Mauritius: island of ingenuity

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People forget easily that Mauritius has not always been what it is, a really shining example of unity and diversity.

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People killed each other here in 1965 and in 1968.

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We were like a.

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Person who is.

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Drowning, we had to clutch at any straw.

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We're very short on resources with small, isolated vulnerable.

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You must know what you want to do, and you must have the will to do it.

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And.

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This we had.

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I think immersion, we are proud of what we do.

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I will say I'm immersion all over the world.

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It's a tiny island Republic lying within the vast sweep of Indian Ocean.

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Historically.

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Its people have struggled against.

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Political oppression.

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Poverty.

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Unemployment and other hardships that plague developing countries.

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However, armed with economic foresight, ingenuity and an iron will, Mauritius has reinvented itself.

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And caught the attention of the world.

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In less than.

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In two decades, this ethnically diverse country.

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With limited resources, has managed to.

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Pull itself out of poverty and emerge as a player in the world marketplace.

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It hasn't been easy.

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Hello, I'm Kyung Yoon.

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Welcome to GLOBAL.

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Links in this.

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Edition A look at the bumpy Rd.

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to economic growth.

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Mauritius aspires to become the Hong Kong of Africa, yet the fate of this island with over a million.

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People is tied.

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To one immutable fact.

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Mauritius is a country which has to import everything it consumes.

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Everything except.

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Sugar 2.

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Thirds of the island is covered.

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With what has.

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Traditionally been the lifeblood of the Mauritian economy.

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If you go back a bit.

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In the economic history of Mauritius until 19.

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70 Mauritius exports.

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Were 90% was sugar.

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It was all sugar.

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You can see that we were.

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At the mercy of 1 crop.

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The Dutch were the first.

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People to introduce sugar cane to this uninhabited island in the 1600s.

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They were followed by the French in 17.

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15 and finally, the British.

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Who took over in 18?

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10.

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These colonial powers.

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Each brought slaves from nearby Africa and forced them to live and work under harsh conditions After slavery was.

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Outlawed throughout the.

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Empire In 1835, the British imported indentured laborers called coolies from India and China.

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They too endured wretched and bitter circumstances.

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Muslim Muhammad is just one of the many Maritians of immigrant descent with family roots firmly planted in the cane.

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My father with the planter before me and so we have just continued planting.

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Long ago we did not have.

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Any laborers working?

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For us, we did it all ourselves, which was a really bad time.

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When we suffered greatly.

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Over the years, Muhammad has expanded his tiny plot of land to over 30 acres.

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There have been so many changes.

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Previously we used oxtroll carts to take the.

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Sugar.

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Cane to the factory.

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And it was.

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Really hard.

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Long ago people never had boots as we have today.

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We now own a van, which was impossible in the past.

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We could not even buy a bicycle then.

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Today, Muhammad.

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Is a major.

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Supplier for one of the largest plantations on the island.

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His hard earned prosperity mirrors that.

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Of this country.

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Originally the sugar.

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Industry brought together.

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An eclectic mix of people and culture.

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While ethnic tensions have flared on occasion, overall a spirit of tolerance has helped form the backbone of Mauritian unity.

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I think.

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We are lucky we don't have natives, we don't have people who are.

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There centuries ago.

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We are.

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We are.

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All immigrants, we are all important, so we can't say.

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Get out you bloody for Rader, because we are all bloody foreigners.

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We all came from outside, we came from France, we came from Madagascar, Mozambique, even Senegal, India, China.

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That was strength is in our diversity.

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This diversity was unified in 1968 when Mauritius gained its independence from Britain under the leadership of long time Prime Minister Sioux Sagar Ramgulam.

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I give you the assurance that the government which you have elected does play itself to carry forward the task that you have entrusted to us.

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With a brand new constitution based on the British parliamentary system.

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Mauritius was.

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Finally free to.

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Chart its own course.

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Still, the road was.

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Rough political tensions fueled.

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By fear and.

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Distrust among ethnic groups ran high.

