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

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;

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 Peoples 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 countrys 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 peoples 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 peoples 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.

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

SOCIAL INDICATORS Those elements that show the day to day welfare of the people. Life expectancy Death rate Birth rate Dependency ratio Adult literacy Infant mortality rate (IMR) Student-teacher ratio Doctor-patient ratio School enrolment

POLITICAL INDICATORS Those elements that show how people are involved in decision making & how their rights are handled. Justice Democracy freedom

ECONOMIC INDICATORS -daily food supply This refers to how often one has food within a day. It also refers to the quality of food i. e. less developed countries a majority of people have a single meal a day and this meal is not balanced & most of the time it is not there. In developed countries the food is balanced. So for a country to be regarded as a developed country people should have more meals as well as eating quality and balanced meals. -Gross national product this is the money value of all goods & services within & outside a country. Goods and services (skilled manpower) outside a country include loans, grants, expatriate workers & remittances (those who work outside). This can be used to measure development i.e. if GNP for 1998 exceeds GNP for 1997 we can say that a country is developing. If the opposite is true then the country is underdeveloped. -Gross domestic product the total money value of goods & services produced within a country. If GDP for country D in 2004 exceeds for the same country in 2003, it means a country is developing. -GNP Per Capita This is the money that each individual is entitled to get if the money is shared equally. It is calculated by dividing the total money GNP by the total population. -calories intake This refers to the energy value of the food eaten. It indicates the energy value of an average diet of a country. The required world health organization standard is 3000 kilojoules & a country with less than this is less developed while one with more than this is advanced. -Labour force employed in agriculture This is expressed as a % of the total workforce. In developed countries we have highly scientific and mechanised production thus low labour in agric. In less developed countries we have traditional methods which are labour intensive hence a larger % of the labor force. -Energy consumption It is measured in KGs of equivalents, i.e. the amount of power that can be derived from a KG OF coal whether it is produced by oil, gas, wood, solar power, nuclear power or otherwise. LDCs have low energy consumption as production is highly traditional not scientific while in developing countries energy consumptions is very higher either because of industrialization, domestic use or telecommunications.

SOCIAL INDICATIORS -life expectancy at birth This indicates the number of average years an individual is expected to live. This varies from one country to the other because of the inadequacy of health facilities and food supplies. LDCs have a low life expectancy e.g. Mozambique is 51 years whilst developed countries have a higher life expectancy e.g. the UK is 92 years. -infant mortality rate The % number of babies/children who die before their first birthday per thousand populations. If IMR is high then the country is less developed. If it is low then the country is developing. High IMR is due to lack of medical facilities etc. -dependency ratio This refers to the people under the age of 15 years as groups to those of the working group i.e. 15 to 65n years. The higher the dependency ratio the more the young group population is and the less developed a country is. The less the dependency ratio the older the population is and the more developed a country is. -availability of social amenities/services Water, electricity, telecommunications network & housing. The more these are available to an average, the more a country is developed & the less they are the less a country is developed. -Education (adult literacy rate) This shows the % of adult population that can read and write. The higher it is the more developed a country is & the less it becomes the less developed a country is. A.L.R. 47% 15% 79% COUNTRY Kenya Ethiopia Tanzania 17.3 million 31.8 million 19.14 million 99% 39% 100% 18% 9% 39% 1% 1> >1

-Student-teacher ratio In 1981 the student-teacher ratio was as follows; Kenya ..1: 52 Uganda ..1: 452 Tanzania 1: 182 Angola 1: 244 Population = 4.349million Uganda is the only country close to 1.25, the UNESCO requirement.

HEALTH CARE This involves the establishment of hospitals, clinics & health posts in various parts of the country. Health care has an influence on the IMR & the death rate i.e. if poor people are going to die (IMR high & low life expectancy). E.g. 1981 Kenya Uganda Tanzania Ethiopia Somalia Infant mortality rate 8.1% 9.7% 10.3% 14.6% 14.6% 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. Political indicators include the following; -democracy This is the government of the people by the people and for the people defined by Abraham Lincoln. Democracy is whereby people have a say in the decision making in their country. It is not easy to say how democratic a country is. To some people democracy means having many political parties whilst to others it means popular participation in decision making at grass root level. -freedom People should have a chance to participate in the decision making process. They should also have freedom of speech, choice & enterprise & as well as freedom of association. However, freedom here refers to freedom from social ills, ignorance & from poverty. It is not easy to measure if a country has freedom because this depends on the ideology of a country. -justice This refers to fair treatment under law. People should be treated equally and taken to be the same under the law. They should not be discriminated because of colour, ethnicity, region etc. justice should be delivered in the shortest possible time for justice delayed is justice denied. GUIDELINES FOR POLITICAL INDICATORS % people who vote in elections % of women in managerial positions

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

-high adult literacy The % of educated adults in developed countries is high just around 95%. This results in high standards of living. N.B. The other name of developed countries is countries of the north, group 7 countries, and industrialized countries. -reduced poverty Many people in these countries have enough to feed themselves. -adequate health facilities & medication Medical facilities in developed countries are enough & of high standard. -diversified economies Developed countries do not have mono economies neither are they export oriented or heavily dependent on agriculture. They instead depend mostly on the secondary & tertiary sectors. They specialize on large scale production than small scale production. CHARACTERISTICS OF DEVELOPING COUNTRIES (LDCs) -high birth rates Since there is poor knowledge and use of contraceptives, birth rates in developing countries are high & these leads to high population growth rates. -high levels of unemployment This is due to few job opportunities in developing countries since their economies grow slowly while their population grows very fast. -low standards of living The provision of basic social amenities is not adequate hence poor standards of living. -low growth rates of GDP, GNP & GNP/PI Economic growth in developing countries is very low because of lower investment, little diversification, lack of capital & lower technology. -lower life expectancy at birth The average age which a person is expected to reach is low in developing countries because of poor medical facilities, poor diets & generally low standards of living. It ranges from 50 60 years & in some countries it is less. -high infant mortality rate The number of babies who die before their first birthday per thousand live births in developing countries is high because of poor health care & poor diet (nutrition). -inadequate health facilities & medicine

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

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

However, GNP Per Capita has some advantages which include the following; It is a standardized measure which allows easy comparison between countries. The data is available from the World Bank. It highlights international wealth differences. It is better than raw GNP measurement which ignores the size of the population, or GDP which does not include investment from abroad.

CRITISISM FOR DIVIDING COUNTRIES INTO FIRST, SECOND & THIRD WORLD These divisions are no longer relevant because countries are now mainly capitalists or mixed economies. Countries belonging to the eastern block or communist socialists block have liberalized (reformed/changed) their economies & are geographically reformed the Perestroika Mikael Gorbacheu. The categorization was over simplistic because no country could be said to be really non aligned. The categorization was patronizing to some countries especially the west but offensive or prejudicial to others e.g. the south. This referred to the least or less developed countries which are predominantly found in the southern hemisphere. These countries were labeled that way by the Brandt report to the World Bank. On the contrary the developed countries were named the north because the majority of them are found in the northern hemisphere. Criticism is geographically incorrect since some countries like Australia are developed but found in the south, while some are geographically in the north but are very poor & less developed e.g. Bangladesh. Categorization is not fixed since some countries were labeled as developing or less developed but have now graduated or industrialized e.g. the newly industrializing countries (NICs). The GNP of the world is generally rising hence some countries labeled less developed cannot remain so forever. Labeling or categorizing countries is also inappropriate because some categories are not homogenous i.e. some countries in the same category are economically better than others. Categorizing countries as less developed is very derogatory because it implies that some countries feel they are much better than others. REASONS FOR DIFFERENCES IN DEVELOPMENT LEVELS -Resource distribution Natural resources are not uniformly distributed world wide. There are countries which are blessed to have some resources while others do not have such resources. As a result of this uneven distribution some countries are developed & rich while others remain poor & underdeveloped. Those with resources use the principle of comparative advantage whereby they concentrate on the product in which they have raw materials in abundance & perfect their production in order to earn more foreign exchange e.g., countries in the

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gulf or middle east are blessed with oil which they export to other countries. On the other hand Botswana is blessed with diamonds & natural conditions for the production of beef. It is because of this that some countries are generally richer than others since they have this natural advantage. -slavery & colonial legacy Some countries especially in west Africa had between 13 & 19 million people sold into slavery thus denying the region of its able-bodied personnel. This slowed down development in the region boosted elsewhere especially in the United States of America, Canada & Britain where they provided cheap labour in the plantations, mines & industries. Most parts of the world were colonized by European powers or countries notably Britain, France, Belgium, Germany, Italy, Spain & Portugal. These countries stole & exported resources from the colonies to develop themselves hence they became more developed than their subjects. -political instability Most developed regions of the world enjoy a political stable environment i.e. one without wars or conflicts. Their governments are legitimate, transparent & democratic. On the contrary most underdeveloped countries are engulfed by political strife i.e. civil wars, genocides & political anarchy & as a result they are preoccupied with political conflicts. -political will It is the willingness by those in authority to guide & direct development. In most LDCs the government lacks the willingness to guide their people into development. In most cases this is the result of the fact that governments are lacking to command respect & some are not even legitimate hence their lack of willingness to develop their countries. On the contrary developed countries often have development oriented governments which are willing to initiate development. -technology This refers to tools, machinery & skills of a society used in production. LDCs use simple & often traditional ways of production which are poor or less productive. This is caused by lack of money, facilities & even the political will to experiment on modern technology. At times this is a result of the fact that these countries find it easy to depend on the developed world than to experiment on their own technology. As a result of this they produce poor goods low in both quality & quantity. Developed counties on the other hand are experimental, they have capital, facilities & the political will. The result is that the is & end up earning more foreign exchange. -population pressure LDCs have 75% of the world population hence they spend more of their resources in providing for this population rather develop countries. In contrast developed countries have 25% of the world population thus they spend spare money for their countries development & spend little for providing for a small country.

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

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

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while the south in the production of primary products. The south had to depend on the north for manufactured goods. This therefore led to the divided world. a)THE STAGES OF GROWTH THEORY OR MODERNISATION THEORY This theory claims that the process of development is a transition between traditional & modern/industrial societies. It was based on the belief that all societies will move forward by becoming modern in the same way as the countries of the north. For this reason the theory suggests that developing countries should copy the development of the industrialized countries. For this to happen the following should prevail; There should be division of labour where jobs become specialized. People should move from villages to cities i.e. urbanization. Subsistence agriculture should change to cash crop production & commercial farming. There should be a political constitution according to which a government is elected democratically. People should be prepared to change their traditional habits & take up new ideas. Formal education which stresses western values & capitalism should be taught. There should be mass production of cheap consumer goods. Wealth should trickle down to everyone. This theory was based on the fact that if enough capital is invested in industry & infrastructure economy will grow & wealth will trickle down to everyone, standards of living will therefore rise. This theory was influenced by Rostows theory of economic growth. This theory (Rostows) suggests that GNP Per Capita would rise as a country industrialized because more money could be made from manufactured goods than primary products. Implications The third world countries should invest a lot in industry & infrastructure. The LDCs should copy ideas from industrialized countries. People should be patient & not expect too much wealth until the economy grows larger. There should be an educated workforce & scientific ways of production.

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Arguments for The theory is supported on the ground that; The north developed because they industrialized& accepted the capitalists system. The newly industrializing countries such as Brazil, South Korea and Taiwan etc copied from the north & have developed. Formal education is spreading & attitudes towards production are changing Arguments against Capitalism is not the only way a country can develop in fact a planned or socialist systems can also lift the economy. The capitalists system has brought about inequality. There has been a dual economy in the LDCs. Rural urban migration has become a problem in developing countries. THE DEPENDENCY THEORY This theory came about in the 1960s. it explains why the third world countries cannot develop in the same manner as the industrialized countries. It claims that the process of industrialization in the third world has been a way for the imperialists to get into the developing economies. The dependency theorists that European powers or countries of the north interrupted the development of Asia, Africa & Latin America while on the other hand developing their own economies. They believe that through slave trade & colonialism developed countries exploited or took the resources away from the third world thus under developing the third world countries & using those resources to develop themselves. Dependency theory argues that this exploitation is still happening today & they call it neo colonialism. Neo colonialism is believed to be a new form of colonization whereby even if the south is politically independent, it is still economically dependent on the north. This is done through TNCs or MNCs, giving loans at high interests & giving tied aids. Dependency theorists also believe that the relationship between the developed & developing countries is that of dependency whereby developing countries depend on the developed countries economically. They also call this situation the legacy of colonialism. This is because they believe colonialism created economies in third world countries based on primary production while developed countries economies are based on secondary & tertiary production. They also believe that a continuous disadvantage is created for third world countries by international trade where developing countries sell primary products at low prices while developed countries sell manufactured goods at high prices.

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Implications of the theory Less developed countries should break links/ties with the north & become self reliant. Developing countries should not borrow from the north but save & invest within the country. LDCs should spend less on consumer goods. They should encourage local inventions & innovations & the use of appropriate technology. Governments of developing countries should tell people to be patient, hardworking & see the reason why a western or northern lifestyle is bad. Arguments for Many countries in the developing world such as Egypt, India, china, Mali & Zimbabwe were developed long before Europe. India used to produce better textiles than those in Europe/in the north. However those industries which produced hand-woven cloth were destroyed by Europeans so that Indians would have to buy machines made from Britain or England. There is evidence that Latin American countries developed better when they were isolated from Europe or the north during the first & second world wars. Historical evidence shows how the slave trade severely damaged African development. Third world countries are still largely dependent on selling primary goods to the developed world. From the 1980s third world countries have started paying heavy interest charges to the north & this has severely hindered their economic growth & reversed development.

Arguments against Some developing countries which had close links with the developed world have recently successfully developed economically e.g. Taiwan, South Korea & Brazil etc. Some third world countries which tried to break links & make their own economic strategies have not been successful economically e.g. Tanzania.

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Advantages/strengths of this theory The theory looks at development as a whole i.e. political, social, environmental & economic etc & not just economic aspects. The theory treats the world as one system or one entity i.e. showing how countries are interdependent/connected. The theory makes people aware of the programmers of colonialism. It makes people understand that even when the colonists were given independence once again economic & political powers remain in the hands of the developed countries.

Disadvantages/weaknesses of the theory It is evident that third world countries cannot raise enough capital on their own in order to break links. If third world countries were to break links, they would lose all the benefits of international trade. If the developing countries were to make their own food, this will probably be a less sufficient way of using resources. In a global village (the world linked together in many ways) it is almost impossible to break communication links. Third world countries people often aspire/desire the way of life of the north & would refuse if their governments required them to stop importing goods from the developed world.

THE SUSTAINABLE DEVELOPMENT THEORY It refers to social, economic and political growth which can be kept on going indefinitely. In other words it is the kind of development which would not compromise/jeopardize the chances of the future generation meeting their own needs. According to the sustainable development theorists, the kind of development that has happened in the developed countries which has been based on exploiting other people & countries is no longer desirable. They also believe that it is no longer possible for everyone to modernize in the same way the north has done. They believe that the resources available on earth are being irrevocably destroyed by over-population, industrialization & excessive pollution. The theory is based on the principles of; - dividing the worlds resources equally between the north & south - using appropriate technology to reduce environmental degradation 18

people controlling their population size Wise use of resources through recycling, re-growing, re-using & reducing the rate of exploitation of resources.

Arguments for Industrialization uses up non-renewable resources & pollutes air, water & land badly. Modern has reduced death rates consequently making the worlds population grow very fast. The growth of towns & the building of roads & industries has used up land with little remaining for food production. Some people mainly from the north have more than their fair share while those from the south are unable to meet their basic needs. Arguments against Contrary to this theorys expectations new mineral & fuel deposits are still being discovered. The technology & inventions are solving some of the problems mentioned by this theory e.g. making fuel for car from sugar cane. It has been realized that in some countries population growth rates are reducing. World agreements have been made to protect those in danger.

Sustainable development theorists have stated that development is taking place at the expense of the environment & many global economical problems are being experienced such as soil erosion, pollution of soil, water & air, distraction of wildlife species, greenhouse effect & global warming & the ozone layer depletion. Advantages/strengths of this theory The theory makes people realize that conservation is necessary. It makes people realize that they are facing the same situation as they are living in the same habitat. The theory makes people aware of the dangers facing the world.

Disadvantages/weaknesses

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 New sources of minerals & fuels may be discovered hence there will be no need to worry about the depletion of the existing ones. New technology may help countries to improve food supply, reduce pollution & make synthetic products to replace natural resources. Countries may succeed on agreeing on ways of sharing resources more equally. ALTERNATIVE STRATEGIES The main elements of development are social improvement, political rights 7 economic growth. It is in this li9ght therefore that three different strategies of development can be used depending on which one a person considers to be the most important. The strategies are; a) Emphasizing social improvements for everyone first & let the people share the wealth that has been created equally. b) Putting political improvement first. c) Emphasizing economic growth first. Emphasizing social improvement first This strategy is whereby a country makes sure that everyones basic needs are met & there is provision of employment, building of schools, hospitals & houses. Possible results/outcomes - A countrys standards of living standards will rise. - Peoples quality of life will improve with specific reference to women & children. - Good education & health will mean that people will work better & be productive. - With people working hard GNP will rise. - Improvement in the quality of life due to good life and education will eventually make people realize the importance of reducing birth rates hence reducing population growth. Difficulties/problems of this strategy - It is difficult to generate/find capital for investment in social infrastructure such as schools, houses & hospitals. - Lack of capital may force the country to borrow hence getting into debts. - Once the living standards of people rise, the people may expect the rise to be sustained, which is difficult to happen Putting political development first In this strategy a country gets/gives everyone political right & gets everyone to participate &n decide for themselves. This can be done through ensuring that there is democracy, free & regular elections, basic human rights & participation by everyone.

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

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PRODUCTION
This is when one employs resources to make goods & services in order to satisfy human needs & wants. It can also be defined as the process of combining resources to make goods & services which people want & are prepared to pay price. Production is the act of transforming natural resources into more useful commodities. Goods tangible products of labour used to satisfy needs & wants Services intangible products of labour used to satisfy human needs & wants Needs necessities of life or those things which man cannot survive without e.g. food, clothes, clean safe drinking water & shelter. Wants things man can survive without but only needs them to make life more enjoyable. They can also be referred to as luxuries e.g. TV, car, computer & cell phone FACTORS OF PRODUCTION These are inputs that are necessary for goods & services to be made. They are things which are necessary for the making of goods & services to take place. Economists have identified four factors of production namely; land, labour, capital & entrepreneurship/enterprise. LAND This refers to all physical & natural resources on the earth surface, below & beneath the earth surface, in the waters of the rivers & seas e.g. soil, minerals, water, vegetation, animals, relief, air & radiation. LABOUR This refers to all physical & mental human effort which is directed at the production of goods & services. CAPITAL This refers to machinery, money & manmade assets used in the production of goods & services. ENTERPRENEURSHIP This refers to the willingness to take risk & manage production. Production involves bearing risks & the uncertainty for it to take place. The one who has to take the responsibility to organize all other factors of production, to start production is called an entrepreneur.

