Jiwanji, MoortazaSarraf, Maria2014-05-142014-05-142001-10https://hdl.handle.net/10986/18304The endowment of natural resources has often been associated with disappointing economic development. This phenomenon is referred to in the literature as the "resource curse," which hypothesizes that economies experiencing resource booms, either through price increases or new discoveries, will experience unsustainable growth rates. There are various mechanisms through which a resource-boom can negatively impact on an economy. For instance, it can lead to excessive government expenditure during the boom period and drastic cuts when the boom ends; detrimental impacts on non-boom tradable sectors; inefficient investment beyond the absorptive capacity of the country; and rent seeking behavior. By exploring the case of the mineral boom in Botswana, this paper will demonstrate that the resource curse is not necessarily the fate of resource abundant countries. The adoption of sound economic policies and the good management of windfall gains have allowed Botswana to continuously manage growth and to become one of the great success stories of developing countries.en-USCC BY 3.0 IGODUTCH DISEASEECONOMIC MANAGEMENTPOLITICAL ENVIRONMENTMINING SECTORNATURAL RESOURCES DEVELOPMENTRESOURCE PLANNINGPUBLIC EXPENDITURESEXCHANGE RATESECONOMIC DIVERSIFICATIONECONOMIC LINKAGESRENT-SEEKINGPROFIT MOTIVE ACCOUNTINGADJUSTMENT POLICIESAGRICULTUREALLOCATION OF LABORBANK OF BOTSWANABASE YEARBORROWINGCAPITAL FLIGHTCIVIL SERVICECLOSED ECONOMIESCOALCOMPETITIVENESSCONSENSUSDEBTDECISION MAKINGDEPOSITSECONOMIC CONSEQUENCESECONOMIC DEVELOPMENTECONOMIC FACTORSECONOMIC GROWTHECONOMIC PERFORMANCEECONOMIC POLICIESECONOMIC PROBLEMSECONOMIC THEORYEMPIRICAL INVESTIGATIONSEMPLOYMENTENVIRONMENTAL COSTSENVIRONMENTAL ECONOMICSENVIRONMENTAL IMPACTSEXCHANGE RATEEXCHANGE RATESEXPANSIONARY FISCALEXPENDITUREEXPORTSEXTERNALITIESEXTERNALITYFINANCIAL SECTORSFISCAL POLICIESFISCAL POLICYFOREIGN ASSETSFOREIGN EXCHANGEFOREIGN EXCHANGE RESERVESFOREIGN INVESTMENTFOREIGN RESERVESFORMAL ANALYSISFORMAL EMPLOYMENTGDPGNPGNP PER CAPITAGOVERNMENT EXPENDITURESGOVERNMENT REVENUEGOVERNMENT REVENUESGOVERNMENT'S BUDGETGROSS DOMESTIC PRODUCTGROSS NATIONAL PRODUCTGROWTH POTENTIALGROWTH RATEHUMAN CAPITALIMPORTSINCOMEINCOME DISTRIBUTIONINFLATIONINFORMAL SECTORINTERNATIONAL RESERVESIRREVERSIBILITYLABOR FORCELEGAL FRAMEWORKMACROECONOMIC POLICYMARKET DISCIPLINEMINESMONETARY AUTHORITIESNATIONSNATURAL RESOURCESOILPRICE INCREASESPRIVATE SECTORPRODUCTIVITYPROTECTIONISMPUBLIC SECTORRECURRENT EXPENDITURESRENT SEEKINGRENT SEEKING BEHAVIORRESOURCE CURSESAVINGSSTREAMSTAXATIONTECHNOLOGICAL PROGRESSTOTAL COSTSTOTAL REVENUETREASURYVALUE ADDEDWAGE RATESWAGESWEALTH10.1596/18304