Every country, every government is concerned with higher economic growth and the Mauritian government is no exception. Since entering into office, the government and the Minister of Finance have been working assiduously in order to boost the economic growth of our country (?). New measures have been enforced, new people have been appointed to steer (effectively ?) our country towards higher economic growth. To succeed, the Prime Minister, the Minister of Finance and other ministers are even going bravely around the world to attract foreign investors in Mauritius.

But what is the rationale behind the quest of our government for higher economic growth? What is it that makes economic growth so important?

Before answering this question, one must first know and understand the very meaning of the concept of economic growth which is often mistaken with other concepts such as the one of development. There is no standard definition of economic growth and it would certainly not be an overstatement to say that every economist has his self-made definition.

The American economists Krugman and Obstfeld consider that ?economic growth means an outward shift of a country?s production possibility frontier? (Krugman & Obstfeld, 2003). Lipsey and Chrystal give us another definition that lays emphasis on national income. They assert that ?economic growth refers to the growth of total (potential) national income? (Lipsey & Chrystal, 1995). For another economist, Collins, economic growth means ?either an absolute or per capita increase in an aggregate measure of national income such as the well-known gross national product (or its more recent variation the gross domestic product)? (Collins, 2000).

<B>Life widely perceived as unsatisfactory</B>

We will not expose here all the definitions available as it would be ludicrous but the three definitions given above show that economic growth is a quantitative phenomenon. In fact, it refers to the growth of a country?s income. This growth is achieved through an increase of the country?s capacity to create wealth.

To illustrate and better understand the real meaning of economic growth, let us take the example of a country say Z with a national income of US$ 1 billion in 2004. In January 2005, several new textile manufacturing plants were established in this country and all additional textile products manufactured during 2005 were exported to Europe. As a matter of fact, the national income of Z increased by 10% in 2005 compared to 2004, reaching US$ 1.1 billion. In this example, it can be said that Z experienced an economic growth of 10% in 2005.

After having viewed the meaning of economic growth, it is now easier to seize the importance of this quantitative phenomenon. It is actually ?the single most important force leading to long run increases in living standards? (Lipsey & Chrystal, 1995). Indeed, the higher the economic growth of a country, the higher the national income and consequently the higher the ability of the country to finance its move towards better living standards for its people.

To put it short, economic growth is a means to achieve further development that can be defined as ?the whole gamut of change by which an entire social system, tuned to the diverse basic needs and desires of individuals and social groups within that system, moves away from a condition of life widely perceived as unsatisfactory towards a situation or condition of life regarded as materially and spiritually better? .(Todaro, 2000)

Therefore, the recent measures enforced by the government to boost economic growth are actually meant to improve the quality of life of the Mauritian people in the medium and long term. Indeed, the three pillars on which hinge the government?s budget namely low-tax platform for business, ease of doing business and the ability to attract technical know-how, skills and money aim at increasing the national income in a productive and efficient manner. This ultimately shall lead to the maximisation of the economic well-being and social welfare of the Mauritian nation.

Yet, the quest of our country for higher economic growth will not be an easy task. Other countries are not remaining idle, they are also questing!

<B>T.A. PATHER</B>