Botswana has experienced strong economic growth since independence in 1966, transforming from one of the poorest countries to an upper middle income country due to stable politics, prudent economic management, and effective use of natural resources like diamonds. GDP per capita grew from $70 at independence to $6,500 in just three decades. The economy has been driven by mining, which contributes significantly to GDP, exports, and government revenues. Public sector employment is also large, with the government contributing 40% of jobs. Key challenges include high unemployment around 20% in the 1990s and maintaining spending discipline given heavy reliance on mining revenues.