Sunday, February 17, 2019

Week 7 - Alvin Du

Since Botswana's independence in 1966, the country has risen in GDP per capita through the exportation of their natural resource: diamonds. However, this wasn't the only contributing factor in Botswana's growth; their transparent government played a role. The government knew that natural minerals can be exhausted and therefore spent money to improve education, health and infrastructure to be able to sustain itself after the depletion of diamonds. However, they will also need to raise their GDP from other trades in order to continue their growth. It is stated that the most viable path for Botswana's growth would be to attract foreign direct investment. Botswana's situation and national image is analogous to the rise and fall of certain companies. In comparison to the large video game company, EA, Botswana's transparent government is how it keeps the people well informed, but most importantly, happy. This increases investment into the country and its values. Electronic Arts however has had a bad reputation by deceiving its customers and has shown frequently that its main purpose is to rack in revenue. EA has no transparency in the way they operate. It was only until recently last month that EA has become much more transparent with how they intend to improve their game content as well as their operations. If you look at the stock price from the beginning of 2019, one share costed $74 at the low and when the released their most recent game, Apex Legends, stock prices jumped to $106 per share. This wasn't because they racked in revenue, but more so due to good game content from a free-to-play game and transparency. In order to EA to continue its growth, they constantly need financial support and investment. The same is expected from Botswana's search for foreign direct investment.


Lewin, Michael. "Botswana’s success: Good governance, good policies, and good luck." Yes Africa Can 81 (2011).

Aizenman, Nurith. “When Botswana Sells Its Big Diamond, Who Will Benefit?” NPR, NPR, 29 June 2016, www.npr.org/sections/goatsandsoda/2016/06/29/483695466/botswana-s-economy-needs-more-than-diamonds-to-shine.

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