Belts are being tightened and whips cracked in one of Africa’s richest places

FOR the past four decades or so, Botswana has been Africa’s golden boy. The former British possession has grown as fast as almost any country in the world. It has built an enviable reputation for good governance and political stability. It has a decent record on civil liberties and a relatively free press. Once one of the world’s poorest countries, it now ranks among the richer middle-income ones. A lot has to do with the discovery of diamonds, of which it is the world’s biggest producer, soon after independence in 1966. But unlike many other mineral-rich countries, it has invested wisely. It has been ranked as Africa’s least corrupt country.

But for the past two months it has been shaken by its first nationwide public-sector strike. Botswana’s 2m people, generally a deferential lot, were shocked when their normally unarmed police used tear-gas and rubber bullets to disperse rioting secondary-school pupils after they went on the rampage in April. The government closed all state schools, though they have since reopened. ...

New Jersey’s governor has a plan to help America’s playground

FOR centuries Atlantic City has been a holiday spot. The Lenni-Lenape Indians spent their summer months there, though they called it “Absegami”. In 1850 Jonathan Pitney, a local doctor, saw the then undeveloped island as a “city by the sea”, a health resort where people could escape the dirty towns. Within a few years a train full of Atlantic City’s first spa guests arrived. A century and a half later that city by the sea boasts 11 casinos and the famous Boardwalk; but its fortunes have declined of late. People think of it as unsafe and unclean. Its jobless rate, at 12%, is higher than the national rate of 9.5%. A reported 24% of its housing units are empty. The city’s poverty rate is slightly higher than it was in 1978, when the first casino opened.

Gambling, long considered recession-resistant, was one of the first industries to be affected by the latest recession. It may also, according to Moody’s, a ratings agency, be one of the last to recover. On August 18th the Casino Control Commission announced that Atlantic City’s casinos had reported a 23% decline in operating profits during the second quarter of 2010. Net revenues were down by 7%. ...

Few states are so dependent on soldiers, sailors and ships

EVEN with two wars to wage, the Pentagon has to make do with less in hard times. The defence secretary, Robert Gates, this week announced $100 billion in spending cuts over the next five years. “The culture of endless money that has taken hold must be replaced by a culture of savings and restraint,” he said.

These were not welcome words in Virginia. The Pentagon itself stands in Arlington, on the south bank of the Potomac river. The only shipyard in the country that builds nuclear aircraft-carriers is in Newport News. And at Fort Lee, outside Petersburg, the army stages a competition every year to pick its best cooks. ...

China is parlaying its hunger for power into yet more economic clout

AFTER a brief blip caused by the global economic slowdown, the electricity business in China is back to normal: in other words, it is buzzing. On April 26th Huaneng Power, the country’s biggest utility, began work on a nuclear reactor on the island of Hainan. The week before, the firm had announced that its power output had risen by 40% during the first quarter. The day before that, Datang International Power, the second-largest utility, had said its output was up by 33%. Surges of this magnitude, unimaginable in most countries, are commonplace in China.

China’s endless power-plant construction boom has accounted for 80% of the world’s new generating capacity in recent years and will continue to do so for many years to come, says Edwin Chen of Credit Suisse, an investment bank. Capacity added this year alone will exceed the installed total of Brazil, Italy and Britain, and come close to that of Germany and France. By 2012 China should produce more power annually than America, the current leader. ...

Saying “no” to corruption makes commercial as well as ethical sense

IT IS 15 years since Moises Naim coined the memorable phrase “corruption eruption”. But there is no sign of the eruption dying down. Indeed, there is so much molten lava and sulphurous ash around that some of the world’s biggest companies have been covered in it. Siemens and Daimler have recently been forced to pay gargantuan fines. BHP Billiton, a giant mining company, has admitted that it may have been involved in bribery. America’s Department of Justice is investigating some 150 companies, targeting oil and drugs firms in particular.

The ethical case against corruption is too obvious to need spelling out. But many companies still believe that, in this respect at least, there is a regrettable tension between the dictates of ethics and the logic of business. Bribery is the price that you must pay to enter some of the world’s most difficult markets (the “when in Rome” argument). Bribery can also speed up the otherwise glacial pace of bureaucracy (the “efficient grease” hypothesis). And why not? The chances of being caught are small while the rewards for bending the rules can be big and immediate. ...