Did Botswana Escape from the Resource Curse?

33 Pages Posted: 21 Jun 2006

See all articles by Atsushi Iimi

Atsushi Iimi

International Monetary Fund (IMF); World Bank

Date Written: June 2006

Abstract

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.

Keywords: Natural resources, Economic development, Governance

JEL Classification: C31, O13, O21, Q32

Suggested Citation

Iimi, Atsushi, Did Botswana Escape from the Resource Curse? (June 2006). IMF Working Paper, Vol. , pp. 1-33, 2006. Available at SSRN: https://ssrn.com/abstract=910703

Atsushi Iimi (Contact Author)

International Monetary Fund (IMF)

700 19th Street, N.W.
Washington, DC 20431
United States

World Bank ( email )

1818 H Street NW
Washington, DC 20433
United States

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