• Population:
    1,800,000 (2003)
  • GDP per capita value (PPP US$)
    8,714 (2003)
  • Unemployment Rate:
    24.5% (2004)
  • Poverty Rate:
    32.89 % (2002/3)
  • Poverty Gap:
    12.86% (2002/3)
  • Gini Coefficient:
    62.6 (2002/3)
  • Human Development Index:
    0.565 (2003)

Botswana

Economic growth in Botswana has been impressive over the past two decades. The real GDP per capita grew at about 5 percent per annum in the 1980s and the 1990s. Overall, however, most of the growth in Botswana derived from the mining sector and the gap between GDP and employment growth has significantly widened over the 1990s. Based on the latest household survey of 2002/03, the unemployment rate was 23.8 percent for the year of the survey. At the same time, income inequality in Botswana has increased between 1985-86 and 2002-03 and poverty is not only quite widespread but also deep.

Currently, Botswana's development strategy is guided by Vision 2016, which was developed in 1996 by a Presidential Task Group. The Vision embraces the national principles of Democracy, Development, Self-reliance, and Unity.

An important pillar of Vision 2016 is to build A Compassionate, Just and Caring Nation. It encompasses interrelated areas such as income distribution, poverty, social safety nets, health, and HIV/AIDS. Important objectives for 2016 include achieving equitable income distribution and eradicating poverty. Employment creation, establishment of a system of social safety nets, improved access to good quality health facilities and services, access to adequate nutrition and good quality sanitation, and access to good quality HIV/AIDS treatments have also been prioritised.

Government's direct and indirect tax policies along with its welfare programmes are important means to help gradually realise above objectives, especially to reduce income inequality and poverty. This site provides access to a microsimulation model of Botswana households. It has been developed to enable researchers and policymakers to design counterfactual reforms of VAT and welfare policies in Botswana and to quantitatively assess their budgetary, distributional, and poverty impacts. Additional policy modules that can help design effective anti poverty policies will be added to the site in future.