The team comprised E. Kpodar (head), L. Engström, I. Masha, A. Jayaratnam (Research Assistant) (all AFR), A. Fedelino (FAD), and L. Moers (PDR).
This was preceded by a nine-month track record staff-monitored program (SMP) in 2000.
The ex post assessment does not cover the SAF. However, including it would not alter its main conclusions.
Political tensions escalated after the elections in 1998, and public demonstrations led to significant destruction of physical infrastructure and a military intervention from South Africa and Botswana.
The correct number of residents is uncertain. About 15 percent of the population was estimated to live in South Africa in 1996. Per capita GDP would increase to about US$620, if it is assumed that about 15 percent of the population still lives in South Africa.
With a human development index (HDI) of 0.510 in 2001, Lesotho is ranked 137 among 175 countries.
Defined as overall budgetary balance, excluding SACU revenue, grants, interest payments, foreign-financed capital expenditure, and exceptional outlays (such as expenditure related to droughts, recapitalization of banks, and LHWP expenditure).
These were abolished in September 2001.
These include import permits to protect some locally produced goods, including beer, eggs, raw meat, milk and sugar. Vegetables and fruits are subject to seasonal restrictions.
PCs were introduced on net credit to the government, recurrent expenditure and overall fiscal surplus (in percent of GNP), while benchmarks were set on government wages and total revenue.
Building consensus on the reform program and coordination among various stakeholders, including the donors, contributed to delays.
Most of Lesotho’s SACU revenues are linked to the collection of customs duties, which are expected to shrink because of new tariff-reducing trade agreements.
For further developments on the labor market, see Lesotho—Selected Issues and Statistical Appendix (IMF Country Report No. 04/23).
The World Bank’s overarching objectives for future lending to Lesotho are sustainable growth and the improvement of private sector competitiveness, in order to support job creation. The World Bank is preparing the Country Assistance Strategy (CAS) for the period 2004 to 2007, guided by the government’s interim PRSP, the full PRSP that is expected to be finalized before the end of 2004, past development plans, and the Millennium Development Goals.
“The Fund’s Support of Low-Income Member Countries—Considerations on Instruments and Financing”.