Greater financial inclusion key to fast-tracking Mauritius’ high income economy
Dr Yousouf Ismael from Global Finance Mauritius pondered on the fundamentals such as peace, justice, social synergy and self-discipline which need be be put in place so that Mauritius can move towards high income status. (Image: Kashish Jadoo)
The Mauritius Economic Society and the Economics Department of the University of Mauritius jointly organised a debate session on the theme of Mauritius moving towards a high income economy, on Friday 06 March 2015, at the University of Mauritius.
The forum hosted an interactive debate session revolving around important discussions of academic and national interest in order to broaden ideas, and provide solutions to the challenges facing different institutions and financial public and private organisations.
Distinguished speakers such as Dan Maraye, former governor of the Bank of Mauritius, Dr Yousouf Ismael, CEO of Global Finance Mauritius, and Chandan Jankee, Associate Professor in Economics and Banking at the University of Mauritius, initiated the debate.
Dr Yousouf Ismael from Global Finance Mauritius explained the contextual features and impact of the financial sector in Mauritius. As an expert in Economics, he asserted how the financial sector is a key pillar of any modern society and how its emergence can lead Mauritius to become a high-income nation.
From an economist’s perspective, he reiterated that Mauritius cannot reach the status of a high-income nation if the disparity between the poor and the rich is still high.
Moreover, the economist pondered on fundamentals such as peace, justice, social synergy and self-discipline which need to be put in place so that Mauritius can move towards a high income nation.
Furthermore, the CEO of Global Finance Mauritius emphasised the fact that financial services go beyond banking — thus it is also about getting the right institutional and financial capital to keep the development process going on as it provides broad access to other products such as insurance, in order to minimise risk while bringing in cash-flows and providing protection for a more effective market.
The latter also invoked arguments on how financial services create opportunities for high skilled jobs, as the sector is currently generating around 17,000 jobs with a high proportion of professionals, administrative resources and value-added contribution.
According to him, Mauritius generates numerous data points which can be compiled to facilitate communication and exchange of information for the private and public sector, which may be expected to lead to a high demand of analysts which young people need to consider.
As for Associate Professor in Economics, Chandan Jankee, he identified three factors of an economy which can lead Mauritius to a high-income economy — Foreign Direct Investment, Human Resources and Openness for an international perspective.
“It is necessary to develop human resources to attract FDI. As for openness, we speak about Africa, and it is true that there are various perspectives and opportunities there,” he said.
He also added that Mauritius needs to review his economic model and should bring on projects to establish a “Think Tank” in various institutions.
The last speaker at the debate forum, Dan Maraye — who has a distinguished background as a former governor at the Bank of Mauritius — pointed out the importance of values and honesty to bring good governance and discipline to Mauritius.
“This new government has already set the direction that will steer Mauritius towards an enhancement of the standard of living through the elimination of corruption, thereby elevating the country to high standard of happiness as opposed to a high-income economy”, stated Dan Maraye.
In conclusion, he noted that the concept of competitiveness needs to be defined and that in the long run, for any nation, the standard of living will be determined by how far its level of productivity supports a desired income level and gives the citizens of the country the opportunity of choosing their desired quality of life.
- By Kashish Jadoo