Latest / The Productivity Podcast with Fexingo: Output, Efficiency, and Long-Term Economic Growth
How Botswana Turned Diamonds Into a Sovereign Wealth Fund
Botswana is one of the few resource-rich countries that actually escaped the resource curse. In this episode, Lucas and Luna break down how a small southern African nation turned diamond revenue into a sovereign wealth fund that now controls over $8 billion in assets — roughly half the country's GDP. They trace the story back to 1967, when De Beers discovered the Orapa mine, and the country's first president, Seretse Khama, insisted on renegotiating the royalty terms. The result: a 50-50 joint venture with De Beers and a fiscal rule that saved and invested a portion of every diamond…
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