Zimbabwe vs. Botswana

A series of trading states developed in the area of Zimbabwe prior to the arrival of the first European explorers; the largest of these was the Kingdom of Zimbabwe (ca. 1220-1450). In the 1880s, European colonists arrived with the British South Africa Company (BSAC), which obtained mining rights and established company rule over the area. The southern portion of BSAC holdings were annexed by the UK in 1923 and became the British colony of Southern Rhodesia. A 1961 constitution was formulated that favored whites in power. In 1965 the government unilaterally declared its independence, but the UK did not recognize the act and demanded more complete voting rights for the black African majority in the country (then called Rhodesia). UN sanctions and a guerrilla uprising finally led to free elections in 1979 and independence (as Zimbabwe) in 1980. Robert MUGABE, the nation's first prime minister, was the country's only ruler (as president since 1987) from independence until his resignation in November 2017. His chaotic land redistribution campaign, which began in 1997 and intensified after 2000, caused an exodus of white farmers, crippled the economy, and ushered in widespread shortages of basic commodities. Ignoring international condemnation, MUGABE rigged the 2002 presidential election to ensure his reelection.

In 2005, the capital city of Harare embarked on Operation Restore Order, ostensibly an urban rationalization program, which resulted in the destruction of the homes or businesses of 700,000 mostly poor supporters of the opposition. MUGABE in 2007 instituted price controls on all basic commodities causing panic buying and leaving store shelves empty for months. General elections in both 2008 and 2013 were severely flawed and widely condemned, but allowed MUGABE to remain president. As a prerequisite to holding the 2013 election, Zimbabwe enacted a new constitution by referendum, although many provisions in the new constitution have yet to be codified in law. In November 2017, Vice President Emmerson MNANGAGWA took over following a military intervention that forced MUGABE to resign. MNANGAGWA was inaugurated president days later, promising to hold presidential elections in 2018. In July 2018, MNANGAGWA won the presidential election after a close contest with Movement for Democratic Change Alliance candidate Nelson CHAMISA. MNANGAGWA has since resorted to the government's longstanding practice of violently disrupting protests or opposition rallies. Official inflation rates soared in 2019, approaching 500% by the end of the year. MUGABE died in September 2019.

Zimbabwe's progress in reproductive, maternal, and child health has stagnated in recent years. According to a 2010 Demographic and Health Survey, contraceptive use, the number of births attended by skilled practitioners, and child mortality have either stalled or somewhat deteriorated since the mid-2000s. Zimbabwe's total fertility rate has remained fairly stable at about 4 children per woman for the last two decades, although an uptick in the urban birth rate in recent years has caused a slight rise in the country's overall fertility rate. Zimbabwe's HIV prevalence rate dropped from approximately 29% to 15% since 1997 but remains among the world's highest and continues to suppress the country's life expectancy rate. The proliferation of HIV/AIDS information and prevention programs and personal experience with those suffering or dying from the disease have helped to change sexual behavior and reduce the epidemic.

Historically, the vast majority of Zimbabwe's migration has been internal - a rural-urban flow. In terms of international migration, over the last 40 years Zimbabwe has gradually shifted from being a destination country to one of emigration and, to a lesser degree, one of transit (for East African illegal migrants traveling to South Africa). As a British colony, Zimbabwe attracted significant numbers of permanent immigrants from the UK and other European countries, as well as temporary economic migrants from Malawi, Mozambique, and Zambia. Although Zimbabweans have migrated to South Africa since the beginning of the 20th century to work as miners, the first major exodus from the country occurred in the years before and after independence in 1980. The outward migration was politically and racially influenced; a large share of the white population of European origin chose to leave rather than live under a new black-majority government.

In the 1990s and 2000s, economic mismanagement and hyperinflation sparked a second, more diverse wave of emigration. This massive out migration - primarily to other southern African countries, the UK, and the US - has created a variety of challenges, including brain drain, illegal migration, and human smuggling and trafficking. Several factors have pushed highly skilled workers to go abroad, including unemployment, lower wages, a lack of resources, and few opportunities for career growth.

Botswana has experienced one of the most rapid declines in fertility in Sub-Saharan Africa. The total fertility rate has fallen from more than 5 children per woman in the mid 1980s to approximately 2.4 in 2013. The fertility reduction has been attributed to a host of factors, including higher educational attainment among women, greater participation of women in the workforce, increased contraceptive use, later first births, and a strong national family planning program. Botswana was making significant progress in several health indicators, including life expectancy and infant and child mortality rates, until being devastated by the HIV/AIDs epidemic in the 1990s.

Today Botswana has the third highest HIV/AIDS prevalence rate in the world at approximately 22%, however comprehensive and effective treatment programs have reduced HIV/AIDS-related deaths. The combination of declining fertility and increasing mortality rates because of HIV/AIDS is slowing the population aging process, with a narrowing of the youngest age groups and little expansion of the oldest age groups. Nevertheless, having the bulk of its population (about 60%) of working age will only yield economic benefits if the labor force is healthy, educated, and productively employed.

Batswana have been working as contract miners in South Africa since the 19th century. Although Botswana's economy improved shortly after independence in 1966 with the discovery of diamonds and other minerals, its lingering high poverty rate and lack of job opportunities continued to push workers to seek mining work in southern African countries. In the early 1970s, about a third of Botswana's male labor force worked in South Africa (lesser numbers went to Namibia and Zimbabwe). Not until the 1980s and 1990s, when South African mining companies had reduced their recruitment of foreign workers and Botswana's economic prospects had improved, were Batswana increasingly able to find job opportunities at home.

