How Lesotho benefited from MCA
the new land act was not immune from criticism and it went through a rigorous parliamentary process but it nevertheless went through.
the discernable impact of this law has been a total overhaul of the land tenure system in lesotho.
the recent ostensible upsurge in the housing and real estate or property development especially in the district of Maseru and other towns is a direct impact of the new land tenure system.
Notably, this has been the most pervasive liberalisation of the real estate or property market since lesotho’s independence which was made possible by the Mca’s intervention, which in turn is a true reflection of liberal policies in action.
the most fascinating segment of the private sector development was the national identity document project which was mired by a lot of controversy which led to the government of lesotho opting to finance the project from its coffers, the exercise which has in the long run proved to be costly without budgetary support of grant money.
However, there has been a notable desire and will to implement the project thus far.
the other component of the private sector development project was the civil legal reform which aimed at fast-tracking the resolution of commercial and other civil disputes which were taking a long time to resolve in the courts.
the target was therefore to improve the institutional capacity of the judiciary.
the lesotho Post Bank became another partner in the implementation of the private sector development project by managing of the debit/smart card project which according to the then MCALesotho official documents was aimed at “expanding the financial services to the under-banked and un-banked population in the rural areas of lesotho”.
the MCA developmental assistance model is arguably one of the best governed foreign aid schemes that had entered the fray of foreign aid business in the past 15 years.
there are a lot of lessons that can be picked from the way it is designed, the formulation of project objectives, implementation as well as monitoring and evaluation of the projects.
However, one should remember that there is nothing as free riding in politics of foreign aid, hence the requirement for MCA eligible countries to meet the criteria set by the Millennium Challenge Corporation for selection into the pool of countries that can be given aid.
the other notable element of the MCA model is the rewarding of countries which actually don’t have any bearing on the traditional United States geo strategic concerns of security by only
awarding countries with development aid only if they are eager to undergo economic and political reforms, which is actually in line with what former president Bush outlined when he said: “the United States will use this moment of opportunity to extend the benefits of freedom across the globe.
“We will actually work to bring the hope of democracy, development, free markets and free trade to every corner of the globe”.
it is without a doubt that lesotho has benefited and reaped tremendously from these “benefits of freedom” and the proper implementation of compact 1 of MCA made it qualify for selection into the second round of funding thus making it eligible for the second compact. it remains to be seen if the second compact will see the light of the day.