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Is there a Dutch disease in Botswana?

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  • Pegg, Scott

Abstract

The Dutch disease is regularly evoked in the resource curse literature and remains a frequent explanation for the poor economic performance found in many resource-rich countries. Given Botswana's high rate of per capita GDP growth, it might seem superfluous at first glance to ask whether or not there is a Dutch disease in Botswana. Yet, Botswana merits study here both as a significant potential exception to any posited inevitability of the Dutch disease and also because the debate on whether or not Botswana has avoided the Dutch disease is far less settled than is indicated by its economic growth record. Botswana currently suffers from many of the symptoms of the Dutch disease but not for the causal reasons posited in the Dutch disease model. Indeed, many of the explanations for the lack of diversification found in Botswana's mineral-dependent economy have nothing to do with either diamond revenues or the Dutch disease. Botswana has done about as well managing its resource wealth as could realistically be expected but it is unlikely to succeed in diversifying its economy away from diamonds anytime soon.

Suggested Citation

  • Pegg, Scott, 2010. "Is there a Dutch disease in Botswana?," Resources Policy, Elsevier, vol. 35(1), pages 14-19, March.
  • Handle: RePEc:eee:jrpoli:v:35:y:2010:i:1:p:14-19
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    References listed on IDEAS

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    2. Clement Anne, 2016. "Are Commodity Price Booms an Opportunity to Diversify? Evidence from Resource-dependent Countries," Working Papers halshs-01381143, HAL.
    3. Blanco, Luisa & Grier, Robin, 2012. "Natural resource dependence and the accumulation of physical and human capital in Latin America," Resources Policy, Elsevier, vol. 37(3), pages 281-295.
    4. Badeeb, Ramez Abubakr & Lean, Hooi Hooi & Clark, Jeremy, 2017. "The evolution of the natural resource curse thesis: A critical literature survey," Resources Policy, Elsevier, vol. 51(C), pages 123-134.
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    6. repec:gam:jsusta:v:10:y:2018:i:3:p:715-:d:134945 is not listed on IDEAS
    7. Clement ANNE, 2016. "Are Commodity Price Booms an Opportunity to Diversify? Evidence from Resource-dependent Countries," Working Papers 201615, CERDI.
    8. Elbra, Ainsley D., 2013. "The forgotten resource curse: South Africa's poor experience with mineral extraction," Resources Policy, Elsevier, vol. 38(4), pages 549-557.
    9. Al Rawashdeh, Rami & Maxwell, Philip, 2013. "Jordan, minerals extraction and the resource curse," Resources Policy, Elsevier, vol. 38(2), pages 103-112.
    10. Mironov, Valeriy V. & Petronevich, Anna V., 2015. "Discovering the signs of Dutch disease in Russia," Resources Policy, Elsevier, vol. 46(P2), pages 97-112.
    11. Abdullahi Ahmed & Andrew Hulten, 2014. "Financial Globalization in Botswana and Nigeria: A Critique of the Thresholds Paradigm," The Review of Black Political Economy, Springer;National Economic Association, vol. 41(2), pages 177-203, June.
    12. Ramírez Cendrero, Juan M., 2014. "Has Bolivia׳s 2006–12 gas policy been useful to combat the resource curse?," Resources Policy, Elsevier, vol. 41(C), pages 113-123.
    13. repec:eee:jrpoli:v:52:y:2017:i:c:p:90-99 is not listed on IDEAS
    14. Ackah-Baidoo, Abigail, 2012. "Enclave development and ‘offshore corporate social responsibility’: Implications for oil-rich sub-Saharan Africa," Resources Policy, Elsevier, vol. 37(2), pages 152-159.
    15. repec:eee:accfor:v:37:y:2013:i:2:p:81-91 is not listed on IDEAS
    16. Xu, Xiaoliang & Xu, Xuefen & Chen, Qian & Che, Ying, 2015. "The impact on regional “resource curse” by coal resource tax reform in China—A dynamic CGE appraisal," Resources Policy, Elsevier, vol. 45(C), pages 277-289.
    17. Mainguy, Claire, 2011. "Natural resources and development: The gold sector in Mali," Resources Policy, Elsevier, vol. 36(2), pages 123-131, June.
    18. Ge, Wei & Kinnucan, Henry, 2016. "Does Dutch Disease Hit Mongolia?," 2016 Annual Meeting, February 6-9, 2016, San Antonio, Texas 229564, Southern Agricultural Economics Association.
    19. João Sousa Andrade & António Portugal Duarte, 2013. "The Dutch Disease in the Portuguese Economy," GEMF Working Papers 2013-05, GEMF, Faculty of Economics, University of Coimbra.
    20. Xu, Xiaoliang & Xu, Xuefen & Chen, Qian & Che, Ying, 2016. "The research on generalized regional “resource curse” in China's new normal stage," Resources Policy, Elsevier, vol. 49(C), pages 12-19.
    21. Parcero, Osiris J. & Papyrakis, Elissaios, 2016. "Income inequality and the oil resource curse," Resource and Energy Economics, Elsevier, vol. 45(C), pages 159-177.

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