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When we achieved independence, the country was going through very difficult times, a period in our political history where political violence tried to rule.

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No thugs, party thugs beating people, oppressing people and so on, so that we went through through very turbulent years.

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In the late 60s, a young Paul Belanger became Ramgulam's strongest opposition.

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He led a.

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Group of well.

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Educated Mauritians who fought to loosen the political stranglehold that Rangolam's party had held upon the country since the 50s, critical of the government's alliance with.

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The rich sugar.

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Estates Berenger became the socialist voice of the people.

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We were radicals.

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We we, we had solutions for every everything.

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We're going to reinvent the world in in Mauritius here.

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And the recipe was the classical one.

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Nationalizations left, right and center wage increases and a lot by 1971, he.

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Had won the.

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Support of the labor unions and called for a general strike.

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The government's response was swift and harsh.

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They tried to kill me several times, kill people in my place, blew my car up, was really the far West.

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And all this developed into a state of emergency throughout 1972.

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And we, myself and 18 of the main trade unionists, we spent the whole year in political detention.

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Though severely weakened, the opposition survived.

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Later, Belanger would come to play a far different role in his country's future.

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During the turbulent years following independence, the prospects for the nation's economy were grim.

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Mauritius was still dependent on a single crop.

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It was riddled by unemployment and mired in the mud of its colonial past.

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We probably had reached the lowest part of the economy and we were very worried at that time because we knew.

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That with.

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Such a big unemployment there would be.

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Very much social unrest.

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With one in five Mauritians out of work, the country desperately needed a way to create jobs.

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So the son of Chinese immigrants, a young professor, Eduard Limfat, went on a visit to East Asia and found a solution to his country's problem.

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I had a brother-in-law who was in the army in Taiwan.

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I went to visit factories.

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It struck me.

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It struck me that Taiwan is very similar to Mauritius.

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Professor.

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Limfat saw that.

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Taiwan's most abundant resource, like Mauritius, was its labor force.

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By putting its people to work in a duty free zone for export manufacturing, Taiwan was able to revive its flagging economy.

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I said look here, they have succeeded.

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Their economy is very similar to Mauritius, why can't we do it?

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So I gave a public lecture at an international.

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Conference.

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The next day it was all on the front page of all the papers, because I must say the the press.

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In this country.

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Is very progressive.

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They are very dynamic.

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With the support of a Free Press Professor Limphat.

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Urged the government to adopt the Taiwanese idea of creating an export processing zone, or EPZ.

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This meant offering special incentives to foreign and local companies engaged solely in exporting.

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These incentives included abolishing import duties on raw materials and equipment, eliminating taxes on corporate profits, as well as bolstering the country's infrastructure.

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In return, Mauritius would gain jobs for thousands of unemployed people willing to work for 1/5 the going wage in Hong Kong.

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My logic tells me.

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If Taiwan.

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Can succeed.

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We can succeed.

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As you say.

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In English.

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Ignorance, perhaps?

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Is bliss sometimes.

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The fledgling EPZ received initial money from the sugar industry, but it wasn't enough.

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So the professor and the government went in search of foreign investment.

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They targeted companies with factories in Hong Kong that had experience in the highly competitive world of clothing exports.

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Theirs was a simple and persuasive offer.

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I said.

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Look here.

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Our wages.

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Are about 1/5 of yours.

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We have all the.

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Stability.

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Why don't you come?

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Another selling point was the country's workforce, considered highly trainable because of the government's policy ensuring free primary education for all.

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But the final trump card was offering duty free access to the European Economic Community.

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That is a very, very big attraction for them.

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Here there was no quota, no quota, no duty.

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The professor was so.

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Convinced by the EPZ?

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Idea that he.

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Began one of the first joint ventures in Mauritius.

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What he found was an eager but undisciplined workforce.

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And I found it difficult to inculcate in my workers.

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Industrial discipline.

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I had a factory and I used to have problems with the mothers.

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Every now and then you will hear a knock on the window and a mother will start waving a slice.

