Many people, who are not really versed in economics, watch the TV news and read declarations of Sithanen. Overall, the positive Economic Indicator figures he brandishes give the impression that the economy of our country is really doing better than anytime before. This article gives food for thought for such people.
The Framework
In any economic process, you need first to create the framework for change and then get the population to accept and support it, then finance and create it. Only after the first steps can you start reaping money or showing results. Think hard and you will realise which Government created the legal framework and the infrastructure for the new development process that the Alliance Sociale is benefiting from.
Examples abound; the Midlands dam, new Schools and educational institutes, computer, phone and communication networks, the Cybercity, new Court Houses and infrastructure, modernized Customs and financial procedures, tax reductions and so on. All built within the 2000-2005 mandate of the MSM-MMM Government.
Ask yourself now, “What has Sithanen done that is so original that we are now reaping the ‘early harvest’?”
The Analysis by questions
Also ask yourself these other questions:
- Has Sithanen created any new economic hub that is bringing in money or is he doing free wheel on existing hubs?
- Has he created so many jobs that the economy is in the fast lane? If any, where are they?
- Has he created a new dynamic where the population and mostly the middle class feel very much at ease or is he making only the upper classes happy?
- Has he created opportunities for the poor so well that they are now an emerging economic group?
- Has the Empowerment Fund given results? Why has so little of the yearly sums of Rs1,000,000,000 (ONE BILLION Rupees YEARLY) been disbursed till now and why now declare the re-orientation of the Fund to build low cost housing?
- Has he controlled inflation and price increases on basic commodities and construction materials?
- Can he explain why major companies have shown much increased turnover, yet have taken measures to pay less Income Tax in spite of steep reduction in Income Tax rates to 15%?
The answers are obviously “NO!”
The Triple Shock lie
So, let us try to examine the sources of the money that Sithanen is so proud of….
Just remember how Sithanen and several of his cronies talked about the “Triple Shock”, where they said Mauritius had to face a dramatic reduction in income including a reduction in Sugar income?
Can Sithanen explain then how problems in the sugar sector, that represents less than 3% of the economy according to the Prime Minister in person, can be qualified as a shock?
What is clear is that one of the two has got his figures grossly wrong and therefore had misled the population! That is a serious matter in the higher Government circles!
They also talked of the rising cost of fuel products. Was the Mangalore Contract not meant specifically to help control the price hikes?
How does Sithanen explain the double digit rise in cost of Diesel and relative stability of petrol?
A joker said maybe because our Petrol comes by tanker ship and diesel by express delivery!
Playing with figures
Why has Sithanen never mentioned the depreciation of the rupee since his coming to power, yet claimed major increases in revenue? The truth is that the economic fundamentals and the new hotels legacy of the MSM-MMM Government gave the rapid growth. Then Sithanen’s planned depreciation of the rupee gave increased figures of income when converted into rupees for the same amount of Euros or Pounds.
Unfortunately the population has had to face increases in prices of more than 100% on certain items and a 25% increase in the cost of living because of the weakness of the rupee. Of course, the lower and less fortunate classes have suffered more and the growing gap between revenue and their needs has caused a major explosion of drug use and a crisis in Law and Order! Daily hold ups, thefts and crimes are indirectly the doing of Sithanen’s policies. Remember how Sir Aneerood Jugnauth combated crime by offering full employment to the population.
The reverse of the coin
All this figure juggling has distorted several of our economic indicators. That is why the EPZ is shouting out loud now that the Bank of Mauritius is taking corrective measures for the rupee. The EPZ is seeing a reduction in revenue because the rupee fares better against the Euro.
The austerity measures have been so badly put into practice that social programmes are in shambles. Even health screening by the Health Caravan has ceased.
We throw out more than 35% of primary school pupils because of the CPE and this figure reaches over 50 % by the time the few reach the SC level. Costly school and sports infrastructure is poorly used after hours.
We have had a more than double increase in HIV drug use and AIDS within 2 years because drug barons took advantage of reduced police recruitment and enforcement coupled with absence of equipment replacement.
Many small businesses and planters will disappear because of increase in taxes and licences with poor support for development and re-orientation. That is why the Empowerment programme has not taken off. Families will go bankrupt or sell off land and assets.
Government red tape, corruption and inefficiency plague the everyday life of Mauritians. Even the Legal system has suffered the same fate.
The small land owner IRS / Villa Construction scheme will benefit only people with funds of Rs 20 million or over because of the conditions imposed.
Money reserves of families for hard times are fast dwindling on one hand whilst the Stock Market improved by 30-50% in 2007. The gap between rich and poor is increasing and this is reflected in the decrease in the Index of Human Development since Labour came to power.
All this will require time effort and much vision to bring back to the previous levels of 2005. Luckily that is a challenge the MSM along with its young visionary leader, Pravind Jugnauth, is ready to face.
Have faith and give support and the Sun will shine Again!