Studies on consumer demand were among the first to attract interest of
researchers since applied econometrics gained its ubiquitous popularity.
Besides their then relatively easy estimation methodology and cheap
computation, these studies were mainly undertaken for their usefulness in
policy formulation by governments. With the global objective of
fostering economic growth and development, the authorities were and
still are interested in knowing the effects of changes in taxes, subsidies,
interest rates, prices etc, on aggregate demand. On the basis of such
information, they make decisions intended to maximaze the social
welfare of the people.
Since its independence in 1966, there has never been any comprehensive
quantitative study on consuming patterns in Lesotho. It is hence
disquieting that all our national budget and development plans have been
prepared without any empirical knowledge of Basotho consumption
patterns and behaviour, but on a priori theorizing.
The objective of this exercise is not just to fill this lacuna but to provide
the relevant authorities charged with the responsibility of planning and
finance, with empirical information on consumption patterns in Lesotho.
At the present moment the Lesotho Government is going through trying
times of structural adjustment. Stringent measures which impinge upon
all consumers have been introduced. It is both logical and necessary for
the authorities to have an idea about the general consumption patterns
when making decisions which have a direct bearing on the people’s
welfare.