Thursday, July 9, 2026
How Mauritius's Offshore Model Splits the Economy in Two
Wednesday, June 24, 2026
Why "pension" tampering is often perceived as a breach of trust
A contributory pension is a rational instrument — but only where wages are paid in a currency that does not lose its value
A contributory pension functions effectively only when citizens can confidently set aside a portion of their current income, trusting that its value will endure until retirement. That fundamental condition does not hold in Mauritius.
The rupee is a slow leak, not a store of value. To ask Mauritians to contribute to a pension fund in a currency that silently erodes is to ask them to save in a depreciating asset dressed up as security. This is why the welfare state “pension” — universal, non-contributory, financed through indirect taxation — has never been seen as a simple social transfer. It has been internalised by most Mauritians as something more instinctive: a hedge. A partial, imperfect recovery of what VAT had already taken.
Since most of what they consume is imported, and since import prices move with a rupee that knows only depreciation, the “pension” has become a silent compensation mechanism — the state returning, in monthly instalments, a fragment of the purchasing power it had extracted through the price of goods and services purchased.
But the contract does not stop there, and this is where it becomes quietly damning. Most Mauritians do not actually consume the public services their taxes fund. They pay school fees or private tutoring because they do not trust the state school. They use a private clinic because the public hospital is a place of last resort. They install an alarm system because the police is an institution they have learned to work around rather than rely upon. On top of this comes the often unbearable cost of a carer — because health declines, and their children have emigrated. A double absence that the universal “pension” does not cover.
They are, in reality, taxed twice — once by the state, and once by their own justified scepticism of what that state delivers. What emerges is not a welfare state in the classical sense. This fiscal arrangement essentially requires citizens to fund institutions they distrust, while receiving only a modest "pension" as partial restitution. Consequently, they are forced to privately finance the very services that the public system was originally intended to provide.
In this context, the debate on contributory pensions is almost a distraction. The primary question — the one consistently omitted from budget speeches — remains: why the rupee continues to lose ground, and who actually benefits from the silence surrounding this reality.
Sunday, June 21, 2026
Lost in translation : on les emploie souvent comme s'ils voulaient dire la même chose
Le rule of law : C'est un principe fondamental : personne n'est au-dessus de la loi - pas même l'État, pas même le gouvernement, pas même le président. La loi s'applique à tous de façon égale. Le juge peut condamner le roi. C'est la grande idée venue du droit anglais, héritée de la Magna Carta de 1215. Ce n'est pas seulement une question de formulaires et de procédures : c'est une exigence de justice. En un mot : le pouvoir lui-même est soumis au droit.
L'État de droit : Ici, on s'intéresse à la structure de l'État. Un État de droit, c'est un État qui agit par des formes juridiques : lois, décrets, hiérarchie des normes. Il respecte ses propres règles. Il peut être contrôlé par un tribunal administratif ou un conseil constitutionnel.
Mais attention : un État peut être techniquement un « État de droit » tout en ayant des lois profondément injustes. C'est une notion plus formelle que morale.
Law and order : Là, on change totalement de registre. Il ne s'agit plus d'un principe juridique mais d'un objectif pratique : que les rues soient calmes, que les crimes soient punis, que les citoyens se sentent en sécurité. C'est l'affaire de la police, des tribunaux pénaux, de la politique sécuritaire. Une dictature peut parfaitement maintenir l'ordre public - voire mieux qu'une démocratie. Cela ne lui confère aucune légitimité.
En un mot : les gens obéissent à la loi. Un résultat, pas un principe. « Une dictature peut avoir l'ordre public, et même un état de droit formel - sans jamais connaître le rule of law. »
Sunday, June 7, 2026
AI chatbot Claude prompted to dig underneath Mauritian Miracle
Prompt: Why Mauritius needs reliable institutions, biting competition and corruption watchdogs, a currency board to stabilise the rupee and impose fiscal discipline — and why real leadership remains elusive.
Reliable Institutions
Regulators,
courts, and watchdogs currently bend toward whoever holds power. Without
institutions that function regardless of who governs, every reform dies with
the next election. In Mauritius, the powerful rewrite the rules as they go.
