Prospects for economic competitiveness in Lesotho

Abstract

This chapter assesses the main constraints facing Lesotho in its bid to step up economic competitiveness, and puts forward a number of proposals for the strengthening of competitiveness in Lesotho. The chapter explains how the Kingdom of Lesotho is working in conjunction with the International Monetary Fund (IMF), the World Bank, and the European Union towards this end. It is argued that the country must first of all take steps to create a domestic environment conducive to private enterprise and public sector efficiency. This requires economic and political stability, appropriate tax laws and liberalised trading policies. It also calls for strong political commitment on the part of the government to promote productivity in all spheres of economic activity. The chapter concludes by stating that it is imperative for Lesotho to utilise the integration process within the Southern Mrican Customs Union (SACU) as a stepping stone to a greater integration into the world economy.