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LAND Land has two properties i.e. it is fixed & it is limited in supply. Land is fixed, it is immovable; it cannot be moved from one place to another. Land is also limited in supply meaning it cannot be increased or reduced. It is naturally occurring & therefore mans efforts cannot increase it to match his needs. Conservation of land Land is a natural resource & it is scarce because man cannot extend it, therefore man should try to conserve land. Conservation of land means using land wisely or more sparingly. Conservation can be done through aforestation, contour planting, ploughing, recycling and re use, cleaning the environment, safe & proper waste disposal. LABOUR Labour has been defined as all human efforts both physical & mental used for the production of goods & services. Labour involves human beings & therefore labour cannot be bought or owned. It is the services of labour that can be hired without. Labour economic activities cannot take place because it is labour that makes natural resources available to us as useful products/goods. Labour is both a factor of production & of consumer production. Labour can be skilled, semi skilled &unskilled. Skilled labour when someone has received training for the performance of a particular job e.g. medical doctors, engineers and teachers Semi skilled labour when someone has little training to perform a particular task

Unskilled labour when someone has no education and training to perform a certain task e.g. a labourer. DIVISION OF LABOUR - The breaking down of complex tasks into simpler operations. - It also refers to allocating people or labour different tasks to perform. - It is the breaking down of the production process so that each worker can undertake a part - When work is shared between different people Division of labour can be based on gender or sex as is the case in traditional communities. SPECIALISATION OF LABOUR - Concentrating on a particular task which one can do better than anything else by himself or herself

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Advantages of division of labour & specialization - Proficiency When one specializes in one particular job or task after some time he/she becomes proficient & good at that particular job. In other words with specialization one stands a better chance of mastering whatever task he does because he/she performs the same task over & over again e.g. a teacher of mathematics will be more proficient as a result of the experience he gains from teaching the subject time & again. This helps increase output or improved results. - It saves time Specialization saves time because the workers involved do not move from one task or area to another. - Learning is made easier & there is a great accomplishment of knowledge & skills concerning that particular task or operation. - There is a greater opportunity to use machinery. This is so because with specialization it would be easy to use machinery since the machine will be working in a single operation. - Mass production is possible with specialization. The use of machinery makes it possible to produce goods in large quantities & large units quickly. - Improvement of quality at lowest costs with specialization & machinery & the quality of goods can be improved without incurring too much cost. - Cheaper training costs. It is easier and cheaper to train a worker in one process only than in all processes - It allows for maximum use of tools, as no tool will lie idle because all tools will be used at the same time - It makes the employment of specialists possible - Less fatigue Machines do not get tired & are always prepared to do the work day & night provided they are fueled & serviced. This saves man from getting exhausted from hard work which often reduces productivity as well as leading to production of poor quality goods. - It saves skills

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Since people specialize in areas or jobs that are suitable for them, they do not waste skills in areas where they lack interest. Repetition or revision enhances skills since practice makes perfect. - It leads to exchange of goods & services. Specialization makes people interact & exchange what they have for what they need. Disadvantages of division of labour & specialization - Repetition brings about boredom or monotony. When one continuously does a single operation or activity the job becomes boring & monotonous & with time the person may become frustrated or lose interest hence low productivity. - Specialization increases interdependence. This means that when people or firms or countries specialize they become more & more dependent on one another for those things they do not produce e.g. a bakery depends on yeast producing factory & flower milling companies. The problem with interdependency is that a problem that affects will automatically affect others, for instance, in the earlier example if workers of a yeast producing company go on strike then they will be no production of bread & flower will not be sold, such a situation will delay or lower production. - Decline in skills & craftsmanship. With specialization the use of machines is high & workers only do a small or a remote part of the work. Machines replace human skills & initiate it as a result the worker is denied a chance to use his/her skills to design a good quality product. - Risk of unemployment. Specialization has led people to do a particular type of job & this increase the rate of unemployment. If a worker loses his job because of expulsion or because the company closes down the chances of that worker getting a different job altogether are low hence he/she becomes unemployed. With specialization skills are not easily transferable from one job to another, i.e. with specialization, it is not easy to change or swap jobs. - Inequality. Specialization has led to inequality between workers especially the management cadre & the general worker or the lower cadre which usually brings misunderstanding at work. WHY DO COUNTRIES SPECIALISE - Increased production Countries specialize to increase their output. It is believed that if countries specialize in different areas or on different products, they will have increased production. - International trade Countries specialize in producing different products in order to exchange or trade. In so doing they get foreign exchange.

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

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This refers to the age groups or the proportion of each age group in a countrys population. The more young and able bodied people you find in country the more the supply of labour. 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. 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]. 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. 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 .with time people working for more hours will get tired and productivity will be low. REMUNERATION This means the reward for work rendered or done. The more the remuneration the higher the supply of labour because people will be happy & willing to work.

EFFICIENCY OF LABOUR
This refers to how productive labour is. It can also be referred to as the output per worker per unit time. It is not enough for workers to work for hundreds of hours without achieving something. Labour is efficient if the workers have been able to achieve something reasonable within a given time. For labour to be effective the following factors need to be considers; - Education & training Workers will do better on a job if they have received adequate education & training necessary to carry out the job e. g. a trained teacher is likely to produce good results than an untrained teacher. - Working conditions Efficiency of labour is highly influenced by the condition under which work is carried out. Places of work should be conducive enough to encourage efficient production e.g. there should be adequate ventilation & lighting in the place of work. - Welfare services For labour to be efficient workers should be well catered for e.g. workers should have good sickness basics such as the Botswana medical aid scheme & other welfare facilities

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such as sports fields for workers, work canteens, gratuity & allowances to maintain their high morale towards their work. - Co operating factors This refers to other factors i. e. land & capital with which labour is working. It is important that other factors of production should be properly combined in their right proportion & should be at the right places to make labour more efficient e. g. there should be enough land, adequate raw materials & machines & a cordial relationship as well the management. - Motivation Workers should be highly motivated to encourage high productivity. They should be satisfaction & workers should be positively encouraged so that they can do the job happily e.g. some companies give bonuses to workers during Christmas.

ENTREPRENEURSHIP
This is the willingness of a person to take risks & start production. For production to be carried out there should be labour, land & capital. However the production process will not take place if there is no one to take care or organize the above- mentioned factors. The individual who co ordinates the activities/ process of production is known as an entrepreneur. THE ROLE OF AN ENTREPRENEUR - Coordination/organization The entrepreneur is also called the organizer. He/she plays an important role by organizing & coordinating all the other factors of production. He/she makes sure that people under him/her do the work they are assigned to do very well. He/she also makes sure that all things needed for production are properly arranged. - Decision-making The entrepreneur takes decisions concerning the business e. g. he/she decides on what should be produced, how it should be produced & where it should be produced. - Management The entrepreneur manages the activities of production by making sure that the vital decisions are made & carried out effectively. The entrepreneur should be there to supervise all activities going on. - Risk bearing The entrepreneur is a person who undertakes production with the view to make profit & profit is anticipation at the end of production. The entrepreneur is also known as the risk bearer. He bears all the risks of production because business involves risks & the success of a business depends on the principles of factors. When profit is made the entrepreneur enjoys it but if there is a loss he suffers.

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CAPITAL
- CIRCULATING OR WORKING CAPITAL This is a type of capital that changes its form during the process of production. It could be in the form of money, raw materials & finished goods e. g. Tshimologo has P500, she uses her money to buy raw materials (timber) & she makes chairs from the timber & she sells the chairs to get money then uses the money to buy more timber & the production process continues. 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. If there is no working capital, production may be interrupted or delayed. The concept of working capital is important because the producer needs capital or money during the production process. FIXED CAPITAL This is fixed because it doesnt change its form e.g. buildings, machines e.t.c SOCIAL CAPITAL This is a type of capital that facilitate production indirectly e.g. social capital could be the capital used to build & enquire a clinic for workers in a mine.

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

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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. For a good to be ready to be utilized it has to be put into a transformation process. The transformation process can be divided into four stages namely: - Primary sector - Secondary sector - Tertiary sector - Quaternary sector PRIMARY PRODUCTION This is the first level of production which is concerned with the extraction of raw materials. At this stage, raw materials are extracted without being changed in form. This include extractive processes such as all branches of farming, mining, quarrying & fishing e.t.c SECONDARY PRODUCTION This is the process of changing raw materials into finished goods ready for use or consumption. Secondary production can be divided into two namely; - processing - manufacturing Processing the act of adding value to raw materials so that they can be more useful products e.g. meat processing, leather processing, processing of diamonds e.t.c Manufacturing the act of transforming raw materials into completely new products e.g. polish making, jewellery making, furniture making, making clothes e.t.c TERTIARY PRODUCTION The process of getting finished goods to the consumers or it is the provision of services to the consumers e.g. transportation, wholesaling, insurance, security, education, advertisement & banking e.t.c QUARTENARY PRODUCTION This is a sector which deals with the provision of information technology (IT) & technical o r professional service. As countries develop, the economy becomes complex, telecommunications & computers become vital for the exchange of knowledge. Information becomes the basic product; the key to wealth & power e.g. inter net, electronic banking, laboratory, research e.t.c Countries or producers decide on the volume or size of each sector to be set up. Such a decision is usually based on the countrys comparative advantage i.e. the resources it has that other countries may lack e.g. large mineral deposits, abundant energy supplies, rich farm land, well trained workers & others. For many years most developing countries had a comparative advantage only in primary goods because of the natural resources they have. 31

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

a) Labour intensive production

This is a way/process of making goods which emphasizes on the use of a lot of human effort. Advantages It creates employment to a large number of people It is cheap to run and maintain It provides people with the opportunity to train on the job It causes less pollution/destruction of the environment It requires little skills to enter or run

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

b) Capital intensive production

This is a process of making goods, which emphasizes on the use of a lot of machinery/use of advanced technology. Advantages There is a greater opportunity to use machinery Production of quality goods It encourages mass production (large quantity of goods e.g. the use of harvesting machine) Very few skilled people are needed hence a reduction in the cost of labour Labour acquires skills of operating machines Disadvantages It is expensive to use and cannot be used by poor developing countries It creates unemployment because machines replace labour The cost of acquiring capital is high It results in pollution of the environment

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

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

Technological development
From time immemorial, man has had a way of doing things. Even before the coming of the Europeans into Africa. Africans built their own shelter, made their own implements, made their clothes & produced pieces of art. As societies advanced, mans technology also advanced. Man began to make new machines & advanced in new methods of 33

production. The advance in methods of production reduced the cost of production hence an increase in productivity.

Types of technology
Technology can be classified into three categories namely; Simple technology Intermediate technology Complex technology - Simple technology This is the first of all technology & it is a crude way of doing things e.g. using a traditional hoe for cultivating land. It is sometimes known as traditional technology.

- Intermediate technology
This is a mid or transitional way of doing something. It is not simple nor is it fully advanced e.g. using an ox-drawn plough to cultivate land. Characteristics This technology is suitable for medium scale production Production here is still for subsistence though there is need to produce some surplus The technology is less expensive & requires unskilled to semi-skilled manpower

- Complex technology
This is an advanced way of doing things that many economies strive for. However, it is not often possible to reach this stage because of development constraints these constraints include the following; Lack of capital Lack of skilled manpower The nature of production i.e. small or large scale

Appropriate Technology / Relevant Technology

1. The skills, machinery/tools that are best suited to a particular locality, which the locals will be able to afford and maintain 2. Technology that is the most useful and efficient to people at a particular place and time (Beare, J. 2000:34) 3. The development of smaller scale industries that suit the resources of the less developed countries (Morrish, M. 1988:165) A number of factors have to be considered when employing appropriate technology. It would be inappropriate for a (subsistence) farmer in a developing country like Botswana to use a tractor because the farmer cannot afford to buy and maintain it, let alone to raise money for fuel to keep it running. Besides, the land owned by the subsistence farmer is too small to economically or efficiently use a tractor. What would d be appropriate for 34

this farmer is to use an ox-drawn mouldboard plough or hoe because the technology employed would not only be cheaper but easier to use and maintain.

Factors Determining Appropriate/Relevant Technology

- Level of development Developed countries tend to focus their attention on complex technology because they can afford it and are able to give people specialized training on how to maintain and operate it. Developing countries on the other hand tend to employ intermediate and simple technologies because they best suit conditions that prevail in such countries; they are relatively cheaper, easy to operate and maintain. - Education and skills Complex technology requires highly educated personnel and specialized training to operate and maintain. Thus complex technology is appropriate to developed countries because they can afford it and able to train people in specialized tasks of operating and maintaining it. Intermediate and simple technologies on the other hand require lower levels of education and training/skill (a characteristic of many developing countries to operate and maintain, thus they are appropriate to developing countries. - Availability of capital Complex technology does not come cheap, it is expensive to buy and maintain. Some complex technologies require special buildings to operate in and as such it is only the rich and developed countries that can afford it while poor developing countries can only afford simple and intermediate technologies. - Employment creation Developing countries like Botswana have high rates of unemployment and it would therefore be appropriate to use simple and intermediate technologies because they are labour intensive. Complex technology is inappropriate for developing countries because at times machines do the work that otherwise could be done manually thus displacing people from their work, hence unemployment. - Availability of raw materials The production of a particular good or service is determined by the availability of raw materials at a local level. For large-scale plants production is only justified if there is a large local reserve of the raw material and the raw material is of high quality. In most countries there is limited occurrence of large deposits of high-quality raw materials but

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an abundance of small deposits of raw materials, often of an inferior quality. Small-scale deposits of raw materials despite being inferior in quality are often suited to small-scale technologies. For example, a basic steel industry can be developed in most developing countries using readily available supplies of raw materials such as scrap metal. - Running cost of the technology Relevant technology must have low running costs, especially in terms of fuel. Advanced technology needs fuel which is not available in non-oil producing countries. It also needs spare parts which might need to be imported. - Demand The market for the technology must be large and willing to adopt it. Relevant technology must conform to local attitudes and traditions for it to be readily accepted. Other factors such as the availability of infrastructure, distribution costs and government policy might limit of enhance the diffusion of a new innovation. - Flexibility Relevant technology should be of low risk to the users, easy to teach and demonstrate, easy to repair and tested under local conditions - Environmental risk/Adaptability The technologies of industrialized countries are not always suited or easily adaptable to the socio-economic and environmental conditions of developing countries. Environmental risks arising from technological and developmental decisions impinge on individuals and areas that have little or no influence on those decisions. Relevant technology must be environmentally sound and must take into account the interests of individuals and areas that have little or no influence in their design, making and application. - Sustainability In order for technology to be relevant it must be able to serve the needs of the society over a long period of time. Advantages of appropriate technology It creates employment for local communities It is cheap to buy and maintain It makes use of available local resources It produces relevant goods and services for local communities It promotes local development and it improves the living standards of local communities

Disadvantages of appropriate technology

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It produces low yields in developing countries since the appropriate technologies employed are slow in production

Development of appropriate technology in Botswana

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

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final effluent. The polished water may then be used safely for such activities as irrigating gardens at the individual compounds. Natural wetlands often occur in some low-lying areas and are known by such names as swamps, marshes, bogs, fens, etc. Their occurrence is typified by intermittent dry and wet conditions, or as a transition between the perennially dry land mass and the wet water bodies such as lakes, etc. They support unique and well-adapted flora and fauna, some of them being endangered species. Natural wetlands have been found to exhibit properties that remove a wide range of pollutants from wastewater. This provides an effective, an environmentally friendly and low-cost option for wastewater. Advantages of wetlands - They can be built and operated at less expense than other wastewater treatment options - They utilize natural processes (plants and micro-organisms) for treating and renovating wastewater. No operational chemicals / inputs, hence fewer costs - They require less high-tech tools or equipment because the methods are low-tech - The processes are less sensitive to varying environmental / seasonal changes Efforts by Rural Industries Innovation Centre (RIIC) The Rural Industries Innovation Centre (RIIC) in Botswana also develops appropriate technology. Some of the technologies developed by the center include: 1. Bio-gas technology: This technology is relevant to Botswana because it uses cow dung which occurs in large quantities since there are many cattle in Botswana 2. Solar water heater: RIIC has developed the solar water heater technology that converts solar energy into electricity. This technology is relevant to Botswana because the country lies in the tropics where there is plenty of sunshine. In addition, this technology is cost effective, easy to use and repair, thus relevant to the country. This helps to reduce dependence on the environment for fuel wood which often involves the cutting down of trees, thus leading to environmental degradation 3. Solar cookers/bakers: The solar cookers/bakers developed by RIIC convert the suns energy (which is plenty in tropical countries such as Botswana) into electricity. This technology is cheap, easy to use and repair. This also helps reduce dependence on the environment for fuel wood, thus reducing deforestation and the resultant environmental impacts. 4. Rural electrification: The use of solar energy to produce electricity is relevant in Botswana because the country lies in the tropics where there is plenty of sunshine. This technology is cheap and more relevant in rural households where incomes are low. 5. Wastewater treatment technology: This technology involves the use of river sand to treat wastewater. This technology is relevant to Botswana because river sand is available locally in large quantities, it is also cheap and easy to use. 6. Water tanks technology: RIIC designs water tanks that are used for rain harvesting. This technology is suitable to Botswana, which is drought prone.

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7. Water desalination: RIIC has designed the technology to treat salty water obtained from underground to make it suitable for human and livestock consumption. This technology is relevant to Botswana because salty underground water would otherwise remain an idle resource if left untreated, in spite of the fact that there is shortage of water in Botswana. 8. Animal drawn pumps: These are quite suitable in rural Botswana because they are drawn/pulled by animals (they do not require fuel in order to run). 9. Windmills: RIIC has developed the windmill technology to pump underground water. This technology is relevant to an oil-deficient country such as Botswana because the mill is propelled/driven by wind (it does not need fuel to run). It is also cheap, easy to use and repair. 10. Brick moulding machines: These can be used by small-scale to medium-scale brick producers. This technology is relevant to Botswana because it is easy to operate and easy to repair. 11. Farming implements: The farming implements such as ploughs and planters developed by RIIC are simple, cheap and easy to use, therefore they are suited to local conditions because most of the people are subsistence farmers, who lack capital (to buy tractors) and modern farming skills. 12. Leatherworks: This technology is relevant to Botswana because it uses a locally available raw material (leather) which is obtained from livestock, which are kept by most Batswana. 13. Metallurgy: The smelting of iron to make simple implements such as hoes and axes is a relevant technology to Botswana because these are common tools used in rural Botswana 14. Draughtmanship: RIIC trains locals to make house plans. This is relevant to Botswana because it equips locals with skills that are needed in the country and helps reduce unemployment because after training the draughts man can start their own small business to earn a living and probably create employment. 15. The rim oven: What is a rim oven? The rim oven is made from two truck rims welded together. It stands on three legs and has a hinged steel door. The outer casing and chimney are made of mud and brick, which maximizes efficiency, and there are two baking shelves inside. Special features Use firewood, so suitable for use in rural areas Can bake a batch of 9 loaves in 1 hour Uses scrap wheel rims, so protects the environment Can be constructed on site by the entrepreneur Installation and maintenance The rim oven comes in a kit form, 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

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good repair The door hinges and latch should be oiled regularly

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

Internal economies of scale

These are specific advantages to one firm which result from an increase in the scale of production, in the firm itself irrespective of what is happening outside the firm. His is a situation whereby a producer decides to increase the production because of what is happening in other firms. Here the basic argument is that, changes that take place within the firm are not as a result of influence of other firms. Example; A soap producing industry can decide to produce on a large scale because many people need soap and by producing more, the company is likely or is going to make more profit. The firm therefore builds a very big house or factory, employs more specialized people and installs very big machines which will alternatively increase the quantity of soap produced per day or in a week. These are the changes which takes place within the firm.

