BTI 2008 | Lesotho Country Report

Key Indicators

Population (M) 1.8
Pop. growth 1 (% p.a.) -0.2
Life expectancy (years) 35
Urban population (%) 18.7
HDI 0.49
HDI rank of 187 149
UN Education Index 0.77
Gender inequality 2 -
GDP p.c. ($) 2,967
Gini Index 63.2
Poverty 3 (%) 56.1
Aid per Capita ($) 37.8
Sources: The World Bank, World Development Indicators 2013 | UNDP, Human Development Report 2013. Footnotes: (1) Average annual growth rate. (2) Gender Inequality Index (GII). (3) Percentage of population living on less than $2 a day.

Executive Summary

History and Characteristics of Transformation

The BTI combines text analysis and numerical assessments. The score for each question is provided below its respective title. The scale ranges from 1 (worst) to 10 (best).

Transformation Status

I. Political Transformation

Question
Score

1 | Stateness

Monopoly on the use of force
State identity
No interference of religious dogmas
Basic administration

2 | Political Participation

Free and fair elections
Effective power to govern
Association / assembly rights
Freedom of expression

3 | Rule of Law

Separation of powers
Independent judiciary
Prosecution of office abuse
Civil rights

4 | Stability of Democratic Institutions

Performance of democratic institutions
Commitment to democratic institutions

5 | Political and Social Integration

Party system
Interest groups
Approval of democracy
Social capital

II. Economic Transformation

Question
Score

6 | Level of Socioeconomic Development

Socioeconomic barriers
 

Economic indicators

2002

2003

2004

2005

GDP

$ mn.

699

1,065

1,367

1,450

Growth of GDP

%

3.5

3.1

3.1

1.2

Inflation (CPI)

%

33.8

6.7

5

3.4

Unemployment

%

-

-

-

-

Foreign direct investment

% of GDP

12.0

10.9

9.0

6.3

Export growth

%

26.8

-8.1

13

-2.6

Import growth

%

16.4

-2.4

4.5

-1.5

Current account balance

$ mn.

-142.5

-134.7

-75.9

-43.6

Public debt

$ mn.

631.8

676.0

724.1

646.7

External debt

$ mn.

657.8

706.5

762.1

689.7

Total debt service

% of GNI

7.9

5.1

3.2

3.1

Cash surplus or deficit

% of GDP

-3.8

0.7

5.1

-

Tax Revenue

% of GDP

35

35.8

41.7

-

Government consumption

% of GDP

15.6

15.4

14.2

15.2

Public expnd. on edu.

% of GDP

-

-

-

13.4

Public expnd. on health

% of GDP

5.5

5.6

5.5

-

R&D expenditure

% of GDP

0.0

-

-

-

Military expenditure

% of GDP

2.7

2.6

2.3

2.3

Sources: The World Bank, World Development Indicators 2007 | UNESCO Institute for Statistics | Stockholm International Peace Research Institute (SIPRI), Yearbook: Armaments, Disarmament and International Security

7 | Organization of the Market and Competition

Market-based competition
Anti-monopoly policy
Liberalization of foreign trade
Banking system

II. Market Economy

8 | Currency and Price Stability

Anti-inflation / forex policy
Macrostability

9 | Private Property

Property rights
Private enterprise

10 | Welfare Regime

Social safety nets
Equal opportunity

11 | Economic Performance

Output strength

12 | Sustainability

Environmental policy
Education policy / R&D

Governance

 

I. Level of Difficulty

Structural constraints
Civil society traditions
Conflict intensity

II. Governance Performance

Question
Score

14 | Steering Capability

Prioritization
Implementation
Policy learning

15 | Resource Efficiency

Efficient use of assets
Policy coordination
Anti-corruption policy

16 | Consensus-Building

Consensus on goals
Anti-democratic actors
Cleavage / conflict management
Civil society participation
Reconciliation

17 | International Cooperation

Effective use of support
Credibility
Regional cooperation

Strategic Outlook