World Bank2012-03-192012-03-192010-12-03https://hdl.handle.net/10986/2987Mauritius is a well known successful development story. The country's Gross Domestic Product (GDP) per capita rose from 38 percent below the world average in 1981 to 16 percent above the average by 2008. Such a performance is not the fruit of luck or use of natural advantages as it was accomplished through man-made efforts and policy actions. The combination of (i) active industrialization policies together with opportunistic use of preferential trade access; and (ii) participatory institutions that assured voice and rent redistribution across the society ensured labor intensive growth and the emergence of a virtuous cycle in development. Mauritius knew what needed to be done. A National Long-Term Perspective Study (NLTPS), also known as Vision 2020, started in 1990 and was completed in 1997. The goal of opening up and diversifying the economy by moving towards high value-added, skill and knowledge intensive service sectors was already well articulated in the study - with explicit reference to the potential of 'computer services' which today is embedded in the Information and Communications Technology (ICT) sector. The global crisis in 2008 was a threatening reminder of vulnerabilities. Mauritius is structurally vulnerable to external shocks. With a small domestic market unable to promote or sustain production growth by itself and a high dependence on raw materials, food and energy imports, the country is necessarily tied to developments in the world economy. An overarching challenge for Mauritius to achieve the envisaged transformation towards a higher value added economy and sustain economic growth is to improve its productivity performance. This report focuses on two key fundamental instruments for that: (i) trade policy and (ii) labor policy.CC BY 3.0 IGOACCESS TO INFORMATIONADVANCED ECONOMIESAGRICULTUREBALANCE OF PAYMENTSBARRIERBENCHMARKINGBUDGET PERFORMANCEBUFFERBUSINESS CLIMATEBUSINESS ENVIRONMENTBUSINESS OPPORTUNITIESCAPITAL ACCOUNTCAPITAL ACCUMULATIONCAPITAL INFLOWSCAPITAL INTENSITYCENTRAL BANKCOMMODITYCOMMODITY PRICESCOMMON MARKETCOMMUNICATIONS TECHNOLOGYCOMPETITIVENESSCOMPLIANCE COSTSCONNECTIVITYCONSTANT VALUECONSUMER PROTECTIONCONSUMERSCONSUMPTION GOODSCOST STRUCTURECREDIBILITYCURRENCYCURRENCY APPRECIATIONCURRENT ACCOUNTCURRENT ACCOUNT DEFICITDEBTDEMOGRAPHICSDEVELOPED COUNTRIESDEVELOPING ECONOMIESDEVELOPMENT INVESTMENTDEVELOPMENT POLICYDOMESTIC ECONOMYDOMESTIC MARKETDOMESTIC MARKETSECONOMIC ACTIVITYECONOMIC DEVELOPMENTECONOMIC EFFICIENCYECONOMIC GROWTHECONOMIC LIFEECONOMIC OUTLOOKECONOMIC PERFORMANCEECONOMIC POLICIESECONOMIES OF SCALEEFFICIENT REGULATIONEMERGING ECONOMIESEPZEQUILIBRIUMEXCHANGE RATEEXCHANGE RATE REGIMEEXCHANGE RATESEXPANSIONARY FISCAL POLICYEXPORT GROWTHEXPORT MARKETSEXPORT PROCESSING ZONEEXPORT SECTOREXPORTEREXPORTERSEXPORTSEXTERNAL FINANCINGEXTERNAL SHOCKSFINANCIAL CRISISFINANCIAL INTERMEDIATIONFINANCIAL MANAGEMENTFINANCIAL SERVICESFISCAL CONSOLIDATIONFISCAL POLICIESFISCAL POLICYFISHFISHERIESFIXED COSTSFOOD PRICESFOREIGN DIRECT INVESTMENTFOREIGN FIRMSFOREIGN GOVERNMENTSFOREIGN INVESTORSGDPGDP PER CAPITAGLOBAL DEMANDGLOBAL ECONOMYGLOBAL MARKETGLOBAL MARKETSGLOBALIZATIONGROSS DOMESTIC PRODUCTGROWTH POTENTIALGROWTH RATEGROWTH RATESHUMAN CAPITALHUMAN RESOURCES DEVELOPMENTIMBALANCESIMPORTIMPORT BARRIERSIMPORTSINCOMEINDUSTRIALIZATIONINEFFICIENCYINFORMATION TECHNOLOGYINFRASTRUCTURE INVESTMENTINSTITUTIONAL ENVIRONMENTINTEREST RATEINTEREST RATESINTERNATIONAL BEST PRACTICEINTERNATIONAL COMPETITIONINTERNATIONAL MARKETSINTERNATIONAL TRADEINVESTMENT CLIMATEINVESTOR CONFIDENCEJOB CREATIONLABOR FORCELABOR FORCE GROWTHLABOR MARKETLABOR MARKETSLABOR PRODUCTIVITYLESS DEVELOPED ECONOMYLEVERAGELOCAL CURRENCYLOW TARIFFMACROECONOMIC POLICIESMACROECONOMIC POLICYMACROECONOMIC STABILITYMARKET ACCESSMARKET ENTRYMARKET LEADERMARKET PERFORMANCEMARKET SHAREMARKET TRENDSMEDIUM TERM EXPENDITURE FRAMEWORKMIDDLE INCOME COUNTRIESMIDDLE-INCOME COUNTRYMONETARY POLICYOILOIL PRICESOPEN ECONOMIESOPEN ECONOMYOUTPUTOUTPUT RATIOOUTSOURCINGPENSIONPOLICY DECISIONSPOLICY ENVIRONMENTPOLITICAL ECONOMYPOPULATION GROWTHPORTFOLIOPORTFOLIO INVESTMENTPOVERTY REDUCTIONPOWER PARITYPREFERENTIAL ACCESSPRIVATE CAPITALPRIVATE CAPITAL FLOWSPRIVATE INVESTMENTPRIVATE SECTOR DEVELOPMENTPRODUCERSPRODUCTION COSTSPRODUCTIVITY GROWTHPROFIT MARGINSPROTECTIONISMPUBLIC DEBTPUBLIC PARTICIPATIONPUBLIC POLICYPURCHASING POWERPURCHASING POWER PARITYQUOTASREAL ESTATEREFORM PROGRAMREGIONAL INTEGRATIONREGIONAL TRADEREGULATORY ENVIRONMENTREGULATORY FRAMEWORKREGULATORY POLICYREGULATORY REFORMREGULATORY SYSTEMRESOURCE ALLOCATIONSKILLED WORKERSSKILLS SHORTAGESSLOWDOWNSMALL ECONOMYSOCIAL COSTSSOCIAL PROTECTIONSTEADY STATETARIFF BARRIERTARIFF BARRIERSTAXTAX BREAKSTAX RATETAX REFORMSTAX SYSTEMTERMS OF TRADETOTAL FACTOR PRODUCTIVITYTOXIC MATERIALSTRADE BALANCETRADE BARRIERSTRADE COMPETITIVENESSTRADE FACILITATIONTRADE LIBERALIZATIONTRADE POLICIESTRADE POLICYTRADE PROTECTIONTRADE REFORMSTRADE STRATEGIESTRANSPARENCYUNCERTAINTIESUNEMPLOYMENTUNEMPLOYMENT RATEUNEMPLOYMENT RATESVALUE ADDEDVIRTUOUS CYCLEWEALTHWORLD ECONOMIESWORLD ECONOMYWORLD MARKETWORLD MARKETSWORLD TRADEWORLD TRADE ORGANIZATIONWTOWorld Bank10.1596/2987