Factors contributing to internal economies of scale

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

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the cost of managing the machine will be reduced but if one increases the number of small machines with the aim of increasing production then the average cost of maintaining and managing these machines will increase.

- Research and development A large firm has a greater advantage over small ones in the matter of research. A large firm can spend large sums of money on the employment of scientists yet these expenses will only be a small part of the total costs. Research improves the quality of production and services of the firm. In order to encourage large scale production within the firm there should be research to help the firm introduce changes which are necessary. - Indivisibility of plant and under-utilization of factors of production The firm should have a balanced team of machines to facilitate production. Some machines are such that they can be effectively be used at a minimum level of output and this minimum level may well be too large for a small firm and the machine cannot be divided into smaller units. - Marketing economies In large scale production, marketing and selling of the goods is very important and as such large firms have special buyers and special customers who buy from them e.g. Royal & Sefalana who issue licenses to their special customers. The control of quality is important because it encourages quick marketing. A large business can afford to advertise on large scale e.g. on TV and national newspapers. Such advertisements reach many customers and are more cost-effective than small advertisement on local produce. The products manufactured can be marketed all over the country therefore if a business is bad in one area it can still rely on other busy areas. o Packaging costs there should be good packaging of the goods to avoid unnecessary breakages and waste o Transport costs- transport rate should be reasonable in order to attract customers to the firm e.g. Builders world, Ellerines, Beares, Savells, Supreme - Risk bearing economies Larger firms can reduce the risk of trading when they diversify their products so that when demand for one item falls the company could make up with another product which is in demand. Diversification of markets is also good for companies. They should have branches especially across the country or outside the country e.g. Shoprite, Barnetts, Score and Mr. Price. This is necessary so that when there is a fall in one market a steady rise in the others helps the company to keep on progressing. - Financial economies Financial economies discuss the ways in which large companies benefit from large scale production as far as raising money for the business concerned (financial matters). Large

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firms stand a better chance of getting loans from the banks and other financial institutions at lower interest rate. This is because they have a lot in stock to sell in large quantity and have high turnover rate. It is not considered a risk providing them with financial help because the assets could pay for the loan if they fail to meet their obligations.

External economies of scale

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

Factors contributing to external economies of scale

- Labour A pool of local labour force skilled in various techniques used in the industry may develop used in the industry may develop in an area where many firms are concentrated, this helps to reduce a firm training costs and makes recruitment easier. - Information and co-operation Information may be shared by firms in the same industry particularly against foreignbased companies. Countries may also combine resources into research facilities or use very scarce on time-sharing basis. - Auxiliary services Subsidiary industries may establish themselves in areas where major industries are highly concentrated to provide services to major industries e.g. they may provide raw material components and services such as banking and transportation etc. - Education and training Some industries provide specialist facilities to develop the knowledge and skill of the manpower in the industry e.g. computer skills/specialist or cleaning specialists. - Disintegration Heavy concentration of firms producing goods in an area may lead to individual firms specializing in a simple process or the manufacturing of a single component e.g. in the cotton industry, one firm/company is responsible for spinning, another for weaving, another for colouring and the other is responsible for spinning, another for weaving, another for colouring and the other is responsible for making finished products from the cloth. - Reputation An area may develop a reputation for a successful production which may help/benefit the firms there. - Commercial facilities

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

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

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External diseconomies of scale

A firm will experience external diseconomies of scale when the industry to which it belongs becomes bigger/larger i.e. a firm may face disadvantages because of an increase in the size of an industry to which it belongs. These include: - Shortage of labour As the industry grows, firms will find it difficult to acquire labour with appropriate skills and this may result in individual firms bidding up wages to try and attract more labour or hold on to their existing supplies. - Increased costs of raw materials An increase in the demand for raw materials may also bid up prices and cause costs to rise. - Shortage of land As the industry grows, land for expansion becomes increasingly scarce and more expensive both to purchase and to rent. - increased transport costs Transport costs may also rise because of increased congestion.

ECONOMIC PRODUCTION SYSTEMS

TYPES OF ECONOMIES

A
i. ii. iii. iv.

n economic system is the organizational & institutional structure of an economy which include the nature of resources, ownership & control that is private & public. It also means the strategy or approach of production a particular country can adopt. The following are the major economic systems; Subsistence economy Capitalist/market economy Socialist/command/planned economy Mixed economy

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

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

- Capitalist/market economy
This type of economy allows individuals to own their resources such as land, industries, and air lines & shipping lines etc. the government plays little or no part in economic system, so they do not interfere in private businesses of the individual. Main characteristics or features of capital economy - Private property This means that individuals have the right to own & control of their property as they wish. - Freedom of choice This means that people are free to use their resources as they like. They can start any business type that they like & consumers are free to buy land from anybody. - Self interest Because capitalism encourages private ownership of resources, individuals in the society are usually self-centre. By this we mean individuals would get involved in businesses for their own benefit. - Competition This society (capitalist) encourages anyone to get their own business & this result in competition because so many people own the same business. - Reliance on price system The capitalist system relies on the price system & the price system is determined by demand & supply. However, if there is scarcity the businessman will have limited supply & this will force the price to rise. On the other hand, when there is a surplus, the businessman will reduce the prices in order to attract customers. - Limited role for the government In the capitalist system there is little or no interference from the government in businessmans affairs. The government only makes sure that rules & regulation about trading licenses, payment of taxes & employment etc. - Socialist/planned

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

Characteristics of socialist economy - State ownership The government is in charge of all the means of production & they belong to the government as well. - Government as an entrepreneur The government owns all the businesses in a country so the government bears the risks of production. This means that the government suffers all losses & enjoys all profits. - Collective interests Individuals work for the interest of the state in a group. There is no selfishness. - Competition There is no competition because the government owns all the means of production so that they do not compete with anyone. - Centralized planning Since it is the business of the state to manage the economic resources in a socialist economy, there is a centralized planning committee that plans the economy in the interest of the people. - Price control The central planning controls prices. Prices are not determined by demand & supply. Advantages of socialist/planned economy The socialist economys main aim is to satisfy basic needs such as clothing, food & shelter, security e.t.c. The government can use the countrys resources to solve problems or to achieve certain goals which individuals may not have achieved on their own e.g. good houses. The socialist economy makes it possible for goods & services to be available to everyone & not only to those who have money. Since everyones basic needs are provided, crime level is very low Disadvantages

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

- Mixed economy
This is an economic system that combines elements of free enterprise (capitalism) & government planning (socialism). It is a combination of both private & government ownership of the means of production. This type of economic approach allows individuals to own businesses which can be called private enterprises & the government to own businesses which can be called public enterprises/ public sector e.g. parastatals such as BHC, BPC, BOTEC & BOCODOL. In a mixed economy, the government provides essential services such as education & defense & subsidizes the production of goods & services by forming companies. The private sector produces all other goods & services but it is regulated by the government to protect the consumers. Advantages Individuals are allowed to have their own enterprises & this encourages hard work since they want to improve their standards of living It leads to high level of competition & this brings about high quality goods Since the government owns businesses, if they are successful the profit is used to improve the country Since the government intervenes in this economic system, it helps protect consumers from unscrupulous business people Prices are reasonable because of competition Both government & individuals complement each others efforts of improving the countrys economy/development Disadvantages If competition is excessive, some companies will decline or lose out In a situation where the government does the same type of business as individuals, individuals may lose because people will buy from the government since it is slightly cheaper If the public enterprise is not successful, this will be a great waste of the countrys resources Corruption is likely to be high because some individual businessmen may bribe some government officials so that the law can favor them

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The public sector is usually less efficient since people do not put much effort when they work for the government Government can discourage individual innovation & initiative Monopolies may still arise if the government control is very weak

Characteristics of; Capitalism - private property - freedom of choice & enterprise - competition - self interest - profit motive - supply & demand determine prices - private planning Socialism - public property - state guided choice - production of uniform products - public interest - self interest - prices determined by govt. - central planning Mixed Economy - both - choice - competition - self/public interest - profit motive - prices determined by supply & demand + state regulation - private planning

ENTERPRISE
It is a business activity developed & managed by an individual or a group of individuals to offer goods & services to the market. It can also be defined as an organization i.e. factory, firm or business unit which brings together factors of production in order to sell a product for profit.

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

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

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

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Types of partnership a) Limited partnership This is a special kind of partnership whereby a partner contributes to the company but does not share in the work or management of the business. This should have a written contract. In this type of business the partner is only liable for the amount of capital he/she has contributed. Characteristics A partnership agreement can be made verbally For safety reasons, a partnership can have a lawyer draw up a written contract, a partnership agreement or articles of partnership The partnership contract will include details of how the partnership will be managed, how much capital each partner will contribute

Advantages A partnership is simple, quick & simple to start & earn The partners are free to make their own arrangements since there is no law to decide how the partnership should be managed More capital is available than in a person business It is easier to obtain credit or borrow more money than in a sole partnership Each partner contributes skills & can specialize if they choose & this leads to greater efficiency Each partner has a strong personal interest in this business & will work hard to make it to succeed The work load, expenses & responsibilities are shared The business itself is not taxed but the individual partners pay tax on income received from the business Disadvantages o The business does not have a legal personality o Partners have unlimited liabilities i.e. together & individually they are personally responsible for the business, debts o If one partner is incompetent or dishonest, the other partners could lose money o Partners may disagree on how to manage the business o The business has poor continuity because it may end if a partner dies, retires or withdraws from the partnership o Decisions may take time because all partners must be consulted

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o The law allows only 20 partners; they could not contribute enough capital for a really big business b) Unlimited partnership This is a kind of partnership whereby all the partners contribute capital, share in the work & management of the business & are liable to the debts of a company.

- Private limited company

This is a business with a legal personality owned by between 1 & 50 shareholders.

Characteristics The owners buy shares i.e. small equal proportions which entitle them to part ownership of the company The people who own shares are joint owners of the company & are called shareholders Shareholders enjoy limited liability The companys name must end in the two words (proprietary) limited usually abbreviated as (Pty) Ltd It can sell shares by approaching individuals, but not to the general public Shareholders in a private company have direct control over the company The company is managed by at least one director who is elected by the shareholders Shares of a private company are not freely transferable without the agreement of the other shareholders

Advantages i. ii. iii. iv. v. vi. vii. viii. 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 companys affairs & their views are heard at the Annual General Meeting (A.G.M.) 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

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

Advantages Shareholders enjoy limited liability, hence the public can invest money without putting their asserts at risk Shares in a public limited company are freely transferable in the stock market therefore shareholders can sell all or any of their shares to any person without having to seek approval from other shareholders

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 The company is assured of continuity once it is formed since it can only be bought since it can be bought to an end through the right process of the law It can raise as much capital as possible through the sale of shares & debentures to the public in the stock exchange The company can afford to undertake projects that are large enough to benefit the whole country As a large business the public limited company can benefit from the economies of scale The company attracts the best staff because it can pay high salaries & offer good chances of promotion The large size of the company allows it to buy the latest & most modern equipments & technology Disadvantages It is a long, slow, complicated & expensive process to establish a public limited company Once it has been established, the company must comply with many regulations Since shares are freely transferable, it is possible for outsiders (e.g. another company) to take over control of the business Raising capital can be expensive as it involves paying commissions to stock brokers Public limited companies may grow so big that it becomes difficult to control There is little secrecy regarding finances of the company since it is a must that its accounts be published annually Decisions can be delayed because of the large amount of bureaucracy

- Joint ventures
A joint venture is when two or more business firms cooperate in a particular project for their mutual benefit. These firms only cooperate on that project & this does not affect the ownership of their organizations. Joint ventures remain separate businesses. Advantages a. The business can save costs & enjoy economies of scale b. Joint ventures can undertake large & expensive projects which a single firm might not be able to afford on its own c. They offer customers more choices Disadvantages i. ii. iii. 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

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- 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. 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, equipment, 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, 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

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

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 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 governments 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 Batswanas 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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Disadvantages of citizen empowerment - Poor business skills as a result of being ignorant and lack of commitment - Corruption and nepotism - Citizens may become too dependent on the government - Insufficient revenue to assist citizens - Poor management resulting in the company being mortgaged and or being liquidated - Fronting

Localization policy - The process of promoting citizen labour and enterprise / The process of giving jobs or businesses to citizens Localisation of labour - This refers to the replacing of expatriate workers (foreigners) with citizens - The process of allocating jobs or positions to the citizens of the host country which were previously held by foreigners In this case, Botswana appoints citizens in to all the areas/positions previously occupied by foreigners e.g. teachers, doctors, engineers, etc. Advantages of localisation It promotes the socio-economic development of locals It is part of asserting a countrys independence - It helps in making people believe in themselves and not always show respect to foreigners - It is part of retaining our culture and restoring our national pride - Saves money in wages paid out to expatriates - Helps create jobs for locals Disadvantages of localisation - The foreigners replaced are not always happy with the situation - It might ruin the relations that prevailed between countries - Locals might be inexperienced in performing certain tasks Steps taken by the Botswana government to promote localisation policy - Major steps have been taken on the science and technical based fieldareas that were marginalised before - The expansion of facilities at the University of Botswana and also the elevation of the former Polytechnic to Faculty of Engineering of the university - In-service training for Batswana officers - Introduction of ten year basic education - Promotion of vocational education

- Privatization of parastatals
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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 reduce the role of the state in the economy in order to allow it to concentrate on the essential task of governing - To release limited state resources for the financing of other demands.in the area of human development (education, health, sanitation, etc.) - To increase the spur of competition and promote economic efficiency in fostering well functioning markets - To accelerate the national development process - raising revenue for the government - To generate new investment especially foreign investors - To promote wider share ownership, thus shifting ownership away from the state and large institutions towards individuals Advantages of Privatization The sale of state assets generates a great deal of income for the government Privatization improves services & efficiency for industries & allows enterprises to charge competitive prices i.e. it increases efficiency because of competition and profit motive It reduces political interferences which may affect the performance of enterprises It encourages property owning democracy in which more people would have a steak in the success of the economy It also increases profit since profit becomes a more important objective Privatized enterprises offer new services & diversify hence giving consumers a wide choice It increases investment (expenditure is increased to bring more profit) i.e. it accelerates economic growth by stimulating entrepreneurship It increases participation by citizens in ownership of national assets It reduces public sector bureaucracy It helps empower citizens where such sales are restricted to citizens It considerably reduces prices and public sector budget deficit through enhancing the quality of goods and services Disadvantages Privatization is expensive i.e. government spends enormous amounts of the tax payers money on expensive TV adverts advertising each sale Some public monopolies have become private monopolies which exploit their positions Nationalized industries tend to be duplication of resources in the private industries

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 Privatization does not always increase share ownership i.e. few locals may afford to buy shares from public companies Many of the nationalized enterprises are important for the development of the nation hence to put them in private hands might jeopardize their existence & that of the nation It may lead to a hike in the prices of goods When privatizing, companies reorganize their internal structure in order to cut costs & improve efficiency hence they shed jobs (loss of jobs) It is a threat to public interest, because profit goes to private owners and not to the whole nation Corruption and nepotism may arise from the fraudulent politicians and bureaucrats who might unfairly sell companies to themselves and their relatives at meager prices Botswanas Foreign Reserves as an Investment Introduction The discovery and subsequent mining of diamonds in Botswana transformed the countrys economy from being agriculturally based and backward into a robust and fastest growing economy in Sub-Saharan Africa. Diamonds have enabled the country to record balance of payment surpluses from the early 1980s to the present day. As a result, Botswana has accumulated sizeable foreign exchange reserves. At the end of 1997 the foreign reserves topped U.S.$ 5 billion, enough to finance 30 months of imports. The challenge for the government has been to put the foreign reserves to good use in a way that will benefit the country. The International Monetary Fund (IMF) is greatly concerned by Botswanas single commodity economy. Over 80% of the countrys export earnings are from diamonds. The economic miracle experience by the country since the 1980s is driven by income earned from diamonds. The government is aware of pitfalls of single commodity economies, i.e. the demand for diamonds may fluctuate or wane in the future. Nigeria and Zambia have suffered as a result of over dependence on one commodity. It is with this in mind that government decided to put aside some money earned from diamond exports for future use. What are foreign reserves? These are funds / income / revenue that accrue to a country as a result of balance of payment surplus. - This means it is money or profit that is realized after the country pays for its imports - The money is in the form of foreign currency i.e. money from other countries in the form of hard currencies like the US dollar, the British pound, the Japanese Yen, etc. - These funds are invested abroad - The Bank of Botswana administers the funds on behalf of the country

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Foreign Reserves as an Investment International Financial Markets: The money has been ploughed into the International Financial Markets using International Financial Brokers. The money has been used to buy shares, bonds and equities. The investment has been mainly in the worlds major financial markets in Europe, North America and Japan. 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 countrys second largest foreign exchange (foreign currency) earner after diamonds. This comes from the profits from investments and interest accrued from abroad Enhancement of the countrys credit worthiness: The huge foreign reserves Botswana possesses give it financial credibility to deal with international financial institutions and countries. This means the country can easily borrow money for development projects from abroad Securing the countrys financial future: Foreign reserves are savings or a form of obtaining from consumption. This is a conscious move by the government to put aside money for future generations or crises. The government could easily have these surplus funds to embark on meaningless prestige projects i.e. splashing money around, but it chooses not to instead. Capital for diversifying the economy: The foreign reserves have created a financial pool for Batswana entrepreneurs. The funds are made available to investors through the National Development Bank, CEDA and Botswana Development Corporation (BDC). This is an attempt by government to diversify the economy from over dependence on diamonds.

