During winter months shepherds wearing only boots and wrap-around blankets have to contend with snow.

While much of the tiny country, with spectacular canyons and thatched huts, remains untouched by modern machines, developers have laid down roads to reach its mineral and water resources.

Major construction work has been under way in recent years to create the Lesotho Highlands Water Project to supply South Africa with fresh water.

OVERVIEW

Because of scarce resources, attributable to the harsh environment on the highland plateau and the limited agricultural space in the lowlands, Lesotho has been heavily dependent on the country which completely surrounds it - South Africa.

Over the decades thousands of workers have been forced by the lack of employment opportunities to find jobs on South African mines. South Africa has on several occasions intervened in Lesotho's politics, including in 1998 when it sent its troops to help quell unrest.

The former British protectorate has had a turbulent, if not particularly bloody, period of independence with several parties, army factions and the royal family competing for power in coups and mutinies. The position of king has been reduced to a symbolic and unifying role.

Lesotho has one of the world's highest rates of HIV-Aids infection. A drive to encourage people to take HIV tests was spurred on by Prime Minister Mosisili, who was tested in public in 2004.

Economic woes have been compounded by the scrapping of a global textile quota system which exposed producers to Asian competition. Thousands of jobs in the industry have been lost.

FACTS

• Population: 1.8 million (UN, 2005)
• Capital: Maseru
• Area: 30,355 sq km (11,720 sq miles)
• Major languages: Sesotho, English
• Major religion: Christianity
• Life expectancy: 35 years (men), 38 years (women) (UN)
• Monetary unit: 1 loti (L) = 100 lisente
• Main exports: Clothing, wool, mohair, food, livestock
• GNI per capita: US $610 (World Bank, 2005)
• Internet domain: .ls
• International dialling code: +266

LEADERS

Head of state: King Letsie III

King Letsie III succeeded his father, King Moshoeshoe, who was dethroned in 1990.

Five years later, after the return to civilian government and amid political instability, he abdicated and his father was reinstated as monarch.

Letsie III was restored as king in 1996 after his father died in a car accident. The monarch has no legislative or executive powers.

Prime minister: Bethuel Pakalitha Mosisili

Bethuel Mosisili won a second five-year term in the May 2002 elections. His Lesotho Congress for Democracy (LCD) won a majority in the 120-seat parliament.

Prime Minister Mosisili won a second term in 2002

Foreign observers said they were happy with the polls but the opposition Basotho National Party (BNP) demanded a recount.

Mr Mosisili first came to power in May 1998 after the LCD won a landslide victory in elections.

Although foreign observers described the vote as acceptable, the opposition protested against the results. Protests turned to violent unrest which was put down by an intervention force from neighbouring countries.

A new electoral system was subsequently devised to make parliament more representative.

Before entering parliament Mr Mosisili worked as an academic and a teacher. He studied in Africa and the US.