Financial Times FT.com

Diversification: The downside of diamonds

Published: June 19 2006 14:42 | Last updated: June 19 2006 14:42

Few in Botswana would speak of a “diamonds curse,” the way some West African intellectuals and development experts complain about an “oil curse.” Yet perhaps they should.

To be sure, diamonds have allowed Botswana – the world’s largest producer of the precious stones – to record massive increases in its gross domestic product and standard of living during 40 years of independence. The government has spent most of the windfall wisely and avoided the kind of massive resource-fueled corruption depressingly common in oil-producing African states. Most of Botswana’s citizens have access to clean drinking water and a decent health clinic nearby, evidence that Botswana has used its wealth to look after its citizens.

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