PRIVATISATION IN BOTSWANA: THE DEMISE OFA DEVELOPMENTAL STATE? BASHI MOTHUSI * AND KENNETH B. DIPHOLO University of Botswana, Botswana SUMMARY This article argues that efforts by the Government of Botswana to embark on privatisation of some parastatals as well as contracting out the provision of certain services with the main intention of enhancing productivity and strengthening the private sector will not have a negative effect on the strength and nature of the existing strong developmental state. It is argued that the cautious and pragmatic approach adopted by the government, coupled with the fact that privatisation in Botswana is embraced voluntarily (that is not imposed on the country by either the World Bank or the International Monetary Fund (IMF) as a condition for financial assistance), hiving off parastatals to the private sector will not result in the weakening and ultimate demise of the state as it has happened in some countries within Sub Saharan Africa. Copyright # 2008 John Wiley & Sons, Ltd. key words —privatisation; developmental state; private sector; parastatals; local authorities; cautious; pragmatic; mutual trust; Botswana INTRODUCTION Privatisation has been used by international financial institutions such as the World Bank and the International Monetary Fund (IMF) to reduce the involvement of the state in the process of development on the premise that strong state intervention in development is one of the factors that has contributed to the economic and political crisis that befell most of the developing countries in the 1970s and 1980s. The dismal performance of government departments and state-owned enterprises gave impetus to the theorisation about the efficacy of the markets and the establishment of minimal states. It is in view of the foregoing that this article seeks to demonstrate that the process of privatisation in Botswana will not facilitate the weakening and ultimate demise of the existing strong developmental state as it has happened in other countries within Sub Saharan Africa. It argues that since privatisation in Botswana has been embraced voluntarily, the state has adopted a cautious and pragmatic approach in undertaking it so that it (state) can continue to be strong and influential in so far as the process of development is concerned. The article starts with a brief discussion of what privatisation entails, why it is usually embraced as well as present a brief discussion of the neo-liberal discourse and the roll back of the state. It also reveals the circumstance that prevailed at independence that resulted in the emergence of a strong developmental state, parastatals and local authorities in Botswana. The cordial relationship between the state and the private sector based on mutual trust, co-existence and respect for one another (sometimes due to the fact that the private sector relies heavily on state resources and therefore has to conform) will also be discussed to illustrate that privatisation will not adversely affect the power of the state mainly because of the regulatory measures that will continue to be in place. Finally, an public administration and development Public Admin. Dev. 28, 239–249 (2008) Published online in Wiley InterScience (www.interscience.wiley.com) DOI: 10.1002/pad.491 *Correspondence to: B. Mothusi, 2200 Prospect Avenue, Apartment 303, Cleveland, OH 44115, USA. E-mail: b.mothusi@csuohio.edu Both authors are Lecturers in the Departments of Political and Administrative Studies and Adult Education, University of Botswana respectively. Copyright # 2008 John Wiley & Sons, Ltd.