Economic Governance and Management 462. The predictability of economic policies relies mainly on dialogue and consultation, between the government and the other actors, on policies and strategies. The CSAR therefore describes the consultative mechanisms that were organised, especially for preparing budgets. They include: (i) tripartite committees for negotiating salaries; (ii) the memorandum for preparing the budget; (iii) public/private sector joint committees; (iv) periodic meetings between private sector organisations and key ministries; and (v) regular meetings with social partners and civil society. This approach hopes to ensure ownership of the policies and to develop partnerships for implementing them. The CSAR does not analyse the quality of the planning tools, how they helped to make projections, or the objectives that were set and how they were to be achieved and monitored. It does not analyse their content or how they were intended to meet the aspirations of the people. It does not consider the economic factors coherently. ii. Findings of the CRM 463. With regard to sound, transparent and predictable economic policies, the CRM commends the government for the New Economic Agenda (NEA). The government launched it in 2003 with the following objectives: (i) to increase competitiveness; (ii) to strengthen social development and social cohesion; and (iii) to preserve and protect the fragile environment of Mauritius. However, the government should have developed this new agenda, presented in the form of a vision, into strategies, policies and action plans. It should have introduced reforms for public finance to provide itself with adequate programming tools after adopting the MTEF. The agenda would have been relevant if it had been aimed at the conceptual development of the macroeconomic objectives and the policies developed by the NEA. The absence of these instruments for planning and piloting the Mauritian economy impedes the efficiency, transparency and predictability of the economic policies. It is a major challenge for the country. 464. 188 Chapter 4 The CRM noted, in discussions with stakeholders, that the government felt that the economy needed a structural transformation. In his address to Parliament in 2004, the president outlined the direction of a five-year government programme for 2005 to 2010. It reflected the desire to promote a new economic model of democratising Mauritius’s economy to promote “a society where there are opportunities for all, a more inclusive society, a society characterised by equality before the law and respected by all public or private entities”31. 31 - Statement by the president during his presentation of the 2005 to 2010 government programme to Parliament in 2005. Chapter 4 Economic Governance and Management 465. This programme became urgent with the world’s economic and financial crisis. Its unfavourable effect on the economy of Mauritius threatened to aggravate the country’s vulnerability and macroeconomic and social imbalances for the long term. The government decided to accelerate adopting reforms and appropriate policies within the framework of an ambitious multiannual programme for 2006 to 2010. The main objectives of the programme were to: • • • • Consolidate the financial management and efficiency of the public sector. Improve commercial competitiveness. Improve the investment climate. Democratise the economy based on participation, social inclusiveness and stability. 466. Promoting a stable macroeconomic framework proved indispensable for creating the bases of an environment conducive to investment and diversification of the economy. However, it will depend on implementing relevant reforms and policies for public finance. 467. The most important reform was to provide the government with relevant programming and budgetary management tools. The government decided to accelerate the establishment of the MTEF and to adopt the results-based PBA in order to promote the efficiency of budget management by aligning expenditure with national priorities. 468. Furthermore, the government reformed public administration in order to develop sector strategies and to facilitate their conversion into a programme budget. The CRM was informed that the MTEF now covers all sectors and guides the preparation of the 2008/2009 programme budget and congratulates the government for the progress made. However, the macroeconomic policies, sector strategies and plans lack quality and coherence. The government developed them without involving civil society effectively, as the CSAR emphasises. They therefore lack ownership and control. Consequently, they still present a major challenge that government must meet if it is to guarantee their relevance and efficiency. Similarly, the lack of macroeconomic projections and appropriate linkages with sector strategies does not guarantee that the economic policies will be predictable and efficient or that they will be managed transparently. 189