Mauritius’ best strategy for economic recovery post-pandemic includes both temporary support to firms and households, and comprehensive reforms to address pre-existing structural challenges, Defi Media quoted the World Bank as stating in its latest economic analysis for the country.
The newly-released ‘Mauritius Country Economic Memorandum, Through the Eye of a Perfect Storm – Coming Back Stronger from the COVID-19 Crisis’, says the COVID-19 crisis presents policy makers with an opportunity to confront long-standing challenges.
Idah Pswarayi-Riddihough, World Bank Country Director for Mauritius, Mozambique, Madagascar, Comoros and Seychelles said: “This is the time to accelerate the recovery and re- emerge from the storm stronger than before with the adoption of a new series of reforms.”
The report highlighted four main pillars to focus on: A new industrial policy Leveraging FDI and new preferential trade opportunities; More efforts to promote labor market participation; Moving resources “from the overly generous basic pension system to more targeted and effective anti- poverty programs”; Strengthening the public sector, through policy coherence in complex, multi-sector reforms, and implementation capacity; Close collaboration with the private sector is also key.
The World Bank added that “for Mauritius, the best way forward will be to focus on its proven ability to adapt and preserve its social contract by laying the foundations for future inclusive growth. This can start now, under the new budget.”
Click here to read the report.
