What made Botswana grow?

How did the per capita GDP of the landlocked, resource-rich, sub-Saharan African country of Botswana grow by an average annual 7.2% between 1966-2006 (which is even higher than China’s 6.9%)? And why did other, apparently-similar countries in sub-Saharan Africa (eg. Congo) fail? According to Mr Caesar Lekoa, the Ambassador of Botswana to the US in a CATO Institute podcast, (pointer from Bayesian Heresy) the societal values of Botswana have been the foundations for the success of a country which, after Independence, had only 12 kms of paved roads and 22 university graduates. These values are (1) tolerance towards dissenting opinions (2) pragmatism in decision-making and (3) an innate sense of accountability by tribal leaders. The latter is in sharp contrast with Botswana’s neighbouring countries: the president of Botswana does not live in a mansion and does not fly in helicopters and he has even been seen doing his own shopping! These values, according to Mr Lekoa, are the reasons why Botswana chose a pluralistic democracy, chose to steer away from socialism and its leaders chose not to plunder the country’s resources in diamond. And these values predate the British colonization: “western institutions were new only in name, but not in practice.” Acemoglu, Johnson and Robinson in a 2002 paper on Botswana, agree: “despite adverse initial conditions, including minimal investment during the colonial period and high inequality, Botswana achieved rapid development … Why? First, Botswana possessed relatively inclusive pre-colonial institutions, placing constraints on political elites. Second, the effect of British colonialism on Botswana was minimal, and did not destroy these institutions.” But they also add. “Following independence, maintaining and strengthening institutions of private property were in the economic interests of the elite … [Also] Botswana is very rich in diamonds, which created enough rents that no group wanted to challenge the status quo at the expense of rocking the boat. Finally, this situation was reinforced by a number of critical decisions made by the post-independence leaders.” It seems that when the odds are stacked against oneself, a lot of conditions are need to be able to steer away from a poverty-trap: good initial institutions which go back well in time, a sufficient amount of resources and good leadership. Of course, if Economics could be done in a laboratory, we could alter each of these conditions to see which ones really matter. Perhaps Botswana would have grown even if it were not diamond-rich, or even if it didn’t have a democracy (like Singapore did). But this, obviously, we will never really know.