Story on diamonds in Botswana

[Garry H (Cut Nut)]

http://www.economist.com/world/africa/displaystory.cfm?story_id=10925770

Diamonds are good for this country, but maybe they are too good?

"So unemployment is 18%; about one-third of the people are poor. The income gap between townspeople and those in the countryside is wide and growing. Too much depends on diamonds, which generate over 70% of foreign earnings, one-third of GDP and about half of government revenues. A partnership between a South African giant, De Beers, and the government produces almost all the country''s stones. Without new discoveries, diamond revenues may nosedive in the next 15-20 years. Government has not managed to diversify the economy enough."

 

[diagem]

Date: 4/16/2008 5:01:58 PM
Author:Garry H (Cut Nut)
http://www.economist.com/world/africa/displaystory.cfm?story_id=10925770

Diamonds are good for this country, but maybe they are too good?

''So unemployment is 18%; about one-third of the people are poor. The income gap between townspeople and those in the countryside is wide and growing. Too much depends on diamonds, which generate over 70% of foreign earnings, one-third of GDP and about half of government revenues. A partnership between a South African giant, De Beers, and the government produces almost all the country''s stones. Without new discoveries, diamond revenues may nosedive in the next 15-20 years. Government has not managed to diversify the economy enough.''

No worries...., Debswana and Co. (sightholders) will make sure the county''s foreign earnings will even out below 70%...

 

[strmrdr]

"The diamond wealth has been spent on roads, sanitation, schools and clinics, not on palaces or Swiss bank accounts."

As long as that continues and they stay stable they should be ok.
Once the infrastructure is in place the rest tends too come faster its getting stable and the infrastructure in place that takes a long time.

 

[diagem]

Date: 4/16/2008 6:35:37 PM
Author: strmrdr
''The diamond wealth has been spent on roads, sanitation, schools and clinics, not on palaces or Swiss bank accounts.''

As long as that continues and they stay stable they should be ok.
Once the infrastructure is in place the rest tends too come faster its getting stable and the infrastructure in place that takes a long time.