05/05/2026
The World Bank recommends a range of horizontal policies. However, Jefferis and Loubser argue that this model of reform remains inadequate, particularly its reliance on broad, economy-wide measures as the primary tool for transformation.
The World Bank’s current diagnosis, according to Jefferis and Loubser, is rooted in the “middle-income trap” framework. This view holds that the trap emerges when wage growth outpaces productivity gains, leaving economies like Botswana uncompetitive in labour-intensive production—historically their growth engine—while lacking the productive capacity to compete in advanced sectors.
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