Editing Economy of Mauritius (section)

== Policies for success ==
Recent reports on progress on the Millennium Development Goals by the [[Overseas Development Institute]] indicated four key reasons for economic success.<ref name=ODI1/>
# Heterodox liberalisation and diversification
# Concerted strategy of nation building
# Strong and inclusive institutions
# High levels of equitable public investment

=== Heterodox liberalisation and diversification ===
Mauritius has followed a pragmatic development strategy in which [[liberalisation]] process was sequenced and tailored to its [[competitive advantage]]s and weaknesses.<ref name=ODI1/> The export-orientated approach has encouraged liberalisation supported by strong state involvement as a facilitator (of the enabling environment for the private sector); as operator (to encourage competition); and as [[regulator (economics)|regulator]] (to protect the economy as well as vulnerable groups and sectors from shocks).<ref name=ODI1/> Strategies were evidence-based and adapted according to results.<ref name=ODI1/> There has been consistency and stability, regardless of which political party is in power.<ref name=ODI1/>

Liberalisation occurred in phases that were initiated to build on advantages the economy enjoyed on the international market.<ref name=ODI1/> 
* 1970s: Mauritius profited from sugar rents, established an [[export processing zone]] EPZ and successfully attracted capital and foreign investment in manufacturing, from China, Hong Kong and Taiwan.
* 1980s–1990s: EPZ expanded and led to a significant increase in [[foreign direct investment]] (FDI) and tourism. Preferential access to sugar and clothing markets amounted to 7% of GDP in the 1980s and 4.5% in the 1990s, capital and current accounts were liberalised, contributing to an investment and employment boom and the high inflow of FDI brought with it managerial skills.
* 1990s–2010: Further diversification, liberalisation and investment as Chinese investors left to pursue investments in Africa and China.

=== Concerted strategy of nation building ===
A concerted strategy of nation building since Independence created the foundations for sustained growth.<ref name=ODI1/> Partnerships across ethnic groups allowed economic redistribution to be negotiated and the resulting better balance of economic and political power allowed strong and independent institutions.<ref name=ODI1/> The emerging political system encouraged a consultative approach to policy formation that allowed strategies for growth to be continued regardless of changes in the parties in power.<ref name=ODI1/>

=== Strong and inclusive institutions ===
Strong institutions are critical in ensuring country's competitiveness, economic resilience and stability.<ref name=ODI1/> They have supported development strategies and ensured that export earnings are reinvested in strategic and productive sectors. In the financial sector, they have built a regulated and well-capitalised banking and financial system that protected it from toxic assets prior to the [[2008 financial crisis]].<ref name=ODI1/>

====Corruption laws====
In 2002, the government adopted the Prevention of Corruption Act, which led to the setting up of an [[Independent Commission Against Corruption (Mauritius)|Independent Commission Against Corruption]] (ICAC) a few months later. The ICAC has the power to detect and investigate corruption and money-laundering offences and can also confiscate the proceeds of corruption and money laundering. Corruption is not seen as an obstacle to foreign direct investment.  Mauritius ranks 55th out of 168 countries in [[Transparency International]]’s [[Corruption Perceptions Index]] for 2023.

=== High levels of equitable public investment ===
Mauritius has a strong human capital foundation developed through consistent and equitable investment in human development.<ref name=ODI1/> This enabled Mauritius to exploit advantages, learn from expertise brought in through FDI and maintain competitiveness in a fast evolving international market.<ref name=ODI1/> Education and health services are free and have been expanded in recent years, in order to create further employment opportunities and ensuring inclusive growth. The educated and adaptable workforce were essential elements of 1980s export-orientated growth.<ref name=ODI1/> Around 90% of [[entrepreneurs]] in the export processing zone (EPZ) and in the manufacturing sector were eventually Mauritian nationals, businesspeople had the human capital, education and knowledge needed to exploit market opportunities.<ref name=ODI1/>  According to the Government of Mauritius the general outlook for the manufacturing sector is positive, as the country offers many opportunities to entrepreneurs across the various value chains but insufficient skilled labour and limited research and development will remain impediments to potentially higher growth in this sector.<ref>{{Cite web |url=http://www.dedc.gov.ae/StudiesAndResearchDocument/MTR030082016MAURITIUS.pdf |title=Archived copy |access-date=2016-11-04 |archive-date=2016-11-05 |archive-url=https://web.archive.org/web/20161105032649/http://www.dedc.gov.ae/StudiesAndResearchDocument/MTR030082016MAURITIUS.pdf |url-status=dead }}</ref>