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Module 2 > Economic Development

Economic Development: Case Study

How Botswana did it: 
Comparative Development in Sub-Saharan Africa

This case study is based on a paper by Daron Acemoglu, Simon Johnson and James A. Robinson entitled “An African Success Story: Botswana.” It was selected because it:

  1. encompasses many of the terms and ideas in this section, 

  2. offers a cross-country comparison, 

  3. and shows that even in adverse conditions, the right mix of policies can foster economic growth and sustainable human development. 

In addition, this paper serves as an example of academic research and provides a good model for you to follow in your own research.

 

Work on the following questions and exercises using the form provided at the bottom.

Case: Discussion Questions

  1. What were the key factors that fostered economic development in Botswana?
     
  2. What lessons can be transferred from Botswana to other developing states?

Section: Discussion Questions

  1. What is the relationship between economic growth and economic development?
     

  2. What are the three most important obstacles to economic development? Why?
     

  3. Choose three developing countries and compare their rates of economic growth (as measured by GNP) with their ranking in the HDI. Are they similar or different? Why? 

Section Exercise

  1. Select a developing country and compare its HDI in 1980 with its HDI in 2000. 

  1. What explains the difference? 
     

  2. Have polices to increase economic development been implemented? If yes, what are they? 
     

  3. Have they been successful?
     

  4. What lessons can be learned for other developing countries? 

 

Form for Questions and Exercises:

Please download the document econ-case.rtf to your computer by following the instruction below.  Once it is downloaded, please answer the questions, and e-mail the document to your instructor.

How to download the file:

  1. Right click on the file name
  2. Choose "Save Target As..." (if you are Internet Explorer user) or "Save Link As..." (if you are Netscape User); and 
  3. Save the file onto your computer.

 

Key Terms

Balance of payments 

Capital flight

Current account

Economic development

Economic growth

Exchange rate

Gini Coefficient

Gross domestic product (GDP)

Gross national income (GNI)

Gross national product (GNP)

GNP per capita

Hard currency  

Inflation

Investment

Macroeconomic instability

Multinational corporation (MNC)

Price stability

Purchasing power parity (PPP)

Structural reforms

   
<-7. Economic development and SHD