Mauritius

Since independence in 1968, Mauritius has enjoyed a strong pluralistic democratic system and a sound human rights record. It is now leading an open and constructive dialogue with stakeholders on governance issues, including civil society and its main development partners. The Government remains committed to further improvements in governance as reflected in the broad governance commitments made in the context of the 2008-2013 European Commission – Republic of Mauritius Country Strategy Paper (CSP).

Mauritius has maintained good and friendly relations with its regional neighbours and has been active in peace initiatives and conflict resolution in the region. Mauritius sees significant benefits from increased regional trade and supports an agenda of rapid regional integration. It aspires to a fully effective FTA encompassing COMESA and SADC. Mauritius is negotiating the establishment of an Economic Partnership Agreement (EPA) with the EU as a member of the ESA group. Mauritius is also advocating a fully effective FTA with both the ESA group and the EU, to ensure compliance with WTO provisions.

Economic and social achievements in Mauritius have been impressive by regional and international standards. With an average growth rate of around 6% over the past three decades, general living standards of the population have improved significantly and the country is well on track to reach the Millennium Development Goals before 2015.

With trade liberalisation pressures and the loss of preferential access to export markets, coupled with soaring oil prices and inherent domestic structural weaknesses, the annual average GDP growth has dropped to 4% in the period 2001-2005. With limited natural resources, constraints resulting from its small size, and isolation from main markets, Mauritius needs to urgently redress its macro-economic fundamentals, the education and training system, and the business enabling-environment to unleash high-value added growth.

In response to these challenges, the Government has formulated a ten-year economic reform programme to put the economy back onto a growth path of over 6% in the longer term and for which it is relying on external resources, including under the Aid for Trade Initiative. The reform programme outlines a string of measures underpinning the four main planks, namely fiscal consolidation and improving public sector efficiency, improving trade competitiveness, enhancing the investment climate and democratising the economy through participation and social inclusion of all sections of society. The Mauritius Multi-Annual Adaptation Strategy 2006-2015 for the sugar sector forms an integral part of this comprehensive ten-year economic reform programme which the EC supports through the EC Accompanying Measures for Sugar Protocol Countries.

The response strategy outlined in this CSP covering the period 2008-2013 supports the Government's economic reform programme. The CSP has been prepared in close consultation with the World Bank as part of the harmonisation agenda. It includes a shared diagnosis and common results matrix. The two institutions have also agreed to joint implementation, through coordinated budget support operations, as well as to close coordination of supporting analytical work, including joint evaluations and a mid-term review.