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Botswana Case Study

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ABSTRACT
Respect for private property rights, free markets, and the rule of law are often do cited as fundamental to economic development. However, many countries well in some of these indicators but still lag behind, development wise. This paper seeks to investigate factors that lead to economic growth without economic development, using Botswana as a case study. From around independence 1966 to 1995, Botswana was the fastest growing country in the world. During those three decades Botswana’s average annual growth rate was 9% percent, and she graduated from being the third poorest nation in the world to being an “upper middle income”.
Key words; economic growth, Economic development,
INTRODUCTION
Economic growth, material prosperity and high …show more content…

Today the country boasts of one of the highest per capita incomes in Africa. Real GDP has been just over 5% on average from 1970, and three decades on the country is still exemplary (Frankel 2010). It has low levels of corruption, strong institutional framework, a developed textile industry, baking and services industry and has managed to diversify their economy. As their economy grew over the years, human development indicators tagged along; a true sign of development. Mauritius success story is attributed to the adoption of good policies; competitively valued exchange rate, heavily spending on education, creation of a well-managed export processing zone (Frankel 2010).
Education is a pre-requisite for economic development. Education improves efficiency of the labour force and thereby stimulates economic growth. The use of technology makes it possible to produce quality goods and services at a comparatively lower cost. Benhabib and Spiegel (1994) write that an educated labour force is more creative, able to adopt and implement new technologies. African Economic outlook (2015) reports that despite its status as a middle income country; Botswana has the highest levels of inequality. Wealth distribution is unbalanced, and this can lead to uneven human development

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