Since Botswana’s independence, it has been one of the fastest-growing countries in the world. In terms of economy. That’s very impressive. The country has no sea mouth. Which makes traditional sources of economic activity such as fishing, transshipment, and port activities impossible. Furthermore, the country had a very large shortage of people. The double problem for the young country.
At independence, it was not a foregone conclusion that Botswana would be a success. Almost three-quarters of the population had no schooling. With only 22 students in university and as many as 100 who have completed university, we cannot talk about the possibility of a knowledge-intensive economy. The dream of western politicians.
So what drove this success? We can also look at the pre-independence period. The main tribes created a system in which personal freedoms were highly valued. At the expense of institutions that could undermine them from the colonial power. The result is clear. A beacon of hope in Africa.
An additional advantage was that she has a lot of value in life. Part of it had to be used for the trunk. So roads were arranged like that. The land had to be used for food production. So what else was the reason Botswana is doing so well? After all, all countries in the world have institutions to boost the economy.
We must make a distinction here. You have economic and political institutions. The difference is clear. Political institutions enable economic activity and prosperity to increase. While economic institutions promote and drive it. The world is filled with the first category and not the second.
In addition to Botswana, the dominant political party in Mauritius is also busy developing. New sectors in the economy were quickly allowed. Natural resources were used. As in agriculture and mining.
This is important because we can see major economic growth in emerging countries in the coming years. So Africa, Asia, and Latin America. Which of course gives interesting profit opportunities. For the investor who is open to attractive returns.