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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:
-
encompasses many of the terms and ideas in this
section,
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offers a cross-country
comparison,
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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
- What
were the key factors that fostered economic development in Botswana?
- What
lessons can be transferred from Botswana to other developing states?
Section:
Discussion
Questions
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What
is the relationship between economic growth and economic development?
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What
are the three most important obstacles to economic development? Why?
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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
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Select
a developing country and compare its HDI in 1980 with its HDI in
2000.
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What
explains the difference?
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Have
polices to increase economic development been
implemented? If yes, what are they?
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Have
they been successful?
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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:
- Right click on the file name
- Choose "Save Target As..." (if you are Internet Explorer
user) or "Save Link As..." (if you are Netscape User); and
- 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
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