The report on the state of the economy, presented by the government last week, is visibly shocking. Several economic sectors are already struggling as the country finds itself at a crucial crossroads. Mauritius faces major challenges, including an ageing population, brain drain, stagnating tourism as well as declining healthcare and education systems. Urgent reforms are required. However, it is not too late, if structural changes are applied. Professor Robin Nunkoo shares with “l’express” his analysis and recommendations. He advocates for a radical transformation of the economy and emphasizes the need to redefine political priorities and rethink development models to restore the island’s economic vitality.

How can Mauritius balance rising healthcare demands, such as chronic disease management and long-term care, with the financial sustainability of its healthcare system, and what are the socio-economic implications of an ageing population?

Two interrelated factors explain the rising demand for healthcare in Mauritius: (i) the ageing population; and (ii) the declining health status of Mauritians. A full appreciation of these factors is important to recognize their consequences for the funding of healthcare. Some key statistics are worth considering. The population of Mauritius is estimated to decrease by 13% in 2050. Life expectancy has improved from 71.1 years in 2000 to 73.4 years in 2020, contributing to population ageing. The fertility rate has also declined from 1.54 in 2012 to 1.32 in 2022. By international standards, a fertility rate below 1.3 is considered as “lowest-low fertility.” This is why the share of the population aged 60 years and above is projected to increase from 19% in 2023 to 34% in 2050. At the same time, the healthy life expectancy of Mauritians, which is the number of years a person can expect to live in ‘full health’ has decreased from 64.3 years in 2015 to 63.6 years in 2021.

The current generations of Mauritians are, therefore, catching diseases at a younger age than previous ones. By 2025, the number of Mauritians expected to enjoy better health will have decreased by 12,500. As we are living longer and not every year gained in life would necessarily be spent in absolute good health, more funding will be required to care for older and sick Mauritians. Addressing those health challenges requires strong political will and an integrated approach that considers funding mechanisms, sociocultural norms, and changes in our philosophy toward life.

The government should start by tackling the source of the problem: poor health literacy among Mauritians. It must intensify its health promotion and health education interventions on good eating habits and healthy lifestyles to develop healthy communities while leveraging the benefits of social media to reach a larger section of the population. Government should also use fiscal measures and pricing policies to make healthy foods more accessible and apply stringent quality controls on imported and locally produced foods with respect to the use of pesticides, for example. There should be better coordination of healthcare and social services, while targeting priority conditions that create the greatest burden of ill-health, such as hypertension, stroke, and diabetes.

Policies in the health sector should also be linked to those in other sectors to create appropriate housing and living environments that keep people involved in their communities to ensure good mental and physical health for our elders. Government and civil societies should promote social cohesion across generations, which should be at the heart of our health policies. We must find ways to continue supporting our older people, without considering them as a burden on society. Public health is free and accounts for around 6% of our GDP. However, a time has come for both the government and the population to realize the limits of a welfare state. In a context where public funding is increasingly under pressure and public debt is rising, the government must find alternative sources of funding to finance health expenditure. A better hospital admission policy is required and can be achieved by introducing a nominal admission fee for patients, which shall not only provide an additional source of revenue for the government but also prevent abuse of our health care system.

This policy, however, requires bold political decisions by the government. The government must convince the population of the need for such a policy decision and reassure them that the revenue collected shall be reinvested in improving the healthcare infrastructure for their benefit. This requires complete transparency and accountability from the government. Our politicians’ demagoguery should be replaced by well-intended discourses that contribute to policy improvements. Politicians will only do a disfavour to our country if they continue to mix politics with economics all the time! It is also high time for Mauritians to become responsible citizens! Our demands on government should be reasonable and fair in the light of our socio-economic challenges.

Population ageing is a democratic process and cannot be easily altered. While other countries such as Sweden have attempted to find demographic solutions such as immigration and increasing fertility rate to alter the age structure of the population, their effects have been marginal. Mauritius faces the problems of emigration of young professionals, which further aggravate the ageing population trend. The government has introduced fiscal incentives to encourage couples to have more children; however, these are unlikely to be successful if they are not accompanied by other policy interventions. Childbearing desires are not shaped only by economic considerations. Couples’ proclivity toward childbearing is shaped by a range of factors, including societal norms, work-related stress, delayed marriage, and the desire of all genders to achieve professional status in the light of societal discourses on gender equality. Family as a sacrosanct institution of our society is gradually losing its value.

