Industrial Development in Botswana prospects for indigenous investor partici- pation Webster Masenya Intmduction Botswana, an embodiment of the typical developing economy, faces the seemingly Insurmountable problem of not only ensuring positive and steady growth but also of matching this with qualitative economic growth. The country has, since independence, expenenced sporadically astronomical GDP growth rates of up to 20% in nominal terms (J 5% in real terms) during the ten years preceding 1979. However, such rates were not matched by the creation of any real capacity for the economy to sustain itself. The result has been a volatile economic environment almost exclusively directed by external forces. A manifestation of this IS that, for the four years up to 1977/78, GDP at factor cost grew at 6.5%, 30%, 12% and 8% respectively .I This erratic growth in GDP naturally, has very destabilising effects on Inter-sectoral resource movements. These destabilising forces are moderated somewhat by the weak backward and forward linkages prevailing among major sectors (another manifestation of the economy's vulnerability). These erratic economic swings serve to further erode investor confidence. The ratio of Imports and exports to GDP In 1980 hovered around 70% and 50% respectively,2 showing a very high degree of openness. A rarely Cited result of openness is the almost inevitable tendency to impose direct fiscal controls. This results in market rigidities which adversely affect the resource allocation mechanism. The only solution to the economy's vulnerability lies in the creation of a sound domestic productive capacity. The growth capacity must, of necessity, be intrinsic. The manufacturing sector in particular must not only grow at a reasonable pace for this goal to be realised but local participation in this sector must grow proportionately as well. Local participation In the slow-growing manufacturing sector however, has lagged behind considerably. Of the one hundred and thirty (J 30) manufactunng establishments in Botswana licensed in 1982,67.7% were foreign-owned, 21.5% were of mixed ownership 10.8% were owned exclusively by locals) This paper will focus on the reasons behind slow industrial sector growth as viewed traditionally by policy-makers; classical corrective measures employed; a critical evaluation of this approach; and finally, to suggest an approach, which while not altogether original rarely receives the degree of emphasis it deserves. The results from such an approach employed in Botswana will be presented and analysed. Industrial Stagnation - the Classical Perception of Causes That industrial development is slow in less-developed Countries (LDCs) IS Incontrovertible. It IS the reasons often advanced for this trend that are not always beyond reproach. One of the few credible and well-respected sources of InformatIOn on world-wide economic phenomena, the World Bank, suggested In one of ItS reports on Sub-Saharan Africa that there are five main constraints to Industnal development 61 in the region: narrow domestic markets, low population densities which effectively raise the costs of laying the necessary Infrastructure; low productivity prevailing (ironically) side by side with relatively high wages. The report cited an ILO survey undertaken in 1979 which revealed that, the median wage for textile workers in ten African countries was 50% higher than in Pakistan and more than twice as high as In Bangladesh;4 In addition, there prevails higher management costs due to skilled manpower shortages and hence greater reliance on expatriate labour. In Botswana for example, the National Development Plan V lists one of the constraints on industrial development as an acute shortage of skilled managerial manpower.5 These countries also experience high capital costs. The same report noted that, Industrial projects in Africa typically require Investment costs that are 25% higher than in developed countries and for some industries, the margin can be as high as 60%.6 Other commonly cited reasons for slow industrial development include the scarcity of necessary foreign exchange reserves to purchase raw materials and capital goods needed for domestic production; the lack of a sufficient raw material base domestically; scarce risk capital - A study by USAID noted that, In Botswana, Lesotho and Swaziland, individual savings have to date, gone to the purchase of livestock, traditionally considered a prestIgious and profitable investment} There is little doubt as to the empIrIcal vahdlty of the assertJOns. The question however IS whether