Conclusion Foreign reserves are very important to Botswanas economy present and future. They have brought a lot of economic stability to the country and continue to earn the country a lot of invaluable foreign exchange. The challenge for Botswana is to try and diversify the economy away from diamonds. Another big challenge will be to avoid the path followed by other African countries, i.e. the plunder of their foreign reserves. The people should not lose focus of the precarious economic position the country is in. If the prices of diamonds plummet, an economic crisis might face the country if foreign reserves are not managed properly. Ways by which the Botswana government can raise revenue for investment - Taxation (employees, businesses, goods entering Botswana, etc.) - School fees / cost sharing - Loans / grants - Imposing fines and penalties - Production and selling - Exporting goods (foreign trade) - Invitation of TNCs / MNCs - Direct foreign investment

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Privatisation

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

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RURAL DEVELOPMENT

R
-

ural development refers to the improvement of the standard of living of the people in remote areas/country side. Rural development is normally associated with the improvement or modernization of agriculture. It is concerned with eradication of poverty or inequalities amongst the rural people & between the rural & urban areas. Aims of rural development eradication of absolute poverty to reduce inequality in the distribution of rural income & economic opportunities prevents rural urban migration increase the capacity of rural sector to speed up economic growth

Traditional rural societies

raditional rural societies almost completely depend on the natural development & the level of technology. Land ownership was communal & the chief or traditional leader held the responsibility of distribution of land. He was custodian of community property. Private ownership of land was not allowed. Division of land was based on set roles. This means that agricultural activities were divided into males & females e.g. herding cattle were done by a man while weeding was done by a woman. Traditional societies were innovative. The type of tools that were used in a traditional society were simple but suited for their particular purposes. These include hoes, pangas, axes, spears, knives & these were cheap implements. Agriculture was seasonal i.e. the cultivation of crops was only done in wet seasons. Crop cultivation was entirely dependent on rainfall. As a result of this system the failure of rainfall might result in total crop failure. Traditional societies could be identified as follows; - Hunter-gatherer community This type of community lived directly from their natural environment which provided wild plants & game (animals) for food. These also provided for their basic needs such as tools, weapons, clothing & temporary shelter. This community lived a nomadic life moving from place to place when necessary. Such communities in southern Africa were the Khoikhoi & san while in central Africa was the pygmies. - Nomadic pastoralists On the plain & veld areas communities started herding livestock. These people kept moving with their livestock to places where there was water & grazing. These communities became known as nomadic pastoralist. Their animals provided milk, meat, and skin & at times used as transport either for riding or carrying property. Such

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

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Village

Land

Cattle post
First, colonists grabbed land from Africans through forceful means or tricky concessions, then privatized the use of land hence a new land tenure system. Africans were pushed into the unproductive or barren parts of the country. Africans soon found themselves slaves & squatters on land that originally belonged to their forefathers. Life in those parts of the country where Africans found themselves became more difficult because they could no longer produce sufficient food for themselves. In east & southern Africa, African reserves or homeland (Bantustans) were introduced to isolate Africans from white communities. This resulted in shortage of land for subsistence farming, overcrowding & starvation. Colonists took land from Africans in order to; Get minerals & other resources Give land to European settlers Export cheap African labour Set up plantations to grow raw materials for European industries The land that was taken from African communities was the best land. This resulted in shortage of farmland & peasant farmers (subsistence farmers) found it difficult to feed themselves. Rural poverty became common. The situation forced them to migrate to mines, plantations & factories. It was the beginning of the migrant labour system. The result of this is that families left behind soon found it difficult to produce & as a result Africans found themselves locked in a vicious cycle of poverty.

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The Vicious Cycle of Hunger

Lack of good food

Small energy resources

Low output

Little work

The Vicious Cycle of poverty

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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. Without resources especially money to buy equipments & new inputs, it is hard to produce very much. This means producers have very little to invest in future productivity & the cycle continues. The Savings Vicious Cycle

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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, Introduction of forced labour, the introduction of cash economy & forced taxation. Other causes of rural poverty include; - Lack of alternative income

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

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Food shortage & poor diets lead to malnutrition of children & people in rural areas, hence the occurrence of diseases such as marasmus, kwashiorkor other nutritional related diseases. The standard of health in rural areas will also be low hence infant mortality will be high. - Rural urban migration Poverty will contribute to people moving or leaving rural areas to urban areas in search of jobs or job opportunities & a better standard of living. In this situation, it is young & able-bodied people who migrate to urban areas & leave the very young & very old to take care of agriculture. - Stress on family unit The family unit is put under stress when members migrate to urban areas especially men. This is because women will be left to carry heavier responsibilities i.e. they combine their duties with those left behind by their men.

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

Impacts of Colonialism of Africa

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

Negative impacts Economic - Land dispossession e.g. Tuliblock, Gaborone, Lobatse & Ghanzi blocks, Tati Company in the Francistown & North East areas 70

Over utilization of limited farmland Taxation (hut, dog, poll tax) Loss of African initiative / craftsmanship Concentration on raw material production / mono-economies Large-scale extraction of goods / natural resources A change in the direction of trade International trade Decline in farm work Servitude / slavery

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

Aspects of rural development

Positive - Cheap products - Non-polluted environs - Cultural bounded lifestyles (fashion) - Extended family structure (social security) - Familiarity / kinship ties Negative - Culture constantly changes - Rural neglect (suffering from political, social, economic and moral neglect) - Overworked soils - Rural poverty

The rural economy

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

- Subsistence / Peasant farming

The growing of crops and rearing of livestock to feed the family. There is no surplus produced if any is produced it will be exchanged with other goods needed. Characteristics Farms are small & labour intensive Labour is provided by members of the family

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The use of animals to assist labour is common Technology used is simple Technology used is simple Method of production used is traditional & usually poor Farmers rely on natural inputs such as needed rain, crop residues & animal dropping Ownership of land is communal Very little effort & skill is needed to run this type of farming

- Commercial farming
It is the growing of crops & rearing of livestock for sale. Characteristics Labour is usually provided by paid/hired workers Crops & animals are raised for sale or export Chemical fertilizers & pesticides are used Hybrid varieties are used in this type of production e.g. exotic breeds Technology used is complex e.g. combined harvesters & tractors Farms are usually owned by companies or rich individuals A lot of money is earned by selling hat have been produced A lot of skill & effort is needed in running this type of production Production is of large scale

The nature of rural development

For an effective rural development to occur, the following should be observed; Rural development should get access to easy-to-maintain appropriate capital technology Rural development should be oriented (addressing the need of the people) It should be self reliant Environmentally sustainable People should be the authors of their own development

Schemes and policies for rural development

The government must introduce new policies that will improve the lives of poor rural people. Some of them must include the green revolution in agriculture. This refers to increase in productivity made possible by a package of new methods or hybrid plants introduced to improve yield per hectare. For the green revolution to succeed, many changes are necessary. These are;

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 High yielding hybrid seeds Artificial fertilizers & pesticides Water reservoirs (local dams) Irrigation New method of cultivation Co-operation between farmers Agricultural extension services Improved local infrastructure Banking & credit facilities Price control by the government - Loans, credit schemes and small rural projects The government should provide farmers with credit facilities with credit facilities from which they can obtain loans at fair interest rates e.g. in Botswana the NDB provide farmers with money to improve their agriculture. CEDA is another credit scheme which gives grants to people who want to start small businesses such as poultry farms. Other programmes include; ALDEP which provide subsides to farmers to buy agricultural implements & fence their fields. ARAP (accelerated rainfed arable programme) which pays farmers for the amount of land cultivated. The programme encourages farmers to produce & to be selfsufficient. SLOCA which encourages farmers to form a group in order to get money to improve their livestock, it usually finances projects such as dips. The government also encourages farmers to develop small rural projects such as the building of a local dam to conserve water for use in dry seasons.

- Farmers co-operatives Co-operatives are a group of farmers who own resources together. Farmers are encouraged to form co-operatives for the following reasons; Buying machinery Sharing the costs Benefits Buying inputs such as fertilizers & fuel in bulk at a cheaper price To sell their produce together in one market so as to share the transport costs For farmers to get advice & share ideas or so that they can invite government officers to teach them a certain idea together So that the government can help them with money or finance if they are a group - Collective farming Farmers are encouraged to join their land together & work it as one large farm. This is a collective system or communal system e.g. in Tanzania there is ujamaa. 73

- Resettlement schemes During colonialism, white farmers allocated themselves large fertile plots of land. After independence, some countries started resettlement schemes I order to change land ownership/land distribution so that everyone has access to land. Resettlement schemes are also related to land redistribution e.g. the Zimbabwean land redistribution. In Botswana, resettlement schemes such as the New Xade programme is meant to give the concerned people social services & for them to give way to tourism. However, land reforms without good facilities cannot bring rural development.

Strategies for rural development

- modernizing livestock farming In modernizing livestock farming the following should be done; Drilling boreholes Rotating pastures to avoid overgrazing Fencing areas to grow fodder crops for livestock Developing new livestock breeds which give more milk or more meat Building dipping tanks for pest prevention & developing efficient veterinary & extension services - Improvement of water supplies It is important/vital in rural development to have proper & enough water supplies. Water is essential for good health & survival. Clean safe pipe drinking water should be available for people in rural areas. - Irrigation schemes This can take two forms which are; - Small scale irrigation - Large scale irrigation a) Small scale irrigation At village level, irrigation can be quite simple. Villagers can dig irrigation channels from upland streams to irrigate their fields. This can help to grow more food for them. b) Large scale irrigation This type of irrigation is costly & needs advanced technology. It is capital intensive. This type is suitable for cash crop farming & it needs construction of large dams which can also be used for generating hydro-electricity. Villagers can also benefit from this scheme. However, large scale irrigation schemes are not without any side effects or disadvantages. Such problems include the following; When damming a river, farmers down stream will have little or no water at all. Dams flood land & may force people to abandon their land remaining landless.

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desalination of land resulting from evaporation Silting of dams may result Electricity generated from that scheme may be used to benefit areas elsewhere rather than the local area

INTEGRATED RURAL DEVELOPMENT

This means combined rural development. It has got the following objectives; Modernizing farming Providing basic social services Reducing dependency on urban economies Raising the rural peoples standards of living

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

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Nonagricultural industries

Water resources management

Storage markets

Integrated rural development

Land reforms

Provision of social services e.g. clinics

Modernizing farming

For integrated rural development to be achieved, the following should be considered; The development must take account of the interests of the whole community & not just a few individuals e.g. the land owners, the rich or the powerful. Changes in one part of the system must correspond with the needs of all other parts e.g. the introduction of a new cash crop should not reduce the food supply for the locals or damage the soils. The development should be interdependent with systems outside of it e.g. the rural economy should aim to meet many local needs such as clothing, footwear & building materials.

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 Development should be adaptable & suitable so that it can solve internal problems e.g. population growth & external problems like falling market prices. N.B the government should always work with local communities & never impose schemes without consulting them. Integrated rural development also need co-operation & self help as people must work together to provide for their own benefit e.g. a village dam or a community hall. Such projects give the people a great sense of achievement. It is essential for certain things to be done in order for rural development to be totally/truly integrated. These include the following; 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

- farming modernization The aim is to adopt old methods, introduce new ones & use appropriate technology in order; Produce more traditional food crops Raise cash crops for the market Provide extension services Increase food self-sufficiency Provide credit schemes - Water resources Providing clean, safe, piped drinking water Helping the villagers to construct dams Providing water at village level is the most important service because it improves health, saves time & work & improves livestock - Social services Education & health services are very important since they give people advice on preventing diseases & illnesses, death & on birth control. Education is also vital especially for women for getting access to information on how to lead a healthy life. Social services include; Clinics for feeding the malnourished, maternity & immunization programmes Schools for providing basic literate skills Tarred roads to help the producers to reach the market & to gain advice from the export

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- Telecommunications network Such things as telephone, taxes & the internet are necessary for telecommunication between places. - Storage & marketing skills These are important for planning & managing crops & surplus produced. If necessary, the government should control prices so that they are fair & reliable. Marketing boards such as BAMB should be provided so that farmers can market their goods or produce. - Rural industries & services Setting up industries in rural areas since it increases income-generating opportunities. Financial assistance progames such as CEDA in Botswana help people to start up industries.

The role of women in rural development

The traditional role of women in a rural society has been that of a home maker and food producer. Men & women had different roles based on gender. However, there were customs & beliefs which discriminated against women such s women being discriminated against women such as women being considered as inferior to men. In rural areas, women carry out 90% of the domestic chores. o Women take care of agriculture through ploughing, weeding & harvesting. o They provide employment by starting income generating ventures such as tuck shops & selling beer o Most women are engaged in community projects such as the building of VDC houses, dams, community hall etc o Women are also involved in fund raising activities such as sponsored litter campaigns o Women play an important role in village such as VDC, PTA & health committees

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URBANIZATION
This is an increase in the proportion of people living in towns & cities (urban areas, conglomerates) as opposed to the countryside (rural areas) URBAN AREA: It is a place where 75% or more of the population is engaged in nonagricultural activities. It can be defined according to size, 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, Majwaneng 501 2000 2001 10 000 1001 100 000 100 001 1000 000 1000 001 10 000 000 10 000 000 - & above

FUNCTION; whether most people depend on agriculture or non-agricultural activities RURAL URBAN MIGRATION; This is the movement of people from rural areas to urban areas. This is common in developing countries. Most of the migrants are young, thus starting their families in urban areas & causing more increase in the proportion of people living in urban areas through natural increase. URBAN URBAN MIGRATION; This is the movement of people from one urban centre to another e.g. from New York to Washington or from Lobatse to Gaborone. This is much more common in the developed world. URBANISM; this is the tendency by people to lead an increasingly urban way of life. URBAN GROWTH; this is the increase in the physical size of a town or city. Cause of urban growth: - affluence - cheap land in the periphery - development of infrastructure - expensive rented accommodation in the city center - pollution - urban decay

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Problems caused by urban growth; - commodification of land - urbanism - cultural erosion - detribalism - deforestation - ruralisation of urban areas - pollution - traffic congestion - loss of ancestral land PRIMATE CITY; This is an urban area whose population is at leas twice or double that of the second largest in a country. Characteristics of a primate city; - An area where govt. would normally set up its administration e.g. parliament / cabinet - An area where a national university and technical training schools are located - Has the best infrastructure and communication networks and most of the financial investments - An area where many govt. departments and private companies headquarters are found

Causes of urbanization
There are two main causes of urbanization i.e. natural increase & rural urban migration. Natural increase This is whereby the population increase is caused by birth rate being higher than death rate. It is calculated by subtracting the death rate from the birth rate. Natural increase is a major factor of growth in the oldest cities of the industrialized world e.g. London & New York experience 1% growth yearly mainly due to natural increase. In Africa, although natural increase is far less than migration, it still plays an important role towards growth of towns & cities. This can be contributed to: i. Improved health facilities ii. Improved diets iii. Improved water & sanitation iv. Improved standards of living Migration Here, migration refers to the process of moving from one place to another with the intention of staying at the destination permanently or for a reasonable length of time. Migration can be permanent or temporary. Permanent migration; this is when people move from one area to another without the intention of returning to their place of origin. 80

Internal migration; this is when people move within the same territory or country e.g. rural urban migration or urban urban migration. External permanent migration; this is the movement of people outside their country of origin to another country without the intention of coming back. Temporary migration; this is when people leave their places of origin for a short period of time.

RURAL URBAN MIGRATION

This is usually due to push & pull factors.

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

Social push factors

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

Economic push factors

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

Political push factors

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

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

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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 Womens 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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This is whereby a business is done on a small scale & work is done in temporary workplaces, peoples homes, in the streets & at the market place. Characteristics People work for themselves (self employment) or provide small services for other people Wages are irregular Employees are non-unionised Informal sector activities are illegal and therefore employees jobs are legally unprotected

Types of jobs in the informal sector Trading at the market Street vending Selling in small quantities Mending clothes & shoes Selling cooked food Selling home brewed beer & running shebeens Mending car punctures Cleaning & wind screens Selling newspapers & publications Hair dressings & barber shops

Advantages The informal sector has some advantages to the underprivileged. It provides an opportunity for unskilled self employment e.g. reselling things which have been bought cheaper A chance to use natural skills e.g. repairing goods An opportunity to form social networks e.g. village associations or religious groups The opportunity to develop the informal sector into a successful business It provides workers with a chance to acquire skills which might enable them to get jobs in the formal sector The informal sector provides cheap goods which can be bought by the poor The importance of the informal sector in development o o o o It makes life easier for migrants who came to urban life for the first time It provides work, shelter & support for migrants It provides contact between home areas & the new city life The informal sector stimulates development

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

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INDUSTRIALIZATION
This is the setting up of such organizations which deal with large scale production of goods using complex machinery & mechanical energy. It can also be defined as the growth of large mechanical production. In other words, industrialization is the process of setting up companies which process raw materials, manufacture goods & provide services using complex or advanced technology. However, industrialization in Europe started in the early 19th century In Britain (UK), inventors were trying on new ways of improving the process involved in the production of textiles Water and electricity were used to speed up the production of clothes & wool. This new technology enabled production of large quantities of cloth. Ample labour was provided by laid off farm workers who have been rendered useless or jobless by similar inventions in the farming sector. By the end of the 19th century, most countries of Western Europe, North America & Japan had started industrialization.

Strategies for industrialization

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

Import substitution industrialization (ISI)

This is whereby a country starts making goods for itself instead of importing from elsewhere or other countries. A deliberate effort is usually done to promote local industries through; Putting high tariffs on imported goods Providing loans & grants to local people by the government Encouraging students to specialize in science & technology, so as to provide the much needed skills 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

Protecting individuals property, rights thus reducing fear from the private companies that their asserts may be rationalized Providing the necessary infrastructure such as telecommunications network, water, power, roads e.t.c The government investing directly in heavy industries which are of strategic importance or which cannot attract private investors Maintaining a peaceful political environment to encourage investment

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

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

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

Export oriented industrialization (EOI)

This is whereby a country develops industries directed towards producing goods & services in high demand in other countries. This is done for the following reasons: To generate the highly required foreign exchange To create job opportunities for the locals

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To encourage economies of scale i.e. to produce more for a bigger market & being able to reduce the production costs while making good profit To encourage research, innovation & development of skills To make more profit by using cheap labour and export goods which may not find a market locally

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

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

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

Small-scale industries (small is beautiful)

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

advantages
It generates income to small producers It creates employment in the rural areas It utilizes local resources i.e. raw materials & skills It is rural based hence reduces rural urban migration It brings about rural development It is domestic market oriented i.e. it produces to sell locally

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

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

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

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

Characteristics of modern industry

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

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

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 Through industrialization, the country can produce more goods & services so the GDP will increase More jobs can be created hence there will be different kinds of jobs for the local The government can collect more money from taxes to be spent on welfare services The standard of living will rise since people will have more choices When a country has its own industries, it is more independent & does not have to depend on other for many things Industries create more surplus capital for further investment ARGUMENTS AGAINST; People have to change their of life, move into cities & often lose touch with family & friends Work has to match the face of machines Some jobs are repetitive & boring & some people may get stressed & dislike their work People may become greedy for more & more goods & wealth becomes more important than human relations Traditional culture may be lost or changed as people acquire foreign cultures People may forget the importance & craft production EFFECTS ON THE ENVIRONMENT i. ii. iii. iv. Large cities grow around the industries often with problems of poor housing, overcrowding, bad sanitation, diseases & pollution e.t.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, 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. These are third world countries which started industrializing after the Second World War. Examples of NICs include South Korea, Brazil, Egypt, Argentina, Singapore, Hong Kong, Taiwan, Mexico, Spain, Greece, Portugal, Yugoslavia, e.t.c

CASE STUDY - BRAZIL

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

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

problems
o 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.g. due to a rise in petrol prices

Advantages that NICs have for industrialization; - good supply of raw materials - reliable communication networks - ready / available market

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low wages / child labour / large pool of cheap labour appropriate technology appropriate skills able to produce simple goods for lower prices workaholics e.g. Hong Kong, South Korea, etc.

