Chapter five: Corporate governance 494. 495. • Asian (16.5 per cent). • South African (5.9 per cent). • Other (8.2 per cent). The main business laws include: • The Trading Enterprises Order (1993). • The Trading Enterprises Regulation (1999). • The Financial Institutions Act (FIA) (1999). • The Money Lenders Order (1989). • The Companies Act (1967, as amended in 1984 and 1989). • The Partnership Proclamation (1957). • The Insolvency Proclamation (1957). The tax regime is regulated by three pieces of legislation: • The Customs and Excise Act (1982). • The Income Tax Act (1993). • The Value-Added Tax (VAT) Act of 2001. 496. The effectiveness of these statutes is hampered by the age of most of them. Given the dynamics of corporate governance issues, the legal and regulatory framework is out of step with contemporary developments in corporate governance and hampers private sector development. Commendably, most of them (especially the Companies Act, the Insurance Act and the Accountants Act) are currently being revised. 497. The size and landlocked nature of the country pose a challenge in terms of Lesotho’s global competitive dynamics. More specific constraints to private sector development were noted. They include: the lack of a clear policy and mechanisms for public-private cooperation; a lean natural resource base to support the growth of the sector; poor infrastructure; bureaucracy and institutional inertia; corruption; problems in accessing finance; and lack of skills (particularly those that can help broaden the scope for global operations). A heavy concentration of small and medium enterprises (SMEs), which lack the necessary support frameworks, makes it difficult for the private sector to drive economic growth. 498. Labour standards in Lesotho are generally considered to have improved over the years and the consensus is that the provisions of the labour code are generally respected. However, it is still necessary to step up the enforcement of the provisions of the very robust labour law regime. Corporate social responsibility (CSR), as practised by corporations, is mainly ad hoc and driven by voluntary philanthropy. It therefore has a limited impact in addressing the social challenges facing the country. 137