a complete removal or at least a mltlgatJOn of the effects of these constraints is a necessary and sufficient condition for progress in this area. Many policy measures often undertaken to move LDCs towards optimal growth paths in this area clearly indicate that this is believed to be the case. There JS no doubt that the neo-classlcal theory of capital accumulation assumes this premise as its point of departure. All it takes is to make the investment climate as attractive as possible to the potential investor (simply make capital cheap _ however "cheap" is defined) and capital stock will increase. The position above simply dictates that a favourable or profitable environment IS a necessary and sufficient condition for increased expenditures on capital stock. All other factors, If any, are relegated to the statistical "error term". There is no problem wIth this position provided a variable that bears a systematic relationship with the explamed variable is not included in this error term _ remember serial correlation? Perhaps an explanation of the chronic stagnation In industrial sectors of many LDCs IS to be found in this residual entity. If this IS the case, not only will this entity be correllated with the dependent variable (Increase In capital stock or investment), but it will also be non-random. This would, of course, offer an answer to the often baffling inefficacy of monetary and fiscal pollcy measures deSigned to boost Industrial development. This would suggest that such pollcy systematIcally leaves out a pivotal variable from consideration. It is. proper at. this stage to address common panacea employed for purposes of boostIng dOmestic capItal formation. From this, inferences on the perception of tradItIOnal pollcy-makers regarding the causes of industrial stagnation can be drawn. 62 Classical Corrective Measures Against the background of causes discussed in the preceding section an "outward-looking" Industrialisation strategy is often advocated. Such a strategy is partIcularly preferred where political forces militate against regional integration to wIden markets; trade agreements preclude this integration; the natural resource base is narrow; foreign reserves are inadequate. The success of this strategy in countries such as Taiwan and South Korea has depended a great deal on, the availability of a well-motivated labour force with a high educational level and relatively low wage that provides a comparative advantage in exporting labour-intensive goods.8 This however does not seem to be the guiding principle since such a strategy has been advocated many times where the latter condition was far from being satisfied. Comcommlttant with this strategy is the usual encouragement of private foreign Investment. Fiscal, monetary and exchange rate measures are often desIgned to en- courage investment from abroad. The rationale often advanced is that these foreign entities introduce new technology and marketing techniques and by so doing boost the International competitiveness of local business. Import-substitution and the related infant industry protection argument IS also a commonly cited panacea. All types of export incentives for export industry promotion are common. These range from customs duty rebates to the permitting of foreign currency retention for machinery and raw material Imports, subject to import permits. Botswana, with her limited fiscal discretion especially where customs duties are concerned due to her membership of the Southern African Customs Union (SACUl, relies on a mix of fiscal, monetary and exchange rate variation measures for this purpose. The range of policy measures include low corporate income tax, accelerated depreciation, favourable income repatriation terms, a liberal exchange rate regime, the Financial Assistance Policy (F APl, the resolve to revalue or devalue her currency to support business interests and others. A common feature among these measures is that they are all designed to create a profitable bUSiness environment and hence a greater pace In capital formation. This position presumes, among other things, that there eXIsts a reserve of domestic entreprenuers whose inaction is a result of lack of finanCial incentives. Some Thoughts on the Classical Approach It is sometimes argued that measures often adopted to boost the pace of Industrial development are Inadequate and that this is a result of Improper diagnOSIs of the problem causes. Common sense dictates that in order to effectively solve a problem, its root causes must be comprehensively identified. of all the obstacles which