fullygrown 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

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The process of promoting citizen labour and enterprise / The process of giving jobs or businesses to citizens Localisation of labour . Botswana appoints citizens in to all the areas/positions previously occupied by foreigners e.It might ruin the relations that prevailed between countries .Helps create jobs for locals Disadvantages of localisation .It is part of retaining our culture and restoring our national pride .Insufficient revenue to assist citizens .Saves money in wages paid out to expatriates .Introduction of ten year basic education .g. teachers.Fronting Localization policy .Major steps have been taken on the science and technical based field…areas that were marginalised before .Privatization of parastatals 58 .In-service training for Batswana officers .The process of allocating jobs or positions to the citizens of the host country which were previously held by foreigners In this case.It helps in making people believe in themselves and not always show respect to foreigners . Advantages of localisation It promotes the socio-economic development of locals It is part of asserting a country’s independence . doctors.The expansion of facilities at the University of Botswana and also the elevation of the former Polytechnic to Faculty of Engineering of the university .The foreigners replaced are not always happy with the situation .Poor business skills – as a result of being ignorant and lack of commitment .Promotion of vocational education .This refers to the replacing of expatriate workers (foreigners) with citizens .Corruption and nepotism .Poor management – resulting in the company being mortgaged and or being liquidated .Citizens may become too dependent on the government . etc.Disadvantages of citizen empowerment . engineers.Locals might be inexperienced in performing certain tasks Steps taken by the Botswana government to promote localisation policy .

health.e.To promote wider share ownership. sanitation.To generate new investment especially foreign investors .) . 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.raising revenue for the government .To increase the spur of competition and promote economic efficiency in fostering well functioning markets .- 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 Why Privatize (Reasons for Privatization) .To release limited state resources for the financing of other demands….To reduce the role of the state in the economy in order to allow it to concentrate on the essential task of governing . 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 59 .e.in the area of human development (education. 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. etc. 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.To accelerate the national development process .e.

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 Botswana’s Foreign Reserves as an Investment Introduction The discovery and subsequent mining of diamonds in Botswana transformed the country’s economy from being agriculturally based and backward into a robust and fastest growing economy in Sub-Saharan Africa. As a result. The government is aware of pitfalls of single commodity economies. enough to finance 30 months of imports.The money is in the form of foreign currency i. Privatization does not always increase share ownership i. i.e.S. Over 80% of the country’s export earnings are from diamonds. The challenge for the government has been to put the foreign reserves to good use in a way that will benefit the country. 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. money from other countries in the form of hard currencies like the US dollar. Diamonds have enabled the country to record balance of payment surpluses from the early 1980’s to the present day. . the Japanese Yen. The economic miracle experience by the country since the 1980’s is driven by income earned from diamonds. It is with this in mind that government decided to put aside some money earned from diamond exports for future use. 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.e.$ 5 billion. . etc.e. The International Monetary Fund (IMF) is greatly concerned by Botswana’s single commodity economy.These funds are invested abroad . Botswana has accumulated sizeable foreign exchange reserves. At the end of 1997 the foreign reserves topped U. Nigeria and Zambia have suffered as a result of over dependence on one commodity.The Bank of Botswana administers the funds on behalf of the country 60 . the British pound. the demand for diamonds may fluctuate or wane in the future.This means it is money or profit that is realized after the country pays for its imports . What are foreign reserves? These are funds / income / revenue that accrue to a country as a result of balance of payment surplus.

i.e. If the prices of diamonds plummet.Production and selling . The money has been used to buy shares. The government could easily have these surplus funds to embark on meaningless prestige projects i. The investment has been mainly in the world’s major financial markets in Europe.Direct foreign investment 61 . They have brought a lot of economic stability to the country and continue to earn the country a lot of invaluable foreign exchange. - - - Conclusion Foreign reserves are very important to Botswana’s economy present and future. businesses. an economic crisis might face the country if foreign reserves are not managed properly.Imposing fines and penalties .Invitation of TNCs / MNCs . North America and Japan. The challenge for Botswana is to try and diversify the economy away from diamonds.Loans / grants . goods entering Botswana. This is an attempt by government to diversify the economy from over dependence on diamonds. bonds and equities. This is a conscious move by the government to put aside money for future generations or crises.Exporting goods (foreign trade) .Taxation (employees. the plunder of their foreign reserves. 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. Capital for diversifying the economy: The foreign reserves have created a financial pool for Batswana entrepreneurs.School fees / cost sharing . Ways by which the Botswana government can raise revenue for investment .Foreign Reserves as an Investment International Financial Markets: The money has been ploughed into the International Financial Markets using International Financial Brokers. splashing money around.e. etc. 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. but it chooses not to instead. The people should not lose focus of the precarious economic position the country is in. CEDA and Botswana Development Corporation (BDC). The funds are made available to investors through the National Development Bank.) . The country earns profit from these investments 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. Another big challenge will be to avoid the path followed by other African countries.

Political stability .- Privatisation What the Botswana government is doing to promote a culture of investment . etc .Training in business skills .Lowering inflation .Selling shares / bonds 62 .Affordable water.Lowering tax / tax holidays .Low interest loans . electricity.

These communities became known as nomadic pastoralist.e.RURAL DEVELOPMENT R - ural development refers to the improvement of the standard of living of the people in remote areas/country side. Traditional societies could be identified as follows. knives & these were cheap implements. These include hoes. clothing & temporary shelter. Such communities in southern Africa were the Khoikhoi & san while in central Africa was the pygmies. He was custodian of community property.Nomadic pastoralists On the plain & veld areas communities started herding livestock. Private ownership of land was not allowed. 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. Traditional societies were innovative. As a result of this system the failure of rainfall might result in total crop failure. spears. Their animals provided milk. It is concerned with eradication of poverty or inequalities amongst the rural people & between the rural & urban areas. axes. .g. Rural development is normally associated with the improvement or modernization of agriculture.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. the cultivation of crops was only done in wet seasons. weapons. The type of tools that were used in a traditional society were simple but suited for their particular purposes. Crop cultivation was entirely dependent on rainfall. This means that agricultural activities were divided into males & females e. Land ownership was communal & the chief or traditional leader held the responsibility of distribution of land. This community lived a nomadic life moving from place to place when necessary. meat. These people kept moving with their livestock to places where there was water & grazing. . Agriculture was seasonal i. herding cattle were done by a man while weeding was done by a woman. pangas. Such 63 . Division of land was based on set roles. and skin & at times used as transport either for riding or carrying property.

Africans were dispossessed of their land & a new land tenure system was introduced. 64 . A number of changes occurred as a result of colonialism. The traditional agricultural system was based on the three-site system. The type of trade which developed was the barter system i. land was held in common by the community. . Traditional methods of farming are used in this system e. Traditionally. this type of traditional system has been altered by colonialism. 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. This system involved.e.  Village  Land  Cattle post The activities of the people rotated around these sites. Colonists brought with them new forms of agriculture & practices which affected the traditional system. crop residues & rainfall for his/her farming. The farmer relies on natural inputs such as. The chief was responsible for allocating land. In some areas. However. Any surplus/left-over will be exchanged for other goods that are not produced by that particular farmer. All traditional communities were based on forms of subsistence farming. exchange of a good for another. In subsistence farming. This is a form of farming whereby farmers produce to feed their families only. The movement of people was based on seasonal migration between these sites. growing of crops was practiced extensively.g. Production of surplus which often occurs was the beginning of some rural economy based on specialization & trade. Labour is usually provided by family members rather than hired workers. With the coming of colonists. Simple tools are used in this kind of farming. In traditional societies. an economy based on money was introduced & Africans were forced to work for European masters. people believed that they had the right to use land & not own it. people developed of shifting cultivation known as slash & burn. farms usually cover small areas of land.farming communities A dramatic change in the lives of rural societies or people occurred when people learned how to grow crops.communities in southern Africa were the Khoikhoi while in east Africa were the Masai & in West Africa were the Fulani. cow dung.e. broadcasting of seeds. The chief was the custodian of land or he owned land on behalf of the community. This is a form of ownership known as communal ownership of land/communal land tenure. In places where there were good soils & plenty of rainfall. Land could be used but it was not bought or sold (no private ownership of land). This made it possible for a large population to be fed & for people to lead a sedentary life. A cash economy i. Subsistence farmers produced enough for their own needs & not for sale.

African reserves or homeland (Bantustans) were introduced to isolate Africans from white communities. It was the beginning of the migrant labour system.Village Land Cattle post First. Life in those parts of the country where Africans found themselves became more difficult because they could no longer produce sufficient food for themselves. Colonists took land from Africans in order to. plantations & factories. colonists grabbed land from Africans through forceful means or tricky concessions. overcrowding & starvation. Africans were pushed into the unproductive or barren parts of the country. In east & southern Africa. This resulted in shortage of farmland & peasant farmers (subsistence farmers) found it difficult to feed themselves. This resulted in shortage of land for subsistence farming. The situation forced them to migrate to mines.  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. 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. Africans soon found themselves slaves & squatters on land that originally belonged to their forefathers. 65 . then privatized the use of land hence a new land tenure system. Rural poverty became common.

The Vicious Cycle of Hunger Lack of good food Small energy resources Low output Little work The Vicious Cycle of poverty 66 .

This means producers have very little to invest in future productivity & the cycle continues. it is hard to produce very much. Without resources especially money to buy equipments & new inputs. The Savings Vicious Cycle 67 .Lack of money -Poor equipments -Poor resources Low or no income Low production per acre The vicious cycle of poverty is a self-sustaining situation whereby the poor find themselves poorer & poorer.

the introduction of cash economy & forced taxation.Low savings Low investment Low output and income Low stocks of capital goods The Vicious cycle of small market Low savings Lack of specialization & economies of scale Low output and income Low stocks of capital goods The main effect of colonialism on rural areas is rural poverty. This was mainly due to land dispossession. Other causes of rural poverty include.Lack of alternative income 68 . . Introduction of forced labour.

Malnutrition and a general poor health 69 . . Commercial farmers may buy small farmers out of their land in order to extend their farms. . This weakens the rural economy & causes rural-urban migration. . .Environmental degradation The poorer the people. it is often difficult for small farmers to get loans since banks & other moneylenders prefer to lend money to large profitable businesses.Soil erosion Poor farmers use poor methods of farming which lead to soil erosion. the more harmful their activities are on the environment.Pollution of water resources Lack of proper water management & sewage disposal will lead to pollution of water needed for drinking. . machinery or experimenting with new breeds in order to increase production. . Land available for cultivation & settlement becomes scarce.Deforestation A lot of forests & other plant species are lost due to the stress that is exerted by the rural population. pressure is created on land supply.Overgrazing Improper farming techniques such as overstocking leads to loss of pastures . This situation makes it difficult for some rural people to earn a living. .Farmers do not have other ways of obtaining money since farming does not provide enough work for the people in the rural areas. This is very dangerous to the future of the rural dwellers.Population pressure As population increases rapidly. The water is also depleted/overused. It is therefore necessary that rural industries should be introduced to employ people & improve the rural economy.Lack of skills & technology Rural areas often have few educational institutions hence rural dwellers or farmers lack modern education or access to information. land may be unevenly shared.Lack of money for investment Farmers need money to buy new tools. However. .Unequal access to land In rural areas. . They have few opportunities to learn about new innovations/technology. Rich farmers may have more land than poor farmers & unwilling to sell/rent their land to the kindles. Poor people will destroy the vegetation through over harvesting of forests for wood & over cultivation of land without any inputs for fertility.

the use of the Rand by the BOLESWASANA countries and all British colonies becoming members of The Commonwealth and SACU of 1910 .Food shortage & poor diets lead to malnutrition of children & people in rural areas. Germany. This is because women will be left to carry heavier responsibilities i.g. . . Impacts of Colonialism of Africa Positive impacts . In this situation. In Africa. Lobatse & Ghanzi blocks.Infrastructure development e. the dominating powers were mainly the imperialists from the west notably Britain.Modern health .Christianity / civilization .Large scale production .Introduction of cash economy & cash crops e. they combine their duties with those left behind by their men.Market linkage Negative impacts Economic .Western / modern education . hence the occurrence of diseases such as marasmus. railways . Tuliblock. The standard of health in rural areas will also be low hence infant mortality will be high. Countries of the North partitioned Africa at the Berlin Conference in what is commonly referred to as The Scramble for Africa. Gaborone.Land dispossession e. Tati Company in the Francistown & North East areas 70 . Colonialism: The policy by one country to take over power in another country or other countries. it is young & able-bodied people who migrate to urban areas & leave the very young & very old to take care of agriculture.g. kwashiorkor other nutritional related diseases.Stress on family unit The family unit is put under stress when members migrate to urban areas especially men. France.g. maize .Unity: political and economic e.g.e. Portugal and to a less extent Italy.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.

