Joint venture between government and business
After gaining their independence from the British, Botswana has evolved into the most prosperous country in Africa. This can be attributed to the discovery of diamonds in the region. De Beers is the company that discovered the mines and has partnered up with Botswana government to improve the country by building infrastructure that has benefited both the country and the company itself. The social and economic role that they have taken in the country has created many good benefits for the country such as roads, hospitals, and schools. Their economy has flourished and the standard of living has increased with their per capita income level going from $80 to $6000 annually.
In the past, when the mines were first discovered the company’s aim was to monopolize the diamond industry by keeping prices high through the control of supply. In time De Beers found that their ability to control the market was starting to waiver. They were forced to stockpile huge amounts of diamonds when the demand was not great. Also, they could not control the discovery of other diamonds around the world, as was the case in Canada who did not want to join the cartel that De Beers had created. Another factor in the change of doctrine was the bad name that diamonds were being given because of the rebels in neighboring countries who would force civilians to mine diamonds and then sell them off in order to raise money for weapons.
Their focus changed from controlling the supply of diamonds to instead marketing and selling the diamonds that they already possessed. They created demand instead of focusing on controlling supply. They still maintained substantial control over the market by selling to dealers who were willing to abide by the rules set by De Beers, but they created ways to do business in more ethical ways. The issue of blood diamonds, as they were referred to at the time because of how they were being used to finance war, was greatly...