Mineral-led Economic Growth, Drought Relief, and Incomes Policy: Income Distribution in Botswana Reconsidered
Author(s)
Valentine, Theodore R.
Abstract
Some analysts have hypothesized that rapid mineral-led economic growth and drought in the rural economy have led to a severe worsening of the plight of the rural population in Botswana, with rural household income collapsing and income inequality worsening pronouncedly. Contrary to these hypotheses, Botswana’s income data show that income distribution remained stable, since rural household incomes did not experience significant decline as a result of drought conditions. The government’s incomes policy, the direct and indirect benefits of rapid employment growth, and the government’s comprehensive drought relief support are seen as explanatory factors in this macroeconomic policy success.
