ECONOMICS PROJECT

INDEX:
i. Abstract

ii. Introduction of India

iii. PESTLE analysis of India

iv. Introduction of Botswana

v. STEEPLED analysis of Botswana

vi. Education and Consultancy industries of India

vii. Education and Consultancy industries of Botswana

viii. Comparision of different factors between India and Botswana under PESTEL and
STEEPLED form

ix. Bibliography
  ABSTRACT :
Economics is about dealing with and making choices .In our daily life we all make
different types of choices like how much should we spend on a dinner? What job should I
go for ? whats the best thing in life for us ?etc .
Economics is basically a social science concerned with the production,distribution,and
consumption of goods and services. It mainly focuses on how individuals , governments,
businesses and nations make choices on allocating resources to satisfy their wants and
needs .
Economics can generally be broken down into 2 parts , which are :
 Microeconomics
 Macroeconomics

Microeconomics basically deals and focuses on how individual consumers and

producer make their decisions.

Macroeconomics studies the overall economy. It can include an explicit geographical

region, a county, a continent or even the whole world, which also includes several
other factors like performances, structure, behaviour and decision making .

Here in this project we will mainly deal with Macroeconomics, we will analyse two countries
INDIA and BOTSWANA. There would be PESTEL analysis on India and STEEPLED analysis
on BOTSWANA, and we would also see the Education and Consultancy industries aspect of
India and Botwana . Later on we would compare the factors of education and consultancy
industries of both the countries with the help of PESTEL and STEEPLED form.
 INTRODUCTION TO INDIA :

 India is considered to be the worlds second most populated country with a population of
more than 1.2 billion which is situated in South East Asia ,is the seventh-largest country
by geographical area, and the most populous democracy in the world . It is surrounded by
the Indian Ocean to the south, the Arabian Sea to the southwest.It shares its borders with
Pakistan to the west ; Bhutan , China and Neopal to the northeast ; and Bangladesh and
Myanmar to the east .

 India gained its independence in 1947,and since then its developing into an open-market
economy.Over the past decade , the country’s integration into global economy has been
accompained by economic growth.Economic liberalisation, involving reduced controls
over the foreign trade and investment , had already beagn in 1990s and has served to
accelerate the country’s growth rate which is estimated to 7.3% in tax year 2018/19 .

 As the time has passed by the country has achieved self- sufficiency in aspects of food
and grains as a result India is now a net exporter of food.

 India has already become worlds third largest economy in purchasing parity terms , and
its looking forward for to make better life’s of all its citizens and become a high- middle
income country by 2030,well before the centenary of its independence.

 Life expentancy in India has more than doubled , literacy rates have quadrupled,health
conditions have also improved .

 India is now zhome to globally recognised companies in pharmaceuticals,

automobiles,steel and information and space technologies.

 India is now the export hub for software services.It is also becoming a destination for
medical tourism as a result of cheaper but quality healthcare services.

 Long term GDP growth of india has become more stable , diversified, and resilent. In
upcoming years india is epected to grow at well over 7 percent per year , with progress
being stanchion by dynamic reforms in the macroeconomic,fiscal,tax and business
environment .
  PESTLE ANALYSIS OF INDIA :
Pestle analysis is a framework or tool used in the environmental scanning component of
stategic management .

This PESTEL analysis of India aims to address the political, economical, social, technological,
environmental,and legal issues concerning about the country .

a) POLITICAL FACTORS :
 Being one of the largest democracies in the world , india runs on a federal form of
government.The political environment of india is greatly influenced by factors such
as government’s policies,politician’s interest , and the ideologies of several political
parties.
 In india president has no legislative power ,he is just a figure head whereas prime
minister heads the government of india .
 Democratic will of the people of india is reflected in the local and national elections
is mostly admired and accepted by the political parties in general.
 As a result , the business environment in india is affected by multivariate political
factors. The taxation system is well developed and several taxes, such as income
tax,services tax and sales are imposed by the Union Government.
 This political environment of tolerance majorly contributes immensely to maintain a
stable political climate which is in fact a very important factor to attract foreign direct
ivestments(FDI).
 The indian Government has taken the initiave to encourage free business through
various programs as it also influences privatization.
  The main concern in india is corruption ,it vigourosly affects the country’s business
and political environment, which eventually leads to the barrier of country’s
economic growth.
 Corruption eventually increases the cost of business operations and this corruption
often affects foreign direct investment.
 But due to growing public awareness and government initiatives are slowly slowly
overtaking the challenges of corruption .

