Inside the BMD policy

Staff Writer | Friday July 9, 2010 00:00

 

According to a draft document that is being debated within the BMD, the party seems to set itself apart from the Botswana Democratic Party with a refined focus on modernisation characterised by a more active role of government in the economy.

The major centre of the document is the economic strategy which suggests a number of radical changes to the current economic policy with an emphasis on reorganising government's role in the industrial space.

Although dedicated to what it calls 'prudent macro-economic management', the BMD proposes developing a government engaged in the commercial sector through a giant holding company with a stake across several sectors of the economy.

In contrast to the current BDP programme of generally divesting from all areas as its current privatisation strategy indicates, the BMD proposes targeted investment along the model of such countries as Singapore and Japan which combine state capitalism with a free market system.

This would be done through a major government-owned holding company named Botswana Wealth Fund, which would act as a holding company with a responsibility to guide government's investments, 'including the conception of smart wealth funds or investment companies to generate strategic wealth engines located in and outside of Botswana'.

This company would replace the current privatisation authority, PEEPA, with an added mandate of advising government on which areas and companies to invest in and those that should be left to the private sector, locally and internationally.

Under the BMD model, government plays a central role in the business space, through developing some companies in 'strategic' areas.

The document argues that since Botswana has a small market, it is not advisable for Botswana businesses to be inward looking. It proposes a focus on regional and international business. The BMD model also proposes that a number of parastatals and organisations such as PEEPA and the Botswana Development Corporation should amalgamate into the Botswana Wealth Fund.

The State Subsidy and Public Board will oversee sectors of the economy which cannot be commercially viable but are of strategic importance to economic development such as Botswana Railways, Aacompanies, scholarship funds and other public programs.

'Our system will launch an aggressive 'external economy' in a number of key sectors to ensure that Botswana companies generate wealth for its citizens by participating in lucrative business opportunities in other countries, particularly in Africa and possibly South America,' says the document.

Overall, the strategy emphasises innovation and increased spending on research and innovation, especially in areas related to indigenous knowledge. The foreign policy will serve the purpose of furthering the corporate interests of the country and to 'seek new markets for our goods and services'.

The BMD puts emphasis on the youth, particularly with respect to technical and non-academic education. Under the BMD, Information Technology, will be compulsory from primary school.

The policy thinkers argue that Botswana should move towards becoming an education hub for the continent, which seems similar to the BDP government's idea of creating hubs across various sectors.

In a departure from the current education policy the party proposes more autonomy for schools so that they can find their own niche and make themselves schools of excellence in their chosen areas.

This, the BMD argues, would entail encouraging competition among schools for students, teachers and other resources. The BMD government will have cost-sharing in education, although 'access to education will be guaranteed and compulsory for all children until the end of secondary education'.

The government will follow the BDP's position on public finance by keeping spending under control.

'We will not spend beyond what the national coffers can reasonably sustain,' states the document.

The party emphasises that worker's rights would be respected in both the private and public sectors, granting workers the right to unionise, bargain and 'invest collectively'. Furthermore the party promises to specifically target low-income groups especially in areas such as education, accommodation and social services.

The other major aspect of the draft paper is the need for constitutional reforms. 'Our movement believes there is a groundswell of support for a review of certain aspects of our constitution, subject to referenda on these matters.  Our movement's plans to revitalise how government works may require aspects of the constitution to be revisited. 

'For example, our drive to enhance service delivery by way of a decentralisation that requires, for instance, the direct election of executive mayors and the direct election of the president may require constitutional changes,' states the document.

The BMD would change some ministries and government institutions to improve on service delivery while they would decentralise local government. Under the BMD the country will be divided into administration areas, and regions would be run by elected mayors or regional premiers with power over major areas such as budgeting and services delivery.

Parliament will be empowered with more oversight responsibility. However, another interesting suggestion is the increase in specially elected MPs. In this system, however, specially elected MPs would not have the power to vote in parliament.

The drafters of the document also envisage a reduced parliament with fewer directly elected MPs.

Other major changes are suggested within the defence and security sectors. The BDF would be unbundled into various divisions with some greater autonomy perhaps in the United States-model where these various bodies are led at the top by a Joint Chiefs of Staff body. The police would be put through a more rigorous training programme, with more equipped law enforcement officers.

The document, insiders warn, is still at a very early stage of development. However some within the party have said it is still a good guide of the policy positions that the party will develop.