impede Andriamananjara observed that, the most serious is the failure to industrialisation in Africa, one of involve the population as a whole.9 Because of the external orientation of these economies, industries established produce 63 products for the outside market. Due to international competition, the products are often produced with highly sophisticated technology which precludes the participation of both local entrepreneurs and unskilled labour. Export-promotion strategies, he observes, do not contribute positively to the domestic economy. According to him, It should be pointed out moreover that the other solution which is often advocated - the development of exports - falls Into the same logical error since the type of industry required for this purpose, being essentially aimed at satisfying the needs of foreign markets also ignores the needs of the local population.! 0 The author therefore advocates measures designed to involve whole populations in the production process to ensure the employment of simple and appropriate technology in production. Not only will this ensure the employment of appropriate technology given factor endowments but it will also improve the chances for an optimal choice of products. A factor whose significance in industrial growth is often merely recognised and then discarded as a decision variable, is entrepreneurship. This happens mainly due to the implicit and explicit assumptions made within the context of the conventional theory of production. According to Leibenstein, The traditional theory of competition gives the impression that there is no need for entrepreneurship. If all inputs are marketed and their prices known, and if there is a definite production function that relates inputs to outputs in a determinate way, we can always predict the profit for any activity that transforms inputs and (into) outputs. Positive net profits should serve as a signal for entry into the market ... But there is frequently a lack of entrepreneurship because the standard competitive modeJ hides the vital functions of the entrepreneur". JI The neo-classical theory normally assumes that all inputs are specified and known to all operating and potential business entities. It is aJso assumed that a fixed relatIOn exists between inputs and outputs and that the precise relationship is known. Consequently, it is concluded, the production function is clearly defined, fully speCified and known. This is hardly the case in real life. It is up to an individual or group to fathom all the necessary information about this and success is not guaranteed. Baumol noted that the entrepreneurial concept is highly elusive and that contrary to the ImpliCit status accorded to it by the neo-classical theory of production, the entrepreneurial function is a vital component in the process of economic growth ... For exampJe, some empirical studies on the nature of the, productIOn function have concluded that capital accumulation and e~panslon of the labour force leave unexplained, a very substantial p oportlOn of the historical growth of the nation's output. Thus we are led to suspect that by ignoring the entrepreneur, we are prevented from accountJlllt fully for a very substantial proportion of our historic growth. r He attributes the failure of economic theory to deal with entrepreneurship to the fact that neo-classical theory, 64 is essentially an instrument of optimality analysis of well-defined problems, and it is precisely such (very real and important) problems which need no entrepreneur for their solution) 3 The key phrase here is "well-defined problems", which by their very nature, are without the element of uncertainty and therefore require little imagination to solve. The role of entreprenuership is again noted where imported technology assimilation IS essential. Manufacturing technology, has been found to be particularly complex. As Nelson observed, Manufacturing technology is characterised by a considerable element of tacitness, dlfflcultles 10 ImitatIOn and teach1Og, and uncertainty regarding what modlflcatlOns w1l1 work and what will not.l 4 Industrial development involves the adoption of foreign technologies with high inherent risks which require the minimum in risk aversion for the attempt to occur. This assimilation process, Westphal noted, requires a great deal of, Iterative problem solving and experimentation as the original concept is refined and given practical expression.l5 The degree to which a process of this nature can be tried out ultimately depends on the entrepreneurial supply domestically. Otherwise