The article examines Botswana's development in the context of ‘constraints’ generated by its position as a small and weak economy in the Southern African region dominated by South Africa, and the relevance of this in the context of a wider world system. Limits on a national, regional and world scale are explored historically and as they have affected post‐colonial policies. It is concluded that a strategy of weakening South Africa's regional domination by engaging in new ties of dependence will not release the developmental potential of Botswana, although it has led to a certain amount of economic growth. An alternative development model is suggested.