Innovation and Learning in Asia and Africa
5. 5.1 Making a difﬁcult transition in Mauritius INTRODUCTION Mauritius has recorded impressive economic growth since 1980. Its outwardoriented strategies have transformed this small agricultural island into a signiﬁcant exporter of manufactured goods within a very short period of time. With a gross national product (GNP) per capita of Rs140 856 (US$5030) in 2004, Mauritius is categorized as an upper-middle-income economy. The two sectors that have boosted the manufacturing performance of the Mauritian economy are the sugar milling and the clothing sectors. However, the textile sector is now in decline, which means that new sectors have to be promoted. Equally, the sugar sector is facing serious constraints. This follows the recent pressures from the World Trade Organization (WTO) on the European Union (EU) to reduce sugar prices. Ultimately the EU had to agree to reduce Africa, Caribbean and Paciﬁc’s (ACP) guaranteed sugar price gradually between 2006 and 2009 by 36 per cent with an immediate drop of 5 per cent in 2006. At this reduced price level, it will be very diﬃcult for Mauritius to compete on the world market for sugar, as the production cost will be much higher than the market price. A restructuring programme by the government of Mauritius is in place to mechanize the sugar industry. Mauritius is strategically located oﬀ the far east coast of Madagascar and has a rich history, which has shaped the country’s economic path. Once an important stopover on the Spice Route, it is has transformed...
You are not authenticated to view the full text of this chapter or article.
Elgaronline requires a subscription or purchase to access the full text of books or journals. Please login through your library system or with your personal username and password on the homepage.
Non-subscribers can freely search the site, view abstracts/ extracts and download selected front matter and introductory chapters for personal use.
Your library may not have purchased all subject areas. If you are authenticated and think you should have access to this title, please contact your librarian.