Commercial/large scale farming . Aspects of rural development Positive .Extended family structure (social security) .Culture constantly changes .Cultural bounded lifestyles (fashion) .Cheap products .Subsistence / Peasant farming The growing of crops and rearing of livestock to feed the family. 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 .Non-polluted environs .- Over utilization of limited farmland Taxation (hut.Peasant/subsistence (small scale farming) . There is no surplus produced if any is produced it will be exchanged with other goods needed.Controversial boundaries .Divide & rule notion .Rural poverty The rural economy The rural economy can be divided into two.Overworked soils . .Shunning of traditional customs and beliefs etc.Familiarity / kinship ties Negative . dog.Colonial legacies / neo-colonialism .Rural neglect (suffering from political. Characteristics   Farms are small & labour intensive Labour is provided by members of the family 71 . social.Detribalisation (urban area / town) .Acculturation (loss/erosion of the African culture) . economic and moral neglect) .

Commercial farming It is the growing of crops & rearing of livestock for sale. the following should be observed. exotic breeds Technology used is complex e.  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. many changes are necessary. 72 . 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.       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. For the green revolution to succeed. These are. crop residues & animal dropping Ownership of land is communal Very little effort & skill is needed to run this type of farming .g.g. This refers to increase in productivity made possible by a package of new methods or hybrid plants introduced to improve yield per hectare. 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. Some of them must include the green revolution in agriculture.

CEDA is another credit scheme which gives grants to people who want to start small businesses such as poultry farms. . This is a collective system or communal system e.g. 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. 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 .g. SLOCA which encourages farmers to form a group in order to get money to improve their livestock. in Botswana the NDB provide farmers with money to improve their agriculture. in Tanzania there is ujamaa.  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 . ARAP (accelerated rainfed arable programme) which pays farmers for the amount of land cultivated. • • • ALDEP which provide subsides to farmers to buy agricultural implements & fence their fields. Other programmes include. it usually finances projects such as dips.Collective farming Farmers are encouraged to join their land together & work it as one large farm.Loans. The programme encourages farmers to produce & to be selfsufficient. 73 . 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. Farmers are encouraged to form co-operatives for the following reasons.

Villagers can also benefit from this scheme.modernizing livestock farming In modernizing livestock farming the following should be done.Large scale irrigation a) Small scale irrigation At village level. resettlement schemes such as the New Xade programme is meant to give the concerned people social services & for them to give way to tourism. Dams flood land & may force people to abandon their land remaining landless.Improvement of water supplies It is important/vital in rural development to have proper & enough water supplies. Clean safe pipe drinking water should be available for people in rural areas.. . However. . land reforms without good facilities cannot bring rural development.Irrigation schemes This can take two forms which are. b) Large scale irrigation This type of irrigation is costly & needs advanced technology. This type is suitable for cash crop farming & it needs construction of large dams which can also be used for generating hydro-electricity. However. the Zimbabwean land redistribution. Villagers can dig irrigation channels from upland streams to irrigate their fields. This can help to grow more food for them. Strategies for rural development . It is capital intensive.Small scale irrigation . some countries started resettlement schemes I order to change land ownership/land distribution so that everyone has access to land. white farmers allocated themselves large fertile plots of land. irrigation can be quite simple. farmers down stream will have little or no water at all.Resettlement schemes During colonialism. large scale irrigation schemes are not without any side effects or disadvantages.g. In Botswana. Resettlement schemes are also related to land redistribution e. After independence. Water is essential for good health & survival. • When damming a river. Such problems include the following. 74 .  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 .

In integrated rural development. 75 . there must be transformation of the whole structure of rural economy & not improving agriculture only. changing in such a way that all factors are taken care of. It has got the following objectives.e.• • • 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.     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. It is an improvement in all aspects of the rural economy.

g. clinics Modernizing farming For integrated rural development to be achieved.  The development should be interdependent with systems outside of it e.g. the land owners. the rural economy should aim to meet many local needs such as clothing. the introduction of a new cash crop should not reduce the food supply for the locals or damage the soils. 76 . footwear & building materials.g.  Changes in one part of the system must correspond with the needs of all other parts e. the following should be considered. the rich or the powerful.  The development must take account of the interests of the whole community & not just a few individuals e.Nonagricultural industries Water resources management Storage markets Integrated rural development Land reforms Provision of social services e.g.

 Integrated rural development also need co-operation & self help as people must work together to provide for their own benefit e.B the government should always work with local communities & never impose schemes without consulting them. Social services include. Education is also vital especially for women for getting access to information on how to lead a healthy life.Social services Education & health services are very important since they give people advice on preventing diseases & illnesses. death & on birth control. 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 77 .g. population growth & external problems like falling market prices.  Produce more traditional food crops  Raise cash crops for the market  Provide extension services  Increase food self-sufficiency  Provide credit schemes .farming modernization The aim is to adopt old methods.Water resources  Providing clean. saves time & work & improves livestock . o o o o o o Land reforms Redistributing land in order for everyone to have equal access for it Helping/providing land for the landless Giving farmers secure use or ownership of their plots of land Giving women the same rights s men Forming farmers’ co-operatives . These include the following. introduce new ones & use appropriate technology in order. It is essential for certain things to be done in order for rural development to be totally/truly integrated. Such projects give the people a great sense of achievement. N. piped drinking water  Helping the villagers to construct dams  Providing water at village level is the most important service because it improves health.  Clinics for feeding the malnourished. safe. a village dam or a community hall.g. Development should be adaptable & suitable so that it can solve internal problems e.

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.Rural industries & services Setting up industries in rural areas since it increases income-generating opportunities. o Women take care of agriculture through ploughing. taxes & the internet are necessary for telecommunication between places. Men & women had different roles based on gender. However. weeding & harvesting. dams. PTA & health committees 78 . 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.. 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.Telecommunications network Such things as telephone. there were customs & beliefs which discriminated against women such s women being discriminated against women such as women being considered as inferior to men. the government should control prices so that they are fair & reliable.Storage & marketing skills These are important for planning & managing crops & surplus produced. Financial assistance progames such as CEDA in Botswana help people to start up industries. . In rural areas. Marketing boards such as BAMB should be provided so that farmers can market their goods or produce. women carry out 90% of the domestic chores. If necessary. .

development of infrastructure . this is the increase in the physical size of a town or city. Cause of urban growth: .pollution . This is the movement of people from rural areas to urban areas. This is common in developing countries.URBANIZATION This is an increase in the proportion of people living in towns & cities (urban areas. thus starting their families in urban areas & causing more increase in the proportion of people living in urban areas through natural increase. conglomerates) as opposed to the countryside (rural areas) URBAN AREA: It is a place where 75% or more of the population is engaged in nonagricultural activities. URBAN – URBAN MIGRATION. this is the tendency by people to lead an increasingly urban way of life.urban decay 79 .cheap land in the periphery .& above FUNCTION. URBAN GROWTH.affluence . from New York to Washington or from Lobatse to Gaborone.expensive rented accommodation in the city center .g. Most of the migrants are young. Majwaneng 501 – 2000 2001 – 10 000 1001 – 100 000 100 001 – 1000 000 1000 001 – 10 000 000 10 000 000 . It can be defined according to size. This is much more common in the developed world. URBANISM. This is the movement of people from one urban centre to another e. function & form Example of settlement by size Settlement Isolated dwelling Hamlet Small village Large village Small town Large town City Conurbation Megalopolis population 1 – 10 cattle post 11 – 100 lands 101 – 500 Chadibe. whether most people depend on agriculture or non-agricultural activities RURAL – URBAN MIGRATION.

traffic congestion . Migration can be permanent or temporary. . Characteristics of a primate city. Improved water & sanitation iv. Improved standards of living Migration Here. It is calculated by subtracting the death rate from the birth rate.Problems caused by urban growth. In Africa.pollution .cultural erosion .Has the best infrastructure and communication networks and most of the financial investments . London & New York experience 1% growth yearly mainly due to natural increase. Natural increase is a major factor of growth in the oldest cities of the industrialized world e. 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.commodification of land . departments and private companies’ headquarters are found Causes of urbanization There are two main causes of urbanization i.An area where govt.loss of ancestral land PRIMATE CITY. This can be contributed to: i. Improved diets iii. Natural increase This is whereby the population increase is caused by birth rate being higher than death rate.deforestation . parliament / cabinet .detribalism . natural increase & rural – urban migration. 80 . Improved health facilities ii. Permanent migration.e. although natural increase is far less than migration. This is an urban area whose population is at leas twice or double that of the second largest in a country. would normally set up its administration e. this is when people move from one area to another without the intention of returning to their place of origin. .g.g.urbanism .An area where many govt. it still plays an important role towards growth of towns & cities.An area where a national university and technical training schools are located .ruralisation of urban areas .

g.Internal migration.g. this is the movement of people outside their country of origin to another country without the intention of coming back. 81 . Temporary migration. This leads to unemployment & people decide to go elsewhere  Prices of goods are generally high in rural areas Political push factors  Wars e. rural – urban migration or urban – urban migration. economic or political.t. this is when people leave their places of origin for a short period of time. These can also be categorized into social. Social push factors  Lack of improved social amenities such as education. Such conditions can either be social. economic & political factors. cheap unskilled labour is not needed.g.g. this is when people move within the same territory or country e. overgrazing  Lack of economic opportunities such as employment or investment opportunities  Mechanization of agriculture – when modern machinery is used in agriculture. monocropping (which leads to poor harvest). tribal or family feuds & witch craft e. External permanent migration.c  Rapid population growth due to lack of knowledge with regards to birth control measures  Rural poverty Economic push factors  Poor farming methods e. 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. modernity (bright lights)  The desire to break away from traditional life e. Push factors These are conditions or circumstances that force people to migrate. RURAL – URBAN MIGRATION This is usually due to push & pull 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:

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

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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) 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

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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 - 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

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 It provides an opportunity for unskilled self employment e. 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 Cleaning & wind screens Selling newspapers & publications Hair dressings & barber shops Advantages The informal sector has some advantages to the underprivileged. people’s homes. in the streets & at the market place.This is whereby a business is done on a small scale & work is done in temporary workplaces. 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 o o o It makes life easier for migrants who came to urban life for the first time It provides work. repairing goods  An opportunity to form social networks e. shelter & support for migrants It provides contact between home areas & the new city life The informal sector stimulates development 85 . reselling things which have been bought cheaper  A chance to use natural skills e.g.g.g.

Links between the formal and the informal sector The two sectors are interdependent hence they form a dual economy.operates on large scale .illegal & therefore workers are unprotected by law . 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 .jobs require unskilled labour .non unionized . 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.self employment/free entry job/do small services for others .takes place at home/streets/temporary structures .business is illegal .business run according to law .employees work for someone .operates on small scale .regular & guaranteed wages .workers have written contracts with their employees .owners take all the profit 86 .workers protected by the legislation or state laws .workers can belong to trade unions .takes place in buildings/permanent place .jobs need education & technical skill .g.pays tax Informal Sector .workers have verbal contracts with their employees . A dual economy is whereby two distinct types of economy exist at the same time e.g. who learn new skills  Some of the people working in the informal sector provide services to the formal sector e.wages are irregular .

