Lesotho
Type of Government: Parliamentary Constitutional Monarchy
Independence: 1966 from the UK
Head of State: King Letsie III (since February 7, 1996) and Prime Minister Pakalitha Mosisili (since May 23, 1998)
2007/2008 UN Development Index ranking (out of 177 countries): 138
2007 TI Corruption Perception Index (out of 179): 84
Political Development: The Basuto National Party ruled for the first two decades. King Moshoeshoe was exiled in 1990, but returned to Lesotho in 1992 and reinstated in 1995. Constitutional government was restored in 1993 after 7 years of military rule. In 1998, violent protests and a military mutiny following a contentious election prompted a brief but bloody intervention by South African and Botswanan military forces under the aegis of the Southern African Development Community. Constitutional reforms have since restored political stability; peaceful parliamentary elections were held in 2002.
Adult HIV Rate: 28.9%
Life Expectancy: 39.97
GDP: $1.48 billion
Inflation: 6.1%
Poverty: 49%
Petroleum: N/A
Leading Export Partner: US (81.9%)
Economic Note: Lesotho relies on remittances from miners employed in South Africa and customs duties from the Southern Africa Customs Union for the majority of government revenue. However, the government has recently strengthened its tax system to reduce dependency on customs duties. Completion of a major hydropower facility in January 1998 now permits the sale of water to South Africa and also generates royalties for Lesotho. A small manufacturing base has developed based on farm products that support the milling, canning, leather, and jute industries, as well as a rapidly expanding apparel-assembly sector. The economy is still primarily based on subsistence agriculture, especially livestock, although drought has decreased agricultural activity. The extreme inequality in the distribution of income remains a major drawback. Lesotho has signed an Interim Poverty Reduction and Growth Facility with the IMF.
