Lesotho as an Incubator for Foreign Investment at the Expense of the Informal Economy - Part 2 (STAY WIT ME NAH!!!)

In many cases, what we perceive as personal issues can actually be attributed to problems that affect entire communities, making them representations of broader societal issues. During my time at American University, I recall attending a presentation where a colleague discussed America's so-called "War on Drugs." This initiative disproportionately incarcerated men of color, specifically Black men, for the same crimes as their white counterparts, often with harsher sentences for the same amount of drugs distributed. This indicated that the "War" was more about race than crime.

How does this relate to our beautiful nation of Lesotho? One might look at the dire economic issues and high poverty rates and perceive them as individual problems, much like how the incarceration rate of Black men in America might be seen as a racial issue. However, these problems should be viewed in their structural context. The economic challenges we face are indicative of broader structural agendas and should not be considered in isolation. As developers, we must understand the depth and scope of the problems we are dealing with.

Recently, in Lesotho, small informal entrepreneurs have been displaced from their businesses under the pretext of creating a "cleaner" town with less garbage in the streets. My concern with this approach is that it sidelines the informal sector—the engine of our economy—in favor of idealistic foreign investments that we know little about.

Instead of supporting and utilizing our existing resources, we are discarding them. This thinking fails to recognize our economic position, where private sector investment is limited, and government employment is scarce. This creates cleavages and binds forces in the form of the informal sector. We have failed to identify and utilize our highly innovative and mobile informal sector as the primary point of contact and growth to elevate the status of the limited private sector.

By clinging to the neoliberal narrative of individualism, which we have been programmed to believe through Western "development" programs, we waste highly creative local forces and movements that could produce feasible, on-the-ground change. The enslaved have not broken their shackles; we have merely polished our chains to look shiny.

Our takeaway should be to first recognize our environment, thoroughly inspect our educational sector, investigate our demographics, and appeal to all sides, especially the highly marginalized. Communication, interaction, and facilitation with them will create local solutions to local problems. There is a reason why the informal sector of Lagos generates billions in annual revenue. There is a reason why the informal sector in Lesotho, by some reports, constitutes the bulk of our gross domestic product.

It is up to us to navigate these truths and break down barriers of entry for the poorest, the least educated, and those with the least opportunities and financial backing. There is gold up there in the mountains—we just have to find it.

Neoliberal Critique (Milton Friedman, Friedrich Hayek)

From a neoliberal perspective, the focus on the informal sector as a primary economic engine could be seen as problematic. Authors like Milton Friedman and Friedrich Hayek argue that economic growth and development are best achieved through free markets and minimal government intervention. They would likely criticize the emphasis on informal markets as potentially stifling formal economic development and investment. According to these theorists, fostering a conducive environment for private sector growth and foreign investment would lead to better long-term economic outcomes, including job creation and poverty reduction.

FIND CRITIQUES TO MY ESSAY BELOW.

Structuralist Critique (Raúl Prebisch, André Gunder Frank)

Structuralist authors, who focus on the inherent inequalities in global economic structures, might argue that the critique overlooks the role of external forces and historical exploitation. Raúl Prebisch and André Gunder Frank, for instance, would emphasize how global capitalism perpetuates underdevelopment in peripheral nations like Lesotho. They might argue that focusing on informal sectors does not address the root causes of economic disparity, such as unequal trade relations and dependency on developed nations. These authors would likely call for a more radical restructuring of the global economic system to achieve true development.

Postcolonial Critique (Frantz Fanon, Edward Said)

Postcolonial theorists like Frantz Fanon and Edward Said would critique the reliance on Western frameworks of development and the internalization of Western narratives of progress. They would argue that the discourse around development often marginalizes indigenous knowledge and solutions. According to Fanon, the focus should be on decolonizing the mind and economic practices, reclaiming local traditions, and fostering genuine self-sufficiency. Said would likely highlight the importance of recognizing and challenging the cultural hegemony that frames Western approaches as the only viable solutions.

Developmental State Critique (Chalmers Johnson, Ha-Joon Chang)

Scholars advocating for the developmental state model, like Chalmers Johnson and Ha-Joon Chang, might critique the emphasis on informal markets as insufficient for achieving sustainable development. They would argue that strong state intervention is necessary to guide economic development, citing examples from East Asian economies. These authors would likely propose that the state should play a more active role in supporting industries, protecting nascent markets, and investing in infrastructure and education to create a more robust and diversified economy.

Feminist Critique (Amartya Sen, Naila Kabeer)

Feminist economists like Amartya Sen and Naila Kabeer might criticize the discussion for not addressing the gendered dimensions of economic development. They would argue that both formal and informal sectors need to be analyzed through a gender lens to understand how economic policies impact women differently. Kabeer, in particular, would emphasize the importance of empowering women within the informal sector and ensuring that development strategies are inclusive and equitable. Sen would argue for a broader capability approach, focusing on expanding individuals' freedoms and opportunities.

Environmental Critique (Vandana Shiva, Naomi Klein)

Environmentalists like Vandana Shiva and Naomi Klein might critique the discussion for not sufficiently addressing the environmental impact of economic activities. They would argue that true development must consider ecological sustainability and the preservation of natural resources. Shiva would emphasize the need for sustainable agricultural practices and the protection of biodiversity, while Klein would highlight the dangers of unchecked economic growth contributing to climate change and environmental degradation. They would call for development strategies that integrate environmental stewardship with economic and social goals.

These diverse critiques highlight the complexity of economic development and the importance of considering multiple perspectives to address the challenges faced by nations like Lesotho.