      Putting high tariffs on imported goods Providing loans & grants to local people by the government Encouraging students to specialize in science & technology. North America & Japan had started industrialization. manufacture goods & provide services using complex or advanced technology.c. local companies & joint ventures e. most countries of Western Europe. Import substitution industrialization (ISI) This is whereby a country starts making goods for itself instead of importing from elsewhere or other countries. They are import substitution industrialization (ISI) & export oriented industrialization (EOI). This new technology enabled production of large quantities of cloth. However. It can also be defined as the growth of large mechanical production. A deliberate effort is usually done to promote local industries through.t. Strategies for industrialization There are two broad strategies which have been successfully used by many industrialized & newly industrializing countries (NICs). industrialization is the process of setting up companies which process raw materials. so as to provide the much needed skills 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 87 . These strategies can be implemented through multi-national corporations. In other words. By the end of the 19th century.INDUSTRIALIZATION This is the setting up of such organizations which deal with large scale production of goods using complex machinery & mechanical energy. 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. industrialization in Europe started in the early 19th century In Britain (UK). Ample labour was provided by laid off farm workers who have been rendered useless or jobless by similar inventions in the farming sector.

Singapore. water. power. 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. Taiwan.    Protecting individuals’ property. Export oriented industrialization (EOI) This is whereby a country develops industries directed towards producing goods & services in high demand in other countries.t. This is done for the following reasons:   To generate the highly required foreign exchange To create job opportunities for the locals 88 . Brazil & Argentina. rights thus reducing fear from the private companies that their asserts may be rationalized Providing the necessary infrastructure such as telecommunications network.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. roads e. South Korea.

c advantages       It generates income to small producers It creates employment in the rural areas It utilizes local resources i. 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.e.e. to produce more for a bigger market & being able to reduce the production costs while making good profit To encourage research. 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. carving. it produces to sell locally 89 . raw materials & skills It is rural based hence reduces rural – urban migration It brings about rural development It is domestic market oriented i.e. sculpture.e.t. pottery.   To encourage economies of scale i. basketry e.

Raw materials. 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 Modern industrial production is complex & highly mechanized.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. financial resources & entrepreneur skills to help in production of goods & services. 90 . brick work. Here are some of the characteristics.e. industries using large quantities of bulky raw materials such as cement factory. these may determine the location of an industry e. whereby managers misuse capital o Financial constraints i.g. human resources (labour). iron making. a country must have natural resources (land).g. In order to industrialize.g. 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.

accounting. women are increasingly doing jobs that were regarded as men’s jobs & consequently their numbers are consequently increasing. each worker has to specialize on a small part of the whole task.g.iron making will be located near their source of raw materials. sales. marketing. 91 . minding better than women do. Synthetic products. in modern industries. Industries processing perishable may also be influenced by the location of raw materials e. There are good reasons for this which include. Such industries are called high tech industries.g. new technology has made it possible to replace natural products with artificial ones e.g. modern industries complex technology. in industries today. Mechanization. most of the machine processes are controlled by computers. there are people specializing in engineering. In other words. research.c. Automation and robotics. They therefore hire some companies to do part of the job for them hence sub – contraction. Feminization of the labour force. ARGUMENTS FOR. In such industries goods are not handled by people at all during the whole production process. Sub – contraction. it needs to allocate its workers different tasks. EFFECTS OF INDUSTRIALIZATION Industrialization & development are closely linked. large scale industries are made of large numbers of independent specialists e. increased mechanization has done away with much heavy duties. The machinery is very complicated & expensive & it requires special skills to produce & repair it. human resources e. Co – ordination of specialized tasks. women excel in work requiring precision & delicacy of touch. synthetic fibre & synthetic rubber made from hydro-carbons derived from petroleum. as a result of high specialization in industries. Only a few highly skilled workers are required to ensure that the machine does its work properly. some companies find it increasingly hard to complete some tasks alone. Division of labour & specialization.t. mass production has destroyed in many industries the need for traditional craftsmanship. machinery & various types of equipment. a large complex management team is necessary to coordinate tasks. for the factory to be more efficient & to make products within a short period. Advanced technology. They also appear to tolerate long hours of machine. industries also require factory buildings. in a mining industry. fruit & vegetable canning.

hence deforestation & loss of bio-diversity Successes and challenges of newly industrializing countries (NICs) Newly industrializing countries are those states with new/recent fast growing industries. Yugoslavia.t.BRAZIL 92 . These are third world countries which started industrializing after the Second World War. it is more independent & does not have to depend on other for many things  Industries create more surplus capital for further investment ARGUMENTS AGAINST. Argentina. 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. overcrowding. Brazil. Greece. Large cities grow around the industries often with problems of poor housing. Egypt.c Waste materials from industries pollute land. air & water Industries tend to use up natural resources like minerals & fossil fuels which are non-renewable Building of industries tend to destroy large areas of forests. e. Through industrialization. Hong Kong.c CASE STUDY . Taiwan. bad sanitation. Portugal. Mexico. iv. Singapore. Spain.t. diseases & pollution e. 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. Examples of NICs include South Korea. iii.  People have to change their of life. ii.

These industries were attached through grants.- 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. wire companies e. 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. 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 o o o o o o o o The gap between the rich & the poor widened Workers worked for a long time but were paid very little Urban poverty increased Workers were not allowed to strike Working conditions were crowded & unhealthy Serious damage was caused to the equatorial forests & tribal cultures The country struggled to pay back its loans due to high interests Corruption grew since money was stolen or misused by leaders Severe imported inflation became common in the country e. railways.ready / available market 93 . due to a rise in petrol prices Advantages that NIC’s have for industrialization.g. Volkswagen & general motors to build industries in its territory.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. .good supply of raw materials .reliable communication networks . tyre companies.t.

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. Hong Kong. men & women can usually do the same work.g. tradition & morality  Community work: Women were expected to attend funerals (where they were expected to cook) and were also involved in religious activities. children and every male member in the family. Women were not only expected to bear children for their partners.- low wages / child labour / large pool of cheap labour appropriate technology appropriate skills able to produce simple goods for lower prices workaholics e. etc. but also to care for them till they had grown up. These social differences are sometimes based on biological differences so that it makes them seem more important than they really are. harvesting and storing of crops. however these differences do not mean they are not equal. They were expected to sweep the compound. Women had to fetch water and firewood. wash clothes for babies. If given equally. especially the moulding of their daughters into responsible adults  Taking care of members of the extended family  They were custodians of culture. The role of women in traditional society In traditional society. men & women played different roles based on gender. They were involved in weeding. Looking after livestock especially in families that had been affected by the migrant labour system. Men & women have some physical or biological differences. 94 .  They cared for the sick  They cared for the aged  Agriculture: They ploughed & looked after the field. South Korea. In reality men & women have similar abilities. 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. cook and feed family members. The woman’s role was:  Childbearing: Having & looking after children. WOMEN AND DEVELOPMENT A woman is a female human species. This is the term that refers to the female gender of the human species.

It may be 3 or 4 months. practices. however this had consequences of its own. customs.e. Women were forbidden the right to make decisions concerning right to sell property & decision making on fixing bride price for their daughter. Women had access to land through their husbands. They were confined to the house for a certain period of time. brothers or sons. so as to keep away from owning them 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. Young children learn what roles they are expected to play by being told or watching what others do. 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. taboos & myths Their impact on women’s position in society:  Culturally men paid bride price for their wives.Men on the other hand were expected to do heavy work/duties or work that usually require a lot of physical strength. as a result women had little or no property. Traditional societies were generally male dominated or patriarchal. A new generation learns their roles from a generation before them. Menstruating women were forbidden to pass through a herd of cattle. roles done by men & women are not fixed by nature or by fate but came from customs & traditions. It was a taboo for menstruating women to sit on chairs & this gave men the opportunity to monopolize certain rights over women. women were forbidden to go to school as they were thought incapable of learning because of the belief that they had smaller heads/brains         95 . However. Traditional values. It was a taboo for women who were nursing young children to mingle with the public.

. factories. It encouraged 96 . black women & as colonial objects. they found it difficult to control the boy-child which resulted in an increase in juvenile delinquency. Increased wok load for women  Colonialism also brought about industries. 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. These changes were economic.  All cultural practices & beliefs including taboos deprived women of their rightful place in society. 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). political or social but they affected men & women differently. With men away in the farms. Since men worked in the farms. It was also believed that Eve was made out of Adam’s rib so women are second to men. World distribution favoured men than women since men had more access to property & land than women.e. women became heads of families & they were settled with the burden of bringing up children alone. During colonialism. They suffered as women. mining & cities & this resulted in more men being recruited from rural areas to provide labour. Women often had a lot of power with the family but had little official power in the wider society. they could now handle cash/money which women did not have access to. combining their own tasks with those that used to be done by men e.g. In general. This again gave men dominance over women. women had to even more work for growing food in the family. African women suffered tripartite (3 way) oppression. Land Dispossession  Africans were pushed into infertile reserves where production of food became difficult. men had more power than women. This left women with extra responsibility i. 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. 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.

Education  When schools were set up during colonialism. When men were recruited to work in the mines. This marriage break down led to female headed families and / or single parent families Women were prohibited to live with their husbands in towns. 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. etc.E. etc.Laws have been passed to ensure that women are not oppressed or discriminated against 97 . . TB. women & children remained in the reserves where they suffered more & more hardships.P. Women can now train in almost any field they desire just like their male counterparts.. STDs. a daughter’s wedding.They hold leadership positions e.D.They have access to credit schemes e. both as a father and as a mother thereby increasing their workload.A. .g. etc. They can set up businesses and own property. members of parliament. The Land Board gives women equal access to land . However. farms and plantations Women were forced to play a double role in the family. in schools. Emerging Roles of Women Today women’s status has improved: . cabinet.g.- 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. arranging marriages. decide on the sale of livestock. etc Decision-making was delayed because women still had to wait for their husbands to make important decisions. e. It took a long time even for white women to be allowed to vote – in African communities neither men nor women had political rights. e. mines.g. sending children to school. factories & cities. C.Girls are allowed to go to schools and follow the same curriculum as boys.A. 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. Political / voting right  Voting was restricted to males while women were disenfranchised (not allowed to vote). women leaders are still in the minority despite the fact that they form the majority of the population.g. F.