foreign firms familiar with the technology have to be relied upon to direct the pace of industrialisation. Ray provides a good general statement to wind down this section. In a study on Industrialisation in India, he concluded that a way out of the VICious circle of Industrial stagnation in India was clearly through government poliCies and entrepreneurship, variables which he considered, the most elastic factors, other variables on the demand and supply Sides being fairly inelastic in the short-run, being conditioned by the overall level of the economy) 6 Entrepreneurship: A Suggested Approach Entrepreneurship IS the 10tervemng variable neo-c1asslcal theory holds constant. The failure of neo-classical economics to explam variOUS economic phenomena In many LDCs is enough reason to closely evaluate its assumptions. It IS qUite realIstic in many developed economies to assume the prevalence of adequate supplIes of entrepreneurs, ready to respond to market incentives but the. same cannot be said of the typical less developed economy, and Botswana is no exceptIOn. Broehl emphaslsed this role when he said that, A better understarding of entrepreneurship in the less developed countries could have a particularly high return for mankind. Entrepreneurship IS clearly not a uniformly distributed quality yet the appear1n7ce of the entrepreneur is considered by most analysts to be non-random. Papanek echoed his words when he observed that changes in motives of society or a large group in it will lead to the development of entrepreneurship, contrary to "Schum peter's analogy of the ability to sing,,)8 65 The two statements suggest that entrepreneurial attributes can be induced in individuals in society or a group. Public policy can be used directly or indirectly to foster its development. The precise nature of these policies will be discussed later In this paper. Quite often, the entrepreneur is viewed as a man or woman whose behaviour is motivated by pecuniary or other material gains. Studies have shown that this may not be the case. McClelland and others, over a twenty-year period of research, established that the entrepreneur is not motivated by pecuniary gains. He concluded that, Many incentive plans fail because they are based on a false Idea of why men work. The least important motive is money. I am not talking now about a man who does'nt have enough to eat. He works for money certainly, but a man can eat only so much. Once you get above that subsistence level, the other motives come into play.19 Kaldor also made the observation that the emergence of a class of enterprising businessmen cannot be induced by economic measures because it IS, the product of social factors and cannot be accounted for by economic or technical factors.20 If material gains are not pivotal in entrepreneurial behaviour, then what is?? McClelland and others suggest that a person's motives determine this behavIOur. In particular, an mdlvldual with a hIgh need for achievement motive ( n Achievement or n Ach) IS expected to have a disposition towards entrepreneurship. McClelland observed that, subjects with high n Achievement tend to perceIve their probability of success as greater, particularly when there are no facts to justify their estimates.2 r Consequently, they tend to over-estimate their chances of success and are therefore less risk averse. He further noted that such an individual is more self-confident, enjoys taking carefully calculated risks, researches hIS environment actively, and is very much interested In concrete measures of how well he is doing.22 Cortes echoed this view when he observed that , People who are high in Ach work harder at laboratory tasks, learn faster, do better work In high school even with the IQ partialled out, seem to do th"eir best work when it counts for their record and not when IncentIves are introduced such as pressure from the outside to do well, money prizes, or time off from work. They are more resistant to social pressures, choose experts over friends as work partners, tend to be more act~ve In college or community activities, like risky occupations, pehr °hrm better under longer odds. Finally they come from families in w d IC there has been st ress on ear Iy self-reltance " and mastery and are rawn to, and do better at, entpreneurial occupations.23 These t"b" " " con rI utlons paint the picture of an individual with high n Ach as being relatIvely less risk averse and therefore likely to engage in entrepreneurial activity. 