Political and economic impact of the 2018 agricultual marketing (Wool and Mohair) licensing
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Date
0006
Authors
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Publisher
National University of Lesotho
Abstract
The Government of Lesotho implemented the Agricultural Marketing Regulations of 2018 to
regulate the marketing of wool and mohair with a justification to create a fair and transparent
market for the Basotho farmers in the industry. This study examines the political and economic
impacts of these regulations. Methodologically, the study depended on primary and secondary
historical sources. The study used documentary materials, such as, newspapers, as well as oral
interviews covering the introduction and implementation of the Agricultural Marketing
Regulations. The outcomes of the research revealed that the regulations largely had adverse
political and economic impacts on the local wool and mohair industry. The research conducted
for this study demonstrated that, politically, these regulations were resisted by the Basotho
farmers, who felt that the government was overstepping its boundaries and interfering in the
private market without appropriate consultative measures. This led to protests and backlash
from farmers, creating a tense political climate in the industry.
Economically, the regulations were a failure. They resulted in a decrease in the production of
wool and mohair. Farmers were unable to sell their products at competitive prices due to the
government-mandated rigidly standardized pricing structure, which led to a decrease in profits,
and economic instability within the industry. Furthermore, the regulations hindered innovation
and growth within the sector. The Basotho farmers were discouraged from investing in new
technology and techniques.
Overall, the new Agricultural Marketing Regulations had adverse political and economic
impacts on the industry. Their failure highlights the importance of the state carefully
considering all factors and stakeholders before implementing regulatory measures in the
agricultural sector. Importantly, the study illuminated that the role of the ordinary people
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through their associations was crucial in successfully opposing regulations imposed by the
government