Biting Competition Watchdog
Conglomerates
span banking, insurance, retail, property, and media with little real
competition. A toothless authority means consumers overpay, small businesses
are crushed, and innovation suffocates. Genuine competition would force
efficiency and lower prices directly for ordinary Mauritians.
Biting Anti-Corruption Watchdog
Current
bodies investigate selectively — targeting opponents, protecting allies. A
truly independent authority would change behaviour at every level —
procurement, licensing, land deals — because consequences would be real and
unavoidable.
Currency Board
Instead
of a politically pliable central bank, a currency board anchors the rupee to a
hard foreign reserve at a fixed, legally binding rate. It eliminates
money-printing, deficit monetisation, and exchange rate manipulation. The rupee
stabilises, inflation becomes predictable, savings hold value, and businesses
can plan.
Fiscal Discipline
Governments
habitually overspend — especially before elections — then pass the debt silently
to future generations. Fiscal discipline means spending what you genuinely
have, investing productively, and resisting the populist handout cycle that
buys votes but builds nothing.
Why It All Connects
These
are not separate fixes. Fiscal discipline requires an independent monetary
anchor; sound monetary policy builds trust; strong institutions need
anti-corruption teeth; real competition breaks the conglomerate stranglehold
that corrupts institutions in the first place. Each pillar holds up the others.
The Leadership Problem
Real
reform would directly threaten the people who fund political campaigns, sponsor the
media, employ the middle class, and socialise with policymakers. No leader
emerging from within that system has genuine incentive to dismantle it. Until
Mauritians demand this conversation loudly and consistently — beyond the ethnic
noise, beyond the electoral cycle — structural rot continues, regardless of
which family occupies the prime minister's office.
Prompt: Alan Walters advised
Navin Ramgoolam to implement a currency board.
Margaret
Thatcher's personal economic adviser — one of the most influential monetarist
economists of the 20th century — advised Ramgoolam in the late 1990s to anchor
the rupee to a hard currency, remove monetary policy from political
interference, impose automatic fiscal discipline, build investor confidence,
and break the cycle of managed depreciation that quietly taxed ordinary
citizens.
It
was bold, serious, and structurally sound advice. Ramgoolam didn't implement
it.
The
reasons were predictable: the Bank of Mauritius resisted loss of discretion;
conglomerates and exporters benefited from a sliding rupee; fiscal discipline
meant cutting populist spending; and the entire economic establishment was
comfortable with the existing arrangement.
Had
Mauritius acted, the rupee would have been anchored for nearly 30 years by now,
inflation cycles would have been largely avoided, and a Singapore-style
trajectory was genuinely possible. Instead, the rupee has lost enormous
purchasing power, real wages have been quietly eroded, and the same
discretionary system that serves elite interests remains intact.
Walters
gave Mauritius a genuine roadmap. The advice wasn't rejected because it was
wrong. It was rejected because it was right.
Prompt: Most economists have
never heard of a currency board, or have no idea how it operates.
Modern
economics education is dominated by central bank orthodoxy, IMF managed-float
defaults, academic careers built on modelling discretionary policy, and a
Keynesian instinct to retain government spending flexibility — all of which a
currency board directly challenges. Most economists graduate never seriously
studying currency boards, treating them as historical curiosities rather than
live policy options.
What they get wrong: they
assume a currency board surrenders sovereignty (you choose the anchor),
eliminates a lender of last resort (manageable with proper reserves), imposes
permanent deflation (it imposes discipline, not deflation), and only suits tiny
economies (Hong Kong still runs one; Estonia used one to transform itself
entirely).
What a currency board actually does: every
unit of currency is fully backed by hard foreign reserves; the exchange rate is
fixed by law; the central bank cannot print beyond reserves; government cannot
monetise deficits; inflation becomes imported and transparent; interest rates
find their natural level. It is honest money enforced by rules rather than
promises.
Living proof: Hong
Kong has run a currency board since 1983 — through Asian financial crises, the
dot-com crash, the global financial crisis, and COVID — maintaining a
rock-solid dollar and predictable inflation. Estonia used one in the 1990s to
transform from a collapsing Soviet economy to Eurozone membership in under a decade.
Bulgaria adopted one after catastrophic hyperinflation in 1997; it worked
almost immediately.
