Easterly, 2002; Bigsten, Gebreeyesus & Soderbom, 2009; Shumuye, 2015). We focus on likely common factors driving these case studies along four different but inter-related dimensions: a) leading with conscience, commitment and compassion, b) diversifying the economic structure, c) expanding the markets, and d) investing for the future. In explaining each driver, we will tell the stories from these three countries, as well as resorting to literature for broader evidence of these drivers.

# _<u>Leading with Conscience, Commitment and Compassion</u>_

The mindset, vision, and capabilities of leaders play a critical role in pointing the economies in the right direction and moving things forward. The African leaders who took the helm of the economies at the onset of their miracle episodes are all charismatic figures well regarded and supported by the people in their countries. Sir Seretse Khama, **Botswana** ’s first president, led the country into independence and remained as president until his death in 1980 after being reelected three times. In particular, the president played a crucial role in safeguarding mineral exploitation and the state-tribe relations, turning the resource curse into a blessing. Sir Anerood Jugnauth served as **Mauritius** ’ Prime Minister or President for multiple terms including from 1982 to 1995 when the economy entered periods of fast growth. Jugnauth was largely credited for initiating the diversification of the Mauritius’s economy. Similarly, long serving and well supported, Sir Meles Zenawi took a leading role in **Ethiopia** ’s economic reforms in the modern time from 1995 until his death in 2012. In his own writings, Zenawi has advocated for a developmental state that inhibits rent-seeking activities and invests in infrastructure and market support institutions.

While many important characteristics of great leaders matter (Brady and Spence Ed., 2010), all these leaders were dedicated to economic development, unlike the military juntas, corrupt or weak administrations in other countries or time periods. The fact that they were all well supported by the people suggests that these leaders put emphasis on the wellbeing of their citizens and were able to achieve consensus across multiple interest groups. It should be noted that excellent leadership is not limited to one single figure but a cohort of decision makers. For instance, Ethiopia’s health sector leaders were crucial for the success of the country’s Health Extension Program which is a government-led community health service delivery program that improves access to preventive, wellness, and basic curative services (Bilal et al., 2011). The country’s chief executive(s) are usually responsible for championing or supporting the good economic reforms or policy agendas that we discuss below.

Broader evidence from cross-country analysis shows that national leaders can greatly influence the economic growth of their countries. Jones and Olken (2005) used deaths of leaders while in office as a source of exogenous variation in leadership and found robust evidence that leaders matter for growth, as well as policy outcomes. Using similar approach as Jones and Olken (2005) and applied to Sub-Saharan Africa during the period from 1960 to 2014, 19 leadership transitions due to exogenous deaths ( _i.e._ , death due to natural cause or accidents) happened, and growth increases by a statistically significant 1.87 percentage points in the aftermath of the political transition and increases further two years after the transition (Calderon, 2015). The finding implies that while leadership matters, there might be a higher incidence of weak and shortsighted leaders than good ones in Sub-Saharan Africa.

# _<u>Diversifying the Economic Structure</u>_

All three countries have discovered and expanded into new industries beyond traditional agricultural production. It is no doubt that discoveries of diamonds in **Botswana** have led to a booming industry which, together with copper and nickel mines, became a new engine of growth. While diamonds constitute a natural endowment, their discoveries and mining were made possible through intensive prospecting and