Economic Overview
Small, landlocked, and mountainous, 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 permitted the sale of water to south africa and generated royalties for lesotho. lesotho produces about 90% of its own electrical power needs. as the number of mineworkers has declined steadily over the past several years, 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 latter has grown significantly mainly due to lesotho qualifying for the trade benefits contained in the africa growth and opportunity act. 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. in july 2007, lesotho signed a millennium challenge account compact with the us worth $362.5 million.
Environmental Issues
Population pressure forcing settlement in marginal areas results in overgrazing, severe soil erosion, and soil exhaustion; desertification; highlands water project controls, stores, and redirects water to south africa
Government Type
Parliamentary constitutional monarchy
Population
2,128,180
note: estimates for this country explicitly take into account the effects of excess mortality due to aids; this can result in lower life expectancy, higher infant mortality, higher death rates, lower population growth rates, and changes in the distribution of population by age and sex than would otherwise be expected (july 2008 est.)
Location
Southern africa, an enclave of south africa
Area
Total: 30,355 sq km
land: 30,355 sq km
water: 0 sq km
Slightly smaller than maryland
Country Aliases
Conventional long form: kingdom of lesotho
conventional short form: lesotho
local long form: kingdom of lesotho
local short form: lesotho
former: basutoland
Capital
Name: maseru
geographic coordinates: 29 19 s, 27 29 e
time difference: utc+2 (7 hours ahead of washington, dc during standard time)
Military Service
18 years of age for voluntary military service; no conscription (2008)
International Disputes
None
Sources: Central Intelligence Agency (CIA)
