Executive summary of resources for the development of district and community infrastructures, such as minor roads, bridges, village water supplies, etc.; and unresolved tensions between the newly created councils and the traditional chiefs, especially in the area of land and site allocations. 6.5 Public accountability and corruption 6.6 Poor accountability of public servants negatively impacts on public service delivery. Perceptions of prevalence of corruption are also strong. In tackling corruption and enhancing public accountability, Lesotho should consider overhauling the public accounting, auditing and reporting systems. Clarifying the roles and responsibilities of service delivery institutions, building their capacities and adequately resourcing them will also enhance efficiency and improve public accountability. Specific to corruption, there is a need to build the capabilities of the anticorruption agency, redefine its mandate and streamline its functions so that it concentrates only on fighting corruption. 6.6 Overdependence on aid 6.7 Aid dependency makes Lesotho highly vulnerable to adverse developments in the world economy, in particular in donor countries. The high dependence on aid, in particular that aspect of it that finances capital formation, could also pose long-term risks for Lesotho in terms of promoting policy for sustainable development financing and effective development planning. In order to reduce the potential vulnerability arising from overdependence on aid, the government of Lesotho should try to widen the tax base and improve the efficiency of tax collection. 6.7 Unemployment and migrant labour 6.8 High levels of unemployment have characterised Lesotho’s economic and social scene for a long time. Historically, labour migration of the Basotho to South Africa contributed to the reduction of unemployment in Lesotho. Currently, the large number of retrenched Basotho migrant workers poses economic as well as social challenges. The APR Panel recommends several measures to boost domestic employment opportunities, including indigenous enterprise development. There is a need to focus on the development of instruments and measures that are based on the principle of maximising comparative advantage to attract South African industries and to penetrate South African markets. In the context of free labour movement and free capital movement, Lesotho should also start negotiations with the South African government and employers to revise policies and avoid possible discriminatory retrenchments of Basotho workers. 6.8 The HIV and AIDS pandemic in Lesotho 6.9 16 Lesotho has the third-highest adult HIV prevalence in the world, presently standing at 23.2 per cent, and there are an estimated (in 2007) 62 new infections and about 50 deaths each day. Key stakeholders (government and development partners) recognise the HIV pandemic as a major threat to the survival of the country, given a small population of 1.8 million and a slow population