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Of cake.

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To the girl who is in the factory and the girl will go rush out and eat the cake for 5 minutes and then come back.

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When I tell them off, they say what's wrong with it, what's 5 minutes?

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They can't understand that.

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You can do that in an agricultural setup, but in industry there are set times.

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Which posed a problem.

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Because the majority.

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Of the workers in the beginning were women.

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They were expected.

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To be mother, wife and wage earner.

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Ultimately, their new role would change the social fabric of the country.

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Women in Mauritius did have a number of constraints to face.

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First of all, they had to be able to work their families towards allowing them to go out to work.

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That was a major problem in itself.

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They had to cope with very long hours of work, shift work, overtime work to meet the demands of the system and also low wages.

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At that time, in fact, the the first factories, you know, they, they were always comparing Mauritius when we started as sweatshops, you know, like it would make the labor work, exploit them to the maximum and pay them very low wages and don't give them very good conditions of work.

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Today, this has completely changed.

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Floreal.

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Knitwear today the world's.

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Second largest manufacturer.

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Of sweaters.

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Was one of the first Hong Kong owned factories in Mauritius, but 2.

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Years after.

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Opening its doors, the company and the country experienced major setbacks.

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The first oil.

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Crisis in the mid 70s.

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Triggered a sharp rise in shipping.

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Costs crippling many small companies, including.

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Professor Limfat's first business.

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With the petrol crisis, air freight shot up, so we were very badly hit by it, but we didn't want to give up.

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We have built a beautiful factory.

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We have people who are well trained, so we look around, we thought.

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We'll go in something which.

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Is much less bulky.

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So we converted.

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Our factory into a blouse because blouse is flat and it's not bulky.

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As freight costs went up.

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Sugar prices were going.

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Down, but the government continued to spend based on the old higher price, which resulted in a growing deficit.

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With inflation climbing, Mauritius started.

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To lose its.

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Competitive edge this.

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.

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Also saw.

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Large wage increases that made.

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The country less attractive?

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To foreign investors, to add insult to injury, cyclones destroyed 1/3.

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Of the sugar crop.

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And then a second.

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Oil crisis hit in the late.

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70s.

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To help.

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Get the economy back on.

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Track the Mauritian government took drastic.

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Action and adopted strict austerity measures.

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These included devaluing the exchange rate by 30%, raising interest rates, reducing.

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Food subsidies.

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And holding wage increases below the rate of inflation, It was tough medicine for the country.

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We had to explain to the population that without discipline and hard work, there is no success.

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In 1982, Anirudh Jugnath became Prime Minister and Paul Bellinger, radical labor reformer, was appointed Minister of Finance.

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Cautious investors watched.

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And waited.

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To see if the new.

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Government.

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Would uphold the.

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Harsh economic remedies.

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There you were, this radical trade unionist betraying all that he had preached.

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No, it could have been terrible.

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He could not implement.

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Any of the.

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Things he was.

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Saying And I think we were very lucky.

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We knew that you cannot play around with economic facts, that you'll run out of foreign exchange reserves like they did, that you you, that you'll have to come, come back to more orthodox quote, economic methods of of management.

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So come 1982, we were ready, people.

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Followed the government for the rough waters of adjustment because they understood.

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That if.

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Nothing was done.

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The whole nation would collapse and they're the only losers.

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A feature of the Mauritian economy that.

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Attracts foreign investors.

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Is a consistent.

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Economic development plan.

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Over the past couple decades, leaders with vastly different political views.

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Have upheld a.

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Common economic vision.

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This vision, which reinforced the tough economic measures addressing inflation, taxation and government spending.

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Gave investors a sense of security and Drew.

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New money to Mauritius in the early 80s and then came Britain's plan to return Hong Kong to China.

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By 1990.

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7 The announcement sent export manufacturing companies scurrying to relocate and many of them came to Mauritius, but ultimately it was the.

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People.

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Who were called upon to work for the good of their nation.

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Aline Wong was.

