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Agenda for an Alternative Future

17 août 2024, 08:25

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1. Treat the System not the Symptom

As we approach the forthcoming general elections, I am compelled to break the silence and advocate for a “Green New Deal”. This proposal aims to spark a crucial discussion among those in leading political roles, and encourage the wider population to scrutinise why our economic, social, and environmental conditions are deteriorating. It is imperative that we seek genuine, long-term solutions rather than relying on temporary fixes. Our country does not need temporary patches on failed policies but needs a comprehensive strategy that addresses pressing issues holistically and sustainably. The “Green New Deal” has been a significant factor in recent elections in various countries, driving political discourse and shaping policy agendas.

2. Ten years ago… and it’s over

Following the 2014 general elections, there was a notable shift in the political focus away from environmental issues. The Maurice île durable (MID) commission, which had been pivotal in advancing the country’s sustainability agenda, was disbanded. As a result, key initiatives such as the green economy, sustainable agriculture, increased native forest coverage, the biomass project to replace 15% of coal in Independent Power Producers (IPPs), MID schools projects, the mandatory sustainable development course at the university level, the home composting project, and the M1 and M2 embellishment projects never materialised. Since 2014, environmental concerns have received insufficient attention, with the government post-2014 prioritising economic development and pursuing financial growth at any cost.

3. Perpetual Growth on a Finite Island... Not Possible... creating A Failed System

Many people believe that the current economic and social structures are insufficient to meet our current challenges and must be transformed. Climate change, species extinction, demographic shifts, and the debt and currency crises have all shown that the status quo cannot be maintained forever. The major failures of our economic system can be traced back to several key issues: the misperception of money as true wealth, recurring boom-and-bust cycles, the erosion of the middle class, and the increasing struggles of families who face difficult choices between paying rent and putting food on the table. Additionally, we are witnessing a decline in community life, with drugs becoming prevalent, and the wanton destruction of nature. These interconnected problems underscore the need for a fundamental reassessment and transformation of our economic policies and priorities.

The chapter titled “An Economic Model in Need of an Overhaul” in the 2023 Country Private Sector Diagnostic (CPSD) by the International Finance Corporation (IFC) and World Bank underscores the urgency of reevaluating Mauritius’ economic strategy. This title adds significant weight to the concerns that I have previously been outlined highlighting the need for a fundamental shift away from the current economic trajectory.

4. Enslaved in the Debt Spiral

To enhance reforms, it is crucial to reduce public debt which is the cancer destroying the health of the country. High levels of debt divert resources away from essential services and investments, thus limiting the government’s ability to respond to actual crises. By managing and reducing public debt, a country can create a more sustainable economic environment that supports long-term growth and stability.

The national debt, which has reached Rs 567.49 billion in 2024 and represents 71.5% of the GDP, is a pressing concern. Traditionally, a debt-to-GDP ratio exceeding 60% is considered problematic. The current situation, with its significant debt burden and the Bank of Mauritius’s bailout efforts, presents a crucial opportunity to initiate a much-needed national dialogue on this issue. It is time to address fundamental questions regarding our debt management, fiscal policies, and longterm economic strategies.

5. Resistance to Change…

As concerns about the current system intensify, so do the proposals for alternative models. Various new ideas challenge our existing economic and societal frameworks. There is substantial resistance to change within the public service, with many individuals reluctant to step out of their comfort zones. Regarding efficiency and accountability, audit reports consistently highlight severe issues year after year, yet there are no meaningful sanctions against public officers responsible for the mismanagement and wastage of public funds. This lack of accountability exacerbates the problem and hinders necessary reforms. Resistance to systemic change stems primarily from three sources: first, the entrenched interests of established leaders within different ministries; second, policymakers who are swayed by the influence of large corporations; and third, the reluctance of institutions to adopt innovative approaches and embrace change.

It is evident today that the governmental machinery – comprising various institutions tasked with implementing policies – is falling short of expectations

6. A Taste of the Possible Future

Political parties contesting the upcoming elections must prioritise the “Green New Deal” in their platforms. The health of our planet impacts every facet of human life, including public health, economic stability, national security, and the well-being of future generations. As climate change accelerates and natural resources become increasingly strained, integrating environmental concerns into policy-making is crucial for driving sustainable development, fostering energy innovation, and mitigating the effects of environmental degradation. By tackling these challenges, political parties can protect ecosystems and biodiversity, enhance resilience against climate-related threats, and ultimately create a healthier and more equitable island for all of us. The recent amendments in the Finance Bill concerning forestry and oceans reveal a concerning disregard for the protection of our natural ecosystems. These changes speak volumes about the ongoing neglect and lack of respect for our environment. It is crucial to address these issues and ensure that our policies genuinely safeguard our natural resources and uphold ecological integrity.