This has been facilitated by educational. During wars for independence women provided hide – outs or protection for guerillas or freedom fighters. 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 still occupy low paying jobs such as home maids. They provided the freedom fighters vital information on enemy movements. They are free to talk to their husbands about how many children they would like to have. Women formed over 25% of the cadres of the Zimbabwean African National Union Liberation (RAWLA) • • 98 . Women now do same jobs as men. They also nursed the wounded soldiers & provided food & water for the armies. Women were also arrested.e. secretaries.- - Women now make decisions concerning family planning. etc. Angola & Namibia. In some countries such as Kenya. Mozambique. women’s rights. In South Africa. they can now compete on an equal platform with men for a job. They instigated other women to stage demonstrations/marches and in the long run formed Women’s Movements. professional and economic independence by women. Some women leaders even fought against colonial conquest e. the right to property ownership. As a result. Winnie Mandela and Mrs. i. There is also an equal pay for same jobs irrespective of gender. Sobukwe led other women against discriminatory apartheid laws. This has led to an increase in female-headed families. women took part in the struggle for independence & often fought side by side with men. murdered & even shot during the struggle/resistance against colonialism. R.g. Queen Mantatisi of Batlokwa. • • • • They occasionally ruled as queens even though most rulers were men e. However. etc.g. families nowadays are generally smaller Some women prefer to have single-parent families. women like Mrs. Queen Ndinga of Angola against Portuguese.

women were determined to fully participate in the development of their new nations. ii. cooks in restaurants & housemaids. Women hold leadership positions even at village level. In the formal sector. running shebeens.g. women constituted a significant proportion of the liberation army e. Even at independence the majority of women still find themselves in rural areas where there are poor educational facilities & poor agricultural production. At independence the traditional view about women’s roles had been changed/challenged. schools. in the Ethiopian revolution of 1991 women constituted 30% of the liberation army. Political parties have women members. 99 . more men are employed than women. southern African schools had increased enrolment & both girls & boys had the same opportunity to education. The liberation struggle changed people’s lives. The informal sector is mainly in the hands of women doing such jobs as hawker’s business. However. Kgosi Mosadi Seboko. They are decision-makers in parliament.g. They always tend to offer assistance to men who will be holding administrative positions. Women started insisting on having the same rights as men. very few women found it difficult to access modern technology to make their lives easier. The other reason is that few women than men have skills. designing/knitting dresses/clothes & selling vegetables in an open market. selling brewed beer. i. 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. 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. Other examples include shopkeepers. iv. Women find themselves occupying junior positions in their work places. Post independence era In post-independence. Women had proved that they could do such jobs as fighting. However. After the experience of the struggle and at independence. etc. On the same reason fewer girls were able to get access to education opportunities even fewer making it beyond primary education. Eventually they achieved changes in the constitution & the new constitution allowed men & women to vote. Men occupy most senior positions in the formal sector. with the influence of the traditional view. e. repairing cars or taking charge of an organization just as well as men do.In other parts of Africa. cabinet. Non-governmental Organizations. 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. women offer mainly secretarial work& being a bank teller. In the same manner.

Women’s tasks in the rural areas are concentrated in three crucial areas namely: i.t. social justice. Few women make it to administrative positions. They do 80% of the activities in rural areas. Once this is reduced. it implies some possible diversion to income generating activities or development projects. They are also engaged in drought relief projects & they also raise funds for community projects. It is estimated that about 95% of the rural population depend on firewood for their household energy needs. Food preparation is time consuming & firewood is the source of energy.c. A focus on women in isolation could obscure differences amongst women as a group & also between men & women. building community dams.c. Most women often carry out extra-unpaid jobs in the communities such as organizing projects. One of the main constraints on women productivity is related to the labour time involved in their daily house maintenance.t. They provide employment by starting up income-generating ventures such as tuck-shops. selling vegetables & poultry farms e. surveys & architecture e. The growth of the economy. Domestic work within the household ii. Subsistence agriculture iii. community health projects e. The household maintenance tasks are mainly done by women. will involve women as equal partners in the nation’s economic & social developments. resuscitates the participation of both men & women. This may be a result of the fact that very few girls make it beyond secondary education. The budget 100 .c Women do much of the work in rural areas because they are the majority in the rural population. 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. The national policy on women & development as espoused in NDP 7. 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. tasks & childcare. as a result women are the forgotten producers in the national economy.t. women are the majority in rural areas & are a key resource & an important planning factor in the development process.v. Women find themselves excluded from technical jobs such as engineering. national self-reliance & sustainable development. This dependency to a large extent is caused by the severe constraint to switch to other fuels given women’s low income.

To advocate and lobby for the eradication of forms of discrimination against women and the girl child.To facilitate the establishment of skills development centers in the villages .At least another 20 people are trained every year on linen making (curtains.The Botswana Council of Women has established over 33 Nursery Schools all over Botswana. At least 20 people are trained every year . food processing & preparation can account for the better part of an adult woman’s extremely long working day. Achievements . power sharing and equal economic opportunities .To encourage responsible citizenship.To encourage women to participate in self-help projects . Its objectives include: .To provide women and the youth with skills development training for income generating activities and self-sufficiency for poverty alleviation .It successfully established a Goat Rearing Project in Ditlharapeng.To provide education on HIV/AIDS in order to empower women with the ability to negotiate with their partners for safer sex . These schools provide Day Care and food for children while their mothers are at work . water fetching. 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. women in Botswana have organized themselves for change. Allocation of such resources would therefore have immediate beneficial effects. Women’s organizations in Botswana Just like in any other country in the world. comforters. cushions.They offer six months’ courses on dressmaking and fashion design. This generates some income that is invested back into the project . plaiting and styling 101 .studies have indicated that tasks such as fuel collections.BCW has trained people on hair dressing – the correct use of chemicals.To provide affordable nursery school services for women to freely go to work or be self-employed . etc). These are one months’ courses .

Increasing the number of women in parliament and local government to 25% . Women candidates were trained on handling campaigns especially on public speaking.The number of women councilors has also increased as well as the number of women chiefs in the House of Chiefs .Women’s issues have been included in the political manifesto of Botswana’s Political Parties .Domestic violence and abuse .Rape . workshops were held to assist women candidates from all political parties.Male stereotypes .Pull Her Down Syndrome: jealousy from fellow women .Educating women on the connection between voting and improving their living conditions.Emang Basadi (A Lobbyist Organisation) Lobby: attempts to influence legislators/law makers This was formed in 1986.Identifying women’s most urgent problems and trying to address them . councils.Susceptibility to diseases due to women’s anatomy Women’s Role in the Prevention of HIV/AIDS and other Communicable Diseases 102 . parliament .Shortage of funds . Among other things. the Women’s Manifesto aims at: .Emang Basadi has managed to hold Voter Education Seminars to bring the issues outlined in the women’s manifesto to community level .Representation of women in parliament has gone up and we now have women cabinet ministers . fund raising and identifying key national and local issues .Increasing public awareness of women’s issues . it identifies laws that discriminate against women and lobby the government to either amend them or remove them altogether In 1994. and . Emang Basadi launched a Politic Education Project that was contained a Women’s Manifesto.e.Before the 1994 elections.Women are increasingly assuming leadership positions in government and the private sector Challenges faced by women’s organizations: . i.Reinsuring that political party platforms include commitment on women’s issues and concerns .g.Little representation in the government e. Its goals include: .Promoting an awareness of women’s political under representation as well as informing them on the neglect of their needs Effectiveness .Lobby for the removal of all barriers that hinder the advancement of women.

They represent other women in national organizations such as NACA .Violence against women: Some men beat their partners for no apparent reason. At least more than five females are forced into sexual intercourse everyday . In addition to the roles by women organizations above. In Botswana. women still face multiple problems. useless or bad mothers.They encourage parent to child discussions at the family level . These include: .They help counsel the sick at family / ward / village level . It pioneers community responses to gender crisis. sexual violence and HIV/AIDS .In rural areas where women literacy rate is low. It also empowers men to be fully involved in the fight against HIV/AIDS. 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. or told that they are ugly. It aims to assist women and children who are survivors of domestic violence by providing temporary accommodation.They are engaged in the implementation of HIV/AIDS awareness campaigns at the work place. If the war against HIV/AIDS is to be worn.The Kagisano Society Women’s Shelter Project is a voluntary non-profit making organization that believes in the equality of mankind.They help build and man orphanage centers . They ensure that all at work have access to and are provided with sufficient and up to date information on HIV/AIDS . men/husbands deny women/wives rights to acquire land.They raise awareness against abuse and rape .Botswana is being crippled by the HIV/AIDS epidemic. Gone are the days when women were viewed just as ‘transmitters’ (Moreno 1997 p. education and information on HIV/AIDS and sexual violence. immovable property and to advance their 103 . the youth and women.The Botswana Council of Women trains trainers through workshops to become peer educators on HIV/AIDS awareness and prevention . Sometimes women are prevented from phoning or visiting relatives and friends. . It engages in basic training on skill development and on the publication of Youth Magazines that contain information on HIV/AIDS .They mobilize funds for the sick. Female partners are usually shouted at. women should be at the forefront. The target groups are children. Female partners are often accused of sleeping around .Rape is on the increase. It strives for a violent free society.302). It helps victims or survivors of sexual violence with user-friendly clinical intervention to reduce trauma. women also: .Take part in general HIV/AIDS awareness and prevention campaigns .The Botshabelo Rehabilitation Centre embarks on community mobilization.The Young Vulnerable Women seeks to mitigate/fight the spread of HIV/AIDS and prevent teenage pregnancies.

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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  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      

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 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 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

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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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The geographical entity can be a village. The study of population is called DEMOGRAPHY. .Knowledge of the population structure will enable the government to prioritize its development efforts. E. town. Every country in the world with encouragement of the United Nations organization counts its every ten years. the government’s priority might be to build schools.e. couple. structure & distribution so that there is fair allocation of resources. in LDCs where a large population of the population is below 15 years. Counting people is known as census. 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. a serious government should have full knowledge of the population size. group or a population Dependency ratio 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 107 .POPULATION This is the number of people living in a geographical entity at any particular time. Conducting a population census is important because: -it helps in development planning i.g. country or continent.

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.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. 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 108 .

2 billion The above statistics shows that whereas the world’s population once doubled in 1700 yrs. Latin America the growth rate is 3%while countries such as France are worried that their population is not growing fast enough. this growth is not evenly spread throughout the world. The United States has about 240 million. The counting of people is important for the following reasons: 109 . By the 18th century it had reached 600 million & by 1820 it was about 1000 million. Nigeria. 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. In most parts of Asia. approximately 1 billion people each. shelter etc.6% per annum. By the 21st century it was estimated to have reached 6.7 million. now it doubles in 30 yrs or less. water. However.100 million.N. This figures show that everyday there are more than 300 000 extra mouths to be fed. 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. counts its people every 10 yrs. 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%. Generally the developed countries have far lower growth rates than the LDC’s. Africa. However. At the beginning of the 20 th century it was about 2 billion & by the mid 20th century it was over 3 billion. the main concern of the whole world is the need to balance population growth with the available resources such as land. The world’s most populated counties are India & china. food. the only way to achieve this is to return to a growth rate much smaller or nearer 2% per annum. Every country in the world with the encouragement of the U.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. In some regions it is sluggish almost to a point of nonexistence while in other it is fast. south Africa -36 million & Botswana about 1. This may sound little but it involves huge numbers & rapid expansion. Western Europe has an average growth rate of 0.

g. The most important determinant factor of growth is the difference between crude birth rate & crude death rate usually referred to as natural increase. The lowest death rates are associated with region of generally high standards of living i. Generally birth rates in developed countries are less. it is expressed as a number per 1000 e. developed countries whereas the highest are associated with economic background regions. it is common measure of mortality. just below 20 per 1000 & in LDC’s they are high ranging from 30-40 per 1000 or even more e. The higher the natural increase. Education Generally speaking the advance the level of education reached the small will be the average size of families. This is the ratio between the number of births in a single year & the total population in a 1000. Lesotho has a highs birth rate of 40 per 1000.e. 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. 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. 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. This factor may also be linked to class of social standing. 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. 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.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. A serious government should have full knowledge on population size. Lower classes are on average less educated & have larger families than middle & higher classes Religion 110 .-it helps in development planning. greater social awareness of a wide choice of contraceptives. With education comes knowledge of birth control. Just like birth rates there appears to be a link between death rate s & economic development.g.

in most cases. birth rates are more closely linked to politics e. It is believed that parents in these countries deliberately have many children to ensure that if some dies others remain. Medical care is measured in ratios of doctors to patients in a given area. 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. concepts of marriage vary / differ. coal miners are more vulnerable to accidents & also prone to respiratory diseases such as pneumonia & T. 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. Diets & health The poorest & most undernourished people of the world tend to have the highest birth rate. Politics War can also act as a natural limit to population.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. In some customs polygamy is practiced & this contributes to high birth rates. E. In some places such as India where most are Hindus. It is also common that countries with high levels of mortality have high levels of fertility. miners & asbestos workers Place of residents 111 .g.g. 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. others include quarry workers. The reason may be that the poorer sections are less privileged. living in poor houses. 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.B. on average developed countries have 50 times more doctors to patients than LDC’s do. 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. However.g.

