Botswana

Botswana” A Diamond in the Rough

Is Botswana a success story?

I believe that success cannot be measured in absolute terms, since results outside a context are meaningless, but even in relative terms, the analyses of success is extremely difficult.

Without knowing the specific struggles and challenges a person, a business and even a society, individual or group of individuals, have to overcome to advance towards their goals, it is impossible to measure success.

The major challenges experienced by Botswana through its economic development were the very low starting base for the country’s development, the large economic dependence in the diamond industry, high unemployment rates, poor education/skills of the labor force and AIDS.

The dependence on diamonds ( over 70% of the country’s exports and 50% of the government revenues – EXIBIT 3) hinders the country’s ability to invest in other industries and exposes the economy to risks of concentration, exposing the country to fluctuations in the diamond’s market.

This concentration, worsened by an unskilled population creates a ideal condition for the unemployment crises the country experience, affecting more than 15% of the population.

Socially, the AIDS crises, affecting more than one third of the adult population, batters the country, leaving orphans and burden the whole society.

Nevertheless, Botswana managed to maintain impressive levels of economic growth (averaging 10% per year for 4 decades – EXIBIT 4), has maintained a strong democracy and invested the resources from the diamond industry in infrastructure, education and health. For example, Botswana has experienced great progress in terms of success, increasing the literacy among adults from 69% in 1991 to 83% in 2008 .

For what it is worth, Botswana should be considered a success, even though the country is still afflicted by many problems, its progress has to be recognized.

What accounts for the country’s performance?

The main factors that...