Mauritius: sustaining growth going forward

Abstract

The report, written for the Project course undertaken in Term 4 by PGP2 students, explores the potential future growth areas for the African island of Mauritius, which has in the past relied on its status as a market conduit to flourish its OFC status for growth of the Financial Inter mediation and Services Sector. As the earlier treaties and quotas, which allowed this small country to become one of the only African "Tiger Economy", Mauritius is at a crossroad where it needs to freshly chalk out a new developmental strategy to sustain its GDP growth, which made it a "Miracle Economy". The report begins with analyzing capital and portfolio flows of Mauritius which reflect its status as a market conduit that has been used to channel funds to India due to its favorable Double Tax Treaty. The report then dives into the growth story of Mauritius from a mono-culture economy to a services driven economy, covering a wide range of topics including development strategy, the role of diaspora and astute foreign policy. We have then presented an analysis of domains and competence areas where Mauritius is increasingly finding itself in a flux due to changing global regulations and policies. The report ends with recommendations on improvement arenas and identification of future development pillars