Politics.areas of earthquakes. Industries.people settle in places with good communication infrastructure. 9.Generally birth rates are higher in urban areas than in the countryside. 5. drought. Historical decision. 6. Natural disasters. refugees move to stable areas. Demographic transition model (theory) 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. Factors that affect Population distribution and density 1.e. In the past people settled in areas where the vegetation yielded food. 11. 7. 8. disease floods etc are avoided. Some climates are more attractive to man than others. unsuitable for agriculture are often sparsely populated. People looked for vegetation which could support livestock and man. Natural vegetation. 10. Mountainous regions are usually sparsely populated.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. too cold or too dry are avoided. volcanoes. Mineral resources.dense tropical vegetation hinders settlement. The structure is based on the experiences of countries of the north in the last 250 yrs. 2.sometimes settlements are started by historical accident.good soils for agricultural purposes usually attract dense populations while poor soils i. Soils. The model identifies a transition or change manifested in four stages 112 . This model can help predict how the population can change in future. Climate is probably the most important because it determines the natural vegetation and crops that will grow. Communication routes.attract job seekers. Relief.people avoid politically unstable areas.people need permanent sources of water supply hence such areas will densely than those with scarce water supply. 3. 4. Water. Areas that are too hot. There is evidence that some countries of the south like Sri Lanka have followed a similar pattern.the presence of can cause a high population density in areas that would normally be sparsely populated due to great wealth attainable.

1740 Stage 2 1740 . 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.1940 Stage 4 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 -traditional beliefs & customs: some traditional beliefs encourage high birth rates e.g.1880 Stage 3 1880 . contraceptives were not common or were rarely used hence people could have a large number of children which they have not planned for 113 .The Demographic Transition Model Stage 1 From earliest times .

personal hygiene & poor diet: most people diet because of poor conditions in which they lived coupled with poor hygiene or cleanliness of their bodies. small pox etc. hospitals. -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. 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.-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. 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. -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 114 . 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.B.

g. In 1991 there were 92 males to 100 115 . It is anticipated that in this stage there will be a zero population growth (Z.e.G. hygiene. the number of males to 100 females) e. in terms of sex & age.). There are young. 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. the age group in the majority & problems that may be encountered.e. The death rate stopped falling but stayed almost the same. Population structure refers to how the composition of a country is. The Z. Countries of Western Europe have reached this stage. there were 84 males to every 100 since many young men had gone to work in mines in South Africa. 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.Stage 3: LATE EXPANDING During this stage the birth rates began to fall quickly. middle-aged & obviously males & females. an employment structure can also be used to illustrate the population structure Sex structure: this is usually measured by a sex ratio (i. 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. The population structure can consider the following: Ethnicity i. The structure helps to identify for example. it is growing slowly because the difference between the birth rate & death rate is small.e. Even though the population is high. 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.P. 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. which tribe/nation people come from Employment i.P. means that population will neither grow nor decline POPULATION STRUCTURES & PYRAMIDS The population of a country contains different age & sex groups.G. in 1971 in Botswana.

5%. The young people put a strain on the government budget or resources to provide facilities such as schools. put back to back.9%. 65+ > 4. 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. This is simply two histograms: one for males & the other for females. & the percentages of population are shown at the bottom. The age structure: this shows the distribution of age groups e. the males are shown on the left & the females are shown on the right. 15-64 > 51.males in Botswana because the government of South Africa had stropped employing so many foreigners. 116 . the dependency ratio is very high. The age groups are shown on the vertical axis. Over half the population falls below the age of 19 & these are the economically inactive part of the population.6%. in 1991 the age structure in Botswana was as follows: 0-14 > 43. With a large proportion of the population being young & economically inactive. This type of population pyramid is usually referred to as bottom-heavy. The information on population structure can better be represented by a population pyramid. The low life expectancy is indicated by a narrow apex or top. It is a graphical representation of the population structure of a place. Abroad base indicates a very high birth rate. Population pyramid for developing countries Pyramids for developing countries have a concave shape which then has a broad base & a narrow apex.g. POPULATION PYRAMIDS This is a pyramid-like structure/graph which illustrates the age & sex information about a country’s population.

e. signifying a large proportion of the population of working & economically active people. This shows that a small proportion of the population is under the age of 15 with a large proportion in the middle ages i.  There are more people or a significant number of people over 65 years indicating high life expectancy.  The middle of the pyramid is broad.POPULATION PYRAMID FOR A DEVELOPED COUNTRY  The base is narrow or constricted indicating low birth rates. In this case therefore the dependency ratio is very low. 15 – 65 years. This is an indication that family planning is effectively used. 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  Improvement of the status of women & their positions in society  Provision of free education for all  Paid maternity leave for all 117 .

 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.e. 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. 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 The desire for boys Old age security – parents have children so that they will look after them when they are old 118 .

starvation & poor diets  Low GNP per capita  Lack of health & educational facilities  Crime. services & skilled labour * A small market for goods & services produced locally * A small economy & low GDP 119 . 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. begging & other social ills  Shanty settlements or towns  Low standards of living  Unemployment  Lack of housing. SIGNS/INDICATORS OF OVER POPULATION  High population growth rate  Low life expectancy  Lack of food. PROBLEMS OF UNDER POPULATION * Shortage of labour * Under – development of infrastructure * Dependence on other countries for goods. crowding & poverty  Diseases. lack of clean water & poor hygiene  Soil erosion.OVER POPULATION This is when the population is more than the resources it can cater for.

t.g. is China. whereby a law is used to restrict a family to have only one child. 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 country.g. which has implemented such policy. In that country the government also gives incentives such as free education & family benefits to reinforce this law. health facilities e. the use of fertilizers & genetically modified seeds  Establishment of industries so as to provide employment & income  Improvement in social amenities such as schools.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. 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. Abortion is also available & legalized. ADVANTAGES OF HAVING A POPULATION POLICY  The population growth rate can be controlled to match the rate of development & resources 120 . Such policies include: the one-child policy.c  Introduction of birth control measures e. A number of governments use different policies to regulate their population.

121 . 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.

A lot of factors can lead to stress & this include: *Unhealthy diets *Unemployment *Drug abuse *poverty *alcoholism * mental problems Lack of resources If basic resources are not available it is difficult to stay healthy. Stress When a person consistently worries they become stressed. mental & social well being & not merely the absence of the disease.t. FACTORS ACCOUNTING TO POOR HEALTH Unhealthy diet Food should be enough & balanced.. typhoid.c Poor living condition If people live in a small area where there is congestion. 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. Some of the diseases associated with unhygienic conditions are diarrhea. if there is poor sanitation & food is not covered.g. A faulty diet is responsible for ill health throughout the world. Unhygienic diet Food & water should be covered.HEALTH The manifestation of development in the human body. shelter e.t. cholera & dysentery e.c. water. eye & skin diseases.B. diseases spread easily e. T. Good health is a state of complete physical. EFFECTS OF POOR HEALTH People Children to concentrate & learn. Basic resources are food. adults cannot work hard to lose their jobs e. It refers to the condition of the human body in terms of fitness. 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. retirement Country 122 . Poorly ventilated areas also lead to poor health.g. ill health weakens the body hence it becomes vulnerable/prone to a variety of diseases. germs & bacteria can easily infect the human body.

cholera b) Diseases carried by animals. TB. polio. provision of clean water free from impurities TYPES OF DISEASES A) Bacterial & viral.Generally production goes down including GNP. blindness. AIDS. infrastructure. 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. sleeping sickness STRATEGIES FOR BETTER HEALTH CURATIVE METHOD 123 . SARS. VICIOUS CYCLE OF POVERTY Vicious cycle of poverty Low resistance to Diseases ill health Cannot work hard Malnutrition. The country becomes poor. The government begins to assist the poor hence resources are further drained. nutrition. bilharzias. telecommunications & power. malaria. Waste resources More money is spent on medical care & less is spent on other equally important services such as education. entertainment. fever. education & education. Syphilis.

soil & air & this is a health hazard. churches & children can teach each other on various health services e. There should be laws in place to regulate the whole process. antenatal (pre – birth) classes for pregnant mothers.Environmental health Industries pollute water. They provide health services at affordable prices. Clinics provide a number of services which include the following. in schools.g.g. Clinics & hospitals are provided for this purpose. .It refers to the provision of nurses & doctors to cure the ill & the injured.Diet People ought to eat a balanced diet & this is food with all nutritional requirement e. Communities are also responsible for good health e. 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’. *Immunization to prevent diseases *Information on child development *Family planning services & guidance on safe sex *Treatment of illness & injuries .g. STRATEGIES *Diet *Housing *Health education *Water provision *Sanitation *waste management *environment . through PACT ROLE OF GOVERNMENT ON HEALTH ISSUES Governments are normally responsible for the health of their citizens. vitamins & minerals. there are health committees in some communities such as the ‘home based care’. . Dirty water accounts for poor health (ill health).g.Health education Information can be passed through a number of ways e. HEALTH SYSTEMS 124 .Local health service This are in most cases clinics staffed by doctors & nurses.Water & sanitation It involves ensuring that water is suitable for drinking. carbohydrates. .

modern medicine . preventing their reoccurrence & protecting patients against evils such as witchcraft. medicine men e. . In other words it is a way of diagnosing diseases & prescribing treatment using unscientific means or methods.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 ADVANTAGES 125 .t.There are two systems namely. herbalists. magicians. 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.traditional medicine TRADITIONAL MEDICINE This is a craft of providing treatment. establishing causes of illnesses.

g. Traditional healers have big knowledge &understanding of their patients.g. Vaccines – they are medicines helping the body to develop immunity against diseases. Diagnosis – procedures that are used or put in place to determine the nature & cause of illness/disease. It is complicated & needs specialized surgical doctors. 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. They enable the health officer to study the inside of the body. It is based on a number of related & complicated facts. local environment. ADVANTAGES 126 . 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. X-rays – electromagnetic ray gadgets that penetrate the body to produce a picture of the affected area. Transplants – replacement of damaged/ill organs Transfusions – transfer of blood or any other fluid from a donor to a recipient Surgery – treatment through operation. the amount of medicine to be taken & how regular it has to be taken  There is high use of unhygienic instruments e. Drugs – substances that affect/influence ways in which the body functions & they treat diseases.

The most affected are the able bodied.T. for instance life expectancy has dropped from 69 to 39. educated young people. It is scientific. increasing government on health. . mental illness & epilepsy  Chemicals.T. AIDS.Botswana remains the hardest hit in sub-Saharan Africa with an estimated prevalence rate of 38.C. A lot of money is spent on programmes such as P.g. cancer. The social games of yester years (high life expectancy.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. high standards of living) have been reversed by this scourge.6%. productivity has been severely affected due to 127 . . low infant mortality rate. it can be dangerous to the patient  It fails to cure some diseases e.M. drugs & other substances can be dangerous to the environment THE IMPACT OF HIV/AIDS ON BOTSWANA’S HEALTH SYSTEM & ECONOMY Negative effects . & drugs such as AZT & anti – retroviral drugs & on research & equipment. 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. In addition to this problems. to try & address the problems caused by this scourge.

