They have been the result of a loss of competitiveness and excessive reliance on external borrowing. These two factors have to be tackled. In my view they cannot be addressed through simple rules and micro-management, because the various economies have different structures. They require a change in governance of the euro area along two dimensions, which I will briefly consider. The first is competitiveness.
I will briefly summarise four of these issues. First, Botswana’s economy is at a critical juncture where mineralled and public sector-led growth model can no longer generate sufficient growth, at least an average of 8 percent per annum over the next 15 years, to address the current development imperatives.