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The ideal economic recipe for the country
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The ideal economic recipe for the country
The recent comments made by Finance Minister Sithanen on the situation of our economy call for some comments. Mr Sithanen was very evasive in his public statements on this subject. He has been showing signs of incompetency since he took over the office of Minister of Finance. So let us look at our economy as it stands today and find an ideal economic recipe for Mauritius.
Pro-growth, pro-poor – this is the ideal economic recipe for a country like ours that has a long way to go before it can speak of having attained sustainable development. From the way it’s going on, our country could face not only recession but also bankruptcy if we are not careful. The cost of a barrel of crude oil could go up to $ 100 and this could worsen our economy. So the government needs good planning in its expenditure and in its strategy to attract investors.
A huge developmental challenge is continuing to confront us. We cannot afford to lapse into the rousing rhetoric of the politician because far too much is at stake. No wonder why the outgoing government wanted to adopt a state of emergency because for them “gouverner c’est prévoir”. Today the new government finds itself in a great economic turmoil where there is a danger that we could be dictated how to run our country by the World Bank and the IMF.
There is a general expectation of achieving an 8% growth rate, which, it is hoped, would pave the way for a 10% growth performance. What is important is for the government to translate these economic achievements into growth for all.
Empowerment of the people</B>
The desired aim is growth with equity. Achieving the former does not necessarily mean that the latter would follow automatically. Economic growth targets may be achieved but its fruits could remain concentrated in a few hands. Accordingly, arrangements to achieve a redistribution of wealth should go hand-in-hand with economic growth, if sustainable development is to be achieved.
It needs to be clarified that the people’s dependence on state handouts is not what we mean by economic equity. The poorest of the poor should be helped by the State in material terms. But this should not translate into a perpetual dependence by the people on the State, which could eventually prove counter productive because the aim of development is the empowerment of the people. That is, self-reliance rather than passive reliance on the State. Accordingly, let us hope that these parameters of development will be borne in mind by the State.
However, the State has done well by focusing on infrastructure development during the past five years in areas such as education, health and transport. Infrastructure development is an effective means of taking development to the rural areas and there is no denying that this aspect of the development experience needs to be strongly focused on.
Likewise, if economic goods produced in the provinces cannot be marketed through a sound road network, it would be futile to speak of the economic empowerment of the people.
The State must therefore set the correct parameters for our development. What needs to be done is to put these plans into action and this requires untiring effort by all concerned.
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