Why the establishment resists: a
currency board eliminates central bank bureaucracy, monetary policy committees,
rate-setting decisions, and exchange rate intervention desks — along with the
institutional power, prestige, and employment they generate. Economists don't
merely misunderstand currency boards; many instinctively oppose them because
they threaten the discretionary system that employs them.
For
Mauritius specifically, a currency board would remove the rupee from political
manipulation, force genuine fiscal responsibility, protect ordinary savings,
make populist overspending immediately visible, and break the quiet alliance
between government, central bank, and conglomerates that profits from monetary
discretion.
Prompt: Mauritius put the horse before
the cart — launching a tax haven before stabilising the rupee.
From
the late 1980s, Mauritius built its offshore financial centre and
India-Mauritius DTAA treaty network aggressively, attracting billions in FDI
routing. On paper, a success. But the rupee was never anchored. The result was
a weak, sliding currency that eroded real returns on MUR-denominated assets; a
never-truly-independent central bank; an implicit depreciation subsidy to
exporters dressed as competitiveness; and capital that flowed through Mauritius rather
than into it
— because nobody trusted the rupee enough to park wealth in it long-term.
A
tax haven only works sustainably if investors trust the currency behind it.
Mauritius became a conduit for hundreds of billions in global capital while its
own citizens watched purchasing power steadily erode.
Alan
Walters understood something most economists still don't: rules beat
discretion when institutions are weak and elites are powerful. In a country
where the central bank, government, and conglomerates operate in the same tight
circle, giving that circle discretionary control over money is handing them a
permanent hidden tax on everyone else. A currency board removes that power
entirely — which is precisely why it was never implemented, and precisely why
it should have been.
(Notably,
the first currency board in history was implemented in Mauritius itself, in
1849 — the Board of Commissioners of Currency, pegged to British sterling. This
is what genuine national leadership looks like.)
Prompt: How low can interest
rates go under a currency board?
Under
a currency board, the exchange rate is fixed and credible. Currency risk — the
premium lenders charge to compensate for potential depreciation — disappears
entirely. In Mauritius today, a significant portion of every lending rate is
simply compensation for rupee risk. Remove the risk, remove the premium.
What
remains: the anchor currency's risk-free rate, a small country risk premium
reflecting institutional quality, the bank's operating margin, and the
borrower's credit risk. Nothing more.
Hong
Kong's lending rates have historically tracked US rates closely — sometimes
below equivalent US commercial rates — because the elimination of currency risk
made Hong Kong paper genuinely trusted. A small island economy borrowing at
rates comparable to a global reserve currency. Estonia achieved something
similar before euro adoption, compressing borrowing costs dramatically and
fuelling investment impossible under a floating regime.
For
Mauritius: a small business currently borrowing at 7–9% on a commercial
loan could plausibly pay 3–5% over time under a credible currency board.
That is not a marginal difference — it is the difference between a business
that can invest and one permanently strangled by its cost of capital. For
mortgages the transformation would be even more dramatic, making homeownership
and long-term saving accessible to a far wider share of the population.
The
mechanism is circular: rupee weakness inflates interest rates; high rates
strangle productivity investment; low productivity weakens the rupee. The currency
board breaks that cycle at the root.
Prompt: With a currency board,
competitiveness would have rested on the real thing: productivity gains.
Depreciation
is a trick — a painless-looking way to make exports cheaper without doing the
hard work. It rewards the sugar estate and the hotel group at the expense of
the civil servant, the nurse, the small business owner buying imported inputs.
Because this shortcut is painless for the powerful, nobody fixes the underlying
problem.
With
the rupee locked, the escape valve is gone. Competitiveness must come from
raising worker productivity through genuine skills investment; innovating up
the value chain; cutting bureaucratic friction; building functional
infrastructure; and attracting FDI based on real capability. This is
exactly how Singapore, Hong Kong, and Estonia built durable economies — the
discipline of a hard currency forced them to compete on substance.
Mauritian
conglomerates never needed to modernise because the depreciating rupee was
their silent subsidy. Productivity growth has been mediocre for two decades
precisely because the pressure to perform was never there.
Prompt: Currency depreciation
doesn't help exports when countries rely heavily on imported inputs.
The
textbook depreciation argument assumes exporters use mostly domestic inputs.
