There is no doubt that Mauritius is a cosmopolitan country, a model of development for the 21st Century - what was the role of your sector in that process?
Well, Mauritius is at a cross-road. It has been hailed, rightly so,
as a model of social, cultural and economic success and is known today as a gateway to
Asia, to Africa and to Europe, which reflects very much the social cohesion and the
harmonious blending amongst the different communities of Mauritius. They have one
objective which is to enhance all along the quality of life, to grasp the opportunities,
to war the threats and consolidate the very factors which promote growth, i.e. to ensure
that the separation of power, that the pillars of democracy are a welcome trench and that
there is the support from the grass-root with the participation of all stake players, from
NGOs to people from the business sector community. Having said so, if today we have been
able to achieve success, like I said initially, it is to a large extent to our system of
education, which has enabled us to increase our gist of knowledge, to appreciate each
other’s differences, encouraging us to converge towards national unity, which, of
course, is the very quintessential basis for our success. So when you talk of moving in
the 21st Century: we want to enter smoothly in the 21st Century, we want to become a hub
in the region, we want to set up a knowledge network and we want to be able to service the
region. We strongly believe in regional expansion, this is why we had no choice but to
harness our human resources to respond to changing needs and Mauritius being a bilinguist
country, it is an asset that we have to constantly tap. This is why, when we say we are
the gateway to the three continents, it is an advantage, a comparative advantage, that we
have over many other countries of the region.
So, enter smoothly into the 21st Century, participation of the people
at the grass-root level, enhancing democratic benchmark to ensure that there is
transparency and accountability in the way we conduct our affairs and thirdly promoting a
regional co-operation through South - South dialogue and also harnessing the financial
resources from Europe to integrate into the new World economic order. We have a capability
to do so, we have the human resources, we have intermediary technology and we simply are
constantly getting our act together to become a powerhouse in our own way in the region .
So this is my way of looking at things to ensure that we become a hub in the different
economic sectors of the region.
There will be a Sugar Agreement with the EEC, what will be the effects
for Mauritius. Are you optimistic about it?
There is a Sugar Agreement. We are a member of the Sugar Protocol. Out
of the 1.3 million Tons of sugar which is exported, we have a quota of 404,000 Tons of
sugar which we export to Europe. Over and above that, with the entry of Portugal into the
European Community, we obtained an additional quota of up to 85,000 Tons, through what is
known as a "Special Preferential Sugar Agreement"; also we export sugar to the
States in respect of a quota allocated to us; but very often there is a re-arrangement of
this quota when there is a shortfall in respect of countries which are not able to honour
their commitment. Now sugar remains the very backbone of the economy. We have used the
proceeds from the sale of sugar to widen our economic base. The money which we have
obtained from the sales of sugar has gone into the textile sector providing employment to
our people, has gone into the tourism sector, another services sector, and also today we
are able to produce energy from bagasse and coal and by the year 2000 we should be able to
produce up to 45% of our electricity needs from bagasse and coal. There is a lot of
investment that are adding a lot of value to the sector.
Now, having said so, it is imperative for me to highlight the
importance of Preferential Trade Accord to this social, cultural, economic Development of
this country. Now, in sectors where there can be a level-playing field, we say fine, there
is no quarrel over this issue. For example in the tourism sector, but in the agricultural
sector, the Preferential Trade Accord, the "Sugar Regime" of which the
"Sugar Protocol" is a strong component has its very importance because of its
commonality of interests between ACP Sugar Producers, between Sugar Refiners and Beetroot
growers. And this commonality of interests is based upon predictability and reliability.
and it is not subject to the vagueries of market forces. And also, windward countries like
the Caribbean, or island countries like Mauritius and Fiji and landlocked countries which
are sugar producing like Swaziland have small economies. Many of these island countries -
all of them - are subject to the vagueries of climatic conditions. They have high
vulnerability index.We are net food importers; we have tried to diversify away from sugar
cane, encouraging diversification of the crops - the cost of production is prohibitive, so
it is almost impossible to us to produce what we eat and eat what we produce. So what we
are trying do do is to consolidate sectors where we have comparative advantage. We are
good at exporting sugar, there a preferential margin but that preferential margin is
constantly being eroded because of restrictive price policy, because of long haul, and the
cost of transport and insurance that are constantly increasing. And also, that we have to
constantly ward off threats from those who are strong propponents of trade liberalisation.
Not that we don’t want change, but their should be no violent disruption of a system
which is producing the expected results.
When we talk of agriculture in this country, in a country which is a
volcanic island, which has micro-climatic conditions, where the soil condition differs
from region to region, where drought can spell disaster, where a cyclone can wipe out your
food-crop production, the only crop that adapted over the years and is more resistant to
cyclones is sugar cane.