Why is Mauritius facing the problem of brain drain and what policies could effectively address this challenge, particularly in critical sectors, like healthcare and education, to retain local talents?

Brain drain is not only confined to the health and education sectors, but to all sectors of the Mauritian economy. Emigration is a critical loss of human resource capital and impedes research, innovation, and economic growth in Mauritius. Two major drivers of brain drain in Mauritius include: (i) our unique developmental challenges, given our small island developing state (SIDS) status and (ii) globalization. Brain drain is a problem for many developing countries but is more acute for SIDS like Mauritius, characterized by a small economy with unique socio-economic challenges compared to other developing and developed nations. On average, 50% of the highly skilled labour force in SIDS have emigrated, and for some islands, the brain drain exceeds 75%. Therefore, small states lose a larger proportion of their skilled labour force than other countries. Socio-economic fragility and lack of economic and job opportunities in Mauritius are encouraging professionals to migrate to other countries, creating a “brain drain” that has become a major cause of concern for policymakers.

Recently, however, the problem of brain drain in Mauritius has been perpetuated by a serious erosion of democratic principles, the rule of law, and the principles of good governance such as meritocracy, leading to a weak and corrupt public administration. The recent Afrobarometer survey evidences an erosion of public trust in government and its institutions. Mauritius has moved from a materialistic to a post-materialistic society, where the population values quality of life, political freedom, self-actualization, personal relationships, creativity, and environmental care over materialistic values like economic security and stability. Therefore, the absence of such values in our development process induces many young, well-educated, and healthy individuals to migrate in pursuit of a better quality of life in developed nations. Starting with Australia and Canada in the 1980s, many industrialized nations have gradually introduced quality-selective immigration policies and are now engaged in an international competition to attract global talent. Given its small island status and the labour mobility advantages offered by globalization, there are, unfortunately, few policy options available to the government that can seriously deal with the brain drain problem. It is difficult for Mauritius to offer a standard of living and quality of life at par with developed nations.

However, a change in our development paradigm is likely to encourage people to stay in our country. The government should put the people at the heart of the country’s development. Policymakers should realize that economic development on its own constitutes only one aspect of development and does not in itself indicate development. Development implies a process that attempts to improve the living conditions of people. The use of GDP as an indicator of progress should be complemented by other indicators, such as social engagement, social support, safety and security, democratic engagement, quality of environment, and mental and physical health. Well-being of Mauritians should be used as a lens for decision-making by the government. Furthermore, policies that encourage the Mauritian diaspora to engage with their native country, skill transfer, and productive investment of remittances can address some of the challenges associated with brain drain.

How can the higher education system adapt to address the skills mismatch in the labour market?

Mauritius faces a problem of structural unemployment, caused by a mismatch between the skills the labour force possesses and the jobs available in the economy. At the same time, there is an oversupply of graduates in several fields, and not enough jobs in the economy to absorb them. Traditionally, matching skills to job requirements was an employer problem. Employers were internalizing the supply of labour, selecting general abilities at entry-level positions and then trained and developed employees over a working lifetime to meet the specific skills of the organization. This approach, however, has changed substantially in Mauritius during recent years. The labour market is now considered as a platform for meeting employer skill requirements. Employers are now demanding that job applicants have relevant experience and job-related skills as an eligibility criterion, in addition to their academic qualifications. The implication from those labour market conditions is the underlying shift they represent for the provision of work-ready individuals, with important implications for universities and other institutions of higher education.

Universities, at least as traditionally envisioned, are not suited to providing students with work experience and work-ready skills. These skills are best and most effectively acquired in the workplace. In response to labour market challenges, however, our universities have now integrated work-based learning and placements in the curriculum of several undergraduate degrees. For example, the University of Mauritius has a dedicated office for work-based learning that facilitates student placements in organizations. However, universities must do more to provide work-ready graduates, while keeping their fundamental role of producing cutting-edge research. While several undergraduate programs include industry placements in their curriculum, the relationship between universities and employers must be further formalized.

