Akilesh Roopun
2 November 2007
Port Louis — The annual survey of the World Economic Forum shows that the country's economic outlook is dimmer than last year. Highlighting the strengths and weaknesses, it shows much should be done to enhance policies.
There is more to cutting down on red tape than facilitating business registration at the Registrar of Companies.
Mauritius is less appealing for business today than it was a year ago. According to the last World Economic Forum (WEF) on global competitiveness, the country has dropped from 55th to 60th rank (among 131 countries). Inefficient government bureaucracy, poor work ethics of the labour force and restrictive labour regulations are the main areas of concern regarding doing business.
The rankings are calculated from both publicly available data and a comprehensive annual survey conducted by the WEF together with its network of Partner Institutes (leading research institutes and business organizations) in the countries covered by the report. Over 11,000 business leaders were polled in a record 131 countries. The survey is designed to capture a broad range of factors affecting an economy's business climate. The report also includes comprehensive listings of the main strengths and weaknesses of countries, making it possible to identify key priorities for policy reform.
Mauritius, however, fares well when it comes to tax rates and tax regulations and foreign currency rules, i.e. in areas that are subjected to liberal policies. Improving the investment climate has been a top priority of government. There have been many initiatives to relax business licensing rules and reduce the number of checkpoints that entrepreneurs need to go through before they could get the permits they need to operate. It looks like, according to the WEF index, that still a lot has to be done to improve the attractiveness of the economy.
Africa has a lot of grounds to cover to become more business-friendly. In sub-Saharan Africa, only Mauritius and South-Africa feature in the top half of the rankings, with several countries from the region positioned at the very bottom.
The United States (US) is the world's most competitive economy, with top universities and innovative businesses that eclipse concerns over its fiscal health, WEF sources told Reuters on Wednesday. In its 2007 global competitiveness index, the Swiss-based Forum said the sheer size of the US market made it "arguably the country with the most productive and innovative potential in the world."
Mauritius,
however, fares well
when it comes
to tax rates
and tax regulations
and foreign
currency rules,
i.e. in areas
that are subjected
to liberal policies.
This was in spite of Washington's huge budget and trade deficits and the erosion of the US dollar that have caused many to question whether the long-time economic leader was losing ground to emerging players like India and China.
Singapore and Japan were the top-ranked Asian countries in the index, in seventh and eighth ranks. The largest markets in the region, China and India, placed 34th and 48th respectively.
Chile, ranked 26th, was named the most competitive Latin American economy. Mexico placed 52nd, Brazil was 72nd and Argentina ranked what the Forum called "a disappointing 85th."
Israel was the top-ranked Middle Eastern country, in 17th place, followed by oil exporters Kuwait and Qatar who were ranked 30th and 31st ahead of Saudi Arabia at 35th rank.
Resurgent economic growth in sub-Saharan Africa is "not yet reflected in improved competitiveness rankings for the region," the Forum commented. The region Mozambique, Zimbabwe and Burundi dominated the very bottom of the ranking.
Chad was rated lowest in 131st and last place.
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