CHAPTER SIX 288 6. SOCIOECONOMIC DEVELOPMENT 6.1 Introduction: Challenges to socioeconomic development 818. Willpower has enabled Mauritius to rise above handicaps that might otherwise be considered overwhelming. These are: (i) its geographical isolation and the considerable distance that separates it from production and consumption centres; (ii) its small size; (iii) its lack of natural resources; (iv) the high transaction costs of cooperating with the rest of the world; and (v) the difficulties it has in achieving economies of scale. 819. Mauritius has a diversified economic base today. There is some ethnic, religious and social cohesion and Mauritius has developed precious human capital. It is working toward a new stage in its development aimed at making Mauritius a business, banking and information and communication technology (ICT) centre. It has established a real welfare state, which ensures universal access to education and health, grants noncontributory pension allowances to needy citizens, and subsidises basic products. There are still challenges that Mauritius must meet quickly and with determination. 820. The first is the challenge of the need for social cohesion amidst ethnicity and competition. Social cohesion implies that Mauritius should develop a more determined policy to ensure that poverty is eradicated, that improvements in education are sustainable and significant, that there is health and social protection, and that the different ethnic and religious segments of society, particularly the disadvantaged, are integrated economically and socially. It is therefore necessary for Mauritius to reflect on, and debate, the harmonisation of the social system, to improve its impact and to ensure that those who have the resources contribute to it. 821. It is also necessary that employees, who comprise most of the labour force, benefit more from the fruits of growth and get more involved in the country’s development at all levels from the national to the most decentralised. Involvement means participating in the process of making decisions. It also means helping to resolve challenges at all levels. The trade unions are central to this, and Mauritius must acknowledge their role. 289