And when we talk of the Sugar Industry, we also talk of democratisation
through share ownership. You also talk of participation of women workforce, we also talk
of protection of the environment and we talk of rural development. You also talk of
Mauritian expertise which is being used to develop the Sugar Industry in African
countries. So this is why we say that we are good at exporting sugar: it is also a service
sector and it has a multi-functional dimension.
The Sugar Protocol is GATT compatible, it is compatible with Articles 1
and 13 of the GATT. It has a multilateral dimension and thirdly, it provides security and
reliability as to employment, participation of women in its labour force and also there
is, as I said the democratisation through the share ownership. We could not ask for a
better crop than sugar can to enhance social, cultural and economic activities.
What about the tea industry. You are talkig about the sugar industry,
but what about the Tea Industry. Is it still a priority?
I am glad you asked this question. We are producing tea only to honor
local commitment.
We cannot grow tea because the cost is prohibitive. The tea that we
grow is of low to low-medium quality and thirdly, since this sector was developed,
Government has spent more than 1 billion roupies. At the time it was justified; but
resources could be used elsewhere to provide irrigation, to invest in research and
development, to train our human resources and to consolidate sectors that have comparative
advantages. That is gearing resources towards input to boost production. Unfortunately the
decision was taken a bit late, but it was a good decision to encourage the retrenchment
from the sector. And the day of import substitution to a large extent are over because we
have redefined self-sufficiency, food security. To us it means having the purchasing power
to buy basic needs. So why using resources poorly when they can be put to better use. So
this is how we are recasting our incentives to reshape our agricultural policy. In fact,
there is a team from World Bank which have come over to help us draw our action plan; the
different committees have already submitted their reports. Now we are shaping things up:
to have a strategy and then to look at cost of implementation of the budget. And, of
course, with a mid-term review to constantly up-grade the action plan.
And what are basically the main guidelines of that plan?
consolidating sectors that have comparative advantage
expansion in the region
making Mauritius eventually become, with regional co-operation, a services of the agricultural sector (for example the use of bio-technology to supply, for example, the region with micro plantlets, in respect of reafforestation, for providing new varieties of sugar cane. But we have to look at Intellectual Property Rights. We have to study fully the implication of bio-safety regulations.In fact, only this morning I was asked to declare a Seminar open, of SADC, on "Plant Genetic Resources" - so they have set up a regional databank where there is exchange of information, analysis etc. to ensure that these plantlets will eventually be distributed to planters, to encourage the concept of food security.
And then, one should not forget that Mauritius today has become a powerhouse in the Sugar Industry. Look how we are servicing the industry in different parts of Africa. We have acquired Sugar Industry assets- and of course their liabilities also - we are trying to reduce them with the enhancing of the sugar industries in Cote d’Ivoire, Mozambique, eventually in Benin and Zaire. And also we will set up an integrated farming unit in Mozambique. Of course with the rehabilitation of the railway network, and as long as there is direct shipping line. Now there is a direct air flight between Mauritius and Mozambique. So things are shaping up well.
| What we want is Mauritius to become an agro-processing base. So we can import in bulk, process in Mauritius. again we have to look at the GATT legislation, harness our human resources, ensure that there is proper transfer of technology. Everything is there, for example, we have many agro-processing industries in Mauritius. So its experience which has been acquired over the years. Now we are getting the raw material. We are going to import in bulk, because we are the ones who are going to set up the Joint Ventures with our brothers in Mozambique. Set up, for example, these integrated farming units and identify areas where we are going to grow rice for example, or maize, or where we are going to set up cattle farm, import in bulk, process, use our comparative market advantage that we have in Europe to supply the region and Europe of course. When we talk of integrating in the new World economic order through regional integration, we also have to look at events which are happening in Europe, with what has been spelt out by the Europeans on the concept of Free-Trade Area Agreement - so we have to take advantage of opportunities to ward off the threats, establishing the list of sensitive products, to ensure for example that Sugar is in the list of sensitive product; whether we are going to negotiate for a waiver at the World Trade Organisation. So all these issues have to be addressed: on the issue of sugar we have a Select Working Group looking at the different scenario and the Select working Group composed of Resources persons from the Private and the Public Sector, on the future ACP/EU relations. You know that our deputy Prime Minister is a spokesman on Trade. So we have a National Monitoring Committee constantly meeting him here with technical advice which is being dispensed to him to ensure that w strengthen our case, the case of ACP. So that means that w are monitoring the situation very closely. We are not adverse to change but there should not be violent change, there should not be violent disruption of the system. Where there is a level-playing field we are willing to play the game but at the same time, we are highlighting the vulnerability of island economies, of small economies. I think that that concept is well entrenched at the World Trade Organisation and together with the Europeans, we are going to constitute a major force to ensure that World Trade Organisation, which is a rule-based organisation, amend its rules to respond to the needs of small island economies, to ensure that the field is constantly being levelled, to understand fully the concept of counties which are net food importers etc. etc.
