1. Inclusive Development: The Case of MAURITIUS
Kirsten Koop
Joseph Fourier University
Grenoble, France
“Leveraging Social Protection for Inclusive Growth: Theory, Case Studies, and the Role of Policy”
Praia, 7-8 May, 2013

2. Key factors of Inclusive Development
Economic, political, social and cultural key factors of the Mauritian success story
Contribution of the social protection system to the Mauritian success story : institutional innovation for social inclusion

3. Mauritius after independance (1968): a classical case of under-development
Lack of natural resources
Sugar monoculture (95% of export earnings)
Lack of infrastructure
High rate of unemployment (27%)
High relative poverty rate (estimated 70%)
GDP growth: -10,1% in 1980

4. Basic indicators 2012 1980 GNI per capita in PPP terms 13.300 1,780
Source: Human Development Report 2013, Central Statistics Office, Mauritius
Source: Human Development Report 2013, Central Statistics Office, Mauritius
Source: Human Development Report 2013, Central Statistics Office, Mauritius
Basic indicators
2012
1980
GNI per capita in PPP terms
(constant 2005 international $)
13.300
1,780
GDP growth rate
4.5%
-10.1%
HDI
0.737 (80th)
0.551
Relative Poverty (Income less than 50% of median income)
8,5%
Estimated : 40%
Absolute Poverty (less than 5000 MUR
=122 Euros/month)
> 2%
n.a.
Unemployment rate
8.2%
27%
GINI index
0.34
0.42
Source: Human Development Report 2013,
Central Statistics Office, 2013

5. The Mauritian development strategy: from generic to specific resources
1970s: Sugar industry
1980s: Export Processing Zone and tourism
full employment
Growth based on generic resources (assets)
1990s: Offshore banking and insurance, Freeport, ICT-sector (Cyber Island)
From 2000 on : Further diversification: seafood hub, medical hub, high class tourism, Integrated Resort Scheme  Growth based on the revelation of specific territorial resources (assets): geographic position, cultural proximity with countries of origin, bilingualism.

6. External conditions and national/local key drivers of inclusive growth
1980s: Preferential access to EU under Lomé Convention
From 2000 on: Market liberalisation and increased global
competition
Global scale
Good governance: SAP, diversification of sectors and markets, exploitation of country specific resources (assets)
Cultural ties of the different communities with their countries of origin (attraction of new investors, diversification of markets, transnationalisation of Mauritian enterprises)
High investment of local capital
Social consensus (strong syndicates, tripartite committee, social protection system and programs focusing on social inclusion
National scale
Local scale
Social cohesion (among extended families and neighbors)

7. The Social Security System in Mauritius
Figure 2 - Mauritius' Main Social Protection Programmes
The Social Security System in Mauritius
Free education and health care
365.6 Million $; 4,4 % of national budget
Cash Transfers: Basic Retirement Pension, widow's, orphan's and invalid's pension, social aid, food aid, Unemployment Hardship Relief, etc.
In-Kind Assistance: School Feeding Programme, Textbook Loan Scheme, School Supplies, Grant Scheme for Tertiary Education, Overseas Medical Care, Social Housing, Bus Subsidy, Starter kits to poor farmers, Funeral Grant, Fishermen’s Bad Weather Allowance, etc.

8. Components of Government Expenditure on Social Security and Welfare (2010)
Source: Central Statistics Office, 2012
 Cash transfer towards vulnerable does contributes to breaking cycles of poverty, but is not sufficient alone.

9. Institutional innovation for social inclusion and empowerment: the National Empowerment Foundation (NEF)
Training
Increase capacity of getting job through professional education for young and unemployed
Circular migration
Propose short or mid term job opportunities of foreign countries
Child Welfare Programme
Pré-primary schooling
Assistance for students
Community Empowerment Programme
Training and Placement
Empowerment of Women
Entrepreneurship
Integrated Social Development
Corporate Social Responsibility
Socio-economic Development
Health
Leisure and Sports
Environment
Education and Training
Desaster Risk Reduction
Eradiction of Absolute Poverty (EAP)
Integrated Community Development
Trust Fond for the integration of vulnerable Groups
Housing assistance
Micro-credits
Created in 2008
Problem of overlapping
Lack of clear definition of poverty reduction and empowerment
Need for Monitoring and Evaluation System
The programmes that have been integrated in the NEF have been constituted into 7 programmes (see Figure 1). Under these programmes are about 26 active projects with different start dates.
Figure1: National Empowerment Foundation Programmes

10. Conclusion
Overall aim of programmes of inclusion: access to social housing, education and employment.
Need for a clear government’s vision of WHAT Inclusive Growth should be and HOW it can be reached.