Economy:

Lesotho has no substantial natural resources other than water. Lesotho sells water to South Africa through the Lesotho Highlands Water Project. The country is also self sufficient for its electricity needs through a hydro electric scheme. More than 85 percent of the population of 2.1 million lives in rural areas, engaged mainly in agriculture and informal activities. Agriculture contributes about 14 percent of GDP but has remained a supplementary source of income since about half of rural household income comes from family members working in mining and other jobs in South Africa.

History:

Basotho, the inhabitants of Lesotho, were brought together from scattered ethnic groups in the 19th century by King Moshoeshoe I and settled together in this mountainous region of southern Africa. The Kingdom of Lesotho became a British Protectorate in 1868 upon request from the King. Lesotho regained independence in 1966, and functioned as a multi-party democracy from independence until 1986, when a military regime took power. Lesotho became independent on 4 October 1966 under a Monarch (King Moshoeshoe II) with limited powers and an elected parliament based on voting rights for all. The Prime Minister was Chief Jonathon. In the first post-independence elections in 1970, Prime Minister Jonathon, thinking that the opposition would win, declared a state of emergency and suspended the constitution. After many years of rule by a Military Council, Lesotho returned to democracy in the General Elections of March 1993, in which the Basotholand Congress Party (BCP) won all 65 seats in Parliament. Lesetho remained a constitutional monarchy. There was considerable unrest in early 1994, and the constitution was suspended and parliament was dissolved. Constitutional rule was restored in September 1994 after mediation by the Presidents of South Africa, Zimbabwe and Botswana. King Moshoeshoe II, who had been dethroned by the Military Council in 1990, returned to the throne from exile in the UK in January 1995. A year later, he was killed in a car accident in the mountains of Lesotho. On the advice of the College of Chiefs, King Letsie III succeeded his father. Quarrelling within the ruling party resulted in a split in June 1997 and the creation of the Lesotho Congress for Democracy LCD which won the general elections in May 1998, generally declared free and fair. Protests by the opposition parties led to civil disorder. On 16 September 1998, Prime Minister Mosisili wrote to the Presidents of South Africa, Zimbabwe, Botswana and Mozambique asking the Southern African Development Community (SADC) to intervene.