Tropical Economic Miracles

Abstract

During the second half of the last century Botswana and Singapore experienced an unparalleled economic performance among the Tropical countries. This paper explores and describes the main economic and institutional causes behind the rapid economic development observed in these two economies. The quality of institutions -inherited from the precolonial times and the British rule-, the appropriate integration into the world markets, and the political stability -achieved by their single ruling parties-, played a significant role in the miracles of Botswana and Singapore.