The Development Of Foreign Direct Investment (fdi) And The Botswana Economy

Botswana emerged from the status of Least Developed Countries (LDC) within one generation and is now a middle income country. Foreign Direct Investment (FDI) was a driving force in this dramatic change. The government's handing of the fiscal, social and economic pressures of this transformation could serve as a model for other resource-dependent economies.The introduction explains why Botswana was chosen as a case study on economy and FDI. In order to explore the issues of FDI, Chapter I evaluates the theories of economic growth and FDI. Chapter II reviews Botswana's stability in politics and prospects in its economy as well as its preferential FDI policy.Chapter III elaborates on the trends of FDI inflow into Botswana. For example, FDI strongly boosted export receipts and government revenues which, if invested wisely, could create the foundations for long-term growth. It has, however, been concentrated on mining and has also been strongly dependent on North Africa's FDI inflow.Chapter IV discusses the issue of positive impact of FDI on Botswana's economy. Botswana government aims to continue growing rapidly and to diversify its economy. The key message of this essay emphasizes the importance of FDI remaining in all sectors in view of Botswana's continuing need for the various components of the FDI package, especially economic growth, managerial, technical and professional skills, hard and soft technologies and its export markets. In conclusion, the negative aspects of FDI are emphasized.