b) ECONOMIC FACTORS:
 India has emerged as the fastest growing major economy in the world and is expected
to be included in one of the top three economic powers of the world over the next 10-
15years , backed by its strong democracy and partnerships.
 The economy of india has been significantly stable, since the introduction of the
industrial reform policies in 1991.
 As per the policy, reductions in industrial licensing, liberalization of foreign capital
,formation of FIBP and so on, has resulted in a constant improvement of india’s
economic environment.
 India was registered as 5% improved GDP in 2014 than 2013.
 As per the IMF 2017 economic forecast ,india’s GDP has become $2.4 trillion
making it the 7th largest economy in the world by the nominal GDP.
 There are few economic factors which are determinant of economic development of
india :
i. Population and manpower resources
ii. Natural resources and its utilization
iii. Capital formation and capital accumulation
iv. Capital output ratio
v. Favourable investment pattern
vi. Occupational structure
vii. Extent of the market
viii. Technological advancement
 In the following years India’s Labour force is expected and assumed to touch 160-170
million by the 2020.

c) SOCIAL FACTORS :
 The social factors of India comprise of various social trends and changes like values,
festivals, languages, traditions, belief, lifestyle, demographic features and customs.
 India is multi-lingual, multi-ethnic and multi religious country.
 Here communal harmony is the greatest strength, though the country sometimes
witnesses problems in the ethnic line.
  It has world renowned film industry and for some sports too, like Cricket and
Hockey, which attracts the young talent to take part in these organizations.
 India had made its place in the most attractive market in many of the sectors, the
standard of living is gradually changing and improving and the country has a growing
middle class with good disposable income.
 However there's a major problem of the poverty in India and according to World
Bank, 1 out of 5 people still suffers from being poor.

d) TECHNOLOGICAL FACTORS:
 This factor influences economy as a whole within its core by significantly influencing
product development and introducing fresh cost cutting process.
 India is considered to be one of the most technologically Advanced countries in the
world. In fact as per some of the sources India is looked upon the 3rd most
technological advanced country in the world.
 With an advanced IT infrastructure and highly skilled IT work force, India offer huge
opportunities for entrepreneurs to embark upon technological projects such as
software development and upgrades, e-commerce, mobile apps, business solutions,
etc.
 At recent times, India has also launched their satellites to space and is gradually
looking forward to be a strong space power too.
 Technology has resulted In both the ways, Modernisation and Complexity
The scientific and technological inventions have modernized India in quite a way.

e) ENVIRONMENTAL FACTORS:
 With a population of over 1.3 billion, India is soon set to dislodge China as the most
populous country of the world.
 While India has one of the fastest growing populations in the world today, it’s far
behind most others when it comes to preserving the environment and the ecology.
 Today, our country is riddled with a number of environmental concerns which have
only aggravated in the last few decades.
 For the environment of India to be sustainable in the long run, it should be broad-
based and inclusive of a large part of the region’s labor force.
 India has been adversely affected by industrialization, modernization and
urbanization, also resulting in severe health problems.
 As a result, Indian government is trying to establish environmental pressure groups,
noise controls, and regulations on waste control, waste disposal and all such
regulations to stop these hazardous things which are a stoppage to the growth of
Indian economy.
f) LEGAL FACTORS:
  The last element to address in the PESTEL analysis of India is the legal landscape. As
mentioned above, India is a famous destination for foreign direct investment.
Depending on the scope and the business needs, foreign investors can set up a
company, branch, or a limited liability partnership in India.
 Indian companies are governed by the Companies Act, 2013. There are a number of
labour laws that regulate employment relations in India e.g. Employees’ State
Insurance Act 1948 (ESI Act), Industrial Disputes Act 1947 (ID Act), Maternity
Benefit Act 1961 (MBA) and the Payment of Bonus Act 1965 (PBA).

 INTRODUCTION TO BOTSWANA:

 Botswana is a landlocked country in Southern Africa that borders the countries of

Namibia, South Africa, Zimbabwe, and Zambia.

