Priorities for Crisis Response and Future Development in Lesotho

Transcription

1 Africa Programme Meeting Summary Priorities for Crisis Response and Future Development in Lesotho HE Mothetjoa Metsing Deputy Prime Minister, Kingdom of Lesotho Chair: The Lord German OBE House of Lords 5 April 2016 The views expressed in this document are the sole responsibility of the speaker(s) and participants, and do not necessarily reflect the view of Chatham House, its staff, associates or Council. Chatham House is independent and owes no allegiance to any government or to any political body. It does not take institutional positions on policy issues. This document is issued on the understanding that if any extract is used, the author(s)/speaker(s) and Chatham House should be credited, preferably with the date of the publication or details of the event. Where this document refers to or reports statements made by speakers at an event, every effort has been made to provide a fair representation of their views and opinions. The published text of speeches and presentations may differ from delivery. The Royal Institute of International Affairs, St James s Square, London SW1Y 4LE T +44 (0) F +44 (0) Patron: Her Majesty The Queen Chairman: Stuart Popham QC Director: Dr Robin Niblett Charity Registration Number:

2 2 Priorities for Crisis Response and Future Development in Lesotho Introduction On 5 April 2016, the Africa Programme at Chatham House hosted Deputy Prime Minister Mothetjoa Metsing to discuss the government of Lesotho s efforts to strengthen governance, and its plans for deepening economic diversification. Lesotho s economy was traditionally dominated by agriculture, but recent years have seen the development of the mining sector and the textile industry. In addition, the expansion of the Lesotho Highlands Water Project has brought increased water provision and hydropower generation. But economic change belies the political instability that surrounded the elections in March 2015 and an ongoing impasse has impeded policy towards improved fiscal governance and resilience, while drought has become a growing challenge. Mothetjoa Metsing Lesotho will celebrate 50 years of independence in October. Since independence, Lesotho has been through significant political turmoil. In 1979, just five years after the country s first democratic elections, the constitution was suspended and parliament was dissolved. A new constitution was not implemented until The return to democracy has presented many challenges, including considering constitutional reforms and electoral system reforms. Having been a British protectorate, Lesotho inherited many institutions and practices, including the first-past-the-post electoral model, from the UK. This has since been replaced with a hybrid system more appropriate to Lesotho, which combines elements of first-pastthe-post and proportional representation, known as a mixed-member proportional system. The hybrid system has stabilized Lesotho s democracy by facilitating representation for smaller parties that had been excluded in previous elections. In 1993, one party won in every single constituency. This electoral model is also more aligned with Basotho culture; the founding father of the Basotho nation, King Moshoeshoe I, always advocated participatory and inclusive government. Consolidating an inclusive democracy in the country will be essential to ensuring a sustainable development trajectory and the eradication of poverty, hunger and disease. The current coalition government hopes to lift Lesotho out of its least developed country (LDC) status within 10 years. In the challenging current global political and economic environment, visionary leadership is a necessity. Lesotho s development will happen within the context of changing regional and global dynamics, and for this reason the country continues to work closely with its neighbours through the South African Development Community (SADC). The first peaceful transfer of power from one political party to another in 2012 was an historic event, which resulted in the formation of Lesotho s first ever coalition government. While other African countries have been praised for their stability, this masks the fact that this is often on the basis of one party monopolizing power. Lesotho has been remarkable in its capacity to establish a coalition peacefully and on its own terms, in contrast to the imposition of similar arrangements in Kenya and Zimbabwe. However, the coalition found it difficult to maintain a unified government. This triggered elections in February 2015, and the result was a new coalition of seven political parties, as once again no one party was able to gain a majority to govern on its own. The current government aims to consolidate and deepen democracy, to ensure political stability and peace, and to enable economic development. Poverty and lack of development have fuelled recent political instability in Lesotho and across the continent. Therefore, democracy must be sustained by economic development. The coalition government has carried out a series of institutional reforms to enable economic growth and attract foreign direct investment. Since 1993, Lesotho has held elections in keeping