Cooperative education (co-op) could be an important way forward for universities to address labour market challenges. Co-op programs combine classroom theory with periods of work experience, where students alternate between one semester of academic study and one semester of full-time employment. Of course, this could mean an increase in the duration of an undergraduate program from the typical three years to four-five years. However, this type of program will allow students to acquire experience and job skills and earn an income in their very first year of study. It is most likely that they will be retained by the placement organization once they have completed their academic program of study or easily find a job in other organizations.

Of course, this type of program requires a more formal relationship between universities, the private sector, and the government as well as a major revamping of the university curriculum. Universities should also be given more funding to enact such a program. The role of vocation institutions such as Polytechnics Mauritius should also be recognized for their contribution to addressing labour market challenges. However, there needs to be a philosophy change in favour of vocational education among Mauritians, who often view this type of education as lesser than university degrees.

What strategies could diversify Mauritius’ tourism products to attract new markets while maintaining sustainable practices?

Our tourism sector faces two major challenges: sustainability and lack of product diversification, perpetuated by our smallness, remoteness, insularity, and economic and political dependency on developed nations. Policymakers must utilize scientific data to address these challenges. To reposition Mauritius’s tourism industry, the following key strategies are recommended.

1. Product diversification : Diversify beyond sun-and-sand tourism by developing niche markets, such as wellness, eco-tourism, culinary tourism, and adventure travel. Foster immersive experiences, including cultural workshops, sustainability-focused tourism and local engagements, to provide unique offerings that appeal to diverse, discerning travellers.

2. Sustainability as a cornerstone : To protect Mauritius’s natural assets, the government should promote environmentally responsible practices within the tourism infrastructure, such as renewable energy adoption, waste reduction, and resource conservation. Incentivize tourism businesses to earn green certifications to attract environmentally conscious travellers and position Mauritius as a sustainable destination.

3.Investment in human capital: Strengthen the local workforce by offering skill-building programs in tourism, hospitality, and innovation to enhance service quality and empower local entrepreneurs. Encourage resident-tourist interactions through co-created experiences that amplify the destination’s authenticity and cultural richness, enhancing visitor satisfaction and community engagement.

4. Harnessing technology: Leverage big data and AI to predict tourist trends, optimize resource allocation, and dynamically manage visitor flows to reduce congestion and improve service delivery. Adopt virtual tourism platforms and dynamic pricing models to manage demand, attract diverse audiences, and create new revenue streams, including for off-season travel.

5. Policy and institutional innovation: Facilitate public-private partnerships to fund infrastructure projects, such as smart airports and luxury accommodations, which enhance destination competitiveness. Develop regulatory frameworks that mitigate overtourism, protect resources, and incentivize sustainable practices across the tourism sector.

6. Mitigate volatility : Diversify source markets to reduce reliance on a few regions, such as Europe and India, and minimize the impact of external economic shocks. Strengthen institutional and managerial capacity to adapt quickly to changing tourism dynamics, ensuring resilience against global disruptions.

7. Focus on high-quality experiences: Shift focus to personalized, high-value tourism that caters for the increasing demand for authenticity, quality, and uniqueness in traveller experiences. This aligns with global trends in the tourism industry, where high-end and customized services are prioritized.

In conclusion, the strength of the above measures lies in its empirical foundation, comprehensive analysis, focus on sustainability, recognition of local agencies, and practical recommendations. These elements combine to provide a robust framework for understanding and addressing the challenges and opportunities of tourism in Mauritius. By implementing these strategies, Mauritius can foster a more resilient, competitive, and sustainable tourism industry. Integrating innovation with sustainability and local empowerment will secure long-term economic growth and ensure that tourism contributes to the social and cultural well-being of the island’s residents. These insights will facilitate meaningful discussions and actionable steps towards transforming the Mauritius’s tourism sector.