Changes

*Ethnic groups: Basotho 99.7%; Europeans, Asians, and other 0.3%.  

*Ethnic groups: Basotho 99.7%; Europeans, Asians, and other 0.3%.  

*Religions: 80% Christian, including Roman Catholic (majority), Lesotho Evangelical, Anglican, other denominations; other religions include Islam, Hindu, indigenous.

*Religions: 80% Christian, including Roman Catholic (majority), Lesotho Evangelical, Anglican, other denominations; other religions include Islam, Hindu, indigenous.

*Languages: Official--Sesotho and English. Others--Zulu, Xhosa.

*Languages: Official—Sesotho and English. Others—Zulu, Xhosa.

*Education: Years compulsory--None. Literacy (2003 est.)--84.8%. Lesotho has free primary education (grades 1-7).

*Education: Years compulsory—None. Literacy (2003 est.)--84.8%. Lesotho has free primary education (grades 1-7).

*Health: Infant mortality rate (2004 est.)--85.22/1,000. Life expectancy (2004 est.)--36.81 years.

*Health: Infant mortality rate (2004 est.)--85.22/1,000. Life expectancy (2004 est.)--36.81 years.

*Work force (2001 est.): 704,000.  

*Work force (2001 est.): 704,000.  

===Principal Government Officials===  

===Principal Government Officials===  

*Head of State--King Letsie III

*Head of State—King Letsie III

====Cabinet====

====Cabinet====

*Prime Minister--Pakalitha Mosisili

*Prime Minister—Pakalitha Mosisili

*Deputy Prime Minister and Minister of Home Affairs and Public Safety--Archibald Lesao Lehohla  

*Deputy Prime Minister and Minister of Home Affairs and Public Safety—Archibald Lesao Lehohla  

*Minister of Defense--Pakalitha Mosisili (also Prime Minister)

*Minister of Defense—Pakalitha Mosisili (also Prime Minister)

*Minister of Foreign Affairs--Mohlabi Kenneth Tsekoa, MP

*Minister of Foreign Affairs—Mohlabi Kenneth Tsekoa, MP

===Foreign Relations===

===Foreign Relations===

==Defense==

==Defense==

The security force is composed of the Lesotho Defense Force (LDF--estimated 4,000 personnel) and the Lesotho Mounted Police Service (LMPS--estimated 3,000-4,000 personnel). The LDF consists of an army, an air wing, and a paramilitary wing. The LDF answers to the Prime Minister (who is the Minister of Defense and National Security and also the Minister of Public Service), while the Lesotho Mounted Police Service reports to the Minister of Home Affairs. There also is a National Security Service (NSS), Intelligence, which is directly accountable to the Prime Minister. Relations between the police and the army have occasionally been tense, and in 1997 the army was called upon to put down a serious police mutiny.  

The security force is composed of the Lesotho Defense Force (LDF—estimated 4,000 personnel) and the Lesotho Mounted Police Service (LMPS—estimated 3,000-4,000 personnel). The LDF consists of an army, an air wing, and a paramilitary wing. The LDF answers to the Prime Minister (who is the Minister of Defense and National Security and also the Minister of Public Service), while the Lesotho Mounted Police Service reports to the Minister of Home Affairs. There also is a National Security Service (NSS), Intelligence, which is directly accountable to the Prime Minister. Relations between the police and the army have occasionally been tense, and in 1997 the army was called upon to put down a serious police mutiny.  

==Economy==

==Economy==

*Average inflation rate (2003): 10%.

*Average inflation rate (2003): 10%.

*Natural resources: Water, agricultural and grazing land, some diamonds and other minerals. Lesotho is an exporter of excess labor.

*Natural resources: Water, agricultural and grazing land, some diamonds and other minerals. Lesotho is an exporter of excess labor.

*Agriculture (2003 est.): 16.8% of GDP. Products--corn, wheat, sorghum, barley, peas, beans, asparagus, wool, mohair, livestock. Arable land--11%.

*Agriculture (2003 est.): 16.8% of GDP. Products—corn, wheat, sorghum, barley, peas, beans, asparagus, wool, mohair, livestock. Arable land—11%.

*Industry (2003 est.): 43.1% of GDP. Types--apparel, food, beverages, handicrafts, construction, tourism.

*Industry (2003 est.): 43.1% of GDP. Types—apparel, food, beverages, handicrafts, construction, tourism.

*Trade (2003): Exports--$450 million; clothing, furniture, footwear and wool. Partners--South Africa, United States, Botswana, Swaziland, Namibia, EU. Imports--$661 million; corn, clothing, building materials, vehicles, machinery, medicines, petroleum products. Partners--South Africa, Asia, EU.

*Trade (2003): Exports--$450 million; clothing, furniture, footwear and wool. Partners—South Africa, United States, Botswana, Swaziland, Namibia, EU. Imports--$661 million; corn, clothing, building materials, vehicles, machinery, medicines, petroleum products. Partners—South Africa, Asia, EU.

*Fiscal year: 1 April - 31 March.

*Fiscal year: 1 April - 31 March.

*Economic aid received (2002): $972.6 million. Primary donors--World Bank, IMF, EU, UN, U.K., Ireland, U.S.  

*Economic aid received (2002): $972.6 million. Primary donors—World Bank, IMF, EU, UN, U.K., Ireland, U.S.  

Water is Lesotho's only significant natural resource. It is being exploited through the 30-year, multi-billion-dollar Lesotho Highlands Water Project (LHWP), which was initiated in 1986. The LHWP is designed to capture, store, and transfer water from the Orange River system and send it to South Africa's Free State and greater Johannesburg area, which features a large concentration of South African industry, population, and agriculture. Completion of the first phase of the project has made Lesotho almost completely self-sufficient in the production of electricity and generated approximately $24 million annually from the sale of electricity and water to South Africa. The World Bank, African Development Bank, European Investment Bank, and many other bilateral donors financed the project. Lesotho has taken advantage of the African Growth and Opportunity Act (AGOA) to become the largest exporter of garments to the U.S. from sub-Saharan Africa. Exports totaled $466.9 million in 2004. Employment reached 40,000. Asian investors own most factories.  

Water is Lesotho's only significant natural resource. It is being exploited through the 30-year, multi-billion-dollar Lesotho Highlands Water Project (LHWP), which was initiated in 1986. The LHWP is designed to capture, store, and transfer water from the Orange River system and send it to South Africa's Free State and greater Johannesburg area, which features a large concentration of South African industry, population, and agriculture. Completion of the first phase of the project has made Lesotho almost completely self-sufficient in the production of electricity and generated approximately $24 million annually from the sale of electricity and water to South Africa. The World Bank, African Development Bank, European Investment Bank, and many other bilateral donors financed the project. Lesotho has taken advantage of the African Growth and Opportunity Act (AGOA) to become the largest exporter of garments to the U.S. from sub-Saharan Africa. Exports totaled $466.9 million in 2004. Employment reached 40,000. Asian investors own most factories.