Botswana’s success story is built on disciplining transnational capital

The ‘good governance’ agenda has often used Botswana as its principal African case study in support of ‘market-friendly’ policy proposals. However, a deeper analysis of Botswana’s history shows that the country’s success has been facilitated by its aggressive stance towards foreign capital. Instead, a demanding tax and royalties regime has allowed Botswana to develop a strong rule of law and conservative fiscal approach.