The attitude and vulnerability of people as determinants of poverty : the case of Lesotho

Abstract

Lesotho is one of the poorest countries in the world. After reviewing the growth and poverty debate, which suggests that policy reforms and economic growth have largely failed to contribute to the alleviation of poverty in Lesotho, the paper explores the core constraints to poverty reduction. It is argued that the attitudes of the people in Lesotho and the extent to which they are vulnerable to exogenous shocks are important variables towards removing structural and fundamental constraints that impede poverty alleviation. To quantify the values of attitude and vulnerability, an econometric model is constructed that uses an HSRC public perceptions survey in Lesotho. The economic significance of this alternative measure provides a new dynamic on how to approach the issue of poverty alleviation in Lesotho.