WOMEN AND DEVELOPMENT

A woman is a female human species. This is the term that refers to the female gender of the human species. Men & women have some physical or biological differences, however these differences do not mean they are not equal. They include: Height Weight Body shape Sexual anatomy Societies view women & men differently & this varies from culture to culture since these differences are constructed by society. These social differences are sometimes based on biological differences so that it makes them seem more important than they really are. In reality men & women have similar abilities. If given equally, men & women can usually do the same work.

The role of women in traditional society

In traditional society, men & women played different roles based on gender. The womans role was: Childbearing: Having & looking after children. Women were not only expected to bear children for their partners, but also to care for them till they had grown up, especially the moulding of their daughters into responsible adults Taking care of members of the extended family They were custodians of culture, tradition & morality Community work: Women were expected to attend funerals (where they were expected to cook) and were also involved in religious activities. They also had to build houses for the chiefs/rulers Domestic work: Women were usually seen as homemakers who did the cooking for the family. Women had to fetch water and firewood, cook and feed family members. They were expected to sweep the compound, wash clothes for babies, children and every male member in the family. They cared for the sick They cared for the aged Agriculture: They ploughed & looked after the field. They were involved in weeding, harvesting and storing of crops. Looking after livestock especially in families that had been affected by the migrant labour system.

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

Traditional values, customs, practices, taboos & myths

Their impact on womens position in society: Culturally men paid bride price for their wives; however this had consequences of its own, men viewed this as buying the women & the result was to treat women as their properties The woman is overburdened with domestic work as she has to remain at home thus denying her the opportunity to advance in public life Low paying jobs are reserved for women as they are thought to be the weaker sex Women were forbidden to ask their husbands where they were from & this made women to appear as servants & men .as masters. Women had access to land through their husbands, brothers or sons, as a result women had little or no property. Women were forbidden the right to make decisions concerning right to sell property & decision making on fixing bride price for their daughter. It was a taboo for women who were nursing young children to mingle with the public. They were confined to the house for a certain period of time. It may be 3 or 4 months. It was a taboo for menstruating women to sit on chairs & this gave men the opportunity to monopolize certain rights over women. Menstruating women were forbidden to pass through a herd of cattle, so as to keep away from owning them Women or girls were believed to be good or to be too busy being mothers hence men were given priority over women/girls in education i.e. women were forbidden to go to school as they were thought incapable of learning because of the belief that they had smaller heads/brains

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It was also believed that women had small heads hence their brainpower was less & this resulted in womens ideas being thrown out through the window (ignored). It was also believed that Eve was made out of Adams rib so women are second to men. This again gave men dominance over women.

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

Colonization and its impact on the position of women in society

Colonialism brought about a lot of changes in the lives of traditional African communities. These changes were economic, political or social but they affected men & women differently. During colonialism, African women suffered tripartite (3 way) oppression. They suffered as women, black women & as colonial objects. Land Dispossession Africans were pushed into infertile reserves where production of food became difficult. This became more of a burden for women because they were expected to produce food for the family. Commercial/cash crop farming Colonialism introduced commercial farming/cash crop farming which resulted in men being recruited from their homes to work in the farms. With men away in the farms, women had to even more work for growing food in the family. Since men worked in the farms, they could now handle cash/money which women did not have access to. Increased wok load for women Colonialism also brought about industries, factories, mining & cities & this resulted in more men being recruited from rural areas to provide labour. This left women with extra responsibility i.e. combining their own tasks with those that used to be done by men e.g. women became heads of families & they were settled with the burden of bringing up children alone, they found it difficult to control the boy-child which resulted in an increase in juvenile delinquency. Migrant labour system The migrant labour system brought a lot of suffering for African women. - Men were more migratory than women hence the rural areas were left with sex ratio imbalances & these resulted in family breakdowns. It encouraged 96

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 werent their husbands. This marriage break down led to female headed families and / or single parent families Women were prohibited to live with their husbands in towns, mines, farms and plantations Women were forced to play a double role in the family, both as a father and as a mother thereby increasing their workload. Discipline in the family especially of the boy child became a problem and this led juvenile delinquency Less food was produced in agriculture leading to malnutrition and starvation in rural families because of the absence of able-bodied men Migrant workers brought back diseases and infected their wives, e.g. STDs, TB, etc Decision-making was delayed because women still had to wait for their husbands to make important decisions, e.g. sending children to school, arranging marriages, a daughters wedding, decide on the sale of livestock, etc.

Education When schools were set up during colonialism, more boys than girls went to school hence men became literate than women & ended up holding important decision making positions more men were able to get better paying jobs & administrative position with women providing less paid labour. When men were recruited to work in the mines, factories & cities, women & children remained in the reserves where they suffered more & more hardships. Political / voting right Voting was restricted to males while women were disenfranchised (not allowed to vote). It took a long time even for white women to be allowed to vote in African communities neither men nor women had political rights.

Emerging Roles of Women

Today womens status has improved: - They have access to credit schemes e.g. F.A.P., C.E.D.A. etc. They can set up businesses and own property. The Land Board gives women equal access to land - They hold leadership positions e.g. in schools, members of parliament, cabinet, etc. However, women leaders are still in the minority despite the fact that they form the majority of the population. - Girls are allowed to go to schools and follow the same curriculum as boys. Women can now train in almost any field they desire just like their male counterparts. - Laws have been passed to ensure that women are not oppressed or discriminated against

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Women now make decisions concerning family planning. They are free to talk to their husbands about how many children they would like to have. As a result, families nowadays are generally smaller Some women prefer to have single-parent families. This has led to an increase in female-headed families. This has been facilitated by educational, professional and economic independence by women, the right to property ownership, womens rights, etc. Women now do same jobs as men, i.e. they can now compete on an equal platform with men for a job. There is also an equal pay for same jobs irrespective of gender. However, they still occupy low paying jobs such as home maids, secretaries, etc.

The role played by women in the politics of southern Africa

Pre-independence
Women played very important roles in the political set-up of southern African communities. They occasionally ruled as queens even though most rulers were men e.g. Queen Mantatisi of Batlokwa. In some countries such as Kenya, Mozambique, Angola & Namibia, women took part in the struggle for independence & often fought side by side with men. Some women leaders even fought against colonial conquest e.g. Queen Ndinga of Angola against Portuguese. Women were also arrested, murdered & even shot during the struggle/resistance against colonialism. During wars for independence women provided hide outs or protection for guerillas or freedom fighters. They provided the freedom fighters vital information on enemy movements. They also nursed the wounded soldiers & provided food & water for the armies. In South Africa, women like Mrs. Winnie Mandela and Mrs. R. Sobukwe led other women against discriminatory apartheid laws. They instigated other women to stage demonstrations/marches and in the long run formed Womens Movements. Women formed over 25% of the cadres of the Zimbabwean African National Union Liberation (RAWLA)

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

Post independence era

In post-independence, southern African schools had increased enrolment & both girls & boys had the same opportunity to education. However, with the influence of the traditional view, the curriculum in schools tended to be gender biased with more science based subjects given to male pupils & languages & home management given to female pupils. On the same reason fewer girls were able to get access to education opportunities even fewer making it beyond primary education. In the same manner, very few women found it difficult to access modern technology to make their lives easier. Even at independence the majority of women still find themselves in rural areas where there are poor educational facilities & poor agricultural production. After the experience of the struggle and at independence, women were determined to fully participate in the development of their new nations. They are decision-makers in parliament, cabinet, schools, Non-governmental Organizations, etc. Political parties have women members. Women hold leadership positions even at village level, e.g. Kgosi Mosadi Seboko. They also have voting rights.

The role of women in the formal & informal sectors of the economy
Women provide essential labour in the informal sector. However, more men are employed than women. i. ii. Women find themselves occupying junior positions in their work places. Men occupy most senior positions in the formal sector. The informal sector is mainly in the hands of women doing such jobs as hawkers business, selling brewed beer, running shebeens, designing/knitting dresses/clothes & selling vegetables in an open market. Other examples include shopkeepers, cooks in restaurants & housemaids. 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. The other reason is that few women than men have skills. In the formal sector, women offer mainly secretarial work& being a bank teller. They always tend to offer assistance to men who will be holding administrative positions.

iii. iv.

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v.

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

Women do much of the work in rural areas because they are the majority in the rural population. They do 80% of the activities in rural areas. They provide employment by starting up income-generating ventures such as tuck-shops, selling vegetables & poultry farms e.t.c. Most women often carry out extra-unpaid jobs in the communities such as organizing projects, building community dams, community health projects e.t.c. They are also engaged in drought relief projects & they also raise funds for community projects. The national policy on women & development as espoused in NDP 7, will involve women as equal partners in the nations economic & social developments. A focus on women in isolation could obscure differences amongst women as a group & also between men & women. The growth of the economy, social justice, national self-reliance & sustainable development, resuscitates the participation of both men & women. We are aware that men & women have the following: The role they play in the household & in society in general The rights & privileges given to them by traditional customs & the legal system Their access & control over strategic resources Their interests in different development activities

Women and rural development

While the gender distribution in urban areas is almost even, women are the majority in rural areas & are a key resource & an important planning factor in the development process. Womens tasks in the rural areas are concentrated in three crucial areas namely: i. Domestic work within the household ii. Subsistence agriculture iii. Income generation Their contributions to the national domestic product are frequently undervalued because many of the economic activities are usually performed women who lack statistical visibility; as a result women are the forgotten producers in the national economy. The household maintenance tasks are mainly done by women. Food preparation is time consuming & firewood is the source of energy. It is estimated that about 95% of the rural population depend on firewood for their household energy needs. This dependency to a large extent is caused by the severe constraint to switch to other fuels given womens low income. One of the main constraints on women productivity is related to the labour time involved in their daily house maintenance, tasks & childcare. Once this is reduced, it implies some possible diversion to income generating activities or development projects. The budget 100

studies have indicated that tasks such as fuel collections, water fetching, food processing & preparation can account for the better part of an adult womans extremely long working day. Allocation of such resources would therefore have immediate beneficial effects.

Womens organizations in Botswana

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

Botswana Council of Women (A Welfarist Organisation) Welfare: Help given to people in need
This is a National Non-Governmental Organisation that was formed in 1965. Its objectives include: - To provide affordable nursery school services for women to freely go to work or be self-employed - To provide women and the youth with skills development training for income generating activities and self-sufficiency for poverty alleviation - To encourage responsible citizenship, power sharing and equal economic opportunities - To provide education on HIV/AIDS in order to empower women with the ability to negotiate with their partners for safer sex - To encourage women to participate in self-help projects - To facilitate the establishment of skills development centers in the villages - To advocate and lobby for the eradication of forms of discrimination against women and the girl child. Achievements - The Botswana Council of Women has established over 33 Nursery Schools all over Botswana. These schools provide Day Care and food for children while their mothers are at work - It successfully established a Goat Rearing Project in Ditlharapeng. This generates some income that is invested back into the project - They offer six months courses on dressmaking and fashion design. At least 20 people are trained every year - At least another 20 people are trained every year on linen making (curtains, comforters, cushions, etc). These are one months courses - BCW has trained people on hair dressing the correct use of chemicals, plaiting and styling

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

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

Womens Role in the Prevention of HIV/AIDS and other Communicable Diseases

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Botswana is being crippled by the HIV/AIDS epidemic. If the war against HIV/AIDS is to be worn, women should be at the forefront. Gone are the days when women were viewed just as transmitters (Moreno 1997 p.302). In Botswana, - The Botswana Council of Women trains trainers through workshops to become peer educators on HIV/AIDS awareness and prevention - The Young Vulnerable Women seeks to mitigate/fight the spread of HIV/AIDS and prevent teenage pregnancies. It engages in basic training on skill development and on the publication of Youth Magazines that contain information on HIV/AIDS - The Kagisano Society Womens Shelter Project is a voluntary non-profit making organization that believes in the equality of mankind. It strives for a violent free society. It aims to assist women and children who are survivors of domestic violence by providing temporary accommodation. It pioneers community responses to gender crisis, sexual violence and HIV/AIDS - The Botshabelo Rehabilitation Centre embarks on community mobilization, education and information on HIV/AIDS and sexual violence. It helps victims or survivors of sexual violence with user-friendly clinical intervention to reduce trauma. It also empowers men to be fully involved in the fight against HIV/AIDS. The target groups are children, the youth and women. In addition to the roles by women organizations above, women also: - Take part in general HIV/AIDS awareness and prevention campaigns - They are engaged in the implementation of HIV/AIDS awareness campaigns at the work place. They ensure that all at work have access to and are provided with sufficient and up to date information on HIV/AIDS - They encourage parent to child discussions at the family level - They help counsel the sick at family / ward / village level - They help build and man orphanage centers - They represent other women in national organizations such as NACA - They raise awareness against abuse and rape - They mobilize funds for the sick, the needy and the susceptible

Problems faced by Women in Botswana

Although there are efforts to economically empower women and to remove all forms of discrimination against them and the girl-child, women still face multiple problems. These include: - Violence against women: Some men beat their partners for no apparent reason. Sometimes women are prevented from phoning or visiting relatives and friends. Female partners are usually shouted at, or told that they are ugly, useless or bad mothers. Female partners are often accused of sleeping around - Rape is on the increase. At least more than five females are forced into sexual intercourse everyday - In rural areas where women literacy rate is low, men/husbands deny women/wives rights to acquire land, immovable property and to advance their 103

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. Womens 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 Womens 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. Womens 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 womens 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 womens participation in domestic and foreign or external trade Promote womens 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 bodys defence mechanism, which stops the body from defending itself against infections

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A state in which the bodys defence mechanism has been defeated leaving the body vulnerable to infections

Positive effects of HIV/AIDS on Botswanas 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 Botswanas economic development: - Loss of skilled labour force / leads to a decline in production / low productivity - An individuals illness may result in the death of a breadwinner in the family - Increased expenditure on health and community projects / redirection of government funds to care for the infected/sick/orphans - Possible decreased level of international investment - Decline in population, thereby decreasing the pool of labour How the Botswana government is addressing the HIV/AIDS scourge: - Giving out free contraception - (Sex) education in schools, clinics, hospitals, and the media e.g. Talk Back, Re Mmogo, etc. - Setting up AIDS committees at work places e.g. District Multi-Sectoral AIDS Committee (DMSAC) - Cooperation with foreign helpers e.g. Bill and Melinda Gates Foundation - Subsidized medication / ARVs in clinics and hospitals - Research into cure e.g. Harvard AIDS Research Centre at Princess Marina Hospital - Home based care - Supplementary feeding - Setting up testing centers e.g. Tebelopele Voluntary Testing Centres - HIV testing by public figures

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POPULATION
This is the number of people living in a geographical entity at any particular time. The geographical entity can be a village, town, country or continent. The study of population is called DEMOGRAPHY. Every country in the world with encouragement of the United Nations organization counts its every ten years. Counting people is known as census. Conducting a population census is important because: -it helps in development planning i.e. a serious government should have full knowledge of the population size, structure & distribution so that there is fair allocation of resources. - Knowledge of the population structure will enable the government to prioritize its development efforts. E.g. in LDCs where a large population of the population is below 15 years, the governments priority might be to build schools. POPULATION TERMINOLOGY Birth rate The number of babies born per 1000 people in a given year (crude birth rate) Death rate The number of people who die per 1000 people in a given year (crude death rate) Growth rate The pace at which the population is increasing in a given year due to the net migration & natural increase Fertility The actual reproductive performance of an individual, couple, group or a population Dependency ratio 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

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Natural increase The surplus of births over deaths in a population in a period of time Population projection Computation of future generations in population size, given certain assumption about future trends in the rates of fertility, mortality & migration Natural decrease The deficit of births over deaths in a population in a population in a given period of time Population pyramid A special type of bar chart that shows the distribution of a population by age & sex Optimum population A population that matches the availability of resources in a country or when the available resources match the existing population Over population When there are too many people for the available resources Under population When people are too few to make full use of the available resources Population distribution How a population is spread over area or the spread of population over a geographical area Population growth The increase of the total number of people Population composition/structure How many males & females are there in each age group Population pressure As population grows the increased number of people puts pressure on existing resources Migration Movement of people from one area to another: this can be temporary or permanent or it can over long or short distances. 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

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Number of people present in a country at the time of conducting a census or number of people actually living in a country Dejure population Number of people in a country including those temporarily resident outside, absentees Life expectancy The average age people in a given country or area are likely to live to Census A population count or numeration to find out how many people there are in a country Population explosion The rapid growth of population that threatens to deplete available resources Population varies from one area to another. The worlds most populated counties are India & china, approximately 1 billion people each. The United States has about 240 million, Nigeria- 100 million, south Africa -36 million & Botswana about 1.7 million. Todays problem is not so much the size of the worlds population but its growth rate is accelerating faster than before. It has been estimated that at the time of Christ the world population was below 300 million. By the 18th century it had reached 600 million & by 1820 it was about 1000 million. At the beginning of the 20 th century it was about 2 billion & by the mid 20th century it was over 3 billion. By the 21st century it was estimated to have reached 6.2 billion The above statistics shows that whereas the worlds population once doubled in 1700 yrs, now it doubles in 30 yrs or less. This figures show that everyday there are more than 300 000 extra mouths to be fed. More than 12 000 are added every hour so that in 500 yrs there would be no or less room on the surface of the earth if the present trend continues. The average annual growth rate of the worlds population is about 2%. This may sound little but it involves huge numbers & rapid expansion. However, this growth is not evenly spread throughout the world. In some regions it is sluggish almost to a point of nonexistence while in other it is fast. Generally the developed countries have far lower growth rates than the LDCs. Western Europe has an average growth rate of 0.6% per annum. In most parts of Asia, Africa, Latin America the growth rate is 3%while countries such as France are worried that their population is not growing fast enough. However, the main concern of the whole world is the need to balance population growth with the available resources such as land, food, water, shelter etc. the only way to achieve this is to return to a growth rate much smaller or nearer 2% per annum. Every country in the world with the encouragement of the U.N. counts its people every 10 yrs. The counting of people is important for the following reasons:

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-it helps in development planning. A serious government should have full knowledge on population size, structure and distribution of its people so that there is fair allocation of resources -knowledge of population structure will enable the government to prioritize its development efforts e.g. in less developed countries where a large proportion of the population is below 15 yrs the governments priority might be to build more schools

Determinants of population growth

Birth rates The most common index of fertility is the crude birth rate. This is the ratio between the number of births in a single year & the total population in a 1000. it is expressed as a number per 1000 e.g. Tanzania has a birth rate of 30 which means that 30 babies are born per 1000 population & it can also be expressed as 3% per annum. Generally birth rates in developed countries are less, just below 20 per 1000 & in LDCs they are high ranging from 30-40 per 1000 or even more e.g. Lesotho has a highs birth rate of 40 per 1000. it is tempting to believe that birth rate are linked to economic advancements Death rates This is the ratio between the number of deaths & the total population & it is expressed per 1000. it is common measure of mortality. Just like birth rates there appears to be a link between death rate s & economic development. The lowest death rates are associated with region of generally high standards of living i.e. developed countries whereas the highest are associated with economic background regions. The most important determinant factor of growth is the difference between crude birth rate & crude death rate usually referred to as natural increase. The higher the natural increase, the higher the population growth & the lower the natural increase the lower the population growth

Factors that influence birth rates

Demographic structure The character of a population age & sex composition. Countries or regions with a higher proportion of young adults will tend to have high birth rates while countries with a high proportion of children or aged will tend to have low birth rates. Education Generally speaking the advance the level of education reached the small will be the average size of families. With education comes knowledge of birth control, greater social awareness of a wide choice of contraceptives. This factor may also be linked to class of social standing. Lower classes are on average less educated & have larger families than middle & higher classes Religion

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Some of the worlds religions such as Islam encourage large families while others such as the Roman Catholic Church actively oppose any form of contraceptives Social customs In a number of cultural groups, concepts of marriage vary / differ. In some customs polygamy is practiced & this contributes to high birth rates. In some places such as India where most are Hindus, marriages of girls had traditionally been at the age of 16 & have had their first children at the age of 18 & others in the next 25 yrs. Diets & health The poorest & most undernourished people of the world tend to have the highest birth rate. Unfortunately high birth rates often led to poverty which maintains malnutrition which leads to poor or lack of energy to do work which leads to low income / output thus maintaining a vicious circle of poverty. It is also common that countries with high levels of mortality have high levels of fertility. It is believed that parents in these countries deliberately have many children to ensure that if some dies others remain. Politics War can also act as a natural limit to population. However, in most cases, birth rates are more closely linked to politics e.g. during the 1930s Germany encouraged high birth rates through state boundaries or even medals to prolific couples

Factors influencing death rates

Demographic structure Areas or countries where the population structure has a high proportion of men than women they tend to be high death rates than areas where the proportion is the reverse Medicine or health care The better the medical services & supplies the lower the death rate. Medical care is measured in ratios of doctors to patients in a given area. E.g. on average developed countries have 50 times more doctors to patients than LDCs do. In some central African countries there is only 1 doctor to 70 000-80 000 patients Social class Poorer sections of the population usually have higher death rates than richer sections. The reason may be that the poorer sections are less privileged, living in poor houses, poor sanitary conditions & are unable to afford a balanced diet or adequate medical treatment Occupation Certain occupations are more dangerous than others & therefore leads to greater number of deaths e.g. coal miners are more vulnerable to accidents & also prone to respiratory diseases such as pneumonia & T.B. others include quarry workers, miners & asbestos workers Place of residents

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

Factors that affect Population distribution and density

1. Climate is probably the most important because it determines the natural vegetation and crops that will grow. Areas that are too hot, too cold or too dry are avoided. Some climates are more attractive to man than others. 2. Relief- low lying and flat or gently undulating areas are the best for settlement and agriculture. Coastal plains tend to be the most densely settled areas along with basins and deltas of large rivers. Mountainous regions are usually sparsely populated. 3. Soils- good soils for agricultural purposes usually attract dense populations while poor soils i.e. unsuitable for agriculture are often sparsely populated. 4. Water- people need permanent sources of water supply hence such areas will densely than those with scarce water supply. 5. Mineral resources- the presence of can cause a high population density in areas that would normally be sparsely populated due to great wealth attainable. 6. Natural vegetation- dense tropical vegetation hinders settlement. In the past people settled in areas where the vegetation yielded food. People looked for vegetation which could support livestock and man. 7. Industries- attract job seekers. 8. Natural disasters- areas of earthquakes, volcanoes, drought, disease floods etc are avoided. 9. Communication routes- people settle in places with good communication infrastructure. 10. Politics- people avoid politically unstable areas; refugees move to stable areas. 11. Historical decision- sometimes settlements are started by historical accident.

Demographic transition model (theory)

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

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The Demographic Transition Model

Stage 1 From earliest times - 1740

Stage 2 1740 - 1880

Stage 3 1880 - 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. it was believed that having a large number of children was a sign of virility & wealth -lack of contraceptives & knowledge on birth control: in primitive societies, contraceptives were not common or were rarely used hence people could have a large number of children which they have not planned for

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-lack of education: traditional societies lacked modern education which means that they did not understand the dangers of having large families Reasons for high death rates include: -out-break of killer diseases: a large number of people died because of frequent outbreak of killer diseases such as plaque, T.B. small pox etc. -lack of scientific medical knowledge: the absence of scientific knowledge of controlling diseases meant that a lot of people died from diseases which could otherwise be prevented or cured -poor sanitation, personal hygiene & poor diet: most people diet because of poor conditions in which they lived coupled with poor hygiene or cleanliness of their bodies. They were also attacked by various nutritious related diseases because of lack of proper or balanced diets Stage 2: EARLY EXPANDING During this stage or period the birth rate remained higher while the death rate began to decline / fall quickly. As a result of the decline in death rate population began to grow rapidly Reasons for a fall in the death rate -improved public health: medical care which include vaccines, hospitals, doctors & scientific inventions were introduced -improved sanitation: clean water & improved sewage systems had also been introduced -improvement in food production: food production became improved in terms of quality & quantity -improved transportation: transport network became improved which made it easy for food & doctors to reach places where they are badly needed -a decrease in child mortality: this meant that a large number of children could now reach adulthood Reasons for the remaining high birth rate -customs & traditions: some people still hold unto traditional believes which encourage large families. -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

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Stage 3: LATE EXPANDING During this stage the birth rates began to fall quickly. The death rate stopped falling but stayed almost the same. The population continued to grow but at a slower pace Reasons for the fall in birth rates -family planning: the use of contraceptives became popular with sterilization, abortion & government incentives also contributing -education: the level of education had improved & people are aware of the use of contraceptives & the dangers of having large families. Children have to go to school hence they became more of a burden to their family than assert -law forbidding child labour: in many countries at this stage laws had been introduced which stop the use of the of children as a source of labour & force them to go for school (compulsory education) -the fall in infant mortality: better living conditions, hygiene, healthier diets & good medical care had led to a fall in infant mortality thus it was no longer necessary for parents to have many babies Stage 4: LOW FLUCTUATING During this stage both the birth rate & death rate remained low. Even though the population is high, it is growing slowly because the difference between the birth rate & death rate is small. It is anticipated that in this stage there will be a zero population growth (Z.P.G.). Countries of Western Europe have reached this stage. The Z.P.G. means that population will neither grow nor decline POPULATION STRUCTURES & PYRAMIDS The population of a country contains different age & sex groups. There are young, middle-aged & obviously males & females. Population structure refers to how the composition of a country is, in terms of sex & age. The structure helps to identify for example, the age group in the majority & problems that may be encountered. A study of the population structures of many developing countries shows that there are many young people (below 15 years) who need to be cared for. The population structure can consider the following: Ethnicity i.e. which tribe/nation people come from Employment i.e. an employment structure can also be used to illustrate the population structure Sex structure: this is usually measured by a sex ratio (i.e. the number of males to 100 females) e.g. in 1971 in Botswana, there were 84 males to every 100 since many young men had gone to work in mines in South Africa. In 1991 there were 92 males to 100

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males in Botswana because the government of South Africa had stropped employing so many foreigners. The age structure: this shows the distribution of age groups e.g. in 1991 the age structure in Botswana was as follows: 0-14 > 43.6%, 15-64 > 51.5%, 65+ > 4.9%. The information on population structure can better be represented by a population pyramid. POPULATION PYRAMIDS This is a pyramid-like structure/graph which illustrates the age & sex information about a countrys population. It is a graphical representation of the population structure of a place. This is simply two histograms: one for males & the other for females, put back to back. The age groups are shown on the vertical axis, & the percentages of population are shown at the bottom, the males are shown on the left & the females are shown on the right.

Population pyramid for developing countries

Pyramids for developing countries have a concave shape which then has a broad base & a narrow apex. Abroad base indicates a very high birth rate. Over half the population falls below the age of 19 & these are the economically inactive part of the population. The pyramid shows a rapid fall upwards in each age group which indicates a high death rate including infant mortality and a low life expectancy with a low percentage of people who can expect to live beyond 65 years. The low life expectancy is indicated by a narrow apex or top. This type of population pyramid is usually referred to as bottom-heavy. With a large proportion of the population being young & economically inactive, the dependency ratio is very high. The young people put a strain on the government budget or resources to provide facilities such as schools.

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POPULATION PYRAMID FOR A DEVELOPED COUNTRY

The base is narrow or constricted indicating low birth rates. This shows that a small proportion of the population is under the age of 15 with a large proportion in the middle ages i.e. 15 65 years. This is an indication that family planning is effectively used. The middle of the pyramid is broad, signifying a large proportion of the population of working & economically active people. In this case therefore the dependency ratio is very low. There are more people or a significant number of people over 65 years indicating high life expectancy. Developed countries main worry will be to provide old age pension rather than to provide schools.

WAYS OF REDUCING HIGH BIRTH RATES IN DEVELOPIJNG COUNTRIES Encourage the use of birth control measures & family planning Provision of free contraceptives Improvement of the status of women & their positions in society Provision of free education for all Paid maternity leave for all

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 Discouraging early marriages Legislation of abortion or sterilization WHY IS IT DIFFICULT TO CONTROL HIGH BIRTH RATES IN DEVELOPING COUNTRIES Lack of enough medical facilities to provide the services needed. Lack of education/ poor education Lack of capital [money] Religious beliefs which encourage large families Ignorance of the use of contraception The use of children to provide labour in agriculture Isolated areas or communities i.e. population is wide spread or scattered and there is little awareness in rural areas REASONS FOR RAPID POPULATION GROWTH IN DEVELOPING COUNTRIES Birth rates are much higher than death rates Improved medical facilities leads to a fall in infant mortality rate Contraceptives are rarely or improperly used Improved food supply & drinking water also reduce infant mortality rate Polygamy & early marriages lead to large families Religious beliefs Traditional beliefs which regard large families as a sign of prestige Lack of education The desire for boys Old age security parents have children so that they will look after them when they are old 118

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

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SOLUTIONS FOR UNDER POPULATION Encourage immigration Discourage emigration Encourage large families Encourage education for skilled labour SOLUTIONS FOR OVER POPULATION Improvement on technology so that the population becomes more efficient Improvement in agricultural production so as to have more food Improvement of infrastructure such as roads & telecommunications Application of new scientific in agriculture to boost food production e.g. the use of fertilizers & genetically modified seeds Establishment of industries so as to provide employment & income Improvement in social amenities such as schools, health facilities e.t.c Introduction of birth control measures e.g. the use of contraceptives & education on family planning Policies to limit the number of children Provision of education & employment to women Improvement of the status of women e.g. through employment & recognition of womens rights NATIONAL POPULATION POLICY A piece of legislature or a strategy by a government to regulate or control population. A number of governments use different policies to regulate their population. Such policies include: the one-child policy, whereby a law is used to restrict a family to have only one child. A country, which has implemented such policy, is China. In that country the government also gives incentives such as free education & family benefits to reinforce this law. Abortion is also available & legalized. ADVANTAGES OF HAVING A POPULATION POLICY The population growth rate can be controlled to match the rate of development & resources

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 Policies can lead to a reduction of poverty by allowing development to keep pace with population growth DISADVANTAGES Peoples freedom of choice is limited or restricted Women may be forced to have abortion even if they are unwilling Strict policies may result in unbalanced population Population policies can encourage female infanticide (killing of the female fetus) An aging population may result in fewer children.

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HEALTH
The manifestation of development in the human body. It refers to the condition of the human body in terms of fitness. Good health is a state of complete physical, mental & social well being & not merely the absence of the disease. FACTORS ACCOUNTING TO POOR HEALTH Unhealthy diet Food should be enough & balanced. A faulty diet is responsible for ill health throughout the world. A balanced diet means food that provides the right amount of nutrients for the needs of the individual & it should contain all the food substances. Unhygienic diet Food & water should be covered, if there is poor sanitation & food is not covered, germs & bacteria can easily infect the human body. Some of the diseases associated with unhygienic conditions are diarrhea, typhoid, cholera & dysentery e.t.c Poor living condition If people live in a small area where there is congestion, diseases spread easily e.g. T.B., eye & skin diseases. Poorly ventilated areas also lead to poor health. Stress When a person consistently worries they become stressed. A lot of factors can lead to stress & this include: *Unhealthy diets *Unemployment *Drug abuse *poverty *alcoholism * mental problems

Lack of resources If basic resources are not available it is difficult to stay healthy. Basic resources are food, water; shelter e.t.c. ill health weakens the body hence it becomes vulnerable/prone to a variety of diseases. People begin to work less & earn less hence they fail to meet their basic needs & eventually they are trapped in a vicious cycle of poverty. EFFECTS OF POOR HEALTH People Children to concentrate & learn, adults cannot work hard to lose their jobs e.g. retirement Country

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Generally production goes down including GNP. The country becomes poor. The government begins to assist the poor hence resources are further drained. Waste resources More money is spent on medical care & less is spent on other equally important services such as education, infrastructure, telecommunications & power. VICIOUS CYCLE OF POVERTY Vicious cycle of poverty Low resistance to Diseases ill health

Cannot work hard Malnutrition; lack Of minerals or proteins Low productivity Poverty MEASURING HEALTH A number of doctors per 1000 inhabitants The number of hospital beds per 1000 people Life expectancy at birth Average calorie intake Infant mortality rate

FACTORS THAT INFLUENCE GOOD HEALTH -sanitation, nutrition, entertainment, education & education, provision of clean water free from impurities TYPES OF DISEASES A) Bacterial & viral; AIDS, Syphilis, polio, TB, cholera b) Diseases carried by animals; malaria, fever, blindness, bilharzias, SARS, sleeping sickness STRATEGIES FOR BETTER HEALTH CURATIVE METHOD

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It refers to the provision of nurses & doctors to cure the ill & the injured. Clinics & hospitals are provided for this purpose. PUBLIC/ PRIMARY HEALTH CARE (PHC) The ability to know about health & the provision of good health in the family as well as the community is known as primary health care. STRATEGIES *Diet *Housing *Health education *Water provision *Sanitation *waste management *environment

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

HEALTH SYSTEMS
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There are two systems namely; - modern medicine - traditional medicine

TRADITIONAL MEDICINE
This is a craft of providing treatment, establishing causes of illnesses, preventing their reoccurrence & protecting patients against evils such as witchcraft. In other words it is a way of diagnosing diseases & prescribing treatment using unscientific means or methods. CHARACTERISTICS It is often surrounded with mystery It cannot be experimented with Its methodology cannot be verified It is based on a system of beliefs It is surrounded by a lot of mystery Its intricursis are claimed to be beyond the range of ordinary knowledge It is associated with rituals performed in secret places It uses natural herbs in their raw forms Traditional medicine personnel are known by a variety of names such as witch doctors, magicians, herbalists, medicine men e.t.c Traditional doctors claim to possess supernatural powers given to them by supernatural forces They claim to be in constant contact with supernatural powers through their dreams & spirits Traditional medicine goes hand in hand with taboos on the part of the patient & the doctor During medication the doctor uses some weird sounds & words which he claims to be sacred The healer s dress is a unique designed outfit or attire ADVANTAGES 125

 Traditional healers have big knowledge &understanding of their patients, local environment, cultural codes & history of the local people Traditional doctors all know the attitudes of the people & their organization & will be able to have a psychological impact on them The medicine is cheap or readily available for them than some modern medicine DISADVANTAGES It cannot be experimented with & the methodology cannot be verified There is a high use of unscientific measures e.g. the amount of medicine to be taken & how regular it has to be taken There is high use of unhygienic instruments e.g. razor blades & needles that are not sterilized There is a lot of secrecy surrounding its performance & knowledge hence it cannot be easily learnt by everyone

MODERN MEDICINE
This is a way of using scientific methods of diagnosing diseases. It is based on a number of related & complicated facts. Diagnosis procedures that are used or put in place to determine the nature & cause of illness/disease. Drugs substances that affect/influence ways in which the body functions & they treat diseases. Vaccines they are medicines helping the body to develop immunity against diseases. X-rays electromagnetic ray gadgets that penetrate the body to produce a picture of the affected area. They enable the health officer to study the inside of the body. Transplants replacement of damaged/ill organs Transfusions transfer of blood or any other fluid from a donor to a recipient Surgery treatment through operation. It is complicated & needs specialized surgical doctors. ADVANTAGES

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 It is scientific, can be experimented with & is based on tried & tested procedures The personnel used have some medical no-how (knowledge & skills) There is use of modern way of diagnosing diseases Instruments used are clean & well kept The dosage is carefully controlled & safe DISADVANTAGES Hospitals are expensive to build Doctors are expensive to train Drugs are costly to make/to buy It is complicated & needs complex technology & skills If prescriptions are not properly done, it can be dangerous to the patient It fails to cure some diseases e.g. AIDS, cancer, mental illness & epilepsy Chemicals, drugs & other substances can be dangerous to the environment THE IMPACT OF HIV/AIDS ON BOTSWANAS HEALTH SYSTEM & ECONOMY Negative effects - Botswana remains the hardest hit in sub-Saharan Africa with an estimated prevalence rate of 38.6%. The most affected are the able bodied, educated young people. The social games of yester years (high life expectancy, low infant mortality rate, high standards of living) have been reversed by this scourge, for instance life expectancy has dropped from 69 to 39. - More money is spent on the health sector than on other sectors of development such as education & job creation. - More expatriate medical personnel are recruited, increasing government on health, to try & address the problems caused by this scourge. A lot of money is spent on programmes such as P.M.T.C.T. & drugs such as AZT & anti retroviral drugs & on research & equipment. In addition to this problems, productivity has been severely affected due to

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

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 Government is also mobilizing support from international donors & governments to fund efforts of fighting the HIV/AIDS scourge e.g. the Bill & Melinda gates fund, capacity building projects funded by ACHAP is done in partnership with the government of Brazil. The government has set up a research & testing centre known as the HAVARD (PARTNERSHIP) INSTITUTE. Communities have been mobilized to set up & handle home based care patients who are chronically/terminally ill. Government has encouraged NGOs & CBOs to participate in the fight against the HIV/AIDS scourge & facilitates the formation of such NGOs e.g. Tshireletso AIDS awareness centre, COCEPWA, BOTUSA.

