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Shot in the arm to banish self-pity
“Mauritius should avoid making the same mistakes as India, which wastes time in long debates and sometimes forgets to take action.” This reflection by the chairman of Oxford International Group, Percy Mistry, sums up the situation Mauritius is facing at the moment. The National Productivity and Competitiveness Council (NPCC) organised a public symposium at the University of Mauritius to comment the “Competitiveness Foresight” report published last year.
We have been concentrating so much on the end of our traditional sectors - sugar and textile – that we tend to forget that action should be taken to prevent the country from falling into an economic crisis instead of crying over what we are losing. For Percy Mistry, there is no other alternative than a more open economy.
According to the former senior financial adviser of the World Bank, the country should be more open not only to foreign trade but also to foreign ideas and expertise. “It will be impossible for the Mauritian economy to seize any opportunities if it is not open to external direct investment and foreign competence (...). The international community sees Mauritius as everything but an open country.” With this in mind, the Finance minister’s declaration that the only way of facing the crisis is to boost investment is comforting. We should be relieved that the government is aware of the problems ahead and that its intended actions in the future correspond to the recommendations of a foreign economic expert.
Growth rate must go up to 7%</B>
One of the biggest problems of the economy is that the growth rate isn’t going beyond 4%. To achieve good economic transformation, the NPCC report recommends that this rate must go up to 7%. According to Percy Mistry, “this will have a decisive impact on the standard of living of future generations. An annual growth of 7% is becoming an imperative.” And the only way of achieving such results seems to be to attract foreign companies to invest in Mauritius. “Mauritius must be seen as a business- friendly country by foreign entrepreneurs.”
The minister of Finance insists that the government has already been very proactive in its attempts to attract more investors to the country. The creation of a fast-track committee, the adoption of the silent agreement principle and the rationalisation of systems to incite people to invest are among these initiatives.
<B>Red tape reduced</B>
But Rama Sithanen points out that the government will not stop there. The National Equity Fund is being reviewed to set up a new investment structure. Moreover, the reduction of red tape is a government priority. Although the minister is aware that the situation can’t change overnight, he has committed to reduce the main constraints facing investors so as to boost investment.
But not only should investors be more numerous but there should also be quality investment to keep a certain standard. Investment is aimed at boosting productivity in several sectors, so investment should be more efficient.
It is high time for Mauritius to wake up and take essential decisions for its economic survival. Percy Mistry also criticised the “preference/protection mentality” of Mauritius, which has prevented it from opening up so far. Although this comment was highly criticised by members of the business circles present, Percy Mistry did not hesitate to say: “You thought that, being a small island, you would need protection all the time. You waste your time on wrong issues and do not dedicate enough attention to improvement of productivity, for instance.” Mauritius sometimes needs a shot in the arm to wake it up from its torpor!
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