Country Report Mauritius February 2011

Outlook for 2011-12: Policy trends

The government, which entered office in 2010, will continue the liberalising policies of the previous administration, although the pace of reform will be slower and it will seek to appear less favourable to private enterprise and more favourable to the poor. The government will continue efforts to diversify the country's "four-pillar" economy, based on sugar, textiles, tourism and financial services, to increase its resilience to shocks and its competitiveness. Investment in education and infrastructure is vital if the shift towards a more services-oriented economy-especially the development of Mauritius as a regional centre for information and communications technology-is to succeed. Another element of economic strategy is the further development of fishing and tourism. The restructuring of the sugar sector-a large employer-will continue. However, policy will focus mainly on measures to support the economy following the debt crisis in the euro area. In particular, the government will continue its Economic Reconstruction and Competitiveness Programme (ERCP), a five-year scheme begun in 2010, one of the main aims of which is to promote diversification in the tourism sector and the expansion of small and medium-sized enterprises in the textile and sugar industries. In the longer term the government wants to reduce the economy's dependence on the slow-growing developed world and increase its links with the fast-growing developing economies.

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