EDUCATION
The teaching and/or training of mind & character There has never really been any argument over the link that exists between education & development, although education in itself is not a universal recipe for economical & social progress. Education is fundamental element in the development equation. This does not that education automatically brings about development but it allows societies to unlock their potential to expand their horizons and to adapt to a changing world. What is realized is that one of the fundamental purposes of education is to enhance economic and social development. Education is considered a merit good, having a high social value & is regarded too important that it is provided free or is heavily subsidized. To that effect governments are involved in its provision rather than leaving it entirely to free market forces. The purpose of giving a student a good education is to help the student: To live a full & happy life To be able to work & earn a living To get on with other people well 129

To solve problems in ones life & in the society To think things out for oneself or to have an independent mind To make good & informed decisions

Education is a social process by methods of which knowledge is transmitted from the ageing generation to the emergent generations. This transmission of knowledge is done through informal & formal means. Education is always considered crucial to a community, society or nation in that it ensures continuity, stability & survival of such a group. It is through education that vital skills, fundamental traditions, crucial societal values are indoctrinated in the emergent generations. Education is a continuous process for the individual. It facilitates development of his/her intellectual & rational thinking. It is also important for ensuring his/her contribution to the development of his/her society. It ensures conformity to the norms of his/her society. Education is important in bringing about many aspects of cultural change in that it stimulates creative thinking & action in society. Finally education encourages encompasses the whole range of societal activities such as spiritual, traditional, material & emergent aspects of society. Education differs from other services because it basically benefits the individual i.e. improving the living standards & the quality of life of the individual. It does not offer immediate returns to society who sponsors it. It absorbs a proportionately larger part of the economic resources of a society i.e. the 1997 budget in Botswana P1.1 billion. Why is this so? It is because societies need systems capable of passing on the accumulated knowledge which provides an essential basis for creativity & progress. The process of education is long, involving primary, secondary & tertiary levels. Society however considers it a worthwhile long term investment & reaps rewards in the long term such as having better qualified manpower. One of the measures of development is percentage adult literacy. Literacy is the ability to read, write & numeracy. Percentage adult literacy rate is the percentage of literate people in the adult population from over 15 years & above.

TRADITIONAL EDUCATION
Traditional education is as old as mankind. It has been practiced by all human societies at one time or another during their formation & development. It started in childhood through puberty & cultivated through adulthood of an individual. The life of an individual in society acted as classroom & society at different levels was the teacher.

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

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

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

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- EXAMINATION These are considered essential to modern education. They are conducted to test the acquired knowledge & skill. They are also meant to objectively eliminate the weak from the next higher stage of learning since it is hierarchical in structure.

- CERTIFICATE This is a recognized documentary evidence awarded to those who successfully complete a stage of learning. It allows the individual to proceed to the next stage or higher stage or acceptance in the world of work such as industry or services. - SCHOOL This is a purpose or specially designed institution where children go to learn. It has a physical structure i.e. buildings & support facilities such as playgrounds. A school may be called other names depending on the levels of learning that they offer i.e. college, institute or university. It is equipped with professional teachers who are trained for that purpose. Generally formal education includes primary, secondary & tertiary institutions. They are hierarchical in structure, are interdependent & are based on standard curricula formulated by the government. The programme of instruction is based on academic terms & years, a student has to progress from the lowest level to the highest.

HOW EDUCATION CONTRIBUTES TO DEVELOPMENT

Basic education improves worker performance in industry & agriculture. It provides necessary skills for self-employment & entrepreneurship. Moreover it trains the workers of the future. Education can help prevent diseases that are linked with human behavior such as AIDS. It can help prevent degradation of the environment because it creates awareness of the environmental issues & develops a sense of awareness. On birth control, education helps delay marriage age. Females with basic education tend to have fewer children than those who lack education. The chances of survival of offsprings also increase with increased female education. Education is important in developing human resource. An educated person can take part in the political, social & economic decision making in his local area or country. Besides illiteracy allows & encourages participation. Education also helps the spread of technology. Another reason is that education increases health education & chances of adopting family planning methods.

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 Above all, it brings about personal fulfillment & reduces poverty.

EDUCATION IN BOTSWANA
Formal education is organized on a 7 3 2-year systems from 1998. This was reorganization from the previous 7 2 3 system. It is projected that by the year 2003, 50% of students would go to senior secondary school education from the 203 network of CJSS. There are 27 senior secondary schools at the moment. Education is provided at zero cost to all Batswana from standard one to form five. In tertiary education, the government operates a system of grants/loans starting from 1995. The system is primarily based on the manpower needs of different sectors of the economy. Students following areas of critical manpower shortage i.e. more technical & science based professional disciplines receive more generous financial support. These are deemed essential to the development of the country. Educational requirements also take into account other variables scarcity or shortage of manpower in different fields, localization, length & affinity of acquiring training e.t.c Provision of universal education to a nation is very expensive because schools have to be built, equipped, maintained & teachers trained, housed & paid for their labour. Private schools can alleviate the situation by working in partnership with the government. Private schools however, are expensive; they are owned & run by business people who need to make profit. There are a number of private schools in Botswana mostly located in urban areas. Most of them are primary schools that offer English as a medium of teaching from standard one, secondary schools are fewer. The table below gives an idea of the education establishments in 1997: primary 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. Learning takes place at any convenient place such as outdoors, in someones home or workplace. Certification may be part of this schooling but examinations are not given much importance. The stress is on whether the student can do the task rather than write about it. EXAMPLES OF NON FORMAL EDUCATION

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Non formal education can take some of the following forms: - Literacy classes This involves teaching adults with little or no schooling how to read & write. Trained teachers or community members could be involved in literacy classes.

- Agricultural education Agriculture extension workers visit farmers to instruct & demonstrate farming skills such as growing crops, raising animals, applying fertilizers & other things. In Botswana they are called Agricultural demonstrators. - Health education A good example is the knowledge that is imported to mothers at the antenatal & postnatal clinics by nurses. Mothers are taught things such as how to feed & take care of babies. - Learning circles Learning circles are groups of people who meet to share their skills & teach one another. Women particularly are very active in learning circles & may meet to improve their sewing or cooking skills or to learn weaving & tailoring. ENVIRONMENTAL EDUCATION ON THE DEVELOPMENT OF BOTSWANA Modern development brings about many negative environmental by products & practices. Examples include industrial & agricultural pollution, motor vehicle emissions as well as littering. The government through the department of curriculum development & evaluation has designed a curriculum for environmental education. This is to help the children to see & understand the pros & cons of taking care of the environment. Education can give skills to students which will enable them to take positive actions in their lives. It teaches them awareness of & sensitivity to the world around them, knowledge of how the environment functions, how environmental problems arise & how they can be resolved. Education develop attitudes that embrace a set of values & feelings of concern for the environment & the motivation for active participation in environmental improvement & practice, skills for identifying, investigating & resolving environmental problems & issues. PARTICIPATION to encourage students to become actively involved in using their acquired skills in taking proactive steps to rectify environmental problems

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POLITICS AND DEVELOPMENT

Explanation of concepts, - Development; - when society changes for the better; when the economy grows, standards of living rise, quality of life improves, wealth is shared fairly & more people take part in decision making (Stuart, 1996) - Politics - State - making decisions & distributing resources (Stuart, 1996) - an embracing term which refers to the interaction between all players In the political bickering, the government (legislature, judiciary & Executive), the civil society, civil service & the private sector (Clark, 1995) - who gets power, what authority he yields, how does he get into power, how legitimate is this government & to whom is he/she Accountable to (Martinussen, 1997)

- Government

GOVERNMENTS OF THE WORLD

MONARCHY
This is a system of government where the head of government is a king or queen, e.g. Swaziland & Morocco. Characteristics Leadership is hereditary Head of government is a king or queen NB. Over time monarchy has become irrelevant & has since been replaced by Constitutional monarchy, where the head of government is a prime minister & is elected, e.g. Lesotho.

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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. Characteristics The people can choose their leader Representatives are accountable to people There are guaranteed basic freedoms before the law (freedom of speech, press, movement, association & free trial) The laws apply to everybody (equality before the law) There is more than a single political party/constitutional & legal opposition Universal suffrage/everybody is free to vote after a specific age Botswana at the age of 18 years Periodic/regular elections Botswana after 5 years The party with a majority becomes the leader of a country Limited use of force Citizenry participation in politics by joining political parties

Advantages There is popular participation in decision making Basic freedoms are guaranteed Development is relevant to the people it is intended to help There is accountability, transparency & decisiveness The constitution is upheld

Disadvantages Elections are costly (time consuming & financial wasteful) Clientalism a coterie of party whos emerge & recycles itself into power Rent seeking development projects become election baits than genuine peoples wants Parties are formed along tribal, ethnic, religious, racial & other divisive tendencies/national unity sacrificed & compromised Political turmoil because of indecisive election results or election rigging Consultation of people at grassroots is delay-full & a financial waste Abuse of freedom of speech into character assassination k& mud slugging

ONE PARTY STATE

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A country where there is a single party & its the ruling party Characteristics There is a single political party They may be elections, but candidates would be from the same party Opposition is illegal & officially suppressed

Advantages Unity is important they claim parties may sacrifice unity They prevent tribal conflicts There is continuity - a party can plan for longer periods for it is guaranteed a continuous reign Development comes first people need to be developed first & democracy comes later The system is seen as synonymous to African tradition It avoids social class formation Costly elections are avoided Disadvantages Basic freedoms are denied Irrelevant development No answerability & transparency Popular participation unknown all dictated from above Corruption may be high within the government

DICTATORSHIP/AUTOCRATIC STATES
Control of power machinery & of them willy-nilly Use of force to crush opposition There is rule by decrees without use of laws (constitution)

The role of the government Economic growth Nation building Educating citizens Caring for the environment Representing people abroad/international relations Social justice Keeping the peace at home

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 Planning development Providing health care Interaction of economic, social & political aspects of development; this interaction can either facilitate the realization of the above or frustrate development resulting in the following negative aspects of development: o Over-development of the state mismatch between capacity & responsibility o A predatory state o Expanded government bureaucracy o Ambitious projects/gigantomania o Clientalism o Rent seeking o Corruption o Excessive government spending o No financial accountability & transparency o Mono economies o Debt induced social reforms o Kleptocracy state stealing from itself o Indebted militarization mass expenditure in the military o Weak government/poor development elite o No state autonomy o No insulation of the bureaucracy o Unimpressive civil & economic performance & legitimacy o Economic interest Vs other interests at the core of everything o Emphasis on human development

MOBILIZATION OF RESOURCES
a) Mobilization of economic resources Government can acquire revenue through the following: Taxes e.g. income, sales, corporate & import duty Licensing Running lotteries Production & selling Imposition of fines & penalties Foreign trade Invitation of TNCs Direct foreign investment Land reforms Provision of lending facilities 140

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, either at council, village & kgotla level make suggestions which are then carried up by the authorities b) Top down approach/trickle down effect approach -When decision making is centrally based or when decision are made at the top & passed down to people through extension workers

NON GOVERNMENTAL ORGANISATIONS (NGOs) IN DEVELOPMENT

Autonomous, privately set up non-profit making institutions that support, manage & facilitate development action. Characteristics privately set-up, structured & sufficiently autonomous non profit making support development (Kane 1990: 14-15)

Types of NGOs a) Relief & Welfare Agencies (RWFs) - Those that provide the needy with a service or a need e.g. Missionary societies & the Red Cross b) Technical Innovation Organizations (TIOs) - Those which operate their own projects to pioneer new improved approaches to Solving problems & which tend to remain specialized in their chosen field e.g. The Grarameen Bank & Women against Rape c) Public Service Contractors (PSCs) - Northern funded NGOs which work closely with southern governments & aid agencies e.g. Foundation of Education with Production. These are often contracted to implement components of official programmes because of their size & flexibility d) Grassroots Development Organizations (GDOs) - Locally based southern NGOs whose members are poor & oppressed & which Attempt development process e.g. Thari ya Banana of Molepolole

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e) Popular Development Agencies (PDOs) -Northern NGOs & southern intermediary counterparts which concentrate on self-help, social development & grassroots development, e.g. YWCA f) Advocacy Groups & Networks (AGNs) NGOs roles include; Providing for the unprovided for/marginalized/serving the poor Shaping national policies Advocate for just development Popular participation Empowerment Poverty alleviation Mobilization, 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, which leads to a decay & death of NGO because of no replication Legitimacy problems: a) Criticism of one another rather than collaboration & this fosters isolationism Staff problems: a. Recruitment is one of staff who can follow orders & be awe to the leader b. Inter staff rivalry between local & foreign staff Project design: Projects do not really benefit the poor, but benefits the easiest to reach. Local elite domination of decision making No innovativeness, but extension of tried & tested services Limited replicability Limited technical ability from staff Learning disability Irregular documentation of experience & subjective if any Little attention spared to impact studies 142

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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Economic integration promotes economic growth or development, especially in Africa, Latin America and Asia. Economic integration may be a common market meaning an area through which goods and perhaps factors of production are free to move without interference from customs duties or other restrictions while usually a common external tariff is set up against goods coming in from outside.

Beyond common market, countries may run common services together, such as railways or posts, same central bank and currency, common tax system or plan new industries together.

The economic, political and social dimensions of regional co-operation

Although there are various types of regional integration, the general aims are to promote more trade between its members, to generate a great amount and share of external trade and raise the standards of living of the populations of member states. In short, the economic motive overriding. Some of the forms of economic integration are as follows: Free trade area no tariffs or quotas between other member countries. Each of the member countries unilaterally imposes tariffs on non member countries. Customs union free trade between member states but all members must operate a common external tariff on imports from non member countries. A good example is the Southern African Customs Union (SACU).

Common market
This is a customs union which in addition to free trade in goods and services also allows a free movement of factors of production (labour and capital) between member states. Economic union this organization includes all the features of a common market but it also requires member states to adopt common economic policies in such matters as agriculture, transport and taxation e.g. the European Union.

POLITICAL
Aside from economic pursuits, regional integration also serves as a mutual political forum to articulate the voice of the regional grouping. Politics is an integral part of regional co-operation. It has become common for regional economic groupings to promote such as peace, democracy, good governance and other pertinent issues as they arise. SOCIAL Regional integration is also social in the sense that the interaction of people within a regional grouping takes at a social level. It is imperative to harmonize the economic 146

pursuits and ideals with the social ramifications within a region. Thus the issues of cultural similarities, differences, language and other factors have to be taken on board and complement the primary economic goals. One of the aims of SADC is in fact to consolidate historical, social and cultural ties among the southern African region.

Political advantages countries with similar interests

1. Presenting a united front: often speak with one voice in international affairs. ECOWAS fighting to stop UN sanctions on Liberia. 2. Larger administrative units: greater efficiency is ensured administering or planning for larger rather than small units. 3. Wiping out colonial frontiers: frontiers/borders of many developing countries drawn by colonial powers according to their political interest. Often such boundaries do not fit any sensible geographical, tribal or economic pattern e.g. the case of Somalis, into French, British, Italy and some in Kenya, Ghana/Togo, Nigeria/Cameroon, Botswana/Namibia, etc.

Economic advantages
Specialization common market countries benefit from specialization. Each produces according to comparative advantage e.g. one on machines/tractors, another in textiles while another in insecticides. Economies of scale several small countries come together to form common market so as to enable large industries to operate without any losses. Attraction of new capital and enterprise new investors are attracted and larger MNCs as well thus prices could be brought down through competition and large scale production of goods or services e.g. SADC region Operation of common services e.g. telecommunications, airways, rail and road transport as well as power. These are not advantages associate with a large market but with states combining to operate these common services as one unit. Increased competition poor/third world countries often have fewer firms with monopolistic, non competitive positions due often to complacency or stifles efficiency. Coming together often means more firms in the region or efficiency assured due to competition. Mobility of factors where there is close economic integration the factors of production can move freely, especially labour and capital. However, often workers in one country

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would object to competition from immigrants from other territories, as this would tend to keep their wages down.

The role of regional co-operation in the development of Southern Africa

Regional co-operation is a worldwide phenomenon. In Africa there are many regional groupings for its many geographical and cultural regions. ECOWAS Economic Community of West African States EAC East African Community COMESA Common Market for East and Southern Africa CEEAC Community of Central African States

Southern Africa
In southern Africa, two regional communities come into focus: SADC and SACU. SADC which metamorphosed from a coordinating conference (SADCC) in 1980 to a community in 1992 has 14 members. Among the aims of SADC are to increase trade among member states, to integrate the region equitably and to use resources to promote national and regional policies. The ultimate aim for the SADC region is to move towards complete economic integration and promote development within the region. Beyond the purely economic objectives, SADC has developed into a strong regional community to deal with other pertinent issues as diverse as the promotion of peace, democracy, regional security and coordinated fight against crime and drug peddling. Various protocols have been signed to implement such policy areas. Consider for example, the SADC states intervention which sanctioned South Africa and Botswana to intervene in the mutiny and breakdown of law and order in Lesotho in 1996. SOUTHERN AFRICAN CUSTOMS UNION (SACU) Members of SACU are Botswana, South Africa, Lesotho, Namibia and Swaziland. SACU was formed in 1910 and it has played an important role in southern Africa. Before the advent of a mineral led economy in Botswana, revenue from SACU was an important contributor to the countrys GDP. In 1981/2, SACU provided 37% of Botswanas government revenue. The figure was much higher for Swaziland (60%) and particularly Lesotho (71%). Despite the income from tariffs, South Africa dominates SACU portionately. It is the treasurer and obliges other member states to trade with South Africa because they must get all their imports through it. The other countries cannot set up their own import duties. South Africas economic might has virtually made it impossible for Botswana to

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industrialize. For weaker economies like Lesotho, the revenue from SACU would be a viable source of revenue to fund its development projects.

Has regional co-operation succeeded in southern Africa?

