Democracy Derailed?
Botswana’s Fading Halo.“Diamond mining spurred an extended period of economic growth that filled government coffers, financing the expansion of infrastructure, services, and public sector employment.
Since the 1990s, when De Beers lost its control of world diamond prices, price volatility has increased. Botswana experienced a boom, more than doubling its export earnings from diamonds over the course of a decade.
But then, in 2008, the global financial crisis triggered a sharp drop in diamond earnings and GDP contracted by 7.8% in 2009. After rebounding to 8.6% in 2010, rates of GDP growth have fallen in each subsequent year.
The effects of changes in the diamond industry are still working their through the economy. They subject the government to unfamiliar budgetary pressures and contribute to social and political tensions, including conflictual labor relations.”
allAfrica.com:Diamonds can do that.