Economic Crisis in Africa: Perspectives on Policy Responses

By Magnus Blomström; Mats Lundahl | Go to book overview

7

STRUCTURAL ADJUSTMENT AND ECONOMIC MANAGEMENT IN A DEPENDENT ECONOMY: THE CASE OF LESOTHO

Lennart Petersson

INTRODUCTION

After a period of financial stability and high growth rates of real production and income during the 1970s, the performance of Lesotho’s economy was until 1987-8 characterized by low growth, rapidly-rising fiscal deficits and substantial deteroriation in the external current account and the overall balance of payments. The economic boom and the good financial performance of the 1970s had its origin in rapidly-increasing remittances from Basotho miners in South Africa and in customs union receipts, the latter due to a new customs union agreement with South Africa in 1969. When these external sources of income stagnated in the 1980s, the country found itself in a few years time in a situation where the economic and financial outlook was very bleak. In the medium term this was due to uncertainties arising from political and economic instability in South Africa, in particular with respect to future migrant remittances. Furthermore, since 1984 South Africa has brought up the issue of changes in the customs union arrangement to reduce the burden on its budget, which would effectively reduce Lesotho’s revenue. The situation forced the government to cope with the internal problem and the long-term structural weakness of the economy, which has made the country heavily dependent on exports of labour.

The country’s natural resources are limited, and technical and managerial skills needed for industrial development are scarce. As a result, the production and export base is very small. In addition, the institutional infrastructure is deficient in many respects. One major problem is the lack of incentives for the private sector, particularly for improvements in the agricultural sector. The traditional land tenure system has led to inefficient land utilization, which has encouraged overgrazing and continued soil erosion impedes growth in productivity. In the public sector, including the parastatals, the government is

-118-

Notes for this page

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items

Items saved from this book

This book has been saved
Highlights (0)
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

Citations (0)
Some of your citations are legacy items.

Any citation created before July 30, 2012 will labeled as a “Cited page.” New citations will be saved as cited passages, pages or articles.

We also added the ability to view new citations from your projects or the book or article where you created them.

Notes (0)
Bookmarks (0)

You have no saved items from this book

Project items include:
  • Saved book/article
  • Highlights
  • Quotes/citations
  • Notes
  • Bookmarks
Notes
Cite this page

Cited page

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

1

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited page

Bookmark this page
Economic Crisis in Africa: Perspectives on Policy Responses
Table of contents

Table of contents

Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this book

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Help
Full screen
/ 354

matching results for page

    Questia reader help

    How to highlight and cite specific passages

    1. Click or tap the first word you want to select.
    2. Click or tap the last word you want to select, and you’ll see everything in between get selected.
    3. You’ll then get a menu of options like creating a highlight or a citation from that passage of text.

    OK, got it!

    Cited passage

    Style
    Citations are available only to our active members.
    Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

    1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

    Cited passage

    Thanks for trying Questia!

    Please continue trying out our research tools, but please note, full functionality is available only to our active members.

    Your work will be lost once you leave this Web page.

    For full access in an ad-free environment, sign up now for a FREE, 1-day trial.

    Already a member? Log in now.