Since its inception in 1980, the pertinent question that has been posed is whether SADC has been successful. Some of the achievements are the following; Many projects have been implemented. By 1990, 490 projects had been implemented worth $6.3 billion. The SADC trade protocol of early 2000 increased intra-region trade by 22%. It is expected to increase to 35% by 2008. Foreign assistance has continued to flow from various organizations as the EU and governments like the USA There has been an improved investment climate, though dominated by one country; South Africa, since the establishment of finance and investment sector in 1995 Peaceful cooperation has generally been a way of life between states at least before the DRC crisis. Diverse countries have to cooperate as one family.

Failures
The SADC has had its share of problems and failures: Considering the period since its inception, the southern African region should have achieved more. Poverty is still pervasive. Trade relations by SADC countries are much stronger outside the region than between members, this defeats regional integration Some countries economic position has worsened over the years despite SADC e.g. Malawi, Zambia, Mozambique and now Zimbabwe. South Africa is still the dominant economic power in the region despite talk of equitable development within the region Bilateral trade relations among SADC countries often take precedent over regional co-operation Political instability has continued to plague some member countries such as Angola, for this reason development has been compromised.

Challenges facing SADC

Political tensions as for example in Angola still persist. The DRC crisis has excruciated instability in the region. Most economies are largely agriculturally based with small national incomes, reliant on international aid and have severe international debt problems. Zambias external debt is about $6 billion Tariffs and trade barriers still exist within member countries and jealousy among countries in trade relationships still exist. Consider the quarrel over the use of the

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rail line between Botswana and Zimbabwe and South Africas intrigue over Botswanas 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, what is the way forward? Obviously there is an imperative to strengthen regional co-operation in southern Africa. The following are suggestions for strengthening regional co-operation:

a) Economic front
There is need to diversify the narrow production and export base in most SADC countries towards industrialization because with this there will be increased intra SADC trade For regional trade to bear fruition there must be increased investment in the region to increase economic growth and produce more goods and services for exchange within the region There are disparities in economic performance within the ranks of trade with some countries such as Botswana, Namibia and South Africa off than others. This situation is inimical to regional co-operation Heavy foreign debts in some member countries have militated economic growth in these countries. Naturally, such countries will give first priority to domestic problems rather than regional economic problem Trade barriers which have been pervasive in the SADC region need to be cleared before countries can truly think of strengthening the region, in particular the question of tariffs.

b) Political front
Regional economic integration presupposes a healthy political climate, and it is initially in the political sphere that economic ideals can be best achieved. It is therefore important for SADC countries to have a united political front in order to succeed as a region despite the diversity in governments within the region. The most important way forward is to build democracy and good governance. A stable, conflict free and democratic dispensation in a region helps to attract foreign investment which is pivotal for economic growth. The despotism in Zimbabwe for example, attempts to stifle the press recently and the attempts to reverse democracy in Malawi and Zambia set a bad precedent. SADC countries must co-operate and defend the institution of democracy and good governance for the good of the region and prevent the region from plunging into chaos, war and instability as evidenced by other parts of Africa.

Botswana as a member of the southern African region

Botswana is a member of the SADC region, whose population is about 200 million with a combined GDP of 180 billion dollars. In terms of economic performance, Botswana ranks as one of the countries with a steady economic growth averaging 6% per annum

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and with healthy foreign reserves. The countrys 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. With a population of about 1.4 million only, Botswana is greatly disadvantaged in its desire to industrialize. Membership to SADC, by which the country can have access to a large market, can help the country to industrialize and diversify its economy. With its already healthy economy, Botswana can take advantage of its memberships high investment rating; stable government and a fairly well developed infrastructure are positive attributes which can push it to higher development levels.

Problems/difficulties of political integration

Regional integration is often fought with different social or political ideologies incompatible with smooth unification e.g. Kenya, Tanzania and Uganda Tanzania socialist while Kenya capitalist united such marriage difficult to thrive. Guinea in West Africa declared it could not pursue regional alliance due to her purely socialist approach to issues. Poor new nations often have too many internal squabbles to grapple with let alone countenance regional socio-economic and political coalition.

Problems of economic integration

1. Uneven distribution of new industries - unfortunately industries tend to concentrate themselves in far places because of the external economies of scale. 2. Uneven distribution of costs of protection some are advanced industrially while others are not. 3. Difficulties of joint planning it is not easy to get independent states to work together on research for new industries without knowing to which country each new industry will be allocated or to get them to pool information on what might be done. 4. Poor communication most transport networks in Africa seem to follow a similar pattern. From the point of raw material to the coats of point of export. This legacy still lingers on. 5. Fears of fiscal (tax) redistribution richer nations within the union tend to harbour the pain of having to share their wealth with others.

INTERNATIONAL TRADE
According to John Stuart Mill, international trade makes possible a more efficient employment of the productive forces of the world. Specialization performs similar

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functions in national and international economies. The heterogeneous nature of land makes the concept of interdependence all the more important since natural resources of the world are very unevenly distributed. International trade originated on the basis of nations exchanging their products for others which they could not produce for themselves. Therefore it can be referred to as the exchange of goods and services between nations. International trade arises because; the production of different kinds of goods requires different kinds of resources various types of economic resources are unevenly distributed throughout the world the international mobility of resources is extremely limited Since it is very difficult to move resources between nations, the goods which embody the resources must move. One of the basis for international trade is that no country is entirely self sufficient in the world. This is due to the unevenness in the distribution of gifts of nature over the world, differences in climate, geological formation and inequality in the natural ability of the people as a result of differences in skills acquired by those who have had the opportunity of proper education and training. Related concepts Balance of trade, balance of payments, trade deficit, comparative advantage, surplus, exchange rates, specialization, production, distribution, consumption, imports, exports, primary products, developing countries, resources and devaluation. Advantages of international trade It makes a country acquire goods and services that it has limitations of acquiring by its own human and physical resources It has made it possible for new skills, managerial and entrepreneurial services to follow to developing countries from developed countries It enables developing countries t gain technological knowledge from the technically advanced countries It makes possible for many business people in developing countries to set up exporting industries. Standards of living will increase due to the increased household income It increases specialization which leads to mass production. This results in prices being lower Developing countries gain access to international markets for their primary products like cocoa, rubber, coffee, cotton and minerals such as copper, diamonds, gold, and oil etc Introduction of new range of manufactured goods has served as an incentive for people to work harder to earn more money to pay for all these things e.g. cars, televisions, video, radios and other electronic gadgets Poorer countries are able to move their proceeds from exports to buy capital goods which could not easily be produced at home. Wiser governments are able also to accumulate capital which is an important ingredient in economic growth 152

Limitations/disadvantages of international trade Trade internationally, is said to benefit the richer countries more than the poor. Free trade benefits unequal partners breeds master servant relationships in trade. Poor countries supply raw materials which the advanced economies strengthen their industrial base through constant supply of raw materials. International trade leads to interdependence. In times of war when the supply of sources of essential goods are closed down, the standards of living will be low It can lead to an unbalanced economy because each country concentrates all its resources on the production of its best products It may lead to over production of some goods and this will result in depression (a period of little economic activity, and many people are poor or without jobs) It breeds competition, international jealousy and mistrust International trade often makes it difficult for poorer countries to change their pattern of trade constant suppliers of raw materials International trade has left most of the poorer countries with largely agricultural economies thus stifling industrialization which could promote cumulative growth Disparities between the prices of primary products and finished goods further compounds the situation

International trade leads to increased living standards for the participating countries through the practice of comparative advantage. It has been argued though, that unrestricted free trade can have adverse effects on certain countries and particular groups of people hence the imposition of certain trade restrictions. International trade takes place for a number of reasons; one being that countries have different factor endowments either in the form of raw materials, minerals or skilled personnel and advanced technology. Poorer countries tend to suffer in international trade due to factors which often affect the supply of primary products which do not affect manufactured goods e.g. weather or other natural influences such as pests and diseases reducing exports in order to prevent the price from falling, brazil did so with coffee experts in the 1930s. Quotas could also be used as well as buffer stock schemes. Tariffs disturb and restrict the free movement of goods and services, aborts the advantages of specialization and exchange, prevent the optimum use of scarce factors of production. Tariffs reduces and could even shut off trade altogether between two countries. Eminent economists have suggested that international trade can be a positive force in economic development. Trade can be instrumental in offering opportunity for specialization and the division of labour. It increases the productivity of the available resources.

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International trade widens the extent of the market, includes entrepreneurs to innovate, to make greater use of machinery and to facilitate specialization and the division of labour. International trade promotes international competition entrepreneurs are compelled to contrive means of reducing costs. International trade increases real income; ensures high levels of savings and investment. Entrepreneurs and exporters tend to have high savings propensities. International trade has an important educative effect. It is the means whereby skills and technology are transferred from one economy to another. It also suggests new wants to consumers and inculcates new tastes, which encourage the consumer to work harder.

PROTECTIONISM
Various goods ad services have a number of policies that are formulated to interfere with the free flow of international trade. These policies are referred to as protectionist policies. This is because these policies are used to protect local industries from foreign competition. The whole network of measures used is referred to as protectionism. These policies prevent consumers from taking full advantage of international trade. They also restrict he free flow of goods and services across international borders

Types of protection
1. Tariffs (import duty) these are taxes put on imports to increase their prices. These taxes make imports more expensive to buy, hence discouraging buyers from buying foreign goods as they will be more expensive than locally produced goods. This is done to protect local industries and also generate state avenue. 2. Quotas this measure limits the quantity of imports that can be brought into a country by importers every year. This limits the consumers choice of goods, forcing them to buy locally produced goods. 3. Exchange controls international t6rade involves foreign currency exchange. This is used by government to limit the amount of money needed to pay for imports. This reduces the free-flow of goods and services. 4. Economic nationalism this measure leads to discrimination in favour of home producers. The government may decide to use health and safety regulations to limit the type and quantity of goods imported into the country. For example, the government may not allow cattle from a foot and mouth infected country to cross into Botswana. 5. Political boundaries these regulate the flow of goods and services into a country. Traders have to cross at certain points in order to declare their goods.

Reasons for protectionism

To keep incomes and employment at a high level. The more goods and services a country produces to satisfy domestic and external demand, the higher the incomes and the employment will be. 154

To protect infant industries. A newly et up industry may be at a disadvantage compared to similar industries overseas e.g. the long established manufacturing industries of south Africa have an advantage over those recently set up in Botswana. The government of Botswana therefore prevents the import of particular manufactured goods so that the new industries can become properly established. To raise revenue. Taxing imports and exports is a way of raising revenue. Developing countries rely heavily on this revenue because other forms of tax are unable to raise sufficient money for government expenditure. To correct an unfavourable balance of payment. Higher tariffs and strict exchange control regulations can be used to reduce imports. To make a country self-reliant. In order to enable a country to provide for all its basic needs particularly in times of war, local industries are protected and given chance to develop by imposing tariff on outside products. To prevent dumping. Dumping refers to the selling of goods in foreign markets at prices below those charged in the home market. The main aim of foreign producers is to establish a monopoly in the importing market. Local producers will be driven out of the market by the low prices. As soon as the field is empty, the foreign producers raise and enjoy profits. Therefore countries in which the goods are being dumped would impose high tariffs on those goods.

Disadvantages of protectionism
Sometimes local industries develop slowly because there is no fear of foreign competition. This leads to a waste of economic resources because money has been invested in order to achieve economic development. Protectionism narrows the market trade with other countries becomes difficult due to the restrictions imposed. This narrows the market because trade can only be conducted with those countries with few restrictions.

Attempts made to protect developing countries from international trade

Currently the relationship between the developed and developing countries in trade leaves developing countries at a disadvantage. Developing countries export primary commodities e.g. raw materials and import manufactured goods. This pattern is a result of colonialism and it has made it difficult for third world countries to earn foreign exchange to develop industries. As a result, developing countries have tried to come up with reform systems collectively. International price agreements developing countries want all countries to keep prices of primary products stable and to link changes in prices for raw materials to changes in prices for manufactured goods. This means that if the price of manufactured goods rise, the price of primary products should also rise. Producer cartels the best known cartel is OPEC. Before it was formed, oil producing countries were not able to control the prices of oil that were always

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changing. They were competing for the sale of oil. Each wanted to sell at a lower price in order to sell more. Prices of oil were always low while prices of manufactured goods imported by the oil producing countries were always increasing. When OPEC was formed, these countries were able to sit together and agree on oil prices and as a result oil for OPEC countries was not able to be sold at lee than agreed prices. They were also able to limit the supply which made it possible for them to keep prices of oil at higher prices. Regional cooperation schemes many countries are coming together in an attempt to overcome existing international trade patterns e.g. SADC. Its members coordinate their projects to ensure that they produce a particular commodity for the whole region. In this way, countries in the region can trade with each other instead of trading with Europe. This can help them change the present pattern of trade.

BARTER SYSTEM
Before colonialism, countries in Africa used to practice bartering. This refers to the exchange of goods without the use of money. Disadvantages It is difficult to find the right person to exchange what is wanted at the right time Trade is limited because of the need to carry goods on long distance and in large amounts It is very difficult to measure the value of goods exchanged and as a result people never know how much their goods will buy

FREE TRADE
This refers to the absence of barriers/restrictions in international trade. It is usually characterized by few or no import tariffs which enables the forces of demand and supply to work. Advantages of free trade World production is increased because countries are enabled to use their resources in the best possible way Each country can enjoy a wider variety of goods and services leading to higher standards of living It promotes international competition which helps in keeping down. Most countries support the general Agreement on Tariffs and Trade (GATT) which attempts to reduce the barriers to international trade Disadvantages of free trade i. Free trade may increase world production but this often helps some countries more than others. That is, those with a lot of resources will benefit more. 156

ii. iii.

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, usually a year. A positive or favourable balance of trade means that a country is exporting more goods than importing them in money terms e.g. Exports P5 billion Imports P4 billion The surplus is P1 billion A negative balance of trade indicates that the value of imported goods is greater than that of exported goods e.g. Exports P4 billion Imports P6 billion The deficit is P2 billion

TERMS OF TRADE
This refers to the rate at which exports buy imports. If the terms of trade decline or fall, they can be described as unfavourable. If they have risen, they can be described as favourable. Over the years, terms of trade in developing countries have declined mainly because they export primary products and they are not as profitable as selling manufactured goods. The effects are as follows: 1. Terms of trade in developing countries are falling due to unstable prices. They export more to buy few manufactured goods. 2. Developed countries still dominate world trade even after colonialism 3. Most of the demand for raw materials comes from the north. When the north goes through technological changes, the south is affected because the demand for primary products may go down.

BALANCE OF PAYMENT
A countrys balance of payment shows the relationship between a countrys receipts from others and the payments to others. It is classified into the current account, the capital account and the monetary movement account. - Current account The current account shows the present income and expenditure of a country with the rest of the world. The items of the current account are further classified into visible and invisible items. If the total value of visible and invisible exports exceeds the total valu8e of visible and invisible imports, a country is said to have a balance of payments surplus on current account. If the total value of visible and invisible exports is less than the total

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

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This involves lowering the exchange rate between a countrys currency and other currencies e.g. $1 = P3 An American importer could buy 1/10 of beef costing P3000 per tonne for $1000. If the pula is devalued so that $1 = P4, the American buyer now pays $750 for one tonne of beef at the new exchange rate. In other words, the value of pula has gone down in relation to the pound. This will encourage the American to buy more goods from Botswana. At the same time, it is now more expensive to pounds therefore it will be expensive to import American goods. As a result, devaluation keeps the prices of imports more expensive and that of exports cheaper.

FOREIGN EXCHANGE
This is what economists call money that is acceptable to all countries, such as American dollars and British pounds. Countries can bring foreign exchange through; - Trading with foreign countries - Investing in foreign countries - Allowing foreign investors to set up companies e.g. multinationals

FOREIGN AID
In addition to export earnings and private foreign direct and financial investment, the final major source of third world foreign exchange is public bilateral and multilateral development assistance, known also as foreign aid. In other words Foreign aid is assistance from outside. A country or organization that gives aid is a Donor. On the other hand one that gets or receives aid is a Recipient. Related concepts Multinational donor agencies, tied aid, grants, technical assistance, bilateral aid, multilateral aid, resources, political motivation, economic motivation Types of Aid a) Bilateral Aid b) Multilateral Aid Forms of Aid a) b) c) d) e) f) Gifts of consumer goods Loans and grants Direct investment Technical and direct assistance Education Trade

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Why donors give aid Primarily because it is in their political strategic and/or economic self interest to do so. Cold war Moral and humanitarian desires to assist less fortunate e.g. (emergency food relief programmes). Economic considerations are often advanced as follows: Foreign exchange constraints External finance (both loans and grants can play a vital role in supplementing domestic resources in order to relieve savings or foreign exchange bottlenecks) Growth and savings external assistance facilitates and accelerates the process of development in developing economies by generating additional domestic savings Technical assistance high level manpower transfers to assure that aid funds are most efficiently utilized to generate economic growth

FOREIGN ECONOMIC ASSISTANCE Many development economists are of the view that inflows of foreign aid or resources could boost domestic savings, thereby permitting higher rates of capital formation and improved levels of material welfare. Motives for aid This has been categorized into two broad areas: - Donor oriented - Development oriented Four motives for granting aid to developing countries (1992): - The political importance of the recipient country to the donor country - Cold war factors - The recipient countrys need for aid and its need for aid and its growth performance - The availability of other alternative sources of assistance Bilateral aid does not significantly depend on recipient need, but for multilateral aid, recipient need to provide a reasonable explanation of aid allocation. Reasons/advantages of aid Aid can help developing countries in need (emergency assistance) and help for long term development Aid helps governments and developing countries to provide needed infrastructure e.g. roads, schools, water and bridges etc Where finance is lacking, aid can assist in removing bottlenecks to development Aid is a means of expressing care and concern for fellow humans especially from the rich to the poor Uneven distribution of the world resources among the regions calls for redistribution and aid plays that role Aid helps establish links between countries and consequently enhance international understanding and world peace 160

Aid encourages and facilitates mobility of labour to where it is most needed. It also enhances technology transfer. It fosters the concept of interdependence by allowing haves of the world to lend a helping hand

Arguments against aid Aid on bilateral basis is often used by richer and powerful nations to consolidate their might Aid does create dependency syndrome making weaker governments depend on stronger ones Tied aid assures northern manufacturers ready markets for their products. It also erodes a poor countrys maturity and independence Aid tends to divert attention from trade Aid reinforces master servant relations in international affairs and fosters superiority inferiority attitudes Aid strengthens world inequality and endorses the economic, political and social might of richer countries over poor ones

In addition to their endeavour to promote world trade, the developing world has extended considerable amount of direct economic aid to other countries. Since World War II, funds have been utilized especially for reconstruction purposes, but in more recent years much has been given to developing nations. Here again, aid has been both direct and indirect through international financial institutions IMF, IBRD, and ADB.

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