 The geography is flat, and up to 70% of Botswana is covered by the Kalahari Desert,
thus making it a sparsely populated country with little agricultural activity.

 The government system is a parliamentary republic; the chief of state and head of
government is the president.

 Botswana has a mixed economic system, which includes a variety of private freedom,
combined with centralized economic planning and government regulation. Botswana
is a member of the Southern African Development Community (SADC)

 Botswana has the 20th-highest Gross Domestic Product (GDP) at Purchasing Power
Parity (PPP) among African countries (37.16 million International dollars).

 STEEPLED ANALYSIS OF BOTSWANA:

 SOCIAL FACTORS:
 While the economic model has delivered important results, the 2015/16 Multi-Topic
Household Survey (MTHS) indicates that poverty and high levels of income
inequality persist.
 Poverty has come down to approximately 16%, but some 30% of the population
remains just above the poverty line and thus vulnerable to a range of shocks.
  Botswana’s level of income inequality, while declining, remains one of the world’s
highest. With a Gini coefficient of 0.52, greater focus must be given to the
inclusiveness of Botswana’s economic model while improving how public
institutions manage the fiscal space. Because the model has generated strong state-
dependence and limited private sector job creation, unemployment remains high
(approximately 18%) with youth unemployment posing a critical challenge.
 Addressing these challenges will require improving the quality of infrastructure
(water and electricity), essential basic services (education, health, and social safety
nets), as well as accelerating reforms to the business environment and effective
support for entrepreneurship.
 While Botswana’s social sector expenditures have been generous, they have not
yielded the impact one might expect. The World Bank’s Human Capital Index (HCI),
launched at the 2018 Annual Meetings, scores Botswana at 0.42.
 The purpose of the HCI is to promote attention and action to improving the level and
quality of government investments in child health, nutrition, and education given their
strong links to labor productivity and economic competitiveness.
 Botswana’s HCI score suggests that a Motswana child born today will only be 42% as
productive when she grows up as she could have been if she had enjoyed complete
education and health.
 Education expenditure is among the highest in the world —about 9% of GDP — and
includes the provision of nearly universal free primary education but has not created a
skilled workforce.
 Unemployment has remained stubbornly high at 17.7% and, with a Gini coefficient of
0.52, Botswana’s income inequality is one of the highest in the world.During the
survey of 2015/16 (MTHS) Multi Topic Household Survey

 TECHNOLOGICAL FACTORS:
 Botswana, the connection between proper technology choice and
economic development is beginning to receive recognition through the
efforts of the Botswana Technology Center (BTC). The BTC is an
organization with the specific aim of assisting the people of Botswana
to identify appropriate technology choices. By using readily available
resources and knowledge, the BTC constantly evaluates and, where
necessary, adapts new technologies to meet the needs and challenges
specific to Botswana. Activities include transfer of relevant
technologies to the various economic sectors, industry and the public.
 The BTC is actively involved in the design and development of
electronic products such as the photovoltaic controller, borehole water
sensor, solar rechargeable hearing aid, and modular data logger, all of
which products are widely used locally, with some patented in other
parts of Africa.

 The center controls research on solar technology, energy efficiency and

conservation in buildings, effective rainwater catchment and appropriate
methods of water supply to remote areas of Botswana. Research on
alternative building design methods and local materials for promotion
and dissemination to the construction industry is currently being
undertaken by the professional staff at the center. Building techniques
being investigated include passive solar design, computer-aided design,
use of natural lighting in houses, and waste water recycling – some of
these technologies have already been incorporated in building BTC staff
houses in Gaborone West.

 Consultancy services to industry are provided in several fields of

specialization such as computer technology, construction, technology
development, information databases and management, and renewable
energy. Such services also extend to providing technical advice to the
food industry on products which can be manufactured from locally
available food crops. Professional support is offered by the BTC to the
business community by actively assisting industry in applying the right
technology, from conceptual stage through to operational stage. One of
the efforts of BTC in facilitating business growth through the use of
technology is its support to the Botswana Association of Small
Entrepreneurs. The BTC is furthermore development institutions in
Africa.

 ENTREPRENEURIAL ENVIRONMENT

 The National Industries Promotions Company (NIPCO) is wholly
owned by the Rural Industries Promotions Company (RIPCO), which
 works in close association with the national research and technology
organization, Rural Industries Innovation Center (RIIC).