3 3 Priorities for Crisis Response and Future Development in Lesotho with international norms and standards, which is a sign of progress in the face of difficulties. However, the democratization agenda will remain unfulfilled unless pursued in tandem with a strategic approach that recognizes the causes and effects of poverty. Lesotho s currently high rates of unemployment, HIV/AIDS and infant mortality show the extent of the challenge to transform the country and enable it to graduate from the LDC category. Lesotho has just been through a turbulent political period; the transition from the first coalition government to the second, during which a brigadier in the army lost his life. The circumstances of his death have been investigated by an SADC commission of inquiry, which presented a report to be tabled in parliament. The commission was called for by the government, which has sought to ensure that the process is transparent. However, some names have had to be expunged from the report, and the government has some reservations with regard to its terms of reference. The findings of the report and the strategy for implementing them will be presented at the SADC summit in August in Swaziland. SADC remains a key platform through which Lesotho can encourage regional political co-operation and economic integration, while advancing democracy, human rights and the rule of law, and furthering the fight against poverty, underdevelopment and the scourge of HIV/AIDS. The fight against HIV/AIDS remains a key priority for the government, which has revived the National AIDS Commission in order to reinvigorate the collective response to the pandemic. The commission is mandated to coordinate the efforts of all stakeholders fighting HIV/AIDS, which have previously found themselves at cross-purposes. As a member of the African Union, Lesotho participates in many of the organization s programmes to advance economic cooperation, the empowerment of women and young people, and the protection of the rights of children. Lesotho is also willing to contribute to an African standby force that would be able to deal with insecurity across the continent, and reduce the dependence on foreign interventions. Lesotho has also benefited immensely from its membership of the Commonwealth. Commonwealth experts have given invaluable advice for drafting the current coalition agreement. Lesotho is a member of the UN and the Non-Aligned Movement, and through these channels it seeks to advance the causes of world peace, economic cooperation, democracy and human rights. Lesotho believes in the fundamental principles of justice, equity, tolerance, sovereign equality of states and the principle of non-interference. The pandemic of HIV/AIDS as well as the outbreak of Ebola in West Africa and of the Zika virus in South America show the threat of disease to human life. Such crises demand global responses; the adoption of the Sustainable Development Goals and of the landmark agreement on climate change in Paris last year were positive moves in this direction. The effects of climate change are visible in southern Africa. Lesotho is experiencing one of the longest and most persistent periods of droughts in living memory, and the government is working in collaboration with its development partners to mitigate its damaging effects. The country s agricultural base has been devastated and nearly a quarter of the population is in dire need of food assistance. International partners have already had a positive impact by relieving food stress. The government is committed to working with other countries to reduce the threat presented by climate change, banish hunger and eradicate disease.

4 4 Priorities for Crisis Response and Future Development in Lesotho Summary of Question-and-Answer Session Lesotho can alleviate poverty through various projects for creating jobs, such as manufacturing motorbike assembly parts, building low-cost housing, and initiatives in solar energy and the textile industry. What is being done to encourage this? What measures are in place in Lesotho to combat illicit trade? Answers Until President Yoweri Museveni came to power in Uganda, that country received most of its goods from Kenya, and Lesotho is in a comparable situation in terms of receiving most of its good from South Africa. Despite improvements in the mining and textiles sectors, there remains much more untapped potential that the government is hoping to access through its recent establishment of a ministry of small and medium enterprises (SMEs). Smaller businesses can provide more employment and have a greater impact on tackling poverty than large multinationals. The government is also reassessing its procurement policy to ensure it promotes local business and supports poverty-alleviating activities. Similarly, the cabinet has recently signed off on a new trade policy that it hopes will create an environment conducive to business. The aim is create an environment in which SMEs can flourish and stimulate economic growth. To combat illicit trade, it is important to strengthen the capacity of law-enforcement agencies, as well as of the ministry of trade, which deals with trade licensing. A more robust legislative framework would also assist in this area. In partnership with the UK Department for International Development (DFID), the government has carried out justice-sector reforms and strengthened the ability of commercial courts to fast-track cases that have been dealt with too slowly. They are working fairly well, but if this framework is strengthened further it will help combat illicit trade and ensure punitive measures can be implemented. Can you elaborate further about initiatives for empowering women in Lesotho? Answers Lesotho has successfully increased women s participation in politics. A quota of seats in the parliament are reserved for women, and the lists put forward by parties under the proportional representation system must feature equal numbers of men and women. However, this can also create a certain stigma against women candidates, which is something that will need to be tackled. There is also 60 per cent representation of women in local government, which is very good compared to many other countries. Women have previously found it difficult to own land, but new laws have been passed to strengthen their property rights. Government procurement policy can also be designed to privilege companies that have a greater representation of women employees and young employees. What are your priorities for investments in terms of numbers and sectors? Is there anything about Lesotho that makes it more difficult or easier to develop investment partnerships?

5 5 Priorities for Crisis Response and Future Development in Lesotho What are the key points of the new trade policy? Joshua Setipa, Minister of Trade and Industry Infrastructure is the most important sector for investment, including communications, as well as financial services. This is the only way to create inflows of investments and outflows of exports. More sophisticated ways of securing financing for large-scale investment projects are needed. There also need to be efforts to stimulate growth among SMEs and provide micro-finance. Informal traders must have access to financial services. This is unlikely to come from banks, but from micro-lending services where risk exposure is limited. Investment in such financial services would be especially beneficial. In Malawi, UK cooperatives started working with local farmers to set up micro-credit schemes, allowing them to mitigate risks such as bad weather. Investors are needed who can help develop a comprehensive range of products to help commercial agriculture, ensure financial inclusion and allow the full exploitation of the financial system. Lesotho is a small market and this limits the exposure for potential investment. Yet this limitation can be mitigated if the government co-invests with partners who bring appropriate skills and technology. Efforts are being made to establish what is viable in terms of infrastructure. For example, tolls on roads might help finance appropriate levels of road maintenance. The government is working with development partners and looking at examples elsewhere to encourage private-sector investment in infrastructure. Without roads, electricity and other infrastructure, the economy cannot grow. Set-up costs, particularly in remote rural areas, can be especially large, but more opportunities become possible once even limited infrastructure is put in place. With regard to reform programmes, the government is working with DFID on the trade advocacy fund. This process is intended to unlock the full trade policy potential. However, at the moment, different development partners are putting forward disconnected initiatives and are not in communication with the government. Programmes designed in London would undermine ownership and sustainability.