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.The costs involved for the caring of the sick & eventually burying the dead have been immense on the affected families. treatment. Some have found themselves heads of their families/breadwinners.absenteeism by sick workers e. government offices & even in hospitals & medical institutions there are some people who have been infected.  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. It also aims to improve access to treatment of opportunistic diseases such as T. care & support to anyone. at the mines. S. diarrhea & pneumonia e. care. factories.t. It has caused emotional stress on surviving members of the infected persons.T.. life insurance & other related schemes have their funds over – used due to continuous claims .More government associations had been diverted towards projects on caring for an ever increasing number of orphans. . thus being under-utilized. Under the National AIDS Coordinating Agency (NACA) headed by the AIDS coordinator  NACA aims to improve accessibility to comprehensive prevention.g. support & reduction of HIV/AIDS on individuals. All in all the scourge of HIV/AIDS has had far reaching effects on the affected country. . Some less fortunate children have been abused or fallen victim to a number of malicious acts of unscrupulous members of the community.  It has also introduced the PMTCT programme for expectant mothers 128 . families & the community. plantations.g.c  The government has also introduced Anti – Retroviral Therapy to the public for all people living with HIV/AIDS legible for treatment. .Productivity is further affected due to workers taking day-offs to attend funerals of their colleagues & family members or to nurse the sick relatives.Ds.The scourge has increased the number of orphans in the country making it difficult to provide needs for these children.B. Some of the measures are:  Multi sectoral approach (all sectors of the society included). . Those who are no longer healthy enough are normally given light duties. by recruiting more nurses from outside the country & building facilities such as clinics equipped with giving the anti-retroviral drugs.Medical.

capacity building projects funded by ACHAP is done in partnership with the government of Brazil. Government is also mobilizing support from international donors & governments to fund efforts of fighting the HIV/AIDS scourge e. 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. COCEPWA. The purpose of giving a student a good education is to help the student:    To live a full & happy life To be able to work & earn a living To get on with other people well 129 . although education in itself is not a universal recipe for economical & social progress. What is realized is that one of the fundamental purposes of education is to enhance economic and social development. having a high social value & is regarded too important that it is provided free or is heavily subsidized.  Communities have been mobilized to set up & handle home based care patients who are chronically/terminally ill. Education is considered a merit good. BOTUSA. Tshireletso AIDS awareness centre. EDUCATION The teaching and/or training of mind & character There has never really been any argument over the link that exists between education & development. Education is fundamental element in the development equation.g.  The government has set up a research & testing centre known as the HAVARD (PARTNERSHIP) INSTITUTE. To that effect governments are involved in its provision rather than leaving it entirely to free market forces.g. the Bill & Melinda gates’ fund.  Government has encouraged NGOs & CBOs to participate in the fight against the HIV/AIDS scourge & facilitates the formation of such NGOs e.

It started in childhood through puberty & cultivated through adulthood of an individual. Percentage adult literacy rate is the percentage of literate people in the adult population from over 15 years & above. It absorbs a proportionately larger part of the economic resources of a society i.e. Society however considers it a worthwhile long term investment & reaps rewards in the long term such as having better qualified manpower. the 1997 budget in Botswana P1. crucial societal values are indoctrinated in the emergent generations. material & emergent aspects of society.1 billion. It is through education that vital skills. The process of education is long. Education is important in bringing about many aspects of cultural change in that it stimulates creative thinking & action in society. fundamental traditions. society or nation in that it ensures continuity. This transmission of knowledge is done through informal & formal means. Education differs from other services because it basically benefits the individual i. 130 . traditional. It ensures conformity to the norms of his/her society. Education is always considered crucial to a community. It is also important for ensuring his/her contribution to the development of his/her society.   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. Finally education encourages encompasses the whole range of societal activities such as spiritual. It has been practiced by all human societies at one time or another during their formation & development. improving the living standards & the quality of life of the individual. It facilitates development of his/her intellectual & rational thinking. It does not offer immediate returns to society who sponsors it. write & numeracy. Literacy is the ability to read.e. Education is a continuous process for the individual. The life of an individual in society acted as classroom & society at different levels was the teacher. TRADITIONAL EDUCATION Traditional education is as old as mankind. One of the measures of development is percentage adult literacy. secondary & tertiary levels. involving primary. stability & survival of such a group. 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.

it laid emphasis on individual conformity to the norms of that society. This bias is due to similarities that existed in this region in the pre-colonial period. society as a whole participated in moulding the required character of an individual. It promoted good manners & beliefs acceptable to society. failure of which was a great shame to the individual & the family concerned. It laid emphasis on respect for all elders in society regardless of their social or economic status. Droughts. .Initiation This was a major aspect of traditional education & was considered as a certification for acceptance into the adult world. THE BASIS OF TRADITIONAL AFRICAN EDUCATION Traditional education was founded on the basic principle of preparing the young for adult life in society. some very severe. was an acceptable part of teaching. Students emulated master crafts men more like the present systems on job training. It was mostly involuntary & did not have written guidelines to follow.Use of local language Traditional education used local language as its medium of instruction. It was apportioned as a deterrent measure against disapproved behavior. floods or wars usually broke out. 131 .In this chapter. It upheld the importance of virginity before marriage.Conformity Like other types of education. . Punishment. This made learning easier as it was the mother’s language of the students of a particular society. Traditional education was responsive to threats both natural & man – made. . CHARACTERISTICS . Its curriculum was very broad but encompassed those activities that made society function smoothly. When such things broke out.Teachers Despite the existence of master craftsmen. Although no rules were written down. everyone had to learn new skills of survival or skills to overcome these threats & avoid disasters. Every therefore was expected to actively participate in bringing up cultured children. social. religious as well as cultural values of a particular society. . only traditional African education as was practiced in sub-Saharan Africa will be evaluated. Approved behavior was rewarded accordingly. society upheld collective responsibility in educating children.Apprenticeship This education taught practical skills & trades through apprenticeship. It was based on the economic. since human societies are too varied.

skills & ideas amongst tribes of a given area. They were taught roles as men & women. As a result. There was limited interdependency between tribes. Brutal but necessary ordeals such as circumcision were performed. There were however serious shortcomings in this type of education especially with regard to modern times which require modern ways of doing things. 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. their responsibilities towards their husbands & wives. This was the climax of the initiation school because it was meant to train them how to endure pain.Traditional education covered both theoretical & practical aspects of learning although buildings now referred to as schools did not exist. parents. different rites were expected to be performed by the initiates such as abstinence from certain activities & food. children & society with regard to family as a unit in society.  Each tribe tended to maintain & protect its language zealously. They were rewarded gifts after the successful completion of the initiation school. Boys were isolated from the girls & remained in these isolated camps for different periods of time depending on the tribe. Teachers had no formal training but there were peer groups. This meant that sometime teachers themselves became learners when the situation dictated. In addition. Another area where traditional education was formal was the initiation period. As a result. there was a lack of development of a common uniting language for tribes in any given geographic area. This was characterized by separating the initiates from the village. Formal indoctrination was also conducted during initiation. This showed & limited diffusion of innovations. In these initiation camps. As mentioned elsewhere in this chapter. This took place when boys & girls reached puberty or came of age (bogwera & bojale).  Each tribe tried as much as possible to keep to itself & mistrusting neighbors. relatives in the nuclear & extended family as well as all the elders in society. It offered no examinations & awarded no certificates of achievement or attendance. expected behavior. The teachers & performers were the medicine men & priests. morals & the place of religious activities were given at this stage. learning started at a tender age & continued till death. 132 . it was also an examination & a screening exercise in that it served as an elimination process for the outfit. sacred traditions of the society & its love were inculcated into the initiates. Here. It satisfied the needs of an individual talent & ensured his/her service to the community & the eventual survival of his society.

protected the individual society against evil. 133 . This was a drawback because it was not possible to keep newly acquired knowledge. Writing & other means of recording were unknown in most African societies. making empirical observations & then making reasoned generalizations.INDIVIDUAL It emphasizes individual development.HERBALISTS These specialized in finding medicinal herbs in their environment which were used to cure a lot of diseases. apprentice herbalists e. that is similar experiments should yield similar results later elsewhere.  Traditional education depended solely on memorization & oral tradition. social & political advancement in society. invention. They resisted change & were suspicious of new intentions or ideas. This was a trade that needed continuity. solving problems of human knowledge. . They treated the sick. As a result they relatively at the same level of development for very long periods of time. . Some were ornamental & some with religious connotations. So there were apprentice blacksmiths. The medicine men were sometimes referred to as witchdoctors. This meant that a lot of information was forgotten & lost as time went by. innovations & skills. Christianity & modern or new ways of living that it introduced. They were the occult scientists of their days. It is essentially beneficial to the individual but society eventually benefits by having a better educated workforce (workers & teachers). people & spirits of gods. The results of findings could be verified. traditional education failed to respond adequately & was consequently obliterated. It tries to build up a body of scientific knowledge by experimenting. making changes & introduction of new ideas be it material or non-material in society.WOOD WORKING Master Wood workers. . petitioned the gods for help in times of need. All tribes & individuals were conservative to a very large extent. (blacksmiths & metal workers) curved statues of animals.INNOVATIONS It stimulates innovative thinking which encourages discovery. Most people consider formal education as a pre-requisite to individual economic. 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).c . It also meant that nothing was stored for future reference.t.  Faced with new challenges such as colonialism.

 Another reason is that education increases health education & chances of adopting family planning methods. Generally formal education includes primary. are interdependent & are based on standard curricula formulated by the government.EXAMINATION These are considered essential to modern education. HOW EDUCATION CONTRIBUTES TO DEVELOPMENT  Basic education improves worker performance in industry & agriculture. It provides necessary skills for self-employment & entrepreneurship. secondary & tertiary institutions.. Females with basic education tend to have fewer children than those who lack education.  On birth control.  Education can help prevent diseases that are linked with human behavior such as AIDS.  Education is important in developing human resource. It is equipped with professional teachers who are trained for that purpose. The programme of instruction is based on academic terms & years. They are conducted to test the acquired knowledge & skill. They are hierarchical in structure.e. They are also meant to objectively eliminate the weak from the next higher stage of learning since it is hierarchical in structure. education helps delay marriage age. institute or university. It has a physical structure i. college. . buildings & support facilities such as playgrounds.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. 134 . Education also helps the spread of technology. Besides illiteracy allows & encourages participation. The chances of survival of offsprings also increase with increased female education.e.SCHOOL This is a purpose or specially designed institution where children go to learn.  It can help prevent degradation of the environment because it creates awareness of the environmental issues & develops a sense of awareness. . a student has to progress from the lowest level to the highest. social & economic decision making in his local area or country. A school may be called other names depending on the levels of learning that they offer i. Moreover it trains the workers of the future. An educated person can take part in the political.

secondary schools are fewer. Educational requirements also take into account other variables – scarcity or shortage of manpower in different fields. It is projected that by the year 2003.t. more technical & science based professional disciplines receive more generous financial support. Students following areas of critical manpower shortage i. length & affinity of acquiring training e. localization. EXAMPLES OF NON – FORMAL EDUCATION 135 . 50% of students would go to senior secondary school education from the 203 network of CJSS.e. equipped. There are a number of private schools in Botswana mostly located in urban areas. The table below gives an idea of the education establishments in 1997: primary secondary vocational Primary teacher training Secondary teacher training university 700 261 40 4 2 1 NON – FORMAL EDUCATION This is the type of education which takes place outside school & has no age limit. The stress is on whether the student can do the task rather than write about it. Private schools can alleviate the situation by working in partnership with the government. Certification may be part of this schooling but examinations are not given much importance. Private schools however. the government operates a system of grants/loans starting from 1995. This was reorganization from the previous 7 – 2 – 3 system. There are 27 senior secondary schools at the moment. housed & paid for their labour. they are owned & run by business people who need to make profit. maintained & teachers trained. Learning takes place at any convenient place such as outdoors. are expensive. Above all. The system is primarily based on the manpower needs of different sectors of the economy. Education is provided at zero cost to all Batswana from standard one to form five. In tertiary education.c Provision of universal education to a nation is very expensive because schools have to be built. Most of them are primary schools that offer English as a medium of teaching from standard one. in someone’s home or workplace. it brings about personal fulfillment & reduces poverty. EDUCATION IN BOTSWANA Formal education is organized on a 7 – 3 – 2-year systems from 1998. These are deemed essential to the development of the country.