 The policy of privatization of the RICC’s commercial activities into
independently owned business was initiated as early as 1986. In the
seeking of new business ventures in partnership with other Botswana
entrepreneurs, RIPCO has become engaged in at 50 people, the group
has raised a turnover in excess of P5 million for the current financial
year. The group manufactures furniture, produces high quality sorghum
grain meal, and manufactures and installs solar technologies both for
water heating and lighting.

 Operational objectives of NIPCO are the following:

 - To promote the creation of employment and local entrepreneurship by

providing management support to its subsidiaries and other
entrepreneurs

 - To galvanise and strengthen its subsidiaries in order to provide high

quality goods and services that might otherwise be imported

 - To perform the duties and functions of a holding company and create a
dynamic entrepreneurial environment

 - To undertake consultancies, reviews and studies to ensure that the
group remains informed, as well as to generate income and provide a
useful service.

 NIPCO was recently commissioned by the Swedish International
Development Agency to undertake an evaluation of Bride, and it is
currently carrying out an overview of the sorghum milling industry and
determining training needs for the Friedrich-Ebert Foundation. In
addition, a feasibility study on a bakery is being conducted for the
African Development Foundation.
 ECONOMICAL FACTORS:
 Since gaining independence from the United Kingdom, Botswana has
been one of the world’s fastest growing economies, averaging 5% per
annum over the past decade. However, its reliance on commodities
renders it vulnerable to international market fluctuations.
 Real economic growth accelerated to 4.4% in 2018 (the fastest growth
rate in the last five years) and will remain at around 4% up to 2021.
 Economic growth will be driven by mining activity, construction,
services sector and intensified public investments.
 The National Budget was presented to Parliament on February 4, 2019,
the new budget puts total expenditure and net lending at P67.54 billion,
32.7% of the country’s gross domestic product (GDP), an increase of
P2.4 billion (3.6%) compared to the previous fiscal year.
 The capital budget is P17.03 billion, up by P0.4 billion (2.3%) over the
previous fiscal year. A budget deficit of P7.3 billion (3.5% of GDP) is
expected despite the positive domestic economic outlook.

 ENVIRONMENTAL FACTORS:
 Botswana is currently facing two major environmental problems: drought
and desertification. The desertification problems predominantly stem
from the severe times of drought in the country.
 Due to the drought 75% of the country’s human and animal populations
are dependent on groundwater. Groundwater use has eased the effects of
drought, but has left a toll on the land.
 Groundwater is retrieved through drilling deep boreholes, which leads to
the erosion of the land.[4] Surface water is very scarce in Botswana and
less than 5% of the agriculture in the country is sustainable by rainfall.[4]
Due to this 95% of the country raises cattle and livestock as a means for
an income.
 Therefore, it is not a surprise to see that 71% of the country’s land is used
for communal grazing, which has been a major cause for the
desertification of the country.
 POLITICAL FACTORS:
o Botswana has a stable political environment with a multi-party
democratic tradition. General elections are held every five years.
o The ruling Botswana Democratic Party (BDP) has been in power since
1966.
o With the end of his second five-year term, President Ian Khama stepped
down and, as per convention, the Vice-President, Mokgweetsi Eric
Masisi, assumed the Presidency on April 1, 2018 and will stand in the
next general elections scheduled for October 2019.

o LEGAL FACTORS:

 Legal system in Botswana is a mixed legal system of civil

law influenced by the Roman-Dutch model and also
customary and common law.

 The legal system is based on Roman-Dutch law and local customary

law”. “Botswana applies a dual system in which both customary and
codified (English-based) laws are applicable at the same time but in
different circumstances and before different courts in the country.

 ETHICAL FACTORS:

The ethics of a society is embedded in the ideas and beliefs about what is right
or wrong, what is a good or bad character; it is also embedded in the
conceptions of satisfactory social relations and attitudes held by the members
of the society; it is embedded, furthermore, in the forms or patterns of
behavior that are considered by the members of the society to bring about
social harmony and cooperative living, justice, and fairness. The ideas and
beliefs about moral conduct are articulated, analyzed, and interpreted by the
moral thinkers of the society.