66 Note however, that the individual with high n Ach is not prone to "dare devilish" behaviour. On the contrary, he prefers taking moderate risks since as McClelland observed. In an extremely safe undertaking at which anyone can succeed, the person with high n Achievement can get little achievement satisfaction out of accomplishing his objective. In an extremely speculative one on the other hand, he not only is almost certain to frustrate his achievement aspirations, he also may feel that if he should by some chance succeed, his success could not be attributed to his own personal efforts but to luck or circumstances beyond his control.24 The next questiOn one asks is, what causes this need for achievement motive in an individuaJ?? The general response to this IS that n Ach has a social origin. The individual's socialisation experience particularly between the ages of five to nine years determines its level. According to McClelland, early mastery training promotes high n Achievement provided It does not reflect generalised restrictiveness, authorianism, or 'rejection' by the parents.25 A study carried out on Greece concluded that a fall in n Ach at some stage of the country's development resulted from the introduction of slavery. As households became prosperous, children were for many hours each day, in the care of slaves, whlCh stifled independence training. In new England, a study on French-Canadian, Italian and Irish. Cathollc~, Jews and Protestants, revealed that Jews and Protestants expected mastery at an earlier age for their children than did other groups. Another study found protestants to believe more in planning and achieving while Catholics exhibited a fatalistiC attitude toward~ 11fe.26 Protestants also exhibited the belief that their destmy lay m their own hands while catholics tended to focus more on the power of God and church tradition. Another factor identified as a source of high n Ach IS anti-traditionalism or Simply, a wIllingness to break with tradition. McClelland observed that the capacity to withstand, a force for conformity which IS highly generalised, super-individual persistent over time and supplying to the actor a set of rules for his behaviour,27 determines the extent of his willingness to break wIth tradition, and the higher it is, the higher the n Ach will tend to be for the individual in question. Another relevant motive which is closely associated with n Ach is the need for affiliation (n AfflJ). This motive is most likely present, notes McClelland, when an individual shows concern over, establishmg, maintaining, or restoring a positive affective relationship with another person. This relationship IS most adequately deSCribed by the word friendship.28 This motive supposedly bears a strong relationship to entrepreneurship. While the achievement motive is a basic component of the mner-dlrected character type, the affiliation motive commonly characterises the other-directed character type. In a study on the U.S. Economy between 1800 - 1950, de Charms and Moeller found n Affil 9 to be significantly negatively correllated with n Ach.2 The two motives often 67 precede one another, with societies at lower development stages often characterised by higher n Affil and those at higher stages havmg higher n Ach. The transitIOn from higher n Aftil to higher n Ach, according to Moeller and de Charms, involves a secularisation in the sense that the individual must prove himself worthy .• rather than be told what to do by categorical imperatives)O Before we conclude this section, it is important to note that the concept of n Ach and by extension, entrepreneurship transcends ideology. This IS a significant observation because all LDCs regardless of ideological inclination can, if the concept IS valid, use these lessons for further industrial development. McClelland noted that, the achievement satisfaction arises from having initiated the action that is successful rather than from public recognition for an individual accomplishment) I He noted further that the individual IS equally happy when his action benefits him individually as when it benefits a group or society. Brandensburg observed that, even m the non-competitive economy of the Soviet Union, the state has ways and. means of recognising the essence of. entrepreneurship, of rewardmg mnovatlon, orlgmality, and higher productlvity)2 It was against this background that the research on entrepreneurship was begun. Research Objective The preceding section presents, at great length, the motive-based theory of entrepreneurship. This research accepts this theory as valid and purports to apply it In the . Botswana context to determine the potential