An Appraisal of the Quality of Botswana’s Institutions in Supporting the Privatisation Programme

Abstract

This paper examines whether Botswana’s institutions of property rights are strong enough to promote
positive outcomes of the country’s privatisation programme. International experience has shown that
where institutions are weak or non-existent, privatisation is likely to result in sub-optimal outcomes.
Our assessment is based on a review of empirical literature and evidence provided by international
indices that measure institutional quality. The evidence shows that Botswana’s institutions are fairly
strong and could support privatisation. The evidence also shows Botswana to be fairly strong in the
legal and political environment, and protection of physical property rights. However, protection of
intellectual property rights is shown to be very weak, particularly patent protection which is shown to
be non-existent and protection against copyright piracy also leaves a lot to be desired. Policy response
is recommended to strengthen these aspects. Strengthening of these aspects is not only important for
supporting privatisation, but for encouraging innovation and new investment in the economy which is
critical for private sector growth.