Basutoland was renamed the Kingdom of Lesotho upon independence from the UK in 1966. The Basutho National Party ruled the country during its first two decades. King MOSHOESHOE was exiled in 1990, but returned to Lesotho in 1992 and was reinstated in 1995 and subsequently succeeded by his son, King LETSIE III, in 1996. Constitutional government was restored in 1993 after seven years of military rule. In 1998, violent protests and a military mutiny following a contentious election prompted a brief but bloody intervention by South African and Batswana military forces under the aegis of the Southern African Development Community. Subsequent constitutional reforms restored relative political stability. Peaceful parliamentary elections were held in 2002, but the National Assembly elections in 2007 were hotly contested and aggrieved parties disputed how the electoral law was applied to award proportional seats in the Assembly. In 2012, competitive elections involving 18 parties saw Prime Minister Motsoahae Thomas THABANE form a coalition government - the first in the country's history - that ousted the 14-year incumbent, Pakalitha MOSISILI, who peacefully transferred power the following month. MOSISILI returned to power in snap elections in February 2015 after the collapse of THABANE’s coalition government and an alleged attempted military coup.
Small, mountainous, and completely landlocked by South Africa, Lesotho depends on a narrow economic base of textile manufacturing, agriculture, remittances, and regional customs revenue. About three-fourths of the people live in rural areas and engage in animal herding and subsistence agriculture, although Lesotho produces less than 20% of the nation's demand for food. Agriculture is vulnerable to weather and climate variability.Lesotho relies on South Africa for much of its economic activity; Lesotho imports 90% of the goods it consumes from South Africa, including most agricultural inputs. Households depend heavily on remittances from family members working in South Africa in mines, on farms, and as domestic workers, though mining employment has declined substantially since the 1990s. Lesotho is a member of the Southern Africa Customs Union (SACU), and revenues from SACU accounted for roughly 44% of total government revenue in 2014. Lesotho also gains royalties from the South African Government for water transferred to South Africa from a dam and reservoir system in Lesotho. However, the government continues to strengthen its tax system to reduce dependency on customs duties and other transfers.The government maintains a large presence in the economy - government consumption accounted for 27% of GDP in 2016. The government remains Lesotho's largest employer; in 2014-15, the government wage bill rose to 21% of GDP – the largest in sub-Saharan Africa. Lesotho's largest private employer is the textile and garment industry - approximately 36,000 Basotho, mainly women, work in factories producing garments for export to South Africa and the US. Diamond mining in Lesotho has grown in recent years and accounts for nearly 9% of GDP. Lesotho managed steady GDP growth at an average of 4.5% from 2010 to 2014 but poverty remains widespread around 57% of the total population.