Back to the Future by Rajah Ramdaursingh

I loved reading this article when it was first published in 2003. I still like it and wish to keep it here for my records.

For those of you who did not read it in 2003, here it is - posted for you ( I dug it from the Le Express Archive recently)

Back to the Future

by Rajah Ramdaursingh

ALLOW ME to take you for a ride… to the glorious year of 2030. Twenty seven years away but what a change. We land not far from Plaisance airport where the new generation Boeings of Mauritius Airways stand proudly aside the planes of the other national and charter airlines on the two runways. The visitors pour in not only for sun, sand and sea but also for alternative modes of relaxation as well as for the chance encounter with the jet set. The Bel Ombre resorts boast of being the Saint Tropez of the Southern hemisphere with the international paparazzi keeping tabs on the wealthy and famous. Driving around the island, you cannot help noticing that King Sugar is no more. There are still some sugar cane plantations around but their primary focus has moved to the production of various forms of energy. The expertise that was once developed in the sugar industry has been put to good use in the fast evolving biotechnology sector. Mahebourg has been twinned to Barcelona as its busy port plays host to the many Spanish trawlers and other vessels fishing in our seas, since long heralded as our most abundant natural resource and pregnant with jobs for our blue-collar labour. So much so that given the importance of the fisheries sector in the national economy, Mahebourg [bears comparison] to the Port Louis harbour which has in the meantime established itself as a flourishing modern hub. Mauritius does not rule the waves but has in more ways than one become the meeting point between Africa and Asia be it for trade between the two continents or provision of services from the Mauritian springboard. The various cyber towers around the island house some of the most famous names from around the globe. Although their predecessor at Ebene took a number of years to reach cruising speed amidst tough competition and the ever-changing global context, it set the tone for the creation of “the intelligent island”. The well trained indigenous workforce work alongside its African and Asian counterparts in servicing the now well established worldwide fifth generation outsourcing markets. Indeed the island seems to have become an educational and training hub providing onsite and virtual courses to the local and regional populace. The island, once so proud of its basic literacy rate, can now boast of a high training and educational coefficient. All this has no doubt helped the financial sector which has since integrated the business services sector. Long gone are the days when managers spent sleepless nights worrying about the latest regulation to be imposed or indeed the latest Indian High Court judgement. Despite the reduction of tax rates worldwide, the offshore sector continues to prosper as an efficient and well regulated back-office jurisdiction. The banks and insurance companies withstood the various shocks they faced and through strategic alliances with international institutions, have become well established names in the region. Erosion of competitive advantages Although it has dwindled in size, the predicted demise of the traditional manufacturing sector has not materialised. The George Bush House, in honour of its main benefactor, has built a solid reputation as a centre of excellence for the design and styling of garments supporting the few high end textile factories on the island but more importantly those on the mainland and in Madagascar which seems to have finally lived up to its potential. Other factories have been established to support the fisheries freeport, pharmaceutical and technology sectors. Although appearances can be deceptive, it is obvious that the island has come a long way indeed. We are told that its GDP has grown threefold over the last thirty years aided no doubt by the record level of investment in the now well diversified economic base as well as its increased competitiveness underpinned by the constant quest for higher level of productivity not only as far as labour is concerned but also for capital and the other factors of production. It also appears that both blue and white collar jobs are plentiful as unemployment has been curbed to an acceptable level. Apart from the fact that the national finances seem have been redressed eliminating the risks arising from the chronic high levels of indebtedness and deficit of the past, the nicest aspect is the feeling that the benefits of the development have permeated to all its inhabitants. The crave, not to have an equal share of the country’s resources, but to have the opportunity to have a fair share of its wealth seems to receive more than mere lip service by the stakeholders. All this is a very far cry from the less than rosy picture which bedevilled the country at the beginning of the century. Then the regular release of hotly contested sets of economic indicators only served to confirm what people already felt in their everyday lives. The lack of preparedness in tackling the challenges resulting from, amongst others, the erosion of our competitive advantages in the sugar and manufacturing sectors, and the changing world environment had contributed to the poor state of affairs. The challenges facing the country were then summarized very simply at five levels. As far as the country was concerned, firstly it needed to improve its foothold in the world market by offering higher value added products on more competitive terms to markets it understood. As a result there needed to be massive investment and a cultural shift to facilitate a swift transition from its then semi manufacturing economic base to a more diversified one with an adequately trained manpower to service a modern production and management system. Secondly the level of debt whether at national or household level needed to be brought under control and the books balanced in order to avoid the dire consequences of a persistent mismatch between revenue and expenditure. Thirdly, as far as the people were concerned, their main concern remained the improvement if not the safeguard of their standard of living and being able to secure a decent job for themselves and their children. Next, we needed to reinforce the safety net provided to the really needy to enable them to have access to the services to ensure their well being and advancement. Lastly, most craved for the opportunity to have a fair share of the fruits of development based on the resources they contributed and their ability to develop them. Recognizing our strengths and failures So how did the country manage to make such a leap forward to what we now see in 2030? It was probably simpler than most of us would have dared imagine once we recognized that there was no instant miracle or indeed possible alchemy. Success depended on facing up to the issues facing the country and explaining them truthfully to one and all, recognizing our strengths and weaknesses, instilling predictability and transparency so as to win the confidence of investors and other stakeholders, all round better governance, fighting corruption, working relentlessly towards a more diversified and fairer economy even if it meant getting rid of sacred cows, being bold and innovative by opening up more to the outside world and capitalizing on regional opportunities, and by being more efficient in all walks of the economy. Most of all it required having a clear vision rather than a piecemeal approach and working unflinchingly towards converting this into action. Whilst the country’s size is possibly one of its biggest weaknesses in terms of economies of scale and resources, it nonetheless provides the opportunity to be more dexterous and to benefit from a greater and quicker impact from the optimal use of limited resources. The country continued to invest massively in targeted education, training and infrastructure which were essential to create the backbone of a modern economy. The overspending in these areas was compensated by better pricing of Government services and resources as well as more rigorous spending in less essential areas of the private and public sectors. Coupled with the massive drive against corruption in all walks of life, the never-ending fight for greater efficiency not only helped to improve collection of revenues, avoid distortions and save millions but also to instill the ethos of transparency, discipline, fairness and just reward. The country recognized its dependence on the outside world not only as a market for the goods and services it produced but also as a means to improve its own economic structures and performance. Strategic partnerships were encouraged in all sectors as a means to promote investment, benefit from know-how and systems advances elsewhere, ensure efficiency and meritocracy, and access markets. Whilst all parties, realizing the challenges posed by the survival of the fittest, contributed by implementing better governance in he economy, Government helped by adding transparency and predictability to the already stable environment, thus helping to reduce the risk perception of investors whether local or international. It jumpstarted the process by concessioning out the utilities to international firms in alliance with local firms. Furthermore, attractive incentives were offered to those players who could add value to specific sectors and unlock the country’s wealth. At the same time paradoxically the country started to expect less from Government as it realized that all stakeholders meant business and that their destiny lay in their own hands. I did ask you to allow me to take you for a ride. But is all this as far fetched, as it seems? I somehow feel that we may be in for a bumpy ride but as long as we have a safe landing. Rajah Ramdaursingh
The country recognized its dependence on the outside world not only as a market for the goods and services it produced but also as a means to improve its own economic structures and performance.