Final answer:
The World Bank and development literature inaccurately described Lesotho's economy by propagating various myths, except for the accurate assessment of the importance of wage labor in South Africa for household incomes in Lesotho. Lesotho's economy has a significant reliance on agriculture with emerging diversification into light manufacturing, contradicting the myths presented.
Step-by-step explanation:
According to the author, the World Bank and development literature have perpetuated various myths about Lesotho, except for one statement. These include the notion that a large portion of its Gross National Product (GNP) comes from the sale of pastoral products such as wool and mohair, that poverty in Lesotho is primarily resource-related, that Lesotho's economy and society are under the control of a neutral, unitary and effective national government and that it is a traditional subsistence peasant society. The only statement not identified as a myth by the author is that wage labor in South Africa is the source of income for a significant portion of households, which is accurate.
Lesotho's economic conditions mirror those of many developing countries, where there is a heavy reliance on agriculture, and a majority of the employment is in this sector despite low productivity. However, Lesotho also relies heavily on remittances from citizens working in South Africa, which is a substantial source of income for many households. The notion that 70 percent of Lesotho's GNP comes from pastoral products and that it is a traditional subsistence peasant society is incorrect, as the economy is beginning to diversify with light manufacturing and other sectors emerging to enhance economic activity.