Rules, Rents and Restraints: Fiscal Stability and Resource Dependency
(2025) EKHS11 20251Department of Economic History
- Abstract (Swedish)
- Botswana’s reputation as a beacon of fiscal prudence in resource-rich economies faces new challenges. Yet recent pressures – rising debt, declining surpluses, and fiscal volatility – raise questions about the long-term sustainability of this model. This thesis examines how Botswana’s fiscal capacity has shaped its ability to manage natural resource wealth between 1990 and 2022. Drawing on a composite Fiscal Sustainability Index (FSI), the study traces shifts in revenue mobilisation, expenditure patterns, and debt dynamics. Structural break analysis identifies 2009 and 2018 as key inflection points, marking a departure from earlier rule-based discipline. Regression analysis reveals a weakening link between fiscal stability and governance,... (More)
- Botswana’s reputation as a beacon of fiscal prudence in resource-rich economies faces new challenges. Yet recent pressures – rising debt, declining surpluses, and fiscal volatility – raise questions about the long-term sustainability of this model. This thesis examines how Botswana’s fiscal capacity has shaped its ability to manage natural resource wealth between 1990 and 2022. Drawing on a composite Fiscal Sustainability Index (FSI), the study traces shifts in revenue mobilisation, expenditure patterns, and debt dynamics. Structural break analysis identifies 2009 and 2018 as key inflection points, marking a departure from earlier rule-based discipline. Regression analysis reveals a weakening link between fiscal stability and governance, suggesting that the institutional foundations that once insulated Botswana from the resource curse are now under strain. In doing so, the thesis offers a replicable framework for assessing fiscal resilience in other resource-dependent countries. (Less)
Please use this url to cite or link to this publication:
http://lup.lub.lu.se/student-papers/record/9209344
- author
- Authen, Elise Benedikte LU
- supervisor
- organization
- course
- EKHS11 20251
- year
- 2025
- type
- H1 - Master's Degree (One Year)
- subject
- keywords
- Fiscal capacity, Resource dependency, Structural Breaks
- language
- English
- id
- 9209344
- date added to LUP
- 2025-08-25 08:39:37
- date last changed
- 2025-08-25 08:39:37
@misc{9209344, abstract = {{Botswana’s reputation as a beacon of fiscal prudence in resource-rich economies faces new challenges. Yet recent pressures – rising debt, declining surpluses, and fiscal volatility – raise questions about the long-term sustainability of this model. This thesis examines how Botswana’s fiscal capacity has shaped its ability to manage natural resource wealth between 1990 and 2022. Drawing on a composite Fiscal Sustainability Index (FSI), the study traces shifts in revenue mobilisation, expenditure patterns, and debt dynamics. Structural break analysis identifies 2009 and 2018 as key inflection points, marking a departure from earlier rule-based discipline. Regression analysis reveals a weakening link between fiscal stability and governance, suggesting that the institutional foundations that once insulated Botswana from the resource curse are now under strain. In doing so, the thesis offers a replicable framework for assessing fiscal resilience in other resource-dependent countries.}}, author = {{Authen, Elise Benedikte}}, language = {{eng}}, note = {{Student Paper}}, title = {{Rules, Rents and Restraints: Fiscal Stability and Resource Dependency}}, year = {{2025}}, }