for entrepreneurship. More precisely, this research tried to establish the relative preponderance of n Ach and n AUt! among the Batswana. In addition, the research attempts to establish whether sOClaltsatlon media in this country contain enough imagery on either motive. Research Methodology 1. The Data: The choice of data was influenced by three factors: a. Themes in imaginative literature represent people's fantaSies. b. The nature of these fantasies determines or is a manifestation of people's motives such as n Ach, n Affil, need for power, and so on. c. Human motives are cultivated between the ages of 5-9 years.)) Children's Primary School stories and folk-tales were chosen because they are more I~aglnatlve than realistic and it is to these socialisation media that children around t e ages of 5-9 years are exposed. In addition as McClelland observed, Folktales may be regarded as a joint product of many members of the culture, Since they doubtless undergo changes which are typical of common, rather than IdiosyncratIc cultural attitudes.34 68 2. Sampling: The sampling technique used was a combination of purposive sampling and simple random sampling. It was purposive in that in selecting Primary School texts, grammar and supplementary texts as listed in the Ministry of Education (Botswana) publication, "Primary School Supplies, Requisition Forms", were excluded. From the remaining English and Tswana literature texts, and folktales, random numbers were used to select stories and tales respectively, as follows: a. Eighteen English Stories. b. Eleven Tswana Stories. c. Twenty One Folktales. 3. Scoring Procedure: Three judges scored the selected stories for thematic content - specifically for n Ach and n Affi!. The method for scoring follows McClelJand.35 As child explains, The score for n Achievement reflects the extent to which the thoughts of the people are preocuppied with the theme of achievement.36 Similarly, the score for n Affil reflects the extent to which the thoughts of people are preoccupied with the theme of affiliation. 4. Statistical Tools a. Kendall's Coefficient of Concordance (W) b. Mann-Whitney U-test (U) 5. Method of Analysis a. Content Analysis of the selected stories and tales was carned out by the three judges. b. To establish scoring uniformity among them, Kendall's CoeffiCient of Concordance test was applied. c. To show the relative preponderance of n Ach and n Affil, the Mann-Whitney U-test was applied. Specifically, this test was applied to address the hypothesis below: n Ach Ho: UI - U = 0, Where U is the larger of the two means for z and n Affil. The Null Hypothesis above says that need for achievement and need for affiliation scores have the same distribution. That IS, If one picked a s~hr~ a or a tale at random and scored it for motive content, the chances are b . t) th n Ach mean score WI ll e (provided both motives are presen, e. n ffil mean significantly close (though not necessarily identical to), the A score. 69 The Alternative Hypothesis on the other hand says that the mean score for n Ach per story or tale, is stochastically larger/lower than the n Affil mean score. If .one pIcked a story at random, the chances are that the n Ach score will be signIficantly higher/lower than the n Affil score. d. The standard content analysis procedure requries that independent validation of inferred results be carried out. This step was followed in this research by making reference to results of related studies. Presentation of the Results (For detailed {jescription on result derivation, refer to W. Masenya, "Investment in Botswana: Short-run and Long-run consideratiof's", Ph.D Dissertation, Howard University, Washington D.C., 1983) The following is a summary of results obtained from the data: a. Of all the English stories scored, only twenty-two percent (22%) have achievement imagery and seventeen percent (J 7%) have affiliation imagery. The rest of the stories either have none of the two motive Imagery or Its existence is doubtful. b. For Tswana Texts, only eighteen percent (J 8%) have achievement imagery and eighteen percent (J 8%) have affiliation imagery. c. Only fourteen percent (J 4%) of the folktales have achievement Imagery. Significantly, thirty-three percent (33%) of the tales have affiliatIOn Imagery. d. With respect to the Tswana and English Stories, the Mann-Whitney U-test showed that the n Ach mean score was significantly close to the n Affll mean score. This means that the two motIves are relatively evenly distributed in the literature. With respect to the folktales, the test showed that