African societies, as organized and functioning human communities, have undoubtedly evolved
ethical systems—ethical values, principles, rules—intended to guide social and moral behavior.
But, like African philosophy itself, the ideas and beliefs of the African society that bear on
ethical conduct have not been given elaborate investigation and clarification and, thus, stand in
real need of profound and extensive analysis and interpretation.
In the last three decades or so, attempts have been made by contemporary African philosophers
to give sustained reflective attention to African moral ideas. This entry is intended to make some
contribution to the understanding of African ethical thinking.

The entry makes the African moral language its point of departure, for the language of morality
gives insight into the moral thinking or ideas of the society. The centrality of the notions of
character and moral personhood, which are inspired by the African moral language, is given a
prominent place.

The entry points up the social character of African ethics and highlights its affiliated notions of
the ethics of duty (not of rights) and of the common good. The humanistic foundations and
features of African ethics are extensively discussed

DEMOGRAPHIC FACTORS:
Botswana has experienced one of the most rapid declines in fertility in
sub-Saharan Africa. The total fertility rate has fallen from more than 5
children per woman in the mid 1980s to approximately 2.4 in 2013.

The fertility reduction has been attributed to a host of factors, including

higher educational attainment among women, greater participation of
women in the workforce, increased contraceptive use, later first births,
and a strong national family planning program.

Botswana was making significant progress in several health indicators,

including life expectancy and infant and child mortality rates, until being
devastated by the HIV/AIDs epidemic in the 1990s.
Today Botswana has the third highest HIV/AIDS prevalence rate in the
world at approximately 22%, however comprehensive and effective
treatment programs have reduced HIV/AIDS-related deaths.

The combination of declining fertility and increasing mortality rates

because of HIV/AIDS is slowing the population aging process, with a
narrowing of the youngest age groups and little expansion of the oldest
age groups. Nevertheless, having the bulk of its population (about 60%)
 of working age will only yield economic benefits if the labor force is
healthy, educated, and productively employed.

Batswana have been working as contract miners in South Africa since

the 19th century. Although Botswana’s economy improved shortly after
independence in 1966 with the discovery of diamonds and other
minerals, its lingering high poverty rate and lack of job opportunities
continued to push workers to seek mining work in southern African
countries.

In the early 1970s, about a third of Botswana’s male labor force worked
in South Africa (lesser numbers went to Namibia and Zimbabwe).

Not until the 1980s and 1990s, when South African mining companies
had reduced their recruitment of foreign workers and Botswana’s
economic prospects had improved, were Batswana increasingly able to
find job opportunities at home.

Most Batswana prefer life in their home country and choose cross-
border migration on a temporary basis only for work, shopping, visiting
family, or tourism.

Since the 1970s, Botswana has pursued an open migration policy

enabling it to recruit thousands of foreign workers to fill skilled labor
shortages. In the late 1990s, Botswana’s prosperity and political stability
attracted not only skilled workers but small numbers of refugees from
neighboring Angola, Namibia, and Zimbabwe.

EDUCATION AND CONSULTANCY INDUSTRY OF INDIA

EDUCATION SECTOR:
India’s education sector offers a great opportunity with approximately 29 per cent of
India’s population being between the age group of 0-14 years. India’s higher education
segment is is expected to increase to US$ 35.03 billion by 2025. The education sector
in India is estimated at US$ 91.7 billion in FY18 and is expected to reach US$ 101.1
billion in FY19.

India has over 250 million school going students, more than any other country. It also
has one of the largest networks of higher education institutions in the world. Number of
colleges and universities in India reached 39,050 and 903, respectively in 2017-18.
India had 36.64 million students enrolled in higher education in 2017-18. Gross
Enrolment Ratio in higher education reached 25.8 per cent in 2017- 18. In December
2018, the Gvernment of India published that 3.43 million candidates had enrolled in the
Pradhan Mantri Kaushal Vikas Yojana (PMKVY) 2016-20 scheme.

The Central Government plans to disburse US$ 1 billion to states for introducing skill
development initiatives. In November 2016, Ministry of Skill Development and
Entrepreneurship launched Pradhan Mantri YUVA Yojana, at a cost of US$ 74.68
million for providing entrepreneurship education and training to students in the country.
Skill India Mission 2015 aims at skilling 400 million Indian youths by 2022.