Learning circles Learning circles are groups of people who meet to share their skills & teach one another. . knowledge of how the environment functions. Trained teachers or community members could be involved in literacy classes. Education can give skills to students which will enable them to take positive actions in their lives. Education develop attitudes that embrace a set of values & feelings of concern for the environment & the motivation for active participation in environmental improvement & practice. .Non formal education can take some of the following forms: . The government through the department of curriculum development & evaluation has designed a curriculum for environmental education. PARTICIPATION – to encourage students to become actively involved in using their acquired skills in taking proactive steps to rectify environmental problems 136 . motor vehicle emissions as well as littering. skills for identifying. investigating & resolving environmental problems & issues.Agricultural education Agriculture extension workers visit farmers to instruct & demonstrate farming skills such as growing crops. Mothers are taught things such as how to feed & take care of babies. applying fertilizers & other things. how environmental problems arise & how they can be resolved.Health education A good example is the knowledge that is imported to mothers at the antenatal & postnatal clinics by nurses. . It teaches them awareness of & sensitivity to the world around them. This is to help the children to see & understand the pros & cons of taking care of the environment. Examples include industrial & agricultural pollution.Literacy classes This involves teaching adults with little or no schooling how to read & write. raising animals. In Botswana they are called Agricultural demonstrators. 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.

1995) .making decisions & distributing resources (Stuart. judiciary & Executive).POLITICS AND DEVELOPMENT Explanation of concepts.State . quality of life improves.Politics . the government (legislature. how legitimate is this government & to whom is he/she Accountable to (Martinussen. 1996) . what authority he yields.Development. Characteristics  Leadership is hereditary  Head of government is a king or queen NB. civil service & the private sector (Clark.an embracing term which refers to the interaction between all players In the political bickering.g. wealth is shared fairly & more people take part in decision making (Stuart. e.when society changes for the better. standards of living rise.g. the civil society. . Lesotho. .who gets power. 1997) . where the head of government is a prime minister & is elected. 137 . Over time monarchy has become irrelevant & has since been replaced by Constitutional monarchy.Government GOVERNMENTS OF THE WORLD MONARCHY This is a system of government where the head of government is a king or queen. Swaziland & Morocco. when the economy grows. how does he get into power. 1996) . e.

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. 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 ONE – PARTY STATE 138 . 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. religious. Characteristics           The people can choose their leader Representatives are accountable to people There are guaranteed basic freedoms before the law (freedom of speech.PARLIAMENTARY/REPRESANTATIVE DEMOCRACY/MULTIPARTY DEMOCRACY This is a system of government where people are elected to go & represent others in council or parliament for a limited. ethnic. press.

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 139 . 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 country where there is a single party & it’s the ruling party Characteristics    There is a single political party They may be elections.

 Planning development  Providing health care Interaction of economic. income. 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 development MOBILIZATION OF RESOURCES a) Mobilization of economic resources            Government can acquire revenue through the following: Taxes e. 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 140 .g. social & political aspects of development. sales.

structured & sufficiently autonomous non – profit making support development (Kane 1990: 14-15) Types of NGOs a) Relief & Welfare Agencies (RWFs) . Thari ya Banana of Molepolole 141 .b) Non – economic resources • Human resource development • 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.Northern funded NGOs which work closely with southern governments & aid agencies e. privately set up non-profit making institutions that support. Characteristics privately set-up.g. either at council.g.g. manage & facilitate development action.Locally based southern NGOs whose members are poor & oppressed & which Attempt development process e.Those that provide the needy with a service or a need e.Those which operate their own projects to pioneer new improved approaches to Solving problems & which tend to remain specialized in their chosen field e. Foundation of Education with Production. 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. The Grarameen Bank & Women against Rape c) Public Service Contractors (PSCs) . Missionary societies & the Red Cross b) Technical Innovation Organizations (TIOs) . These are often contracted to implement components of official programmes because of their size & flexibility d) Grassroots Development Organizations (GDOs) .g.

e) Popular Development Agencies (PDOs) -Northern NGOs & southern intermediary counterparts which concentrate on self-help. 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. social development & grassroots development. e. Recruitment is one of staff who can follow orders & be awe to the leader b.        Providing for the unprovided for/marginalized/serving the poor Shaping national policies Advocate for just development Popular participation Empowerment Poverty alleviation Mobilization. • Local elite domination of decision making • No innovativeness. YWCA f) Advocacy Groups & Networks (AGNs) NGOs’ roles include. 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 142 . but benefits the easiest to reach. Inter staff rivalry between local & foreign staff Project design: Projects do not really benefit the poor. lobbying & advocacy 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 Strengths        Weaknesses Leadership problems: a) NGO staff resent & impedes strong leadership b) Irreplaceability of charismatic guru-like leaders.g.

• • • • •

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 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 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

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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.

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g. 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. Each of the member countries unilaterally imposes tariffs on non member countries. Beyond common market. regional integration also serves as a mutual political forum to articulate the voice of the regional grouping. transport and taxation e. It is imperative to harmonize the economic 146 . The economic. SOCIAL Regional integration is also social in the sense that the interaction of people within a regional grouping takes at a social level. good governance and other pertinent issues as they arise. democracy. to generate a great amount and share of external trade and raise the standards of living of the populations of 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. such as railways or posts. POLITICAL Aside from economic pursuits. A good example is the Southern African Customs Union (SACU). common tax system or plan new industries together. Latin America and Asia. 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. It has become common for regional economic groupings to promote such as peace. especially in Africa. same central bank and currency. Customs union – free trade between member states but all members must operate a common external tariff on imports from non member countries. the general aims are to promote more trade between its members. the economic motive overriding. Politics is an integral part of regional co-operation. the European Union. political and social dimensions of regional co-operation Although there are various types of regional integration.- Economic integration ‘promotes economic growth or development. Some of the forms of economic integration are as follows: Free trade area – no tariffs or quotas between other member countries. In short. countries may run common services together.

often workers in one country 147 . especially labour and capital. the case of Somalis. Thus the issues of cultural similarities. Larger administrative units: greater efficiency is ensured administering or planning for larger rather than small units. Botswana/Namibia. Political advantages countries with similar interests 1. one on machines/tractors. social and cultural ties among the southern African region. ECOWAS fighting to stop UN sanctions on Liberia. One of the aims of SADC is in fact to consolidate historical. Presenting a united front: often speak with one voice in international affairs. Nigeria/Cameroon. language and other factors have to be taken on board and complement the primary economic goals. These are not advantages associate with a large market but with states combining to operate these common services as one unit. non – competitive positions due often to complacency or stifles efficiency. However. 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. Economic advantages Specialization – common market countries benefit from specialization.g. Wiping out colonial frontiers: frontiers/borders of many developing countries drawn by colonial powers according to their political interest. into French. Italy and some in Kenya. British.g. Each produces according to comparative advantage e.g. Coming together often means more firms in the region or efficiency assured due to competition. Ghana/Togo. airways. Increased competition – poor/third world countries often have fewer firms with monopolistic.g. rail and road transport as well as power. Economies of scale – several small countries come together to form common market so as to enable large industries to operate without any losses. differences. SADC region Operation of common services – e. Often such boundaries do not fit any sensible geographical.pursuits and ideals with the social ramifications within a region. 3. etc. telecommunications. Mobility of factors – where there is close economic integration the factors of production can move freely. 2. tribal or economic pattern e. another in textiles while another in insecticides.

South Africa dominates SACU portionately. SACU provided 37% of Botswana’s government revenue. 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.would object to competition from immigrants from other territories. SOUTHERN AFRICAN CUSTOMS UNION (SACU) Members of SACU are Botswana. Before the advent of a mineral led economy in Botswana. South Africa’s economic might has virtually made it impossible for Botswana to 148 . Namibia and Swaziland. 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. regional security and coordinated fight against crime and drug peddling. The role of regional co-operation in the development of Southern Africa Regional co-operation is a worldwide phenomenon. SADC has developed into a strong regional community to deal with other pertinent issues as diverse as the promotion of peace. revenue from SACU was an important contributor to the country’s GDP. In Africa there are many regional groupings for its many geographical and cultural regions. as this would tend to keep their wages down. The figure was much higher for Swaziland (60%) and particularly Lesotho (71%). Various protocols have been signed to implement such policy areas. Beyond the purely economic objectives. Despite the income from tariffs. two regional communities come into focus: SADC and SACU. The other countries cannot set up their own import duties. It is the treasurer and obliges other member states to trade with South Africa because they must get all their imports through it. democracy. 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. South Africa. Lesotho. Consider for example. SACU was formed in 1910 and it has played an important role in southern Africa. Among the aims of SADC are to increase trade among member states. SADC which metamorphosed from a coordinating conference (SADCC) in 1980 to a community in 1992 has 14 members. In 1981/2.

 The SADC trade protocol of early 2000 increased intra-region trade by 22%. 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. Zambia. The DRC crisis has excruciated instability in the region. Poverty is still pervasive. For weaker economies like Lesotho.  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.3 billion. Challenges facing SADC  Political tensions as for example in Angola still persist.g. Some of the achievements are the following.  Foreign assistance has continued to flow from various organizations as the EU and governments like the USA  There has been an improved investment climate. South Africa. Mozambique and now Zimbabwe. the pertinent question that has been posed is whether SADC has been successful. It is expected to increase to 35% by 2008. the southern African region should have achieved more. this defeats regional integration  Some countries’ economic position has worsened over the years despite SADC e. By 1990. for this reason development has been compromised.  Trade relations by SADC countries are much stronger outside the region than between members. the revenue from SACU would be a viable source of revenue to fund its development projects. Diverse countries have to cooperate as one family. 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.  Many projects have been implemented. 490 projects had been implemented worth $6. though dominated by one country. Malawi.  Most economies are largely agriculturally based with small national incomes. Has regional co-operation succeeded in southern Africa? Since its inception in 1980. Failures The SADC has had its share of problems and failures:  Considering the period since its inception.industrialize. Consider the quarrel over the use of the 149 . reliant on international aid and have severe international debt problems.

This situation is inimical to regional co-operation  Heavy foreign debts in some member countries have militated economic growth in these countries. A stable. whose population is about 200 million with a combined GDP of 180 billion dollars. 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. Botswana ranks as one of the countries with a steady economic growth averaging 6% per annum 150 . conflict free and democratic dispensation in a region helps to attract foreign investment which is pivotal for economic growth.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 What is the way forward for regional co-operation in southern Africa In light of the challenges facing regional economic integration. The despotism in Zimbabwe for example. 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. in particular the question of tariffs. 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. In terms of economic performance. Naturally. war and instability as evidenced by other parts of Africa. what is the way forward? Obviously there is an imperative to strengthen regional co-operation in southern Africa. The most important way forward is to build democracy and good governance. Namibia and South Africa off than others. and it is initially in the political sphere that economic ideals can be best achieved. Botswana as a member of the southern African region Botswana is a member of the SADC region. 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. b) Political front Regional economic integration presupposes a healthy political climate. attempts to stifle the press recently and the attempts to reverse democracy in Malawi and Zambia set a bad precedent.

