Social protection in Lesotho: Innovations and reform challenges

Abstract

Given its current socioeconomic conditions and fiscal ability, Lesotho has achieved an impressive record in creating a basic social assistance and social protection system, informed by political commitment and through budget reprioritisation. It has set up and administered near universal schemes operating at scale with fairly low transaction costs, addressing core areas and serving vulnerable constituencies – including the aged, orphaned and vulnerable children and children of school-going age. A contribution-based comprehensive national social security scheme to provide coverage for Lesotho workers and their families is also planned. Nevertheless, the task of providing adequate social protection coverage faces systems and delivery challenges; several human development indicators have worsened, and most of the Millennium Development Goals are far from being achieved. There is scope for creating greater fiscal space by establishing a compulsory national contributory scheme, and donor support in the short to medium term is inevitable.

Keywords:

• comprehensive social security
• fiscal space
• social protection in Lesotho
• social security reform
• social transfers

Notes

²The term ‘social protection floor’ refers to access to essential services (such as health, education, housing, water and sanitation, and others, as defined nationally) and social transfers, in cash or in kind, to guarantee income security, food security, adequate nutrition and access to essential services (ILO–UN, 2010).

³ Section 2 of this paper has been adapted from Olivier (2010:para. 4).

⁴The 1977 law covers in some detail the circumstances under which an injury or disease would constitute an occupational injury or disease; the range of benefits available, in particular in the event of partial and total incapacity, as well as medical benefits; benefits payable to dependants; the rate at which benefits are calculated; applicable procedures; employer and employee obligations; and appeals. Determining who is covered by a particular workmen's compensation legal instrument could be complicated, if not confusing: different legal regimes, provided for in a range of laws, are applicable to different categories of workers. Provisions in relation to workmen's compensation are contained in at least six legal instruments, namely the Labour Code of 1992, the Public Service Regulations, 2008, the Workmen's Compensation Act, 1977, the Pensions Proclamation of 1964 and the Regulations made in terms of the Proclamation, and the Public Officers' Defined Contribution Pension Fund Act, 2008.