Botswana’s Economic Transformation And Development(1980-1998)

Botswana was one of the poorest countries in the world when it gained independence in 1966.Botswana later became one of the fastest growing economies in southern Africa thanks to the massive development of its diamond resources.As Africa has received increasing attention,Botswana’s economic development has become even more remarkable in its uniqueness among the continent’s economic development.The second President of Botswana,Quett Ketumile Masire(1980-1998),pursued a diversified economic development initiative to promote economic transformation.The economic development measures during this period served as a link between the past and the future for Botswana.Diamond mining brings Botswana a lot of foreign exchange,but diamond mining is not enough to sustain Botswana’s economy.In the 1980s,Botswana began to actively adjust its industrial structure and strive to achieve economic transformation.While promoting the development of the mining sector,the Government of Botswana has protected traditional livestock farming,encouraged diversification of private investment,and developed manufacturing and tourism in an effort to create more jobs and sustain economic growth.But Botswana’s efforts to diversify its economy by relying on diamond revenues have not worked well.Botswana has yet to wean itself off its dependence on diamonds,nor has it succeeded in transforming its economy.The first part of this paper is the introduction,which introduces the background and significance of Botswana’s economic transformation,and sorts out the relevant academic history.The second part describes the basic state of the economy when Seretse Khama took office and the economic development achieved during his leadership.The third part analyzes Botswana’s dependence on diamonds,the weakness of agriculture and manufacturing,poverty and AIDS as a result of its economic development in the past 30 years after independence.Part IV discusses the Government’s attempts to diversify the economy in agriculture,manufacturing and tourism.The fifth part analyzes the gains and losses in the exploration of Botswana’s economic transformation.