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Approached by Florial.

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Nitware at the beginning of.

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Her career.

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Coming from school, I wanted to be adopted and going to make some pocket money.

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I chose Flora Nitware to make some pocket money and there I met my ex boss who told me that my country needed me as a textile person.

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Floreal would eventually become a completely Mauritian owned business as a bonus.

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Foreign investors.

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Left behind the expertise and marketing skills which made Floreal a kind of textile university for young entrepreneurs like Misses Wong.

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When I started my own factory with one machine at the backyard of my house, my dream was to make a small factory.

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But I never expected in my dream that I will be building a factory like what I have today.

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Another Mauritian.

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Who has reinvented?

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Herself is Missus Sarjuwa.

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She grew.

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Up in a poor village that was known for growing chilies, as a teenager she noticed the EPZ factories near her home.

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So she decided to take her agricultural experience and apply.

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It to the business of exporting chilies, this can be grown easily without big investment.

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I had to go just and talk to the people, to the villages, the producers.

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I made meeting to them told them that we have market.

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If you produce, you can have quick return and we can work too.

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As the EPZ moved forward, the government and the private sector.

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Were aggressively promoting.

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The island's natural beauty through its budding tourism industry.

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There were also a number of policies that were implemented to encourage investment in the tourism sector.

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There were incentives given to build hotels, but also incentives given to management companies to manage hotels.

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Between 1982 and 88, the number.

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Of tourists doubled.

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There was a deliberate policy to maintain Mauritius in the upmarket bracket of tourism and this has paid good dividends to the economy.

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Today, with the success of the country's tourism industry and the EPZ, unemployment in Mauritius has been nearly eliminated.

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I get a lot of promotion.

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You see, I was waited and then I get promoted head weight and now I'm a restaurant supervisor.

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I get a lot of promotion.

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I I like very much my job.

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Yes, the benefits from upscale tourism are slowly trickling down to small business owners like Jean Claude Goubert, who operates a glass bottom boat.

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This is a job where you have to have a lot of psychology in order to survive.

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I introduce myself, welcome them.

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The moment they are satisfied, they give me cash.

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Hobert is typical of many Mauritian entrepreneurs life.

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Was very hard.

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I went to school.

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But stopped at the age of 12 I started.

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To work doing small odd.

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Jobs I worked.

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And.

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Worked and managed to buy a boat.

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But like many, he sees challenges in the future, challenges that will demand a higher level of education from his children.

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I worked very hard in.

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Order to enable them to lead a better.

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Life.

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And I don't want them to go to the same hardship that I've.

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Gone through.

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I want them to learn English, French and mathematics.

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And I wish they would be able.

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To go to college.

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But I don't know if I will be able.

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To afford it.

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The quality of the country's free educational system has become a growing concern.

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Competition is high among students.

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Many need to pay for extra tutoring to pass the exams, which are required to stay in school.

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This poses a particular problem for the country's poor, whose only path to opportunity often runs through the classroom although the poverty level.

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Has dropped 75.

0:22:34.64

Percent in the last two decades.

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There are still problems.

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Many of the remaining poor live in slums, where benefits from the economic growth have been slow.

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To take hold.

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I have one child going to school now.

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She's going to the second grade.

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She probably won't make it all the way through.

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I don't know what the future is going to be.

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Pamela Edward lives in one of the island's slums and is struggling to pull herself out of poverty.

0:23:07.28

Eager as she is to jump on the economic train, she worries that not everyone will make it.

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People are so poor in the in the area where I live, I find around me many people suffering.

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Small children walking in the road like this, they don't go to school.

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We need to do something for them.

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If we do not address the problems of the pool that excluded those living on the periphery, where then Mauritius might run into a social explosion in the years to come.

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Because if we cannot sustain our economy and the Development Express does derail, if it does well, then the poor will only get poorer.

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As the entire country looks ahead, Mauritians must face the new challenges which inevitably accompany prosperity.

0:24:02.92

There's a phase of huge effort the effort creates.

