Johannesburg - Botswana, the centre of global diamond production, is anything but a role model for other African countries, the Bench Marks Foundation (BMF) stated last week.
This neighbouring government's joint partnership with the De Beers diamond giant Debswana does not create sustainable economic development and is in fact in many respects a threat to the democracy.
This is a key finding by the BMF - a subsidiary of the South African Council of Churches - in a recent report on the country's diamond industry.
Debswana is the lifeblood of both De Beers and Botswana, and the world's biggest producer of diamonds.
It comprises up to 80% of Botswana's exports, 40% of its gross domestic product and 40% of the state budget.
While these figures are proudly presented as evidence of De Beers' contribution to the country's economy, the BMF claimed that it is at the same time a shocking indication of the country's dependence on resources.
The country's stability, for which it is frequently praised, is entirely dependent on a single resource and a single company.
Cronyism
According to the BMF report, the government of Botswana is actually the junior partner, while the country's political elite is so enmeshed in the company that Debswana's interests are generally esteemed above those of the country's citizens.
Sheila Khama, a cousin of President Ian Khama, is for instance the chief executive of De Beers Botswana.
Botswana has clearly been transformed into a "corporate state" as a result of De Beers' commanding position, the BMF said.
The report, which has been loudly denounced by De Beers and the Botswana media, is entitled "De Beers, Botswana and the control of a country".
Debswana is largely blamed for the defective diversification of Botswana's economy.
The sorting and polishing of diamonds within Botswana - rather than in London, Antwerp, Israel and India - is, according to the BMF, the most obvious way to grow Botswana's economy.
But De Beers has instead, claimed the BMF, "until recently actively frustrated attempts to beneficiate diamonds in Botswana".
At the same time the relationship with Debswana is a counter-incentive for government to actively intervene.
The shift of the diamond colossus's sorting plant from London to Botswana was again postponed at the end of last year owing to the economic crisis.
Botswana's diamond resources are likely to dry up within two decades and, if the country continues to develop at its current rate, will leave little behind, runs the argument.
Poor social indicators
After a half-century of supposedly outstanding economic management Botswana has, according to the UN, some of the poorest social indicators on the continent, including the lowest life expectancy - only 35 years.
Botswana is also, after Lesotho and Namibia, the country with the most skewed distribution of wealth in Africa, as well as the worst incidence of HIV.
Although Botswana is frequently held up as a model democracy, the BMF reckoned the country shows many concerning authoritarian trends.
The banning of critical academics, journalists and non-governmental organisations as being "undesirable" or "terrorist", as well as the implementation of the controversial media law at the end of last year, showed how these trends have accelerated in recent years.
The media law required that all "media practitioners" register with the government.
Botswana is also the only South African Development Community country in which researchers need to obtain government's permission to conduct research.
The dominance of the mining industry is also often out of kilter with environmental and community interests, the BMF continued.
- Sake24.com
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