Wednesday, December 03, 2008

New in HOORC's Library: Botswana's mineral accounts

Although mining is a critical sector of the economy in Botswana, the value of mineral wealth is not included in the asset accounts of the national economic accounts. National Resource Accounts correct this by estimating the economic value of the country's mineral assets and the cost of depleting minerals, providing policy makers with a more accurate picture of whether Botswana is living off its natural capital.

The recently published Towards mineral accounts for Botswana prepared for the Department of Environmental Affairs in association with the Centre for Applied Research, allows for mineral accounts to be used to add mineral capital to Botswana's traditional capital estimates. The report's analysis shows that, while minerals are the most important capital asset of the country, their share declined from 63 per cent in 1984 to 44 per cent in 1987, while other forms of capital increased. Calculations indicate that the minimum necessary to reinvest in only about 66 per cent of mineral rent, meaning the remaining 34 per cent could be used to fund expenditures on such items as poverty alleviation and improving renewable natural resources use.
You can find the report in HOORC's Library.

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