Did Botswana Escape from the Resource Curse?

Download or read book Did Botswana Escape from the Resource Curse? written by Atsushi Iimi and published by International Monetary Fund. This book was released on 2006-06 with total page 38 pages. Available in PDF, EPUB and Kindle. Book excerpt: Botswana is typical of the countries that are endowed with abundant natural resources. Although it is commonly accepted that resource-rich economies tend to fail in accelerating growth, Botswana has experienced the most remarkable economic performance in the region. Using the latest cross-country data, this study empirically readdresses the question of whether resource abundance can contribute to growth. It finds that governance determines the extent to which the growth effects of resource wealth can materialize. In developing countries in particular, the quality of regulation, such as the predictability of changes of regulations, and anticorruption policies, such as transparency and accountability in the public sector, are most important for effective natural resource management and growth.