BA207_ Macroeconomics- BOTSWANA DISCUSSION QUESTION

Read the attached chronicle concerning the country of Botswana and discuss why Botswana is able to grow their economy despite their inherent disadvantages.

Upon gaining its independence in 1966, the African country of Botswana made an essential decision to develop modern economic growth by utilizing a democratic system for its people. This lead to new leadership with an educational background that would assist the country with its economic growth. Chief Khama searched for trade opportunities which eventually lead to free trade. As well as, increasing the supply factors within the country by mining which generated a significant amount of deposits. All of these developments lead to partnerships with the government and multinational mining firms that yielded efficient financial institutions.

Botswana was also becoming one of the top diamond mining countries during this same time frame. This also sparked another partnership,but with the mining firm DeBeers, whom would eventually become the leading diamond mining firm in its industry. Even as diamond prices plunged and the government mandated strict policies, Botswana, along with it's partnered firm with DeBeers, was able to sustain its continuing economic growth by upholding diamond price levels. The partnership with DeBeers also included construction of a town that would assist the citizens of Botswana with educational and medical facilities. Higher educational creates a larger pool of skilled workers, while medical facilities assist with the longevity of life.

With these and a few other steps along the way Botswana was able to build economically after gaining its independence and utilizing techniques that would assist in its financial growth