Democratisation of the economy is one of the rare topics on which both government and opposition agree. They may have felt that the public shows particular interest in this issue. Yet, no concrete measures have been taken. The opposition is only using the issue to win voters over, while deputy prime minister Pravind Jugnauth declared : ?In Mauritius, the democratisation process started many years ago.?

Actually, it is strongly felt, throughout the country, that the economy only belongs to a few wealthy families. Democratisation would thus allow new actors in the economic landscape. This seems impossible at the moment, as conglomerates (belonging to some four families) tend to control all economic fields. These conglomerates, according to Amédée Darga, consultant and managing director of Starconsult, favour the companies belonging to their groups for the supply of goods and services, and this is not healthy for our economy.

The concentration of powers is a reality in Mauritius. However, one should not perceive the negative aspect only. Actually, the descendants of settlers have inherited the sugar industry. But, as Gilbert Espitalier-Noël, board member of Espitalier-Noël Group, explains, they have not rested on their laurels. ?We have reinvested in tourism, the EPZ and financial services.? This concentration has precisely brought about the diversification of our economy. Moreover, as Tim Taylor, CEO of Rogers Group, rightly points out, ?Control and ownership have to be kept apart. One can control something without possessing it.?

A solution to expand the economic sphere must be found. However, the debate has been deviated from its real goals by politicians who are using it to gain popularity. For instance, the Labour Party leader pointed out during a meeting by the opposition. ?The government alliance is only working for the rich.? And he inevitably added, ?I made it one of my main concerns when I was at the head of the country.?

For his part, prime minister Paul Bérenger looks yet to be very conscious of the situation. He said that he finds it very dangerous that certain important groups have the monopoly on development opportunities and calls for more creativity. ?All the components of the private sector must benefit from economic development. Development projects must not be reserved for powerful groups only.?

<B>Breaking monopolies</B>

Despite all these laudable intentions, there has been no real initiative from the successive governments. What can be done in pratical terms to end this monopoly? Of course, the big companies will continue to operate; the goal is to find room for new actors.

As far as the deputy prime minister is concerned, he believes that things will change naturally and progressively, ?With globalisation and the need to be more competitive, our firms will unavoidably have to be more open to local, regional and international partners. Opening up is now synonymous with sustainable success.?

George Chung, an industrialist and director of T-Printers, is more liberal in his approach; he thinks that competition will solve the problems of the market. According to him, both private and state monopolies must be broken since they hinder the creation of new enterprises.

Tim Taylor thinks that democratic principles cannot always be applied to the economic context. He admits that economic control is in the hands of a few groups, but ?it is time for pension and investment funds to play a more active role in the Stock Exchange in order to dilute power.?

The Stock Exchange was expected to help the process of democratisation of capital. However, it never really occurred. 25% of the capital of some companies? (the ones quoted on the Stock Exchange) is reserved for the public. This practice was aimed at extending shareholding to favour a better distribution of riches. Although 8% of the population were expected to buy shares in the major companies, they were actually bought by institutional investors. As a result, the hope for more open shareholding ? and particularly open to the population ? has not been fulfilled.

Although democratisation still has a long way to go, it seems we are moving in the right direction. The private sector knows that globalisation and international competitiveness will force it to review itself. Big firms will have to specialise in fields that they master well. Besides, conglomerates have already begun restructuration.