In a government, it needs to sacrifice “good economics, bad politics” in order to ensure the development of their country, especially those countries who sell minerals (Lewin 82). Many mineral-based countries are likely to suffer from bad government since the government get most of the revenues from the mineral resources. In addition, these countries will experience the cycles of boom and slump that will negatively affect the country’s growth. This can lead to “resent-seeking, corruption, and the efficiency losses” in the country (82). In the case of Botswana, the country has good politics and government control that it has turned one of the poorest countries into one of the successful countries in the world. The country’s economy will not suffer that much like some of the other mineral-based countries such as Zambia, Nigeria, and Sierra Leone. The politics and governance in Botswana has turned one of the poorest countries into one of the most successful counties in the world. The country still sell some natural resources, like diamonds and other minerals, since it is one of their biggest source of income. Even though the mineral industry will slowly decline in the future because of “the increase in the prices of natural resources as a result of the rise of Chine and India,” Botswana will have a soft landing from their savings and investments (88).
Question: What other things can Botswana sell besides minerals, like diamonds, when it has to diversify its economy away from it in the future?
Works Cited
https://www.victoriafalls-guide.net/images/botswana-on-map.jpg
Lewin, Michael. “Botswana’s Success: Good Governance, Good Policies, and Good Luck.” Pp. 81-90.
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