The Economist reports (€):

Botswana's 1.8m people are among the continent's wealthiest, after four decades of fast economic growth.

Botswana and Nigeria - GDP per capita [US$] 1962 - 2002
Source: Thorvaldur Gylfason*

The Economist continues:

International surveys suggest they are Africa's least corrupt. The World Bank and others say that, along with South Africa, it is the easiest place to do business in Africa. Good institutions, stable economic policies and a smart use of technology make it more competitive than, say, Brazil or Mexico.

Why? Though landlocked and thinly peopled, it is rich in diamonds. “We use our resources better than others,” says Mr Mogae. Botswana's diamond mines are run jointly by the government and De Beers, the South African giant. The stones provide over half the treasury's revenue.

It helps that they are deep underground and hard to reach, so exploitation takes a long time and needs a private investor who is “a real partner, not just prey for the government”, says Greg Mills of the South African Institute of International Affairs. Where stones are scattered in rivers and shallow soil, as in Sierra Leone or Angola, armed rivals are likelier to scrap over them.

No less important, Botswana's rulers keep their fingers out of the honey pot. Many other African governments enjoy big revenues from natural resources, notably from oil in west Africa, but too many leaders steal what they can. Botswana's moderate, efficient, British-educated presidents have been honest. They have made sound policies, ensure that civil servants implement them and leave office dutifully when the constitution says so, after a maximum of ten years. Mr Mogae worked for the IMF before his spell as president.

Further causes of prosperity: ethnic homogeneity, extensive anti-AIDS plan, population is embedded in the decision-making process

My take: BSE doesn't stand for Bovine Spongiform Encephalopathy (or, closely related, Bachelor of Science in Economics) any longer. From now on it's the acronym for the Botswana Stock Exchange. See you there!

related stuff:
Botswana at a glance (two pages), World Bank

*@Austrians (people living in Austria ;-D): Thorvaldur Gylfason will hold a speech at the National Bank on November 19. Contact me if you need further information.