Economic Aspects of Lesotho's Relations with South Africa

Abstract

Lesotho has long had the distinction of being one of the more anomalous states not only in Southern Africa, but in the world. It is entirely surrounded by another country, the Republic of South Africa. It is ethnically and linguistically very homogeneous. It is a monarchy. Physically, the lowest point in Lesotho is higher, in vertical distance above sea level, that that in any other country. Its economy is marked by some extraordinary paradoxes, such as agriculture being the main economic activity of the bulk of the labour force albeit the origin of a small fraction of total income, imports enomously exceeding exports and being larger than domestic output, and fewer citizens working for cash inside the country than outside.

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