Africa’s Success Story

Though Botswana relied almost exclusively on its diamond wealth, its economy has grown steadily since 1966, rivaling China and South Korea’s growth rates. Good governance allowed Botswana to avoid the resource curse that afflicted many of its neighbors. Botswana’s diamond-producing industry is lucrative and provides well-paying, often unionized jobs to locals. Recently, diamond companies have even begun cutting diamonds within Botswana, before export, which increases the country’s profits. But diamond prices are volatile, and Botswana needs to diversify to avoid economic obstacles. An even larger potential threat to Botswana’s success is political turmoil. The ruling party, the Botswana Democratic Party, has a tenuous grip on power, and some critics suggest the leaders are resorting to corrupt tactics to retain power. Botswana is reported to have the highest levels of transparency in Africa, but suspicious deaths of some opposition leaders are raising questions. – YaleGlobal