For Mauritius it collapses entirely:
·
Tourism —
imported food, beverages, furnishings, fuel, equipment; the hotel's cost base
is largely foreign-currency denominated.
·
Textiles — fabric,
dyes, machinery, and energy all imported.
·
Seafood processing — the
fish itself is often imported; processing is the value-add but the raw material
is dollar-priced.
·
Financial services —
depends on imported technology and foreign-trained talent.
When
the rupee falls, the cost of every input rises immediately. The supposed
competitive gain on revenue is eaten by cost increases on the input side. The net
benefit to the exporter is marginal at best, negative at worst.
The
real beneficiaries of depreciation are the conglomerate holding hard-currency
assets against local-currency liabilities, the correctly positioned speculator,
and the government inflating away its rupee-denominated debt.
Mauritius
imported the depreciation model from large continental economies for whom it
occasionally makes sense, and applied it to a small island with virtually no
natural resources and near-total import dependence. The wrong medicine,
administered confidently, for forty years.
Prompt: Today, another imported
input is foreign labour. Remittances are a significant share of migrant
workers' income.
Mauritius
imports tens of thousands of guest workers to staff textile factories,
construction sites, and hospitality. On paper this addresses a labour shortage.
In reality it avoids the harder question of why Mauritians won't do
those jobs at those wages.
These
workers send a significant portion of their earnings home in foreign currency.
Mauritius bears the full social cost — housing, healthcare, infrastructure
pressure — while the economic multiplier leaves with the remittance. The
foreign exchange earned by the export sector flows straight back out.
The
depreciation argument collapses at yet another level: the labour input producing
the export is itself a foreign currency cost in disguise. The rupee
wage converts to dollars the moment it is earned.
Cheap
imported labour also removes pressure on employers to automate or upgrade — the
same dynamic as currency depreciation: a shortcut that forecloses the harder
path to genuine productivity.
The
result: Mauritian workers are priced out of their own labour market at the
bottom end. The imported worker fills the gap but extracts the wage. The
conglomerate captures the margin. The rupee slides to accommodate the
arrangement. The ordinary Mauritian — neither conglomerate owner nor foreign
worker — absorbs the cost of the entire system.
Mauritius
never built an economy. It built an arrangement.
Prompt: A solidly anchored rupee
would prevent locals from being entirely priced out of the property market.
Foreign
buyers — South African and French nationals essentially — purchase Mauritian
property in hard currency. As the rupee weakens, property priced in rupees
becomes progressively cheaper in foreign currency terms, structurally
stimulating foreign demand with every depreciation episode.
The
Mauritian buyer earns in rupees. Their salary does not adjust upward for
depreciation. They are bidding in a market where the effective competition
holds an infinitely stronger currency. They cannot win.
Under
a currency board this reverses. Property is no longer artificially cheap in
foreign currency terms. The speculative premium driven by currency weakness
disappears. Local buyers — earning stable rupees worth a stable amount — can
compete on genuine terms. Prices would still reflect scarcity and location, but
would not be systematically inflated by a monetary policy that effectively
subsidises foreign purchasing power at the expense of local purchasing power.
Young
Mauritians are being priced out of the island their grandparents built. They
earn in a currency that loses value every year against the currencies of the
people buying the land beneath their feet. A currency board would not eliminate
foreign property investment — but it would end the silent auction in which
locals bid with monopoly money against players holding real currency.
Property
ownership is not merely an economic asset. It is rootedness, dignity,
intergenerational wealth transfer — skin in the game of the nation's future. A
population of permanent renters in their own homeland is being quietly
dispossessed, not through dramatic confiscation but through the arithmetic of
monetary mismanagement compounded over decades.
Prompt: The weak rupee also
frustrates local human capital through the widening gap between rupee and forex
income. Potential xenophobia looms.
A
Mauritian professional — engineer, accountant, software developer, nurse —
earns in rupees. Their counterpart doing equivalent work in Dubai, London, or
Singapore earns in dollars, pounds, or euros. As the rupee slides year after
year, that gap widens without the Mauritian doing anything wrong. The monetary
system devalued their effort relative to the world.