there IS a relatively high preponderance of the n Affil motive than the n Ach motive content. The question that anses from these results is, if neither motive imagery occurs at a hIgh frequency In the Itterature, what themes are addressed by the stories and tales?? Included among the residual themes would be purely recreational imagery, devoid of any motive relevance; themes designed to foster attitudes consistent with obedience for elders the virtues of kindness, good behaviour, and so on. Analysis of the Results In view of the low frequency of occurrence of either motive the relative distribution of these motives . within . the s t.ones an d ta Ies IS .. of SpUriOUS 'SIgnIfICance. .. From tiS, h. one can Infer that neither motive will be significantly cultivated in the average Motswana. Note however th t I ... b totall y d e f .. t. ' b Inl Ive a out this ' a a more ec ectlc view IS necessary I. h for one to . e . . . conc USlOn - t ere are other sOClaiIsatlOn media, Includmg child-reanng practIces whIch are not addressed in this study. 10 The results however paint a grim picture about prospects for the supply 01 entrepreneurs in Botswana. They suggest that the supply of inner-directed Individuals, who view themselves as agents of change may not be that high. Independent validation of this conclUSIOn was carried out. A study by Letshwltl37 revealed that entrepreneurial activity among the Batswana is of secondary Importance. According to her, 51 % of businessmen in her sample gave as a reason for going Into bUSiness, the need to supplement their meagre seasonal farming Income and pensions. Many small businessmen were found to be owned by retired civil servants. According to Letshwlti's findings, ownership of a business confers no feeling of prestige to the owner. Affiliative concern and respect for others ranked high among factors conferring prestlge)8 Another factor that adds insight into the Motswana's disposition IS hiS perception of hiS relationship With nature. A study by the Africa Social Studies Program (ASSP) noted that, To the European, man must fight against (control) nature in order to survive. To a Motswana, this is quite strange because he sees himself as part of nature and if he is to survive, he must make sure he and nature are working together.39 Hunter40 used McClelland's Thematic Aperceptive Test (TAT) to measure thp achievement motivation among fifty (50) entrepreneurs in Botswana. HIS finding,> were that, "the achievement motivated entrepreneur is a rarp bird In the REnl f entrepreneurial cadre".4l He further notes that, while this could be a re<,ult of 'faulty administration of the test,' a more likely explanation however, is that the achievement motivated In- dividual IS not common in Botswana - and that the type of motIvatIOn IS less important than its strength.42 Another study, by Beaton and Moapare concluded that managers With the 'deSire to have authority, status and control over others', are ten times more numerous than those that are achievement motivated in Botswana, Lesotho and Swaziland. Conclusions and Recommendations These findings suggest that if Botswana is to increase her supply of entrepreneurs and therefore hopefully Improve the chances of faster. industrial development, policy-makers must, of necessity, look beyond the conventIOnal fiscal and monetary measures. Their Independent use ought to be viewed as a stop-gap measure. Programmes designed to generate the relevant individual motive, n Ach,. must be initiated. Social psychologists and educatIOnalists are the appropriate profeSSIOnals for thiS. The latter can also advise on how best to institutlOnallse the prinCiple of self-reliance which IS consistent with the development of n Ach. SInce the study findings suggest that latent features of Primary School texts may not be condUCive to the development of proper motives in the nation's youn& educationalists need to liase With social psychologists In this respect. 43 Motive changes have been found to occur with lags of up to fifty years. If anything has to be done, steps towards ItS Implementation must be taken Without delay. 71 Footnotes 1. Ministry of Finance and Development Planning, National Development Plan, 1979-1985, Gaborone, Government Printer, Novemebr 1980, p.25. 2. Central Statistics Office, Statistical Bulletin, Gaborone, Government Printer, March 1984, Voj. 9 No.I. 3. Ministry of Commerce and Industry, Compilation of LIcensed Manufacturing Industries, Gaborone, Government Printer, June 1982. 4. Elliot Berg, et ai, "Accelerated Development in Sub-Saharan AfrIca: An Agenda for Action", Washington, D.C., IBRD, 1981, p.92. 