Most Batswana prefer life in their home country and choose cross-border migration on a temporary basis only for work, shopping, visiting family, or tourism. Since the 1970s, Botswana has pursued an open migration policy enabling it to recruit thousands of foreign workers to fill skilled labor shortages. In the late 1990s, Botswana's prosperity and political stability attracted not only skilled workers but small numbers of refugees from neighboring Angola, Namibia, and Zimbabwe.

Zimbabwe's economy depends heavily on its mining and agriculture sectors. Following a contraction from 1998 to 2008, the economy recorded real growth of more than 10% per year in the period 2010-13, before falling below 3% in the period 2014-17, due to poor harvests, low diamond revenues, and decreased investment. Lower mineral prices, infrastructure and regulatory deficiencies, a poor investment climate, a large public and external debt burden, and extremely high government wage expenses impede the country's economic performance.

Until early 2009, the Reserve Bank of Zimbabwe (RBZ) routinely printed money to fund the budget deficit, causing hyperinflation. Adoption of a multi-currency basket in early 2009 - which allowed currencies such as the Botswana pula, the South Africa rand, and the US dollar to be used locally - reduced inflation below 10% per year. In January 2015, as part of the government's effort to boost trade and attract foreign investment, the RBZ announced that the Chinese renmimbi, Indian rupee, Australian dollar, and Japanese yen would be accepted as legal tender in Zimbabwe, though transactions were predominantly carried out in US dollars and South African rand until 2016, when the rand's devaluation and instability led to near-exclusive use of the US dollar. The government in November 2016 began releasing bond notes, a parallel currency legal only in Zimbabwe which the government claims will have a one-to-one exchange ratio with the US dollar, to ease cash shortages. Bond notes began trading at a discount of up to 10% in the black market by the end of 2016.

Zimbabwe's government entered a second Staff Monitored Program with the IMF in 2014 and undertook other measures to reengage with international financial institutions. Zimbabwe repaid roughly $108 million in arrears to the IMF in October 2016, but financial observers note that Zimbabwe is unlikely to gain new financing because the government has not disclosed how it plans to repay more than $1.7 billion in arrears to the World Bank and African Development Bank. International financial institutions want Zimbabwe to implement significant fiscal and structural reforms before granting new loans. Foreign and domestic investment continues to be hindered by the lack of land tenure and titling, the inability to repatriate dividends to investors overseas, and the lack of clarity regarding the government's Indigenization and Economic Empowerment Act.

Until the beginning of the global recession in 2008, Botswana maintained one of the world's highest economic growth rates since its independence in 1966. Botswana recovered from the global recession in 2010, but only grew modestly until 2017, primarily due to a downturn in the global diamond market, though water and power shortages also played a role. Through fiscal discipline and sound management, Botswana has transformed itself from one of the poorest countries in the world five decades ago into a middle-income country with a per capita GDP of approximately $18,100 in 2017. Botswana also ranks as one of the least corrupt and best places to do business in Sub-Saharan Africa.

Because of its heavy reliance on diamond exports, Botswana's economy closely follows global price trends for that one commodity. Diamond mining fueled much of Botswana's past economic expansion and currently accounts for one-quarter of GDP, approximately 85% of export earnings, and about one-third of the government's revenues. In 2017, Diamond exports increased to the highest levels since 2013 at about 22 million carats of output, driving Botswana's economic growth to about 4.5% and increasing foreign exchange reserves to about 45% of GDP. De Beers, a major international diamond company, signed a 10-year deal with Botswana in 2012 and moved its rough stone sorting and trading division from London to Gaborone in 2013. The move was geared to support the development of Botswana's nascent downstream diamond industry.

Tourism is a secondary earner of foreign exchange and many Batswana engage in tourism-related services, subsistence farming, and cattle rearing. According to official government statistics, unemployment is around 20%, but unofficial estimates run much higher. The prevalence of HIV/AIDS is second highest in the world and threatens the country's impressive economic gains.

the pandemic, drought, and rising hyperinflation have devastated the economy and hindered foreign investment; regulator extended tax exemption for Huawei, raising concerns of independence; mobile tariffs were increased three times since mid-2019, raising consumer prices; Internet is limited, exacerbated by inadequate electricity; mobile Internet connections make up almost all Internet connections; competition has driven some expansion of the telecommunications sector, though operators warn that lack of government investment will cause further deterioration, especially in rural areas; mobile network operators continue to invest in e-commerce and e-banking; slow progress on national and international fiber backbone network, as well as 3G and LTE mobile-broadband services; international bandwidth through submarine cables via neighboring countries (2021)

due to effective regulatory reform and active competition, Botswana's telecom market is one of the most liberalized in the region; strategy to drive nationwide ICT penetration is slowed; one of the highest mobile penetration rates in Africa; operators developing 3G and LTE; Internet use rising due to lower prices; government has embraced digitalization, e-government and identity programs that require citizens to provide detailed personal information; previously dependent on satellites for international connectivity, country's new submarine cable landings improved competition and tripled international Internet capacity; importer of broadcast equipment from Hong Kong and China (2020)

Namibia has supported, and in 2004 Zimbabwe dropped objections to, plans between Botswana and Zambia to build a bridge over the Zambezi River, thereby de facto recognizing a short, but not clearly delimited, Botswana-Zambia boundary in the river; South Africa has placed military units to assist police operations along the border of Lesotho, Zimbabwe, and Mozambique to control smuggling, poaching, and illegal migration

none