Drought, transfer entitlements, and income distribution: The Botswana experience

Abstract

Using 1974–75 and 1985–86 income distribution survey data, with the latter supplemented by drought relief data, this paper presents an analysis of intertemporal rural household income distribution in Botswana. Despite the fact that the 1974–75 survey was conducted during one of the best agricultural production periods on record and the 1985–86 survey was conducted in the midst of one of the worst, after the rural income economy had been weakened by a severe and prolonged drought, Botswana's rural income inequality did not appear to have increased significantly. There was no marked reduction in rural household real incomes. The explanation for this outcome is found to lie in the income-maintenance strategy pursued by rural households with strong support from transfer entitlement guarantees from private and public sources supplementing rural household incomes.