ABSTRACT
Botswana is famed for its diamond resources and it is true that the revenues from diamond extraction have powered the country's growth. As Mkandawire remarks: the definition of the 'developmental state' runs the risk of being tautological since evidence that the state is developmental is often drawn deductively from the performance of the economy. The Chieftainship Act of 1965 meant that power was granted to the President to recognize, or not recognize, a traditional ruler, making all chiefs subordinate to the central government. According to Maundeni 'Botswana has maintained a strong and relatively autonomous and effective bureaucracy by insulating the planning bureaucrats from societal pressure, employing expatriates and by targeting the training of locals'. The Financial Assistance Programme (FAP) has been a part of this policy. Established in 1982 and revised in 1989 and 1995, FAP was created to assist businesses that produce or process goods for import substitution or for export.