The
rational response is to leave — and they do. Mauritius haemorrhages its
best-educated people to Australia, Canada, the UK, and the Gulf. Those who stay
either find a way to earn in foreign currency or quietly accept a diminished
economic reality. The country fills the vacuum with cheap imported labour,
which further suppresses wages, which further frustrates local talent, which
accelerates brain drain — a perfect self-reinforcing loop.
The
frustrated local worker sees the equation clearly: their wage buys less every
year; foreign workers occupy jobs below them; expatriate professionals occupy
jobs above them; the conglomerate owner sits insulated by hard assets. Squeezed
from both ends, and unable to articulate the systemic cause, they reach for the
most visible explanation — the foreign face. Resentment entirely
legitimate in origin becomes misdirected in expression.
This
is fertile ground for a demagogue: someone who blames the foreigner rather than
the monetary framework, the conglomerate structure, or institutional capture.
That narrative is far easier to sell than explaining currency boards, and once
it takes hold, actual reform becomes harder still.
The
cruel irony: the Mauritians who best understand what rupee depreciation costs
them — educated, internationally aware — are the ones most likely to have
already left. Those who remain and feel the pain most acutely are least
equipped to diagnose it correctly. And the political class, which understands
it perfectly well, has every incentive to keep the conversation elsewhere.
Mauritius
is not just running out of foreign exchange. It is running out of itself.
Prompt: The stress on the basic
retirement pension would have been far less with a stable rupee.
The
Basic Retirement Pension is paid in rupees, but Mauritius is heavily
import-dependent. Food, fuel, medicine, and construction materials — the
essentials pensioners spend most of their income on — are priced in dollars and
euros before reaching the shelf. When the rupee depreciates, the real
purchasing power of the pension collapses even if the nominal figure stays flat
or rises modestly.
The
government then faces pressure to raise the nominal pension — increasing fiscal
burden — which contributes to deficit spending — which puts further downward
pressure on the rupee. A self-reinforcing loop.
The
rupee has fallen from roughly 7–8 to the dollar in 1978 to around 47–48
today. A stable rupee would have meant lower imported inflation; each
rupee of pension would stretch further; the government could have paid less in
nominal terms while delivering the same or better real standard of living. The
fiscal stress on the National Pensions Fund would have been structurally lower.
Instead
Mauritius used currency depreciation as a soft competitiveness tool for tourism
and textile exports, while the cost was quietly borne by the most vulnerable —
pensioners, civil servants, and impoverished citizens with no hedge against inflation.
Prompt: When fake becomes normal, currency depreciation quietly kills innovation
Persistent currency depreciation erodes a nation's creative soul. As the rupee weakens, genuine goods become unaffordable, and counterfeit alternatives flood the market. Over time, societies stop seeing this as a problem. The fake becomes acceptable. The copy becomes the norm.
This silent normalisation is, at its core, a violation of intellectual property rights — not by law but by economic circumstance. When millions routinely consume counterfeit goods, the legal and moral framework protecting original creators collapses in practice, even if it stands on paper. Most critically, this kills the incentive to innovate.
Decades
of poor decision-making have trapped the country in a vicious circle. Because
of this, it is getting harder to survive in an increasingly ruthless
world. Each misguided step speeds up the downward spiral, making
everyday life a bigger struggle.
Saturday, June 6, 2026
Don't try to convert the 15% Rotten Tomatoes first
Win the 5%, create visible momentum, and the 80% will follow. The Rotten Tomatoes shrink when they're outnumbered.
Saturday, April 25, 2026
Mauritius: A House of Cards?
Tuesday, April 15, 2025
Un système éducatif qui permet de rester debout dans la dignité
Il est généralement admis que, pour citer le pédagogue Peter Hyman, « le but de l'école est de
développer l'enfant dans sa globalité – la tête, le cœur et la main. Réfléchir
en profondeur (tête), développer l'intelligence émotionnelle (cœur) et devenir
créatif dans la résolution de problèmes (main) ».
Pour commencer, nous
devons reconnaître que la génération Alpha (née après 2010) grandit dans une
atmosphère qui tend à être façonnée simultanément par le stress toxique sous
diverses formes (la série Adolescence sur Netflix fournit des indications
utiles sur le deséquilibre existentiel) et par la nature numérique de la plupart des interactions. Le
confinement de Covid-19 a sans doute contribué à perturber davantage leur santé
mentale et leur capacité d'attention. Il ne s'agit pas d'un scénario
catastrophe, mais d'un constat de réalité. Planifier à l'avance, c'est
invariablement aussi une atténuation des risques. Le type de programme d'études est
essentiel pour atteindre le plus efficacement possible les objectifs de
l'éducation.
