ABSTRACT
Since independence in 1966, Lesotho's peripheral position in the regional space-economy has been comparable with that of the larger South African bantustans such as Transkei and KwaZulu in the apartheid era. Lesotho has a limited formal employment sector and unemployment is estimated to be over 40 per cent. Poverty is widespread, with almost half the population living below national poverty line. Despite declining mine employment the overall number of Basotho migrant workers in South Africa is still increasing and remittances remain most common coping mechanism for rural households. Prior to 1980 manufacturing activity was minimal, but clothing and textiles alone accounted for 29,000 jobs in March 2001 and manufacturing contributes more than three-quarters of exports in most years, a much greater proportion than in any other country in southern Africa. Lesotho's record of political instability since independence has led some to raise the issue of incorporation into South Africa, questioning the value of sovereignty and meaning of Free State border.
