Contents

Executive summary

1	Introduction

2	Mauritius - The changing picture

2.1 2.2 2.3

Key factors of development Strategic assumptions The unemployment problem

3	The challenges

3.1	Weak micro economic foundations

3.1.1 3.1.2 3.1.3 3.1.4 3.1.5 3.1.6 3.1.7

Low business confidence Inappropriate education and training Poor public utilities Inefficient capital markets Weak administrative infrastructure Labour market rigidities Inadequate physical infrastructure

3.2	Macro economic constraints

3.2.1 3.2.2

Serious public finance disequilibrium Outdated monetary policy making structure

3.3	International competitive pressures

3.4	Weak corporate international competitiveness

3.4.1 3.4.2 3.4.3 3.4.4

Inadequate corporate re-engineering Structural sectoral problems Low technology and low skills specialisation Poor linkages between SMEs and large companies

4	The process and the way forward

4.1 4.2 4.3

The new strategic assumptions The new matrix Strong micro economic foundations

4.3.1 4.3.2 4.3.3 4.3.4 4.3.5 4.3.6 4.3.7

High business confidence Improving human resource development Efficient and competitive environment for utilities Efficient capital markets Development minded civil service Flexible labour markets Supportive modern infrastructure

4.4	Macro economic discipline

4.4.1 4.4.2

Sound fiscal policy Broad-based Monetary Policy Committee

4.5	Opportunities in the new international environment

4.6	Effective corporate re-engineering

4.6.1 4.6.2 4.6.3 4.6.4

Internal restructuring of companies Moving from sectors to clusters New clusters Strong linkages between SMEs and large companies

5	Conclusion

Annex 1