Case | HBS Case Collection | March 2003 (Revised November 2005)

Botswana: A Diamond in the Rough

by Laura Alfaro, Debora L. Spar, Faheen Allibhoy and Vinati Dev

Abstract

In the years since independence, tiny, landlocked Botswana has gone from being one of the world's poorest nations to becoming a stable, prosperous state, blessed with the highest sustained growth rate in the world. This case highlights the role that foreign direct investment (FDI) has played in this success, as well as how strong local institutions have helped to harness the benefits that the foreign investor--here, the giant De Beers company--has brought. Also, examines how Botswana was able to avoid the natural resource curse that has haunted so many other resource-abundant countries.

Keywords: Foreign Direct Investment; Growth and Development Strategy; Economic Growth; Natural Environment; Developing Countries and Economies; Botswana;

Citation:

Alfaro, Laura, Debora L. Spar, Faheen Allibhoy, and Vinati Dev. "Botswana: A Diamond in the Rough." Harvard Business School Case 703-027, March 2003. (Revised November 2005.)