The report begins with a description of the background to the demographic, economic and health conditions prevailing in Botswana, particularly the challenge of the AIDS epidemic. There follows an assessment of Botswana’s human development record in terms of education, health, poverty, environment and participation. The report concludes that the main challenges facing Botswana are the interwoven problems of poverty and inequality, rapid population growth, environmental degradation and the AIDS epidemic. The report advocates addressing these problems simultaneously and outlines a ‘Human Development Strategy’ to undertake this. The final part of the report looks at how to manage human development, addressing issues of decentralization of governmental functions, planning and monitoring systems for human development, financing and community participation.