Sunday, September 16, 2012
Economy of Lesotho
In order to attain its macroeconomic objectives, the government of Lesotho is continuing to place high priority on parastatal privatization and private sector development, with this strategy forming the primary source of growth and employment creation. Based on free market principles and private ownership of property, the Lesotho economy presents a relatively open economic and business climate. Any institutional and regulatory constraints that impede growth are being addressed.
The slow-down in the world economy during 1998/99 has had far reaching effects on developing countries, with aid and private capital flows to emerging markets reducing. South Africa itself has the most developed and well-diversified economy, with agriculture, mining, secondary industry, commerce and a broad structure of service establishments contributing to the wealth of the nation. Lesotho’s ability to achieve its sustainable human development objectives is closely linked to the evolving economic and political dynamics of this larger neighbour, as well as other countries of the Southern African Development Community (SADC). Economic swings in South Africa are the largest single influence on Lesotho’s economy, with inflation following the trends in this country. Proceeds from membership in a common customs union with South Africa form the majority of government revenues expected to be significantly affected by events currently taking place in the world economy