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Explores inequalities in the context of structural transformation in Mauritius (country case study prepared for the Accra Conference on African Inequalities)
Introduction
In a paper entitled 'Working for the few - Political capture and economic inequality', Oxfam notes:
'Extreme economic inequality is damaging and worrying for varying reasons: it is morally questionable; it can have negative impacts on economic growth and poverty reduction, and it can multiply social problems. It compounds other inequalities, such as those between men and women. In many countries, extreme economic inequality is worrying because of the pernicious impact that wealth concentration can have on equal political representation. When wealth captures governmental policy making, the rules bend to favour the rich, often to the detriment of everyone else. The consequences include the erosion of democratic governance, the pulling apart of social cohesion and the vanishing of equal opportunities for all.' (Fuentes-Nieva and Galasso, 2014)
When equal opportunities vanish, democracy and development become meaningless. This article cautions against Mauritius's obsession with high economic growth and the objective of becoming a high-income country, arguing that the proposed route to achieving such an objective can lead to a growing polarization of Mauritian society and thus constituting a major risk to the country's stability and sustainability.
Mauritius is a small multi-ethnic island state with a high vulnerability index. In the post-colonial period, it has made great strides and embraced the notion of equal opportunity for all. While the first wave of structural transformation has contributed to economic growth and employment opportunities for the citizens, some segments of the population, especially Mauritians of African origin, have been left at the bottom of the pile. Now that the country focuses on achieving a second economic miracle infused by neo-liberal policies, there is a risk that the poor and vulnerable get further marginalized. The Mauritian middle class is already thinning down (World Bank, 2015) and this does not augur well for any society whatsoever.
The first part of the article highlights the factors behind the first wave of structural transformation. The second part identifies the sources and causes of inequality in the country, showing how the persistent concentration of wealth, the collusion between political and economic elites in recent years as well as the resulting corruption are gnawing...