Title: Globalisation, decline of development aid and weaving enterprises in Lesotho
Author: Tšepiso A. Rantšo
Address: Department of Development Studies, National University of Lesotho, P.O. Roma 180, Lesotho
Abstract: Lesotho has a weak industrial base, and the country is too dependent on South Africa for most of its tradable goods. The research shows that there were no industries in Lesotho during the colonial period besides weaving enterprises. Many weaving enterprises were established mainly by missionaries, and international NGOs, and were dependent on donor funding. There were also some weaving enterprises established by the Lesotho National Development Corporation (LNDC) after independence. These weaving enterprises created employment opportunities for many Basotho, especially women. The contribution of weaving enterprises to poverty reduction, employment creation and generation of foreign exchange was very significant. However, many weaving enterprises collapsed because of drying out of development aid. And there are currently very few weaving enterprises in the country. In light of the above, this paper studies the role played by foreign assistance in establishment of weaving enterprises in the country. The paper further looks at the major factors that led to the collapse of weaving enterprises in Lesotho.
Keywords: weaving enterprises; entrepreneurship; small scale enterprises; wool industry; mohair industry; international trade; foreign aid; Lesotho; aid reduction; globalisation; development aid; weaving firms.
Int. J. of Business and Globalisation, 2016 Vol.17, No.2, pp.174 - 188
Available online: 02 Aug 2016