As of December 2018, there were 15,044 Industrial Training Institutes in the India. In
October 2017, in order to boost the Skill India mission, two new schemes, SANKALP
and STRIVE were launched with an outlay of Rs 6,655 crore (US$ 1.02 billion).
Revitalising Infrastructure and Systems in Education (RISE) by 2022 was announced in
union budget 2018-19 with an outlay of Rs 1 lakh crore (US$ 15.44 billion) for four
years. Skill India programme has benefitted more than one crore (10 million) youth
annually.

Education sector in India remains to be a strategic priority of the government. The

Government of India has allowed 100 per cent Foreign Direct Investment (FDI) in the
education sector through the automatic route since 2002.The sector has received
cumulative FDI worth US$ 1.75 billion up to June 2018. Indian education sector
witnessed 18 merger and acquisition deals worth US$ 49 million in 2017.

In May 2018, the Ministry of Human Resource Development, Government of India

launched Samagra Siksha scheme with the aim of achieving holistic development of
school education in the country. The Government of India is working on the draft of the
New Education Policy to address the changing dynamics in the education industry of
the country as per the requirement of the population. As of November 2018, National
Education Policy Framework has been launched. New National Education Policy draft is
ready and would be given to the Central Government.

CONSULTANCY SECTOR:

1. BUSINESS

Business and management consulting in India has breached $11.5 billion, or Rs.
73,800 crores in revenues this year, and is forecasted to register continuous
growth over the next few years as per new estimates. Business consulting is a
broad field, covering a spectrum of consulting activities including finance,
advisory, management, digitalisation, implementation and strategy, among
others.

Having reached the $11.5 billion mark this year, the Indian business consulting market
is due to book further growth over the next year, with Statista analysis now forecasting
the market to rise over the $12 billion threshold by 2018. The growth is consistent with a
trend over the last few years which has seen the Indian management consulting sector
having registered an average growth rate of 6.75% since 2013.

Of the $11.5 billion market, $1.5 billion (approximately 13%, Rs. 9,600 Crore) is contributed by
the management consulting segment, which includes the strategic functions of the market
(‘strategy consulting,’) as well as a number of other organisational advisory functions. The
management segment has also registered consistent growth over the last few years, projected to
reach around the $1.7 billion (Rs. 10,900 Crore) mark by next year. A number of
transformational factors are responsible for this rapid development, which include a general
wave of digitalisation, as well as the widespread opening up of the Indian economy since the
establishment of the Modi administration in early 2014. The Modi regime has been built on
promises of market-liberalisation and pro-business policies.

Among the liberalisation policies pursued by the Modi administration, perhaps the most
influential has been the significant increase in Foreign Direct Investment (FDI) in the
country.
The opportunity for Multinational Cooperations (MNCs) to invest in the Indian market
simultaneously opened up opportunities for strategic and financial advisory firms to help
them integrate into the market efficiently, thereby boosting growth in the consulting
industry.
Both local as well as international consulting firms have benefitted from the expansion,
as local firms provide assistance to MNCs in India while large international advisories
help Indian firms integrate with the international market.
According to analysis from Source Global Research, meanwhile, the largest consumer of
consulting services is the financial services industry, at 30% of the total amount.

Technology, media, and telecoms (TMT) comprise 9% of the sectors seeking consulting
services, while pharmaceuticals and biotech represent 3% of the consumers. On the other
hand, the largest provider of services in the market by a huge margin is the technology
consulting sector, comprising a formidable 45% of the total market size. This can be
explained by the fact that rapid digitalisation is one of the biggest drivers of growth in the
Indian market.

2. TRAINING
 The Indian society for training and development (ISTD), established in April
1970,is a national level professional and non profit registered under the
Societies Registration Act, 1860.
 The Indian Society for Training and Development (ISTD) is a premier
institution in the field of Human Resource Development with a distinguished
record of service spanning more than 37 years.
 To meet long felt need for a basic qualification in Training and Development
was introduced in April 1979.

3. PLACEMENT
 The government is doing its best to bring about a better matching between the
demand and the supply of work opportunities.
 The Union public service Commission (UPSC) conduct competitive exams for
recruitment to various services and posts.
 The government has also set up a number of employment exchanges all over
the country to facilitate recruitment of suitable candidates into its various
sectors.