7. The “Privateers”

Building on the opaque and troubling experiences with the “stimulus package” and the «Mauritius Investment Corporation», it is essential to reevaluate the rationale behind providing substantial financial aid to corporations during economic crises. We need to assess whether these corporations genuinely contribute to the national interest or if they primarily advance their own agendas. For instance, consider the tourism sector: despite receiving hundreds of millions of rupees during recent lockdowns and financial crises, it has long operated on an “all-inclusive” model, where a significant portion of the revenue remains in foreign accounts. This raises questions about the effectiveness and equity of such financial support provided by the government.

Does their contribution to the public good justify the significant expenditure of national resources? It is time for a thorough evaluation of whether such financial support aligns with the broader interests of the country or merely benefits a select few before opening the national purse to shower them with billions of rupees.

8. The 2023 CPSD Report

The December 2023 CPSD by the IFC and World Bank arrives at a pivotal moment, offering a chance to reassess the country’s previously successful growth model especially after the Covid-19 pandemic’s impact and the escalating challenges of climate change. The report states: “Mauritius is able to articulate policy goals it seeks to achieve; however, strategies to achieve these goals can lack depth and clear identification of structural issues…” This aligns with what I mentioned above.

In the CPSD report, it is stated that to transition to a new, innovation-driven economic model, Mauritius will need the robust private sector involvement, and the private sector is plunged only on land development and adding more built-up areas that this country’s carrying capacity can afford. There is neither innovation in the pipeline nor any economic advancement and sustainability for the country.

9. Moving away from an illusion Economy

For many years, we have been constructing an economy based on the illusion that converting arable land into concrete structures is a sustainable path forward. This approach carries severe economic, social, and environmental repercussions for the broader population. There are more effective and less costly alternatives to provide essential services while minimising harm. It is time to explore and implement approaches that more effectively balance development with environmental stewardship and social well-being. Relying solely on economic growth as a development model often results in significant wealth for a select few, while imposing substantial social and environmental costs on the majority. We need to adopt strategies that promote equitable prosperity and sustainable progress for all. The involvement of the private sector in fostering a diverse economy should be a top priority for the next freshly elected government. By focusing on expanding and diversifying economic activities, the government can drive sustainable growth and innovation, addressing current challenges and preparing for future opportunities.

10. A system depending more and more on imported labour

Mauritius’s history is marked by waves of migration that have deeply influenced its culture and traditions. Today, immigration continues to be a crucial driver of the country’s development, providing a diverse range of skills and talent that energises both the formal and informal sectors of the economy. The contributions of migrant workers are essential to many aspects of daily life; without their presence, we might not have access to essential services or enjoy the variety of goods and meals, such as bread for breakfast. Their involvement underscores the integral role they play in sustaining the nation’s economic and social fabric. Migrant workers make significant contributions to the Mauritian labour market by filling both high- and low-skilled roles. Over the past decade, immigrants have accounted for 17% of the workforce increase, bringing the total number of migrant workers in Mauritius close to 100,000 roughly making a percentage approaching 3.5 %.

We are constructing an economic model that risks becoming overly dependent on foreign labour, which can create significant vulnerabilities. This over-reliance undermines the development of our own labour force which has been a total failure so far. The brain drain, where our grey matter is leaving the country for better opportunities abroad, and the continual loss of talent contribute to our economic challenges. Addressing these issues requires urgent attention to build a more resilient and self-sufficient economy.

11. Building the Consensus

There is a significant opportunity to build a broad political consensus around the “Green New Deal”. Despite the challenges of greed and corruption that have plagued the country, we can unite in our shared concern for the well-being of our children, families, communities, and the natural environment. We aspire to a society free from drug abuse and businesses that prioritise people over profits. We believe in equal opportunity and seek to be actively involved in shaping the decisions that affect our lives. It is time to set aside partisan politics and work together to make the “Green New Deal” a reality. We must act now to prevent economic, social, and environmental collapse. This is our moment to drive positive change for ourselves and future generations.