Lesotho: The National Vision 2020

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Lesotho gained its independence from Britain in 1966. There followed distinct political periods, characterized, in turn, by multiparty democracy (1966-1970), one-party state (1970-1986), military dictatorship (1986-1993) and the return of multiparty democracy (1993). The last competitive elections were held in May 2012 and involved 18 parties. These elections were free and fair and resulted in an effective peaceful transfer of power from the 14-year incumbent, Pakalitha Mosisili, to a coalition government headed by Prime Minister Motsoahae Thabane.
Although corruption is a major problem in Lesotho, there have been remarkable improvements since 2011, thanks to the creation of independent institutions such as Directorate on Corruption and Economic Offences. EESE survey data reveals that enterprises in Lesotho are usually considered to be socially responsible, especially larger multinational companies.
Despite scanty data, cooperation in labour-employer relations are comparable to those of neighbouring countries such as Botswana and Namibia. Social dialogue is codified by the country’s labour code, but union activities are in effect curtailed. Lesotho has ratified all main international standards with regards to labour and human rights, but either lacks the capacity to domesticate these international pieces of legislation or the capacity to implement them.
Economic elements
In 2003 Lesotho launched a long-term development plan called National Vision 2020. The National Vision’s overarching objective is that by 2020 Lesotho will be a stable democracy and a united, prosperous nation at peace with itself and its neighbours; that it should have healthy and well-developed human resources; and that its economy would be strong, its environ...

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...ion (LNDC) and commercial banks. Referred to as the Partial Credit Guarantee Scheme (PCGS), the agreement aimed to fund local business initiatives and promote and grow entrepreneurship. Banks are nevertheless deemed the most likely to provide credit.
Lesotho has very large and unexploited hydropower potential yet remains a net importer of electricity from South Africa. The unreliable and inadequate power supply is the most severe infrastructure constraint on business development. The Lesotho Highlands Development Authority, a joint institution between Lesotho and Republic of South Africa, has just launched the Lesotho Highlands Water Project Phase II, a project for the development of a water delivery system and is undertaking feasibility studies for the development of the Kobong project to generate electricity for export to South Africa and for local consumption.

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