Planning Matters

Sep 16, 2015 | Kashmir Images
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In 1961, diamond-rich Botswana and Sierra Leone had approximately the same per capita income of about US$1,070, when both these countries in Africa adopted and experienced extremely different paths of economic development. While diamonds caused an economic miracle in Botswana, the same diamonds led to a total state collapse in Sierra Leone. In Botswana the extraction and export of diamonds became the engine of rapid economic growth. The country maintained a stable and well-functioning democracy since independence and enjoyed steady leadership of democratically elected presidents. This has allowed Botswana’s economy to prosper; per capita income is currently at around US$14,000. By contrast, Sierra Leone’s recent history is a tragedy. Diamond wealth in combination with poor governance led to the state’s collapse and created the incentive, as well as the opportunity for a rebellion throughout the 1990s. Sierra Leone is now ranked among the poorest countries in the world, with per capita income of about US$480-500. By the way, with political stability, Botswana has also exploited its wildlife to attract handsome chunk of tourists who visit this African country to see wildlife thriving in their natural habitats. Needless to say that tourism has also become a significant contributor to the local economy and people’s incomes.