Economic and Socio-political Situation The population of Lesotho was estimated to be 2.21 million in 2001, with an annual growth rate of 2%. According to the 1996 census, 39.2 % of the population is below the age of 15 years and the unemployment rate is 35%. With a gross national per capita income of 3133 Maloti (approximately same value as the South African Rand), it is estimated that half of the population lives below the poverty line. As with other countries in this sub-region, income distribution is very skewed with the top 10% of households receiving 44% of the national income, whilst the poorest 40% receives only 8%. Economic growth in Lesotho in recent years received a boost from the expansion of the Lesotho Highland Water Project, which is expected to earn R200m per annum in royalties for fifty years. The money is managed by the Highlands Development Fund and used for rural development projects throughout Lesotho. For a long time, Lesotho's economy was characterized by a high degree of labour out- migration to the Republic of South Africa. Economic policy in Lesotho will be guided mainly by the requirements of a three-year reform programme agreed in 2001 with the International monetary Fund (IMF), which is supported by the funds from the poverty reduction and growth facility. The IMF programme prioritises policies for attracting foreign investment and boosting export competitiveness by increasing labour flexibility, reducing legal and administrative barriers to investment, and improving infrastructure. Support from other donors should be conditional on the successful implementation of programmes for poverty reduction and improving the efficiency of government operations. The protests against the 1998 election results
sparked far-reaching unrests that have continued to mar the political scene in
Lesotho. In a small homogenous society such as Lesotho, these differences are
largely a result of the demand for transparency, accountability and the rule of
law. The coup attempt of 1996, police mutiny in 1997 and industrial unrest have
become the trademark of the unstable political situation in Lesotho. The
successful legislative election (25 May 2002) raise hopes that full attention
can now be given to the peaceful development of the country. The Lesotho
Congress for Democracy (the ruling party) was the winner of the election. The
Independent Electoral Commission (IEC) handled the elections quite well; it was
seen to be fair and open in its dealings with all the political parties. The
next legislative election is scheduled to be held in 2007. Social Dialogue In Lesotho permanent rifts within the labour movement and the weak institutional capacities of government and business have marred industrial relations. Despite a small population of about two million persons and a relatively small economic base, the labour movement is represented by three different federations, which have links with different political parties; the most representative being the Congress of Lesotho Trade Unions (COLETU). Although efforts have been made in the past to form a common understanding among the unions, not much has been achieved. The fragmentation has weakened the unions, and forced the government to intervene in labour disputes in the absence of agreements between labour and business. The employers' organization, Association of Lesotho Employers (ALE), also has only a limited capacity to effectively deal with labour relations issues. All these have had a negative impact on the National Advisory Committee on Labour, which is alleged to address only a limited scope of issues, with low-level officials representing the government. International Labour Standards Lesotho has ratified all the eight fundamental conventions. ILO assistance to facilitate the implementation of international labour standards had been requested. Conventions ratified by Lesotho Technical Cooperation Current ILO programmes in Lesotho include: · Training of social partners and development of strategic plans for dispute prevention and settlement within the context of the ILO/Swiss project on social dialogue; · Assistance to the Minimum Wage Advisory Board to establish the national minimum wage in Lesotho; · Strengthening the Factories Inspectorate Unit of the Ministry of Labour and Employment; training in international labour standards; · Support to the government on labour-based methods and techniques in rural and urban environments; and · Assistance to the government to review its national population policy.
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