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Mauritius - Inclusiveness of growth and shared prosperity (English)

Mauritius is a high middle-income country with low levels of poverty and inequality. The headcount poverty level was 6.9 percent in 2012; measured by the international standard of United States (U.S.) $2 per day (PPP), poverty was less than 1 percent. On inequality, Mauritius also fared well compared to its peer middle-income countries. On the negative side, Mauritius’ growth has not been equally shared, despite the general improvement in welfare. The economy’s polarization was associated with a structural transformation from labor-intensive industries to services and knowledge-intensive industries. Inclusiveness remains the main challenge for the current growth pattern. When Mauritius will be able to become a high-income country will depend on its ability to improve the labor force’s skill set, develop infrastructure, and further improve the business environment to attract foreign direct investment (FDI) and generate domestic investment. Reduction in inequality and boost of shared prosperity will require more growth and a more pro-poor pattern of growth. An increase in female labor force participation, reduction of high youth unemployment rates, improving the efficiency of the social protection system will reduce growing skills mismatch facilitating inclusive growth and eradicating poverty in Mauritius.

Details

  • Author

    Sulla,Victor, Munoz Moreno,Rafael, Da Maia,Carlos Chadreque Penicela, Klapper,Leora, Van Oudheusden,Peter, Guven,Melis U., Nikitin,Denis, Polodoo, Virendra, Randriankolona,Patrick Leon, Mazza,Jacopo, Heleniak,Timothy E.

  • Document Date

    2015/09/01

  • Document Type

    Working Paper

  • Report Number

    90006

  • Volume No

    1

  • Total Volume(s)

    1

  • Country

    Mauritius,

  • Region

    Africa,

  • Disclosure Date

    2016/02/17

  • Disclosure Status

    Disclosed

  • Doc Name

    Mauritius - Inclusiveness of growth and shared prosperity

  • Keywords

    Earnings Before Interest and Taxes;middle class;Southern and Eastern Africa Consortium;labor market need;small and medium size enterprise;inclusive growth;contribution to poverty reduction;access to primary education;per capita income growth;access to financial service;unexplained gender wage gap;Poverty & Inequality;balance of payment;skill mismatch;Access to Education;tertiary sector;unemployment rate;business environment;elasticity of poverty;flexible exchange rate;gdp growth rate;export processing zone;public sector efficiency;technology and markets;engine of growth;eradication of poverty;public debt legislation;implementation of reform;free public school;start primary school;children and youth;income tax rate;equality of opportunity;agriculture and industry;reallocation of resource;current account deficit;household survey data;capacity of individual;fundamental structural changes;primary school enrollment;increasing income inequality;rising income inequality;labor market indicator;increase in income;income from work;consumer price index;consumption per capita;return on asset;quality tertiary education;living in poverty;access to financing;social protection system;labor market outcome;tax revenue increase;youth unemployment rate;highly skilled worker;highly educated people;decline in agriculture;incidence of poverty;household consumption expenditure;average real wage;net job creation;high compliance costs;package of policy;demand for skill;short-term capital inflows;flat tax rate;structure of incentive;economic vulnerability;labor regulation;young people;financial structure;private investment;intergenerational mobility;investment rate;public deficit;contributory pension;tax system;relative poverty;domestic investment;firm size;foreign reserve;gender disparity;economic diversification;disadvantaged position;consumption poverty;baseline scenario;employment creation;mauritian rupee;old-age pension;monetary policy;fiscal course;labor policy;economic model;education level;Higher Education;Business Regulation;skill set;real gdp;Public Spending;textile trade;fiscal consolidation;traditional sector;family background;fiscal space;high unemployment;ethnic group;age pyramid;Young Workers;household income;macroeconomic performance;economic reform;corporate income;household head;textile industry;absolute poverty;productivity growth;Economic Policy;life expectancy;Macroeconomic Stability;Labor Policies;tax base;positive impact;fiscal policy;Fiscal policies;wage determination;high-tech industry;sectoral composition;poverty incidence;private employment;wage changes;consumption quintile;educational investment;monthly wage;social assistance;oil import;development partner;government growth;sugar product;marginal effect;labor-intensive industry;international standard;domestic income;inequality on growth;construction sector;income quintile;private enterprise;demographic characteristic;marital status;consumption growth;secondary sector;benefit amount;policy scenario;social insurance;household size;elderly population;social pension;adequate provision;Trade Policy;industrial relation;prudent fiscal;tax payment;public finance;global context;external financing;Trade Policies;government decision;tourism sector;national saving;vulnerable citizen;infrastructure quality;high wage;government expenditure;educational outcome;investment slump;Fiscal Reform;incentive scheme;domestic production;import price;international reserve;subsidiary right;oil price;Macroeconomic Policy;labor shortage;labor-intensive export;business skill;bureaucratic obstacle;regulatory burden;sugar cane;trade protection;private-sector development;Cash Transfer;government investment;eliminating tariffs;job growth;Macroeconomic Growth;vulnerability reduction;official estimates;relative wage;unmet demand;regulatory obstacles;low-skill occupation;annual salary;large enterprise;management process;labor-market flexibility;restrictive regulation;capital accumulation;road infrastructure

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Citation

Sulla,Victor Munoz Moreno,Rafael Da Maia,Carlos Chadreque Penicela Klapper,Leora Van Oudheusden,Peter Guven,Melis U. Nikitin,Denis Polodoo, Virendra Randriankolona,Patrick Leon Mazza,Jacopo Heleniak,Timothy E.

Mauritius - Inclusiveness of growth and shared prosperity (English). Washington, D.C. : World Bank Group. http://documents.worldbank.org/curated/en/331711468190164152/Mauritius-Inclusiveness-of-growth-and-shared-prosperity