EDUCATION AND CONSULTANCY INDUSTRY OF

BOTSWANA

1.) Education sector:

The education sector receives the largest share of total
government expenditure. Recurrent expenditure on education
averaged 28% of the total in the three years to 2009/10.
Investment in education continues to be a priority even in the
current planning period, NDP 10, in order to achieve the
aspirations of Botswana’s Vision 2016.

Over the past 10 years, 2000 – 2010, almost 110 500 students
were sponsored by government, nearly 20% of whom were
placed in foreign institutions. The highest peak was observed
during 2007 and 2008 with between 15 000 and 20 000 students
placed in both local and foreign institutions. Since 2000 there has
been a gradual decline in the number of placements in foreign
institutions, resulting in 5% and 4% respectively for 2009 and
2010.

During the same period there was a significant increase in

government sponsorship of students to local private institutions.
Although the global economic recession has impacted on the
government’s ability to maintain sponsorship volumes, the
government remains committed to fully supporting the education
of its citizens.
The education sector receives the largest share of total government
expenditure. Recurrent expenditure on education averaged 28% of the total
in the three years to 2009/10. Investment in education continues to be a
priority even in the current planning period, NDP 10, in order to achieve the
aspirations of Botswana’s Vision 2016.
Over the past 10 years, 2000 - 2010, almost 110 500 students were
sponsored by government, nearly 20% of whom were placed in foreign
institutions. The highest peak was observed during 2007 and 2008 with
between 15 000 and 20 000 students placed in both local and foreign
institutions. Since 2000 there has been a gradual decline in the number of
placements in foreign institutions, resulting in 5% and 4% respectively for
2009 and 2010.
During the same period there was a significant increase in government
sponsorship of students to local private institutions. Although the global
economic recession has impacted on the government’s ability to maintain
sponsorship volumes, the government remains committed to fully
supporting the education of its citizens.
 2. Consultancy sector:

Botswana is one of Africa’s big post-colonial success stories

and now has a GNI per capita of US$7,650 (2012). Its stable social and
political structure has brought stability to the economic and business
environment; GDP has grown 2.8% per annum (2008-12). Botswana has a
wealth of natural resources but its economy is dependent on mining and
agriculture and has to deal with frequent droughts.

The country’s economy is founded on cattle ranching and mining. Diamond

mining accounts for more than one-third of GDP and for 70-80% of export
earnings. Tourism, financial services, subsistence farming, and cattle
ranching are other key sectors.

The secure and stable political and economic climate attracts travel and
tourism, which directly contributed 2.4% of GDP in 2011 and generated
3.1% of total employment (World Travel and Tourism Council).

The country promotes sustainable eco-tourism and places a high priority on

the protection of Botswana’s game reserves and national parks, such as
Central Kalahari Game Reserve, Chobe National Park and Kgalagadi
Transfrontier Park.

The mining sector, in particular diamond mining, dominates the economy.

Minerals such as diamonds, copper and nickel generate the most income and
Botswana is among the largest producers of diamonds in the world. But it
has no known oil or gas reserves of its own.

Since attaining independence in 1966 it has maintained one of the highest

economic growth rates in the world and in the process has transformed itself
from one of the poorest countries to a middle-income country.
The state is landlocked and therefore relies on an extensive railway network,
international airport, and road transport links through South Africa to move
goods around.

Land in and around the capital, Gaborone, can be owned by foreigners, but
there are restrictions on foreign ownership of community- and state-owned
land. Since the 1990s, Botswana has encouraged foreign investment in
export-led industries. English is the language most likely to be used in
professional and business life.

In the World Bank’s ‘Doing Business 2012’ study, the landlocked

state was ranked 54th out of 183, placing 22nd best in the world for
paying taxes. Botswana enjoys the best credit rating in Africa. These
rankings measure the conduciveness of a regulatory regime in starting
and operating a business.

However, Botswana has high unemployment (estimates range between 24%

and 40% depending on the source) and suffers from the second highest
HIV/AIDS infection rate in Africa.

The advent of the disease has led to a critical shortage of skilled workers,
although adult literacy is high for an African country at 83% (2006). The
country is politically stable and has had an unbroken record of parliamentary
democracy since independence.

