Executive summary terms of the Human Development Index (HDI).5 Life expectancy, which in 1990 stood at 59 years, has declined and is estimated at 42.4 years (2006).6 The declining population growth rate, coupled with the high prevalence of the Human Immunodeficiency Virus (HIV) and the Acquired Immune Deficiency Syndrome (AIDS) (23.2 per cent), means that Lesotho’s limited human resources are steadily being depleted. 3.3 Lesotho has very limited natural resource endowments, including agricultural and grazing land, but is richly endowed with water and, to a lesser extent, diamonds and other minerals. Water is its most significant natural resource. It is being exploited through the multibillion dollar Lesotho Highlands Water Project (LHWP). 3.4 Lesotho, Swaziland, Namibia and South Africa also form a common currency and exchange control area known as the Common Monetary Area (CMA). Receipts from the Southern African Customs Union (SACU) provide much of Lesotho’s income. Lesotho has taken advantage of the African Growth and Opportunity Act (AGOA). Under this arrangement, Lesotho’s textiles are allowed unfettered access into the United States (US) market. The current financial crisis is bound to affect the country in terms of reduced foreign direct investment (FDI) and preferential trade quotas, as well as the retrenchment of workers from mines in South Africa. 3.5 Since independence from Britain in 1966, the political history of Lesotho has been dominated by instability, controversy and conflict, sometimes spilling over into violence. This dynamic has included three coups d’état (in 1970, 1986 and 1994) and 23 years of undemocratic government (including seven years of military rule). Since the return to multiparty democracy in 1993, the country has undergone four elections at five-year intervals, namely in 1993, 1998, 2002 and 2007. 4. Summary of findings in key thematic areas 4.1 Democracy and good political governance 4.1 The constitution of Lesotho of 1993 institutionalised the constitutional monarchy, which was a reaffirmation of the traditional system of governance that is highly revered and is based on Basotho historical values and customs. The constitution also meant that the Basotho recognise and accept that their traditional form of governance must coexist with the colonially bequeathed system of governance. Under this constitution, the king is the head of state, whereas the prime minister is the head of government. The king’s position is hereditary and accession to the throne is regulated by the Office of the King Order No. 14 of 1990. The prime minister is appointed by the king in terms of section 87, subsection 2, of the constitution. 4.2 The legislature is composed of two houses, the National Assembly, which has 80 elected members and 40 proportional representatives (making for a total of 120), and the Senate, which is composed of 33 members, 22 of whom are hereditary principal chiefs, with the other 11 being appointed by 5 6 Country Self-Assessment Report (CSAR) (2008). World Bank (2009) Millennium Development Goals: Lesotho; World Development Indicators. 3