Chapter three: Democracy and good political governance between 1996 and 2001. The problems regarding auditing and reporting persist, and, in 2009, Parliament is only just debating the 2003/2004 audit reports, while those for 2004/2005 and 2005/2006 have just been submitted. The past few years have also seen creeping cronyism and corruption. For example, a scandal involving the sale of official cars at greatly discounted prices to public officers who had been using them has been perceived by the public at large as a sign of the official tolerance of corrupt practices. This is coupled with perceptions that public procurement is tainted by favouritism and nepotism. 108. Other challenges that have an effect on democracy and good political governance arise from the broader context of Lesotho’s existence, including the country’s economic vulnerability, poverty, unemployment and the prevalence of the Human Immunodeficiency Virus (HIV) and the Acquired Immune Deficiency Syndrome (AIDS). Lesotho has a vulnerable economy characterised by a small territory that is totally surrounded by, and dependent on, South Africa. Dependence on South Africa is manifested in various ways, namely in: Lesotho’s reliance on the remittances from men employed in the mines of South Africa; growing unemployment due to retrenchments in these mines; the dependence of state revenue on the export of water to South Africa from the Lesotho Highlands Water Project (LHWP); and payments from the Southern African Customs Union (SACU). Unemployment is estimated at 46 per cent; hence the high level of labour migration and dependence on remittances. The high prevalence of HIV and AIDS has the potential of further reducing the effectiveness of public service delivery. Lastly, apart from the acknowledged dependence on South Africa, Lesotho is also reliant on foreign aid, which raises questions about the country’s capacity to map the direction of its development. Summary of the findings of the Country Review Mission (CRM) Standards and codes 109. The CRM found that Lesotho has signed numerous international agreements that relate to democracy and good political governance, including the Charter of the United Nations (UN), the Constitutive Act of the African Union (AU), the New Partnership for Africa’s Development (NEPAD) Framework Document, and the Treaty of the SADC. There are also others covering: the recognition and protection of civil, political and cultural rights; human rights (women, children, racial discrimination, the status of refugees, labour, education, etc.); freedom of political association; war and conflict; crime; corruption; and human trafficking. However, Lesotho lags behind in the ratification, domestication and implementation of, and reporting on, the various agreements. The CRM was unable to obtain an updated register of the agreements and the status of their application. Assessment on African Peer Review Mechanism (APRM) objectives 110. The CRM’s findings are summarised in five broad categories that encompass the nine objectives under democracy and good political governance. The broad categories are: • The prevention of political conflict that could diminish constitutional democracy. • Constitutional democracy and the rule of law. 43