A compendium on international trade in Lesotho

International trade remains one of the key indicators of economic welfare of any economy. It directly increases foreign exchange earnings, meets consumer demand for foreign goods and increases production. Indirectly, it potentially increases employment, improves technology via spill over effects and ultimately improves economic growth. On the flip side, International trade can promote dumping, exposure to negative external shocks, expose local firms to unhealthy competition, etc. Understanding how, which, why, where and in what ways international trade manifests in any economy is therefore imperative. It is on this premise that this study developed a compendium on international trade that constitutes an analysis of key blocks of the literature on international trade. This compendium uses qualitative analysis such as content summarisation and descriptive analysis to bring to light the implications of/for International trade in terms of the history, legal, political, social, geographical and economic realities of Lesotho. The compendium is expected to serve as a one-stop shop of relevant literature for postgraduate students and researchers interested in issues relating to international trade. The compendium starts with a detailed history of international trade in Lesotho by Prof Attah and Dr Maliehe. The chapter compares three major epochs that frame the rise and fall of Lesotho’s economic development, which is important in understanding the roots and trajectories of Lesotho’s participation in international trade. Historical evidence used to chronicle this history demonstrates that Lesotho moved from a state of economic significance in emergent international trade networks in the first half of the nineteenth century to an insignificant player since the second half of the nineteenth century. In Chapter 2, Dr Tsietsi and Dr Kometi discuss the international dimensions of the legal and institutional frameworks for trade in Lesotho. Specifically, they discuss the World Trade Organization’s agreements, regional dimensions of the legal and institutional frameworks for trade in Lesotho and the domestic dimensions of the legal and institutional frameworks for trade in Lesotho. In chapter 3, Dr Ngang rigorously dissects the political dynamics of international trade in Lesotho. He profiles the complexities in the politics of international trade and discusses the perceived benefits from international trade as an outcome of an export driven trade strategy and trade performance. He submits that the Lesotho government needs to decisively embark on adopting policies that prohibit the export of raw materials and primary products while promoting and incentivising domestic production and conversion of the raw materials and primary products into finished consumable products before they can be certified for export.
In chapter 4, Dr 'Maseribane, Dr Leseba and Dr Lebuso discuss the geographic and demographic context of international trade in Lesotho. Specifically, they x-ray the importance of demography for international trade, Demographic Change and International Trade and the trends in consumer demand by demographics. Meanwhile, Dr. Hapazari analyses the socio-cultural and religious context of international trade. She submits a detailed analysis of the Socio-cultural and religious context of Lesotho. Ultimately, the chapter discusses these contexts with implications to international trade and proffers recommendations thereof. Dr Muroyiwa, Dr Letuma and Dr Ratsoane dissect the agricultural sector of Lesotho to snowball relevant implications on International trade. Specifically, they discuss the the status of agricultural sector and trade in Lesotho, the drivers, opportunities and barriers of agricultural production and trade in Lesotho, the trade agreements and policy developments affecting agricultural trade and also analyse the agricultural trade patterns over the past 25 Years iv Dr Yuni dissects the implications of fiscal and monetary policy as well as their coordination on International trade in Lesotho. Amongst other recommendations, the chapter submits that the government has to promote an export-led growth-oriented policy framework, improve favourable infrastructure for international trade by increasing capital allocation and improve sensitisation of competitive tax rates in the region to attract investors. Still from an economic perspective, Dr Nchake demystifies the service sector in Lesotho by discussing its trends, legal framework, and opportunities. Dr adelakun and Mrs Raselemane discuss the human capital development and its implications on international trade in Lesotho. The authors carefully review state, types, determinants and trends of human capital development in Lesotho. They then analyse its trend and prospects in relation to international trade and then discuss the Lesotho regional economic outlook and international trade. Finally, as a concluding chapter, Dr Nyesemane and Dr Ratsiu synthesise the strengths, weaknesses, opportunities and threats of international trade in Lesotho.