Economist Questions Effectiveness of Mauritius Strategy Board

The transition of Mauritius Strategy Co Ltd to the Mauritius Strategy Board has been met with skepticism by economist Takesh Luckho, who highlighted both the relevance and challenges of this evolution.

“The aim of this institution was to conduct in-depth economic analysis of the country,” Luckho explained.

“They published several reports on the country’s economic dynamism and growth prospects. Their mandate was linked to the Ministry of Finance.”

Luckho pointed out a major issue: the subordination of the organization to the Ministry of Finance and the composition of its Board of Directors, which is primarily composed of political appointees. “This lack of independence has generated a credibility deficit,” he asserted.

This situation led to reports often deemed too favorable by observers.

A glaring example of this complacency emerged when, despite national growth indicators hovering around 6%, Mauritius Strategy Co Ltd had predicted a growth rate of 8%.

“This organization, far from being an independent entity, has revealed itself to be a machine producing compliant reports.”

The dependence on the Ministry and the absence of genuine autonomy have undermined the reliability of Mauritius Strategy Co Ltd’s analyses.

Many experts share this opinion, highlighting that the credibility of the organization’s reports has been seriously compromised by this political influence.

Regarding the Mauritius Strategy Board, which is set to replace Mauritius Strategy Co Ltd, Luckho expressed reservations about its effectiveness.

According to him, the functioning, composition of the Board of Directors, and nomination method will remain identical to those of Mauritius Strategy Co Ltd, which “does not bring about fundamental change.”

“Without a structural reform guaranteeing independence and impartiality, it is unlikely that the Mauritius Strategy Board will be able to effectively meet expectations,” he said.

In essence, Luckho’s concerns revolve around the need for a genuine overhaul of the institution to ensure its independence and impartiality in order to produce credible and reliable economic analyses that can inform informed decision-making in Mauritius.

Source: Defi Media