2. Economic Situation at Independence
Mauritius was among the least developed
economies in the world :
Low per capita income : USD 200
Agricultural and monocrop economy : Sugar >91% of total fob exports
Labour: high unemployment (>16%) and low labour productivity
Education: Very poor enrollment rate secondary education
Quality of Life: low standard of living, poor access to water, electricity
and decent dwelling
Demography: high population growth (>2%), low life expectancy (61
male; 66 female) and high infant mortality rate (64)
Infrastructure: poor quality road networks, administrative buildings,
communication network, provincial airport
5. Mid 2000s: Fundamental Shift & New
Development Paradigm
1. INCOME GENERATION: INVESTMENT AND GROWTH
Fiscal Reforms /Consolidation
Low flat income tax rates of 15%
Removed discretionary power of Minster of finance to remit
custom duty and excise duty
Tax expenditure reforms
Indexation of non tax revenue
Broadened tax base: (solidarity levy on bank, telecom. Sector;
extension of environment protection fee to new items, levy on
SMS);
Improved tax Administration
Programme Based Budget (PBB)
PFM Reforms
Debt Management : New Public Debt Management Act
6. Mid 2000s: Fundamental Shift & New
Development Paradigm
1. INCOME GENERATION: INVESTMENT AND GROWTH (cont)
Ease of Doing Business
Investment facilitation
Greater openness/attracting foreign capital, skills, talents, expertise, ideas
Labour Market Reforms
From job protection to worker protection
Flexibility
Workfare Programme
Institutional Reform
Operatinalisation of MRA (2006)
MRA regional office in Rodrigues
Public Enterprise Reforms
Statistics Mauritius
Setting up of Office of Public Sector Governance
Setting up of Public Procurement Office
Establishment of Monetary Policy Committee (2007)
7. Mid 2000s: Fundamental Shift & New
Development Paradigm
2. Social
Arts & Culture
Promotion & Development of artists via grants, training, and festivals
Partnership with private sector to preserve heritage
Solidarity
Targeted social safety nets
Social housing
Education & Healthcare
CSR (1 percent of profits but used by firm within National Priorities)
Empowerment Programme
National Empowerment Fund(NEF) targets the highly vulnerable
Training programmes in Literacy & Numeracy, and Life-skills
Special programme for re-training of unemployed women
Integrated Social Development (Housing) Programme:
8. Mid 2000s: Fundamental Shift & New
Development Paradigm
3. Environmental Sustainability
Maurice Ile Durable
Reducing energy consumption
Leveraging renewable sources: Solar, Wind, Ocean-based
Incandescent bulbs replaced with CFLs (1 Million to date)
Government subsidy for solar water heaters
Bus modernisation scheme
Replacement of fleets with energy efficient and less polluting buses
Street & Traffic light replacement
Large scale composting for agriculture
9. IMPACT OF REFORMS DESPITE
DRAG FROM GREAT RECESSION
12
Real GDP Growth Rate & Unemployment Rate (%)
Unemployment
rate
80
GDP Growth
70
10
Unemp
falling
8
Public sector debt as a share of GDP
Improved debt
ratio
60
50
6
40
Rising
Growth
4
30
20
2
10
0
2011
2010
2009
2008
2007
2006
2005
2004
2003
2002
2001
2000
0
16
Exports of goods and services (Rs bn)
14
200.0
Growth in
Exports of
goods and
services
160.0
140.0
12
Rs bn
180.0
Jun-04 Jun-05 Jun-06 Jun-07 Jun-08 Jun-09 Jun-10 Jun-11 Jun-12
FDI (Rs bn) & Investment Rate (% of GDP)
Improved
FDI &
Investment
Rate
25
23 R
a
t
21 e
10
120.0
100.0
8
19 %
)
60.0
(
6
80.0
27
4
40.0
17
2
20.0
2011
2010
2009
2008
2007
2006
2005
2004
2003
2002
2001
2000
0.0
0
15
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
FDI
GDFCF as a % of GDP
