Question

In: Finance

Discuss the preferential treatment policy under the Citizen economic empowerment programme of CEEC using the citizen...

Discuss the preferential treatment policy under the Citizen economic empowerment programme of CEEC using the citizen motherland owned business category. [10 Marks]

Solutions

Expert Solution

Government has embraced citizen empowerment in its development planning process because of the low citizen participation in economic development in the country. Among the existing initiatives, include citizen reservation, where only 100 percent citizen owned companies are eligible to participate; price preference where citizen owned companies, joint ventures/associations of citizens and non-citizens and local companies are eligible for preference; and mandatory subcontracting to citizen owned companies. Furthermore, CEE Policy makes it mandatory for non-citizen contractors awarded Government contracts to sub-contract a minimum of 40 percent of works to citizen- owned companies, and transfer skills to sub-contracted citizen-owned companies.

The other existing citizen economic initiatives include: the Economic Diversification Drive (EDD), where procurement is reserved for local manufacturers and service providers regardless of citizenship; Local Procurement Scheme (LPS), which facilitates economic development in rural areas using public procurement in line with the CEE Policy. The objective is to empower women, youth and people living with disability in general, and specifically in the rural areas in line with Section 66(3) of the PPAD Act. The Scheme also introduces preference in tenders within the District Administration Tender Committees (DATC) threshold, whether administered by the DATC or Ministerial Tender Committees (MTC). The Scheme requires that a 20 percent target quota be reserved for the target groups in all tenders above the micro procurement financial threshold, but within the DATC financial threshold at all districts country wide.
Government is concerned that, despite the efforts to empower Batswana through procurement, the price charged by the private sector for purchase of goods and services by Government is substantially higher than the market price. This means that Government does not get value for money. Therefore, the private sector needs to appreciate that by so doing, they are depriving the public of essential services that are expected to be provided by Government.
With regards to participation of citizens in the tourism sector, Government reserves some licenses for citizen operators only.To further enhance meaningful participation of citizens in the tourism sector, Government has reserved certain concessions for allocation to citizens only. Furthermore, a number of marketing initiatives have been undertaken to facilitate the private sector to sell tourism packages to the world and to create awareness of Botswana as a tourist destination.
Meanwhile, Government will prioritise upgrading of infrastructure, both physical and ICT, to tourism areas, and the private sector will be expected to also contribute resources in this regard. despite the existence of these schemes, effective citizen participation in some sectors of our economy has not been satisfactory, hence the decision to move from policy to a law to ensure effectiveness in application and implementation of the citizen economic empowerment agenda. The law will address the inequalities of the past by transferring the country’s wealth to disadvantaged Batswana, thereby allowing for more participation of citizens in the economy.
In addition, Government has developed a Consolidated Framework for Empowerment Programmes. A key feature of this Framework is the proposal to separate economic empowerment programmes and social upliftment schemes, which will be critical in promoting entrepreneurship development and enterprise development.
The Framework acknowledges the relevance and importance of social upliftment towards developing sustainable livelihood. However, this model puts more emphasis on entrepreneurship to address unemployment, economic growth, poverty eradication and economic diversification.


Related Solutions

Affirmative action involves preferential treatment, in which certain groups are granted economic or other advantages. Is...
Affirmative action involves preferential treatment, in which certain groups are granted economic or other advantages. Is affirmative action is ethical? Include thoughts on both weak and strong affirmative action as explored in the textbook. Share your view, using one or more ethical theories for support.
Affirmative action involves preferential treatment, in which certain groups are granted economic or other advantages. Is...
Affirmative action involves preferential treatment, in which certain groups are granted economic or other advantages. Is affirmative action is ethical? Include thoughts on both weak and strong affirmative action as explored in the textbook. Share your view, using one or more ethical theories for support.
Discuss two programmes involved to restructure the society under the New Economic Policy (NEP).
Discuss two programmes involved to restructure the society under the New Economic Policy (NEP).
Discuss at least three (3) conditions under which preferential trading arrangements will most likely lead to...
Discuss at least three (3) conditions under which preferential trading arrangements will most likely lead to trade creation and increased welfare of member nations.
Discuss the economic shock caused by the COVID-19 pandemic. Discuss the economic policy responses implemented so...
Discuss the economic shock caused by the COVID-19 pandemic. Discuss the economic policy responses implemented so far, and any possible further economic policy responses.
What is the political social and economic climate under which the current policy was developed? Consuming...
What is the political social and economic climate under which the current policy was developed? Consuming or carrying alcoholic beverages. (a) It shall be unlawful for any person to consume any alcoholic beverage, wine or malt beverage on any public way or area or way to which the public has right of access, or on any sidewalk appurtenant thereto within the city. (b) It shall be shall unlawful for any person to have alcoholic beverages, wine, or malt beverages in...
Discuss the economic impact of the unequal treatment of women in our society. More importantly, what...
Discuss the economic impact of the unequal treatment of women in our society. More importantly, what can we do as a society to ensure more equal treatment of women?
discuss the role of government policy in promoting or retarding economic growth in one of the...
discuss the role of government policy in promoting or retarding economic growth in one of the following “development states” of east or south-east Asia: South Korea, Indonesia, Malaysia
Discuss the FED monetary policy with respect to the current economic situation at the domestic and...
Discuss the FED monetary policy with respect to the current economic situation at the domestic and international levels. Imagine being an economic consultant of the FED and advise the chairman with the best monetary strategy for the next year in less than 500 words. Support your viewpoint with data, analyses and empirical evidence.
Discuss the economic policies conducted by policy makers in the United States in response to the...
Discuss the economic policies conducted by policy makers in the United States in response to the spread of COVID-19. Discuss how effective these policies are in dealing with the economic consequences of this event. Please back your statements with applicable Macroeconomic concepts and such :)
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT