Lesotho Lesotho Background Basutoland was renamed the Kingdom of Lesotho upon independence from the UK in 1966. King MOSHOESHOE was exiled in 1990. Constitutional government was restored in 1993 after 23 years of military rule. In 1998, violent protests and a military mutiny following a contentious election prompted a brief but bloody South African military intervention. Constitutional reforms have since restored political stability; peaceful parliamentary elections were held in 2002. Lesotho Economy 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, but the government has strengthened its tax system to reduce dependency on customs duties. Completion of a major hydropower facility in January 1998 now permits the sale of water to South Africa, also generating royalties for Lesotho. 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 and a rapidly growing apparel-assembly sector. 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. Lesotho Location Southern Africa, an enclave of South Africa Lesotho Flag divided diagonally from the lower hoist side corner; the upper half is white, bearing the brown silhouette of a large shield with crossed spear and club; the lower half is a diagonal blue band with a green triangle in the corner
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