Mauritius is a little paradise island that flourishes in its diverse culture and tradition. A closer look reveals a complex history of this archipelago — once colonized by the Dutch, French and finally, the British. Mauritius gained independence in 1968 and has since transformed itself from a low-income economy mostly dependent on agriculture and fishing to an economy thriving on industrial, financial and tourism growth. 

It is commendable that the country has achieved this in spite of many roadblocks, like its remoteness from the world market, racial inequality and high population growth. Notably, between 1977 and 2008, the Mauritius economy averaged a 4.6% gross domestic product (GDP) growth rate, thanks to the government’s sound and pragmatic development strategies.

Furthermore, less than 1% of its population lives on $2.15 a day or less, meaning extreme poverty is almost non-existent. However, several factors contribute to the persistent pockets of poverty that do exist. Here are five causes of poverty in Mauritius:

1. The island of Rodrigues, a part of the Republic, has 40% of its population living below the poverty level. This is because the island does not form part of the tourist attractions or produce any resources to add to exports.
2. Agriculture is a major industry in Mauritius, with about 40% of its land used for crop cultivation. However, as the focus of economic development has shifted to exports, industries and tourism, rural households that depend on agriculture as their source of income have become more vulnerable to poverty. In addition, “below‑average precipitation amounts in January and February 2021” led to reduced soil moisture, ultimately affecting production. Environmental deterioration is one of the biggest causes of low yields of agriculture.
3. Women in rural areas are especially prone to poverty as they often have low levels of education and have not acquired professional skills. Families dependent on these women for their financial needs are at a higher risk.
4. Modernization and industrialization boosted the economy but also led to greater income inequality. This has resulted in high indebtedness in poor households. According to the United Nations Development Programme (UNDP), the rising income inequality in Mauritius can be partly attributed to “skills shortages, high levels of youth unemployment and widening gender gaps in earnings.”
5. The most significant cause of poverty in Mauritius is the “triple trade shock” experienced in 2005. This shock stemmed from the loss of trade preferences for textiles and sugar, alongside rising energy prices. Specifically, the end of the Multi-Fiber Agreement for textiles, reductions in the European Union’s sugar protocol prices and a sharp increase in petroleum and food prices led to a cumulative trade shock of nearly 25%. Although the government has implemented numerous reforms to address this crisis, overcoming its effects remains an ongoing process.

Solutions

In 2016, the government of Mauritius launched an ambitious reform plan called the Marshall Plan Against Poverty to eradicate poverty and exclusion. The plan sought to achieve this by collaborating with underprivileged communities and other marginalized groups to improve access to essential services such as healthcare and education, implementing social protection measures and introducing empowerment programs for women and youth. In addition, the government has established several social protection programs, such as the National Solidarity Fund, which provides financial assistance to vulnerable individuals.

– Tripti Sinha

Photo: Flickr
Updated: May 27, 2024