Journal of Emerging Trends in Economics and Management Sciences: Home

Article Title:
LESSONS ON OLD AGE PENSIONS AS WELFARE INVESTMENT FOR SUSTAINABLE DEVELOPMENT IN LESOTHO
by Moses M. M. Daemane and Keneuoe A.M. Mots'oene

Abstract:
This article argues within the context of alternative pragmatic developmental perspective that while known for a fact that higher income reduces the number of the absolutely poor and raises living levels, self-esteem, freedom and non-dependence on aid, old age pension amount currently given in Lesotho is observably too low to effect realizable sustainable development. Equity in income distribution when looking at the inflation, other allowances to other sectors of the population especially the politicians in the institutions of ruling, is still a far fetched idea. Supplementary and complementary poverty-focused policies and strategies beside pension for the aged to acquire uplifted levels of living encompassing sufficient life sustaining goods, adequate health, quality education or advanced life-sustaining/productive skills and adequate access to social services are still needed in Lesotho. The low pension income (R450) must effectually be replaced by increased real income, that is, with real purchasing power and not only nominal value, as is now the case, in order to reduce poor health and low nutrition. Furthermore, induce saving, labour saving technology acquisition, high investment propensity, jobs creation, population or fertility control, thus low dependency ratio and increased freedom and ability in material gain, choice making, trading and non-dependence on aid.

Keywords: sustainable development, welfare investment, pension, social transfer, development, social support, food security

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