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It's for the fruits of the effort.

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Then the fruits are the cause of the problem.

0:24:13.76

Today, Mauritius faces a labor shortage which has driven up wages.

0:24:18.28

And has forced many businesses to relocate.

0:24:20.92

To nearby countries where wages are lower.

0:24:26.4

I think everybody agrees that what we should see is at the crossroad.

0:24:29.68

We we have to move into the next stage of our development.

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The world of tomorrow, in the industries of tomorrow, are going to be inevitably dominated by science and technology.

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I need to more to know more and more because information technology moves too fast and if you are not updated you are illiterate.

0:24:49.68

You must graduate to a higher level of development, train and educate our people for that higher level of development where the services sector, financial services and others, but also outside textile marketing, textile fashion, you know, tied to fashion and so on.

0:25:14.52

Missus Wong is now competing with fashion designers from around the.

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World as she works to establish her.

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Own line.

0:25:22.08

I wanted to innovate, I wanted to create my own collections and presenting mini collections for the customers, which was not usual on the island.

0:25:33.4

Like many entrepreneurs, Missus Wong has been quick to recognize that the key to staying competitive.

0:25:39.4

Is to embrace.

0:25:40.28

New.

0:25:40.52

Skills.

0:25:41.4

It's a.

0:25:41.64

Challenge for the.

0:25:42.44

Entire economy.

0:25:43.84

As Mauritius looks to the.

0:25:45.28

21st Century.

0:25:48.96

While some Mauritians explore the new worlds of.

0:25:51.64

Fashion Offshore.

0:25:53.6

Banking and desktop publishing.

0:25:56.36

Others look to.

0:25:57.2

Capitalize on the island's unique location.

0:26:05.16

Among them, once again, is Professor Lim Fat.

0:26:08.52

He's now advocating the next step beyond the EPZ, the Freeport.

0:26:13.32

A duty.

0:26:13.8

Free area for receiving imported goods, repackaging them and then exporting them to nearby countries.

0:26:20.56

We would like to.

0:26:21.28

Become a strategic.

0:26:23.16

Well known distribution and.

0:26:25.28

Warehousing center in.

0:26:26.52

This part of.

0:26:27.12

The world.

0:26:29.16

The goal?

0:26:29.84

Is to make Mauritius a.

0:26:31.2

Hub for.

0:26:31.88

Trade in the Indian Ocean following on the.

0:26:34.64

Heels of Professor.

0:26:35.72

Limphat missus Sarjuwa has already.

0:26:38.28

Secured a role.

0:26:39.48

As a garlic broker for neighboring African countries, for me the frisson has been a big benefit.

0:26:47.28

It is just a matter of studying and starting.

0:26:52.16

If they can do it well, why not with tenacity and resourcefulness?

0:27:03.68

Mauritians are.

0:27:04.44

Poised to move ahead swiftly.

0:27:06.72

Changing course if necessary to expand their tiny island's role in the global economy.

0:27:16.48

Years ago it was king sugar and when you are king, everybody is looking at what you are doing.

0:27:24.12

We had to support the whole economy.

0:27:27.44

Now there are other sectors that can support Mauritius.

0:27:31.68

That's good for us.

0:27:36.08

What was once the Mauritian lifeblood now accounts for less than 30% of its exports.

0:27:47.62

The sugar industry has responded by diversifying.

0:27:55.14

Cane fields are being converted for the export of exotic flowers.

0:28:02.76

A gas, a byproduct of the cane, is being transformed into energy that will eventually power 40% of the island.

0:28:13.16

All this in the interest of economic prosperity.

0:28:18.6

We have to keep on addressing the business environment, making it more and more business friendly, having the right legal framework, having the right environment so that the momentum of growth is maintained.

0:28:40.16

People were migrating because they didn't believe in Mauritius and today when they come back to Mauritius where we have succeeded in entrepreneurship, where we are our own best and we are earning a good living, then they say they would want to come back.

0:29:28.44

None.

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