an Eldis Resource

Lesotho is considered to be one of the poorest countries in the world, but what are the causes and effects of this poverty? This paper, based on an analysis of a recent survey, represents a modest attempt to provide further insight into the magnitude, causes and effects of poverty in Lesotho. The paper also provides some possible policy options for alleviating the growing poverty in Lesotho.

A background to the kindom is given, the methodology used for this research are described and the results presented. The paper concludes by providing policy options for poverty alleviation in Lesotho.

The paper finds that:

• some families have virtually no income, which suggests that they would be surviving on subsistence production from owned farms or related sources such as borrowing
• the majority of the people covered in the survey are living below the poverty line
• about ninety six per cent of the respondents have access to hospital and clinics which is a credit to the health program of the Government in Lesotho
• perceived causes of poverty by households include low education of family heads
• poor economic and poor business conditions exist within the country
• many people are unable to access arable land for farming
• forty two percent of the respondents considered the growing unemployment in the country as an important factor causing poverty
• most of the households covered in the survey suggested that in order to reduce poverty in Lesotho considerably, government should address the unemployment problem

Policy options for poverty alleviation in Lesotho include that:

• promotion of employment opportunities is the key issue since unemployment constitutes a major cause of poverty in general and across board
• promotion of educational opportunities is important as a way to equip the labour force with adequate skills
• provision of micro financing to small-scale entrepreneurs and farmers will also go a long way to alleviate poverty
• investing in rural infrastructures that are capable of supporting intensified agriculture and possibly the production of export crops is very important
• making land tenure more secure and rental markets more flexible is a necessity

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