5. Ministry of Finance and Development Planning, op.cit., p.203. 6. Elliot Berg, et.al., op.cit., p.93. 7. USAID, "A Report to Congress on Development Needs and Opportunities for Cooperation in Southern Africa", Washington, D.C., US Government PrInting Office, March 1979, p.64. 8. Bela Bel ass a, "Industrial Policies in Taiwan and Korea", In LUIs Eugenio D; Marco (ed), International Economics and Development, New York, Academy Press, 1972, p.163 9. Rajaona Andriamananjara, "Relating Industrialisation in Africa to People's Needs", International Labour Review, Vol. I 17, No.6, November - December 1978, p. 757. 10. Ibid, p. 758. II. Harvey Leibenstein, General X-EffIciency Theory and Economic Development, New York, Oxford University Press, 1978, p. 39. 12. William J. Baumol, "Entrepreneurship in Economic Theory", AmerIcan Economic RevIew, May 1968, Vol. 58, p.65. 13. IbId, p.67. 14. Richard Nelson, "InnovatIon and Economic Development: TheoretIcal Retrospect and Prospect. "IDB/CCLA/UNDP/IDRC Regional Programme of Studies on SCIentific and Technical Development In Latin AmerIca, WorkIng Paper No.31, Buenos Aires, ECLA, 1979, p. I 8. 15. Larry E. Westphal, "Empirical JustifIcation for Infant Industry ProtectIOn," World Bank Staff Working Paper No.445, March 1981, p.5. 16. Rajat. K. Ray, Industrialisation in India: Growth and conflict in the Private Corporate Sector, 1914-1947, Delhi, Oxford University Press, 1979, p.210. 17. Wayne G. Broehl, JL, The Village Entrepreneur, Change Agents in India's Rural Development, CambrIdge, Mass., Harvard University Press, 1978, P.l. 18. Gustav F. Papanek, "The Development of Entrepreneurship," American Economic Review, Vol. 52, May 1962, p.46. :..=.:..:..:::'-.:..::.=.:.....:..;---- 72 19. David C. McClelland, "Entrepreneurs are Made not Born", Forbes, June 1st 1969, Vol. 103, p.53. --- 20. H. Leibenstein, Economic Backwardness and Economic Growth, New York, John Wiley and Sons, 1957, p.1l2. 21. David C. McClelland, The AchievinR Society, Princetons N.J. D Van Nostrand Company, Inc., 1961, p. 205. 22. David C. McClelland, "Achievement Motivation can be Developed", Harvard Business Review, November/December 1965, Vol.43 p.7. 23. Juan B. Cortes, S.J., "The Achievement Motive in the Spanish Economy Between the 13th and 18th Centuries", Economic Development and Cultural Change, Vol. 9, No.2, January 1961, p.144. 24. David C. McClelland, et ai, "A Scoring Manual for the Achievement Motive", in Atkinson, J. W. (ed), MOtIVes in Fantasy, Action and Society, Princeton, N.J., D. Van Nostrand Company, Inc., 1958, p. 306. 25. McClelland, 1961, ~, p.345. 26. McClelland, 1961, op.cit, p.178 27. McClelland, 1961, op.cit, p.178 28. McClelland, 1961, op.CH, p.160 29. McClelland, 1961, op.cit, p.166 30. Richard de Charms and Gerald H. Moeller, "Values Expressed In Children's Readers, 1800-1950", Journal of Abnormal and SOCial Psychology, 1962, Vol. 64, No.2, p.136. 3], McClelland, 1961, Op.Clt, p.230. 32. Frank Brandensburg, "A ContributIOn to the Theory of EntrepreneurshIp and Economic Development: The Case of Mexico", Inter-American Economic Affairs, Winter, 1962, Vol. 16, p.3. 33. McClelland, Risk Taking in Children with High and Low Need for Achievement, Atkinson (ed), op.cit. p.307. 34. David C. McClelland, et. ai, The Achievement Motive, New York, Irvington Publishers, Inc., 1976, p. 290. 35. Ibid., p.179. 36. Irvin L. Child, et ai, "Achievement Themes in Folktales Related to SocialisatlOn Practice", Atkinson (ed), op.cit., p.480. 37. Sheila Letshwiti, "Entrepreneurship in the Southern District of Botswana: A Sociological Survey", Report for PFP, Botswana, Economic Consultancies (Pty) Ltd., 1980, p.19. 38. Ibid., p.24. 73 39. Africa Social Studies Programme, Kit on Botswana, Nairobi, Kenya, ASSP, 1973, p.8. 40. John Hunter, "The Successful and the Unsuccessful Enterprise", Gaborone, Institute of Development Management, June 1979. 41. Ibid., p.13 42. Ibid., p.13 43. Bradburn, N.M. and Berlew, D.C., "Need for Achievement and English Economic Growth", Economic Development and Cultural Chance, 1961, p.138. Bibliography I. Rajaona, Andriamanjara, "Relating Industrialisation In Africa to People's Needs"; IlJternational Labour Review, Vol. 117 No.6, November - December 1978, 2. William J. Baumol, "Entrepreneurship in Economic Theory", American Economic Review, May 1968, vol. 58. 3. Elliot Berg, et ai, "Accelerated Development in Sub-Saharan Africa: An Agenda for Action", Washington, D.C., IBRD, 1981. 4. 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