Mauritius has been a success story sinceindependence, moving from low income to uppermiddle-incomestatus. Close public-private partnerships facilitatedprivate sector-led growth in astable macroeconomic andinstitutional environment. The government implemented anactiveindustrial policy to support private sectorcompetitiveness while exploiting global trade nichescreatedby preferential access arrangements. As a result, savingswere high and reinvested indiversifying the economy.Starting as a mono-cropped, inward-looking economy,Mauritiusmoved toward an export oriented and diversifiedeconomy producing textiles, tourism, financialand ICTservices. Mauritius is now at a crossroads. On the one hand,it can pursue a path where reinvigorated public investmentboosts economic growth and reinforced public assistanceenhancesredistribution. On the other hand, it can select apath where private sector identifies constraintsfor growthand the public sector is the enabling agent that removesthem, ensuring that proceedsare adequately shared bytargeted assistance and improved service delivery. TheSystematic Country Diagnostic (SCD) is intended to assessthe priorities of Mauritius to accelerate sustainableeconomic growth while improving the welfare of the less welloff. The SCD aims to understand why income growth among thebottom 40 percent of the population has been low relative tothe average income. The SCD also addresses how the rate andstructure of aggregate growth can be improved to accelerateincome growth among the bottom 40 percent of the population,as well as ensure that overall growth is sustainable.
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