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Skills implications of Botswana's diamond beneficiation strategy (Inglês)

This note examines the skills implications of the beneficiation strategy, particularly those of diamond cutting and polishing. In addition to reviewing the government’s plans to develop downstream activities and their implementation, the note offers employment projections based on the potential success of diamond beneficiation efforts. For this purpose, an input-output simulation is used to show how output linkages arising from the production of polished diamond exports will impact labor in various sectors of the economy. The analysis is based on primary data and information collected through interviews with relevant stakeholders in the diamond industry, as well as secondary data from official sources. The note suggests that in the last five years, Botswana has made considerable progress in establishing a local cutting and polishing industry, but that the success of this industry depends on the creation of concomitant skills. By 2010, the industry had already created close to 3,000 direct jobs in 16 cutting and polishing factories, in line with governmental targets. The input-output simulation shows, that the output linkages arising from the input demands associated with processing rough diamonds, valued at $550 million by the 16 aforementioned factories has the potential to create over 6,000 indirect jobs in the country. The cutting and polishing industry is still in the development phase and needs a dynamic policy environment in order to remain relevant at all stages of its development. Policies are needed in particular to: create industry-specific skills (with clear skills transfer targets, or deadlines), establish technology links between the diamond hub and the innovation sector, facilitate rough diamond trading, and expand the capacity of the Botswana Training Authority (BOTA) to accredit cutting and polishing programs within industry factories.


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    Ballal,Sonali, Fasih,Tazeen, Macdonald,Kevin Alan David, Mbaya, Letsema, Mupimpila,Christopher, Okurut,Francis Nathan, Orazem,Peter, Siphambe,Happy

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    Skills implications of Botswana's diamond beneficiation strategy

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    skill implication;Diamonds;water and electricity;barrier to entry;change in employment;skilled job;taxes on production;global value chain;demand for skill;strengthening human resources;machinery and equipment;social accounting matrix;technical skills training;skilled labor force;revenue from diamond;cost of production;international good practice;Posts and Telecommunications;number of jobs;diamond cutting;Job Creation;skill transfer;retail trade;supply chain;skill need;business service;income effect;jewelry manufacture;corporate tax;jewelry manufacturer;skill base;skill development;national account;diamond mining;diamond trade;secondary data;production side;household consumption;local economy;imported inputs;simulation result;manual worker;local employees;manufacturing process;diamond polishing;net operating;mining license;skilled expatriates;work permit;downstream industry;competitive industry;registration number;security service;Technology Transfer;import tax;visa requirements;development phase;foreign labor;joint partnership;resource depletion;government revenue;production input;Fiscal Sustainability;world economy;fixed share;local processing;output level;industry standard;skill gap;diamond exploitation;expatriate labor;government support;matrix algebra;mining production;competition concerns;business relationship;local sale;multiplier effect;manufacturing industry;creating opportunity;trade center;indirect labor;increased demand;country imports;primary data;global recession;fiscal regime;reality check;intermediate input;local resident;high-quality training;Labor Market;local management;Economic Management;analytical study;labor-intensive growth;Higher Education;national policy;democratic process;political stability;Resource Curse;skilled workforce;mineral beneficiation;trading activity;mineral revenue;Soda Ash;fiscal revenue;skill set;personal service;employment projection;downstream activities;downstream activity;manufacturing sector;sales target;security brokerage;annual sale;Global Operations;supply levels;brand name;general telecommunications;exogenous changes;education stakeholder;computer programmer;Workforce Development;unskilled worker;average cost;local corporation;production cost;good policy;professional job;foreign management;



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