Africa’s B — Botswana
Botswana is one of Africa’s superstar economies.
February 16, 2005
Given that richness in mineral resources is nothing that sets Botswana apart from fellow African countries, what could explain the difference?
Unlike many African countries, Botswana's leaders specifically decided that they would place stability and the rule of law over their own enrichment. Over the years, that has enabled Botswana to use its diamond earnings more wisely.
Botswana's large foreign exchange reserves have prevented the kind of financial crises seen in other developing countries. Perhaps most important, the country's stability — and assurance of a fair legal system — has attracted investment from abroad.
Botswana still struggles with a high unemployment rate and Aids. But with a per capita income of $3,400 in 2003 — higher than the African average of $490 — Botswana can find more resources to solve its problems.
Founder and CEO, Global Business School Network Guy Pfeffermann is the Founder and CEO of the Global Business School Network. He was the Director of the Economics Department and Chief Economist for the International Finance Corporation from 1988-2003. Since 2003, he has served as the Director of the Global Business School Network of International Finance […]