But its reliance on diamond mining in its economy leaves it vulnerable to

global downturns, as seen in 2009, and it is also strongly influenced by
economic trends in South Africa, the economic giant of the region.
COMPARISION OF INDIA AND BOTSWANA ON DIFFERENT
FACTORS:

1.ECONOMICAL COMPARISON:

BOTSWANA:

 Botswana has maintained one of the world's highest economic growth

rates since independence in 1966.
 However, economic growth was negative in 2009, with the industrial
sector shrinking by 30%, after the global crisis reduced demand for
Botswana's diamonds.
 Although the economy recovered in 2010, GDP growth has again
slowed.
 Through fiscal discipline and sound management, Botswana
transformed itself from one of the poorest countries in the world to a
middle-income country with a per capita GDP of $16,800 in 2012.
 Two major investment services rank Botswana as the best credit risk
in Africa.
 Diamond mining has fueled much of the expansion and currently
accounts for more than one-third of GDP, 70-80% of export earnings,
and about one-third of the government's revenues. Botswana's heavy
reliance on a single luxury export was a critical factor in the sharp
economic contraction of 2009.
 Tourism, financial services, subsistence farming, and cattle raising
are other key sectors. According to official government statistics,
unemployment reached 17.8% in 2009, but unofficial estimates run
much higher.
 The prevalence of HIV/AIDS is second highest in the world and
threatens Botswana's impressive economic gains. An expected
leveling off in diamond production within the next two decades
overshadows long-term prospects.
 A major international diamond company signed a 10-year deal with
Botswana in 2012 to move its rough stone sorting and trading
division from London to Gaborone by the end of 2013. The move
may support Botswana's downstream diamond industry.
INDIA:

 India is developing into an open-market economy, yet traces of its past

autarkic policies remain.
 Economic liberalization measures, including industrial deregulation,
privatization of state-owned enterprises, and reduced controls on foreign
trade and investment, began in the early 1990s and have served to accelerate
the country's growth, which averaged under 7% per year since 1997.
 India's diverse economy encompasses traditional village farming, modern
agriculture, handicrafts, a wide range of modern industries, and a multitude
of services. Slightly more than half of the work force is in agriculture, but
services are the major source of economic growth, accounting for nearly
two-thirds of India's output, with less than one-third of its labor force. India
has capitalized on its large educated English-speaking population to become
a major exporter of information technology services, business outsourcing
services, and software workers.
 In 2010, the Indian economy rebounded robustly from the global financial
crisis - in large part because of strong domestic demand - and growth
exceeded 8% year-on-year in real terms.
 However, India's economic growth began slowing in 2011 because of a
slowdown in government spending and a decline in investment, caused by
investor pessimism about the government's commitment to further economic
reforms and about the global situation.
 High international crude prices have exacerbated the government's fuel
subsidy expenditures, contributing to a higher fiscal deficit and a worsening
current account deficit.
 In late 2012, the Indian Government announced additional reforms and
deficit reduction measures to reverse India's slowdown, including allowing
higher levels of foreign participation in direct investment in the economy.
 The outlook for India's medium-term growth is positive due to a young
population and corresponding low dependency ratio, healthy savings and
investment rates, and increasing integration into the global economy.
  India has many long-term challenges that it has yet to fully address,
including poverty, corruption, violence and discrimination against women
and girls, an inefficient power generation and distribution system, ineffective
enforcement of intellectual property rights, decades-long civil litigation
dockets, inadequate transport and agricultural infrastructure, limited non-
agricultural employment opportunities, inadequate availability of quality
basic and higher education, and accommodating rural-to-urban migration.

2.ENVIORNMRNTAL FACTOR:

BOTSWANA:

 overgrazing; desertification; limited fresh water resources

INDIA:

 deforestation; soil erosion; overgrazing; desertification; air pollution from

industrial effluents and vehicle emissions; water pollution from raw sewage
and runoff of agricultural pesticides; tap water is not potable throughout the
country; huge and growing population is overstraining natural resources

3.POLITICAL FACTOR:

BOTSWANA:

 mixed legal system of civil law influenced by the Roman-Dutch model and
also customary and common law

INDIA:
 common law system based on the English model; separate personal law
codes apply to Muslims, Christians, and Hindus; judicial review of
legislative acts