The Productivity Challenge

 The show is on; the same people, the same faces that you usually come across in those select private-public sector committees, the chosen all-knowing and lofty few that have made it a habit to lord over the wayward Mauritians, have now concocted a new version of the same old productivity issue.  Another Productivity Consultant that will spawn another of those high-flying terms like “Gamba Kaizen” or “Muda”.   So what if it is the umpteenth catchy expression from another umpteenth consultant on productivity and competitiveness !!! 

Sustainability of the Growth momentum

We are gradually recovering, more robustly than expected, from the triple trade shocks or the terms of trade shocks that dipped the national income by around 4-5% cumulatively since 2003. After a reasonable economic performance of a real GDP growth rate of 5 % in 2006, the country is looking forward to another year of growth of about 5.3 % powered mostly by the EPZ (6%) and the tourism sectors (7.5%).

Booms and Cycles Revisited

Booms

The business or economic cycle is the periodic but irregular up-and-down movements in economic activity and other macroeconomic variables. The cycle involves shifts over time between periods of relatively rapid growth of output (recovery and prosperity), alternating with periods of relative stagnation or decline (contraction or recession). These fluctuations are measured using the real gross domestic product. Traditional business cycles undergo four stages: expansion, boom, contraction, and recession

Democratisation of the tourism sector: Another approach

After several years of slow growth, international tourism is on the rebound. The return of both consumer and business confidence is bringing favourable conditions for both established and emerging tourism markets. And Mauritius, battered to some extent by the worldwide slump of 2001 and the impact of high oil prices on the airline industry in 2003-2004, is coming out stronger by repositioning itself with a new branding and a more aggressive air access and marketing strategy.

The new mantra of anti-liberalisation: Un attrape- nigaud!!!

The mantra of the day was trade liberalisation. Trade liberalisation became the symbols of economic progress after years of inward looking, import substitution policies supported by exchange controls. We were told that economic analysis has found repeatedly that it meant efficiency gains through improved resource allocation to expanding export sectors, heightened competition as a spur to achieve world standards of efficiency, wider options for consumers, ability to tap international capital markets and greater exposure to new ideas, technologies and products.