So how are we moving:
1. through encouraging, promoting regional cooperation
2. harnessing our human resourses
3. taking advantage of Financial Resources from Europe to implement our
project which is being spelt-out constantly by Pr. Pinero, who is E.U. commissioner who is
dealing with ACP countries, but ensuring also that there is participation at the
grass-root level (and Mauritius has a comparative advantage because it has always been a
strong proponent of this synergy between private and public sector.
You have mentioned that the US are a Trade Partner is your sector, but
are they also a foreign investor in your sector?
In the agricultural sector, to a very limited extent. Or you can
say to a large extent because they have subsidiaries all over the place. But certainly,
there are agricultural equipment which we buy, there are chemicals we buy through their
subsidiaries – but there has not been much investment in agricultural sector from the
States. However, with the African Opportunities Bill, and the financial resources that are
going to be made available provided the concept of African development is fully
understood, without it being a one-way traffic, I think the offshore companies can use
Mauritius as a spring ball to invest in the region. For example, this is happening in the
field of telecommunications. I see no reason why it cannot happen in the agricultural
sector. There is political stability, a good infrastructure network and there is strong
synergy between Private and Public Sector. So we offer these advantages which others have
started to offer now.
Our readers are always interested in new business opportunities. Could
you mention some investment opportunities in your Section?
Yes. As I have said, the field of bio-technology. I feel that
bio-technology is the science of today and to-morrow. Of course we have to look at the
legislation; we have to make sure that there is compliance with Intellectual Property
Rights. But I feel we have the human resources which can be properly harnessed. For
example investments from a Research Company like Monsana.
The production of energy from bagasse and coal: That is a comparative
advantage that we have, that even countries like India want to learn from us. It’s
certainly an advantage which we have over others because we have been investing in that
sector to lessen our dependency upon imported oil because we strongly believe that a
sustainable economic growth cannot take place without environmental issues being fully
taken on board.
For example, in waste disposal: this is another critical area where we
need investments. A way to run off from chemicals which are being used in the fields etc
– how best to limit and to ensure their judicious use. There is a study by our Sugar
Research Institute and an Australian Research Centre from Queensland. So, basically, these
are areas where there can be investment, by using the human resources to replicate what is
being done on a small scale here elsewhere; hydroponics, bio-technology in respect of
re-afforestation of the whole of Africa. There is possibility in there by popularising
micro-plant bio-technology through availability of micro-plantlets which are resistant to
diseases. Because Africa has the potential to produce what it eats and eat what it
produces. Unfortunately, in Mauritius we have very limited land resources, but Mauritius
can be used as a lab, as a model. We can do it because Mauritius has become a paragon of
transparency, in spite of all the criticism, In fact, because it is a small country –
literally we breathe on each other’s neck – to the extent that you have no
choice but to walk in a straight line.
Now as a more personal issue, what has been your most satisfying
achievement since you have been Minister?
We have been able to reconcile social and economical factors (for example, there was a
time when "matayers" had no security of land tenure.
We have been able to convince and relay the right message to the members of the
planters community and to the population at large that we have no choice than to
restructure and to modernise and upgrade the Sugar Industry and what was "taboo"
some ago – Centralisation - has now become a "fait accompli".
The production of energy from bagasse and coal which has given a lot of value to the
Sugar industry sector.
The reorganisation of our agricultural services to ensure that there is a judicious use
of existing resources (for example: We have to maximise output per acreage of land)
The construction of the Midlands Dam due to start: a Committee which I chaired and saw
to it that this project be implemented – not alone of course, but with my friends of
the Cabinet. The construction of the Midlands Dam which will start in February will
irrigate the fields of almost 6000 planters and these are small planters who were at one
time abandoning the land and were becoming preys of those who were speculating on land.
And then we have recast incentives, gearing them towards input: research and
development and irrigation, making it a little bit easier for the planters to buy
fertilisers and chemicals and at the same time encouraging them to borrow loans at a
concessionary rate. So re-focussing and re-setting their minds to make them understand
that they have to produce. There is only one war going on: economic warfare and we have no
choice but to learn to depend on ourselves and when we produce, we have to produce quality
goods. It was not easy to change the minds of the small planters and the planters’
community as a whole.
We have to explain forcefully to them that when you talk of support which formerly were
subsidies to encourage this concept of hand out, we have eliminated this and have
encouraged the concept of hands on – creating opportunities for them to grasp
incentives etc.
As a final issue, what will be your final message to our readers?
Well, that Mauritius is a world in miniature and in the words of a famous writer saying that heaven was modelled on Mauritius. Not that you need to come to Mauritius to achieve Nirvana, but certainly if you want to achieve Nirvana, make sure that investment flows in this country, because it is an excellent country to invest in. We have excellent Human Resources but we have to be reminded that there is no fall back position, the only fall back position is to work hard and work hard. Our people are willing to work hard, to welcome foreigners and are willing to blend easily because we strongly believe in the social and economic development that will derive from foreign investors to enable us constantly to enhance our quality of life. |
