Editing Economy of Mauritius (section)

=== 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.