Small Countries with Volatile Revenue
Bhutan and Botswana share a number of
similarities. The two countries, land locked small states,
have grown rapidly over the past few decades, boosted by
sustained, large-scale inflows of foreign exchange.
Botswana’s annual real growth rate averaged 9 percent over
the past 40 years, driven by diamond exploration, whereas
Bhutan has taken full advantage of generous foreign aid
inflows to achieve an average growth rate of 8 percent per