Pour que la mentalité
centrée sur les examens et les résultats académiques soit moins prévalente, un
système éducatif holistique doit être mis en place avec notamment :
·
des
enseignants valorisés en tant qu'accompagnateurs (le « cours magistral » est devenu si ringard);
·
des
parents engagés en tant que partenaires ;
·
des
enfants motivés en tant qu'apprenants actifs ;
·
un apprentissage
par l'expérience (apprendre en pratiquant/en jouant);
·
une approche
interdisciplinaire ;
· un apprentissage par cœur réduit au strict minimum.
Le système éducatif finlandais a
toujours été plébiscité pour sa capacité à former des enfants équilibrés.
Cependant, au cours des deux dernières décennies environ, le Baccalauréat
International (IB/ibo.org) a acquis le statut d'étalon-or. Qui plus est, le
directeur général en exercice de l'IB a également été le directeur général de
l'Agence nationale finlandaise de l'éducation. Il convient de souligner que
l'éducation de l'IB ne commence pas et ne s'arrête pas à la fin de l'enseignement
secondaire (Programme du diplôme/IBDP). Il s'agit d'une éducation complète qui
commence par le Programme primaire (PYP), qui intègre également les principes
clés de la méthode Montessori, et qui se poursuit par le Programme
d’éducation intermédiaire (MYP) jusqu'au IBDP.
Il n'y a pas si longtemps, le Programme
à orientation professionnelle (IBCP) a été mis en place et il «permet
d’acquérir des compétences essentielles pour l’avenir des apprenants et
les prépare à tracer leur parcours professionnel, en associant des disciplines
scolaires avec leurs domaines d’intérêt professionnel». Tous les programmes de l'IB sont
continuellement rafraîchis et remaniés - un cours sur le leadership est
actuellement à l'essai. La cohérence des programmes scolaires est essentielle
pour stimuler l'apprentissage tout au long de la vie. La formation
professionnelle ne mérite pas une mauvaise réputation, comme le prouve
amplement la Suisse, pays très performant.
Les propositions
suivantes peuvent être mises en œuvre simultanément afin de fournir l'éducation
holistique à laquelle nous aspirons tous :
·
Roots
of Empathy/(Racines de l'empathie (rootsofempathy.org) est « un programme de
classe basé sur des preuves qui cherche à réduire l’agressivité,
accroît le partage, la bienveillance et l’inclusion, et favorise la résilience,
le bien-être et la bonne santé mentale »;
·
des
activités intrascolaires telles que le yoga, la cuisine et le jardinage
(essentiellement dans le but de réduire la dépendance sur la consommation
d'aliments ultra-transformés), les arts martiaux, les arts et la musique, les
échecs, le théâtre, les activités sportives, etc ;
·
des cours
interculturels avec exposition aux dimensions culturelles et spirituelles des
religions à Maurice et au-delà ;
·
l’enseignement
sans tabous de l'histoire de Maurice et du monde doit faire l'objet d'un
enseignement obligatoire ;
·
une immsersion
beaucoup plus importante dans la langue anglaise, la lingua franca mondiale ;
·
la
participation au Programme international pour le suivi des acquis des élèves
(PISA) qui mésure la résolution de problèmes et la cognition tout en contrôlant
la performance du système éducatif en place.
L'éducation est un facteur primordial pour déterminer les compétences du capital humain d'une nation et son bien-être. Nous avons été trop complaisants jusqu'à présent avec un système qui continue à récompenser de moins en moins de citoyens. Il est certain que l'intelligence artificielle et les technologies de l'information continueront à impacter sur notre existence, pour le meilleur comme pour le pire. Même si le système éducatif parfait n'existe pas, nous devons résolument préparer les générations futures à s'adapter à un monde qui récompense froidement les personnes les plus agiles sur le plan cognitif, les plus perspicaces et les plus intelligentes sur le plan émotionnel, plutôt que le nombre de diplômes dont on fait étalage.