As an overseas observer, I find the policy reaction to the challenges facing Mauritius rather worrying, to say the least.

Both the government and the Bank of Mauritius should share the blame for runaway inflation. Whereas the Bank of Mauritius has proved unfit to anchor the Mauritian rupee within a narrow band, the government has failed on many fronts.

The pass through to persistent price inflation is only partially linked to foreign forces.

The bulk of the pass-through is self-inflicted. It is true that food and fuel bills have been on the rise worldwide. It is equally true that very few countries have had to bear consecutive years of relatively (compared to its trade partners) high inflation like Mauritius.

Government policies have indeed contributed to worsen the situation, namely through a brutal subsidy removal, a dodgy food security program based on boosting land speculation for property development, a trailing and incoherent energy security program, an inadequate public transport coupled with increasing traffic jams, and loose fiscal policies.

We can expect our officials to come back from Singapore expressing how impressed they are but is it realistic to expect them to say that they have finally understood, even partly, how it happened?

Will they seize the opportunity to learn how Singapore hedges its currency, and indeed its businesses and households, against global instability? Will they see the vision and wisdom in including gold in their reserve, as Mr Lutchmeenaraidoo is suggesting?

Kevin NG Hong Kong