Botswana can take advantage of its membership’s high investment rating.and with healthy foreign reserves. 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. 3. From the point of raw material to the coats of point of export. can help the country to industrialize and diversify its economy. Botswana is greatly disadvantaged in its desire to industrialize. Poor communication – most transport networks in Africa seem to follow a similar pattern. Uneven distribution of new industries .unfortunately industries tend to concentrate themselves in far places because of the external economies of scale. Uneven distribution of costs of protection – some are advanced industrially while others are not. Problems of economic integration 1. With its already healthy economy. Membership to SADC. This legacy still lingers on. Poor new nations often have too many internal squabbles to grapple with let alone countenance regional socio-economic and political coalition. international trade makes possible ‘a more efficient employment of the productive forces of the world’. 4. by which the country can have access to a large market. Tanzania and Uganda – Tanzania socialist while Kenya capitalist united – such marriage difficult to thrive. Specialization performs similar 151 . With a population of about 1. stable government and a fairly well developed infrastructure are positive attributes which can push it to higher development levels. 5. 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. Kenya. Fears of fiscal (tax) redistribution – richer nations within the union tend to harbour the pain of having to share their wealth with others. Problems/difficulties of political integration Regional integration is often fought with different social or political ideologies incompatible with smooth unification e. INTERNATIONAL TRADE According to John Stuart Mill. 2. Guinea in West Africa declared it could not pursue regional alliance due to her purely socialist approach to issues.g.4 million only.

trade deficit. televisions. 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. One of the basis for international trade is that no country is entirely self sufficient in the world. balance of payments. consumption.g. imports. The heterogeneous nature of land makes the concept of interdependence all the more important – since natural resources of the world are very unevenly distributed. developing countries. surplus. International trade originated on the basis of nations exchanging their products for others which they could not produce for themselves. coffee. 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. Therefore it can be referred to as the exchange of goods and services between nations. exchange rates. Wiser governments are able also to accumulate capital which is an important ingredient in economic growth 152 . distribution. cars. resources and devaluation. 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. specialization. video. exports. Standards of living will increase due to the increased household income  It increases specialization which leads to mass production. comparative advantage. primary products. the goods which embody the resources must move. gold. This is due to the unevenness in the distribution of gifts of nature over the world. • 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. This results in prices being lower  Developing countries gain access to international markets for their primary products like cocoa. production. differences in climate. 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. International trade arises because.functions in national and international economies. cotton and minerals such as copper. diamonds. Related concepts Balance of trade. rubber. 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.

International trade leads to interdependence. 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.Limitations/disadvantages of international trade Trade internationally. minerals or skilled personnel and advanced technology. Eminent economists have suggested that international trade can be a positive force in economic development. 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. Trade can be instrumental in offering opportunity for specialization and the division of labour. prevent the optimum use of scarce factors of production. Quotas could also be used as well as buffer stock schemes. 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. - 153 . It increases the productivity of the available resources. that unrestricted free trade can have adverse effects on certain countries and particular groups of people hence the imposition of certain trade restrictions. In times of war when the supply of sources of essential goods are closed down. and many people are poor or without jobs) It breeds competition. aborts the advantages of specialization and exchange. one being that countries have different factor endowments either in the form of raw materials. 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. Poor countries supply raw materials which the advanced economies strengthen their industrial base through constant supply of raw materials. is said to benefit the richer countries more than the poor. Tariffs disturb and restrict the free movement of goods and services. It has been argued though. International trade takes place for a number of reasons.g. Tariffs reduces and could even shut off trade altogether between two countries. Free trade benefits unequal partners breeds ‘master servant’ relationships in trade.

These policies prevent consumers from taking full advantage of international trade. Tariffs (import duty) – these are taxes put on imports to increase their prices. 3. This is done to protect local industries and also generate state avenue. includes entrepreneurs to innovate. Political boundaries – these regulate the flow of goods and services into a country. the higher the incomes and the employment will be. The more goods and services a country produces to satisfy domestic and external demand. This is used by government to limit the amount of money needed to pay for imports. These policies are referred to as protectionist policies. 154 . Reasons for protectionism  To keep incomes and employment at a high level. to make greater use of machinery and to facilitate specialization and the division of labour. This reduces the free-flow of goods and services. 5. which encourage the consumer to work harder. Economic nationalism – this measure leads to discrimination in favour of home producers. the government may not allow cattle from a foot and mouth infected country to cross into Botswana. forcing them to buy locally produced goods. The whole network of measures used is referred to as protectionism. PROTECTIONISM Various goods ad services have a number of policies that are formulated to interfere with the free flow of international trade. It also suggests new wants to consumers and inculcates new tastes. International trade promotes international competition – entrepreneurs are compelled to contrive means of reducing costs. These taxes make imports more expensive to buy. Traders have to cross at certain points in order to declare their goods. 4. Exchange controls – international t6rade involves foreign currency exchange. They also restrict he free flow of goods and services across international borders Types of protection 1. hence discouraging buyers from buying foreign goods as they will be more expensive than locally produced goods. International trade increases real income. International trade has an important educative effect. For example. This is because these policies are used to protect local industries from foreign competition.- International trade widens the extent of the market. This limits the consumer’s choice of goods. 2. Quotas – this measure limits the quantity of imports that can be brought into a country by importers every year. The government may decide to use health and safety regulations to limit the type and quantity of goods imported into the country. ensures high levels of savings and investment. Entrepreneurs and exporters tend to have high savings propensities. It is the means whereby skills and technology are transferred from one economy to another.

the long established manufacturing industries of south Africa have an advantage over those recently set up in Botswana. raw materials and import manufactured goods. Therefore countries in which the goods are being dumped would impose high tariffs on those goods. oil producing countries were not able to control the prices of oil that were always • 155 . To correct an unfavourable balance of payment. The main aim of foreign producers is to establish a monopoly in the importing market. This narrows the market because trade can only be conducted with those countries with few restrictions.     To protect infant industries. As a result. Before it was formed. the price of primary products should also rise. Disadvantages of protectionism  Sometimes local industries develop slowly because there is no fear of foreign competition. 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. Producer cartels – the best known cartel is OPEC. This means that if the price of manufactured goods rise.g. As soon as the field is empty. Developing countries export primary commodities e. A newly et up industry may be at a disadvantage compared to similar industries overseas e.g. developing countries have tried to come up with reform systems collectively. To make a country self-reliant. local industries are protected and given chance to develop by imposing tariff on outside products. To prevent dumping. the foreign producers raise and enjoy profits. • 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. Developing countries rely heavily on this revenue because other forms of tax are unable to raise sufficient money for government expenditure. This pattern is a result of colonialism and it has made it difficult for third world countries to earn foreign exchange to develop industries. This leads to a waste of economic resources because money has been invested in order to achieve economic development. To raise revenue. Higher tariffs and strict exchange control regulations can be used to reduce imports. Taxing imports and exports is a way of raising revenue. Dumping refers to the selling of goods in foreign markets at prices below those charged in the home market. Local producers will be driven out of the market by the low prices.  Protectionism narrows the market – trade with other countries becomes difficult due to the restrictions imposed. The government of Botswana therefore prevents the import of particular manufactured goods so that the new industries can become properly established. In order to enable a country to provide for all its basic needs particularly in times of war.

They were competing for the sale of oil. 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. Each wanted to sell at a lower price in order to sell more. Regional cooperation schemes – many countries are coming together in an attempt to overcome existing international trade patterns e. They were also able to limit the supply which made it possible for them to keep prices of oil at higher prices. Its members coordinate their projects to ensure that they produce a particular commodity for the whole region. BARTER SYSTEM Before colonialism. When OPEC was formed.• changing. 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.g. 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. This can help them change the present pattern of trade. those with a lot of resources will benefit more. Prices of oil were always low while prices of manufactured goods imported by the oil producing countries were always increasing. In this way. countries in the region can trade with each other instead of trading with Europe. SADC. Free trade may increase world production but this often helps some countries more than others. 156 . 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. It is usually characterized by few or no import tariffs which enables the forces of demand and supply to work. That is. countries in Africa used to practice bartering.

Terms of trade in developing countries are falling due to unstable prices. If the terms of trade decline or fall. If they have risen. Developed countries still dominate world trade even after colonialism 3. usually a year. Over the years. BALANCE OF PAYMENT A country’s balance of payment shows the relationship between a country’s receipts from others and the payments to others. 2. A positive or favourable balance of trade means that a country is exporting more goods than importing them in money terms e. a country is said to have a balance of payments surplus on current account. .ii.g. they can be described as favourable. The effects are as follows: 1. Most of the demand for raw materials comes from the north. the south is affected because the demand for primary products may go down. The items of the current account are further classified into visible and invisible items. Exports – P4 billion Imports – P6 billion The deficit is P2 billion TERMS OF TRADE This refers to the rate at which exports buy imports. Ease access to resources will lead to exploitation Greater mobility of labour from area tom area will leave other countries with few skilled human resources BALANCE OF TRADE The balance of trade shows the value of goods sold and brought by a country during a given period. When the north goes through technological changes. If the total value of visible and invisible exports is less than the total 157 .g. 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. It is classified into the current account. 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. If the total value of visible and invisible exports exceeds the total valu8e of visible and invisible imports. they can be described as unfavourable. They export more to buy few manufactured goods. terms of trade in developing countries have declined mainly because they export primary products and they are not as profitable as selling manufactured goods. iii.

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. It is an effective method of controlling the quantities of imports. b) Control of imports Imports are controlled by tariffs and quotas.For safety .For investment abroad . d) Devaluation 158 . Raising interest rates iii. the monetary movement account tells us how a deficit is financed or surplus is used up. this will reduce imports. prices tend to go down and exports are more attractive to foreign buyers. Since foreign payments are made in foreign currencies. Though that is the case.As a gift from one country to another . c) Exchange controls A government can reduce the amount of foreign exchange currency bought and sold. Reducing bank lending ii. a country is said to have a balance of payments deficit on current account. When demand is low.Capital account The balance of payments is also affected by capital movements which may be made by private individuals or firms or government agencies. In other words.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.As loans . Increasing taxes iv.By exporting minerals .By borrowing money from developed countries or IMF .value of visible and invisible imports. i.By selling foreign investments . Cutting government expenditure The aim of this method is to cut down domestic demand and reduce imports. A deficit on combined current and capital account can be paid in several ways: . in order to correct a long term deficit.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. . There are four reasons for capital movements from one country to another: .

g.g. the final major source of third world foreign exchange is public bilateral and multilateral development assistance. . the American buyer now pays $750 for one tonne of beef at the new exchange rate.Allowing foreign investors to set up companies e. multinationals FOREIGN AID In addition to export earnings and private foreign direct and financial investment. resources. technical assistance.Investing in foreign countries . such as American dollars and British pounds. economic motivation Types of Aid a) Bilateral Aid b) Multilateral Aid Forms of Aid a) b) c) d) e) f) Gifts of consumer goods Loans and grants Direct investment Technical and direct assistance Education Trade 159 . On the other hand one that gets or receives aid is a Recipient. FOREIGN EXCHANGE This is what economists call money that is acceptable to all countries. At the same time. A country or organization that gives aid is a Donor. If the pula is devalued so that $1 = P4.This involves lowering the exchange rate between a country’s currency and other currencies e. In other words.Trading with foreign countries . devaluation keeps the prices of imports more expensive and that of exports cheaper. bilateral aid. As a result. it is now more expensive to pounds therefore it will be expensive to import American goods. In other words Foreign aid is assistance from outside. tied aid. Related concepts Multinational donor agencies. This will encourage the American to buy more goods from Botswana. grants. known also as foreign aid. political motivation. $1 = P3 An American importer could buy 1/10 of beef costing P3000 per tonne for $1000. the value of pula has gone down in relation to the pound. Countries can bring foreign exchange through. multilateral aid.

Cold war Moral and humanitarian desires to assist less fortunate e. thereby permitting higher rates of capital formation and improved levels of material welfare. Motives for aid This has been categorized into two broad areas: . 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 160 .g.g.Donor oriented .The political importance of the recipient country to the donor country .The recipient country’s need for aid and its need for aid and its growth performance . water and bridges etc • Where finance is lacking. roads.Cold war factors . 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.The availability of other alternative sources of assistance Bilateral aid does not significantly depend on recipient need. 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.Why donors give aid Primarily because it is in their political strategic and/or economic self interest to do so. recipient need to provide a reasonable explanation of aid allocation. (emergency food relief programmes). schools. but for multilateral aid.Development oriented Four motives for granting aid to developing countries (1992): .

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. aid has been both direct and indirect through international financial institutions – IMF. Here again. but in more recent years much has been given to developing nations. and ADB. It also enhances technology transfer. IBRD. It fosters the concept of interdependence by allowing ‘haves’ of the world to lend a helping hand 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. 161 . political and social might of richer countries over poor ones In addition to their endeavour to promote world trade.• • Aid encourages and facilitates mobility of labour to where it is most needed. funds have been utilized especially for reconstruction purposes. Since World War II. the developing world has extended considerable amount of direct economic aid to other countries.