In the lower divisions, however, the players are non-tradeable
in this sense.
'One of the main structural problems facing the Botswana economy is that the economic diversification that has occurred has been into non-tradeable
sectors, mostly services, that serve the domestic economy rather than exports,' reads the review.
An overvalued exchange is also favoured by lobbies representing the non-tradeable
sector, which are strong and pervasive throughout the region.
From a regulatory point of view, these non-tradeable
equity investments were not admitted to cover VSK's technical reserves.
Alkhater said that many oil based economies in the region have their economic activities concentrated in the non-tradeable
sector such as services and construction relying on low skill imported labour with the majority of nationals employed in the public sector.
The company is replacing more expensive and non-tradeable
Kuwaiti supply with Iraqi oil.
In addition, on 13 September, markets regulator China Securities Regulatory Commission (CSRC) allowed banks to raise funds through non-tradeable
preferential stock allotments.
This increased the divergence between thriving non-tradeable
sectors and buoyant domestically driven growth in the South, and the greater reliance of the North, and especially Germany, on export-led growth.
The draft already agreed upon includes Pakistan's assent, in principle, to grant the MFN status to India and a finalised negative list of non-tradeable
items, which will be phased out by the year's end.
By the end of 2006, non-tradeable
shares accounted for 63% of the total shares in the market But following the Gugai reform of 2005, the Chinese law allowed for state and provincially controlled non-tradeable
shares to become tradeable.
Interestingly, this leading role took place in the period where the incentive structure of the economy changed in favour of tradeable and production of the non-tradeable
was expected to have declined.