Back in 2017, (published in L’express titled “The Economic Development Board –Some Issues”), we had highlighted that the combination in the EDB of the twin objectives of (a) investment promotion and facilitation and (b) of national economic strategy and policy advice, was nonsensical. The EDB should have focused on the first objective. The formulation of economic strategy and policy should have been entrusted to a dedicated broad-based committee or agency, under the aegis of the Prime Minister’s office.
The EDB’s policy advice role has remained largely unfulfilled and ineffective. It has failed to deliver, except in its role as national investment promotion agency -promoting the Real Estate Schemes and selling our prized assets to foreigners, the construction of hotels and Smart cities etc…
Maurice Strategie was incorporated as a private limited company under the Economic Development Board, as an independent think tank for Govt with the predominant role of undertaking research and analysis. Chaired by the Financial Secretary, the Board comprised representatives of the Ministry of Finance, the Bank of Mauritius, the Economic Development Board, and Statistics. It has been far from independent, and produced glowing and flattering reviews and forecasts of the Mauritian economy, largely reflecting Govt economic propaganda- A blatant example is their prediction of a growth rate of 8% despite all growth indicators being around 6% and some were even less at 4.9%.
The Maurice Sratégie Bill now proposes to bring the Maurice Strategie private company directly under the aegis of the Ministry of Finance, Economic Planning and Development, research and planning responsibilities, namely to (a) provide support to Govt through the development of short-term to long-term plans, visions and strategies, (b) undertake in-depth economic research and analysis to support policy choices, and (c) drive public debate and provide recommendations to support collective choices on social, economic and environmental issues: and (d) evaluate Govt policies.
The Board has been slightly broadened to include a representative of academia, and of the private sector, but remains largely composed of public officials connected to the Ministry of Finance. A Strategic Advisory Council is also proposed to provide expert guidance and advice to the Board and make recommendations in respect of long-term strategic plans. Its Board will comprise a representative of the Ministry of Finance, the Bank of Mauritius, the Economic Development Board, and 6 other members appointed by the Minister of Finance.
There does not seem to be any value added in the changes brought by this Bill, other than bringing the existing Maurice Strategie company directly under the Ministry of Finance rather than under the Economic Development Board, so as to raise its profile and that of its Executive Director. Its research output has not contributed to boost the credibility of Govt’s economic projections. Maybe Govt hopes, by these changes, to raise its profile and enhance its influence on the public’s view of economic performance. Leaving Maurice Strategie under the aegis of the Ministry of Finance, rather than under the Prime Minister’s office, will not assist in reviving its planning and policy role. The future of planning and policy research in Mauritius will remain non-existent.
Our idea of a more viable EDB or Maurice Statégie Unit was that of a dedicated broad-based Strategic Policy Unit (SPU), under the aegis of the Prime Minister’s office to support an independent Economic Advisory Council and an independent Business Consultative Group. The role and scope of the SPU was to be an effective strategic think thank that would provide leadership in the formulation and implementation of structural reform policies and programmes. The role of the SPU in strategic policy making was to be further reinforced by (a) tapping economic expertise from a broad cross-section of economic experts in academia, the private sector, and other independent institutions like the Bank Mauritius, and (b) engaging in a consultative process and a fruitful dialogue with business and the private sector on major economic and social issues.
The setting up of an independent Economic Advisory Council to the Prime Minister could serve the objective of (a) tapping economic expertise from various sources while an independent Business Consultative Group could support objective (b) engaging in a consultative process. The SPU would provide the secretariat to both bodies. Over the longer term, the SPU would have relied on more in-depth policy research and analysis. A specialised and independent think tank, such as a Centre for Development Policy, was to be established later to undertake fundamental research and analysis of economic and policy issues, funded by Government, Bank of Mauritius, and other specialized international agencies. An Economic Committee of the Cabinet, chaired by the Prime Minister, comprising key ministries such as Finance, Industry and Commerce, Trade, with the SPU acting as its secretariat, was also proposed to help in proper policy coordination and alignment of sectoral policies with national strategic goals.
Another similar proposal was an Economic Affairs Unit (EAU) (see structure below). The EAU was to be the “high-level think tank” of Government. It was expected to ensure horizontal policy coherence across Ministries/Departments and the private sector to achieve a nexus approach to development. The National Advisory Committee was to act as an independent consultative body with different stakeholders, including civil society. It would have served the objectives of tapping expertise from a broad cross-section of the Mauritian society by engaging in policy dialogues on current and emerging socio-economic-environmental issues.
The later proposal was aligned to the Singaporean model where national economic strategy plans are developed by special committees set up by the Prime Minister and chaired jointly by the Ministers of Finance and of Trade and Industry, with the participation of other ministers -- for instance, a Committee on the Future Economy convened in January 2016 to develop economic strategies for the next decade. Around 9000 stakeholders were consulted in this process. The Committee submitted its report to the PM in Feb 2017. National economic strategy and planning in Singapore is fully driven by government on the basis of broad public consultations.
Both these proposals were rejected
