Economic Governance and Management Chapter 4 objective 5 of the CSAR, that Mauritius views its membership of regional groupings as a means to improve its negotiating position on international trade forums. Furthermore, in addition to promoting trade and cooperation, regional trade agreements are expected to facilitate integration with the multilateral system by sustaining trade liberalisation efforts. In summary, government leaders and entrepreneurs in Mauritius use the terms ‘economic cooperation’ and ‘economic integration’ interchangeably. There is abundant evidence that Mauritius is interested in economic cooperation with African countries. However, there is little evidence that this goes beyond ‘economic cooperation’, because ‘economic integration’ means a commitment to economic, political, social and cultural integration with the rest of Africa. 616. 617. 230 Mauritius is a small island of about 1.3 million people, has a limited domestic market and has almost no natural resources. These facts explain why Mauritius is committed to economic cooperation with Africa. Its economic growth strategy, of relying on exporting textile and sugar at preferential rates to the EU and the United States of America (USA), has reached its limit. For sustainable development, Mauritius must broaden and diversify its economic base. As was described under objective 1 in this chapter, the economic strategy that Mauritius is following is to transform the country into a knowledgebased economy that will serve as a platform to export goods and services. The areas that should be emphasised are financial and consultancy services, information technology, developing health care centres to serve the subregion and the region, and creating ‘centres of excellence’ that will provide training for students from Eastern and Southern Africa as well as the rest of Africa. In addition, Mauritius is looking for markets for investments in financial and consultancy services, agriculture and manufacturing. To bring about this economic transformation, Mauritius needs access to markets in Southern and Eastern Africa, as well as the rest of Africa, for its services and investments, as these are the markets in which Mauritius is likely to be more competitive. It should be noted, however, that Mauritius is exploring market opportunities beyond Africa. It is looking at Asia, especially India and China. This justifies its membership of the Indian Ocean Commission (IOC) and the Indian Ocean Rim Association for Regional Cooperation (IOR-ARC), although the latter is more or less defunct. Mauritius also looks to the rest of the world. In summary, Mauritius is looking for trade and other economic opportunities wherever it can find them. Chapter 4 Economic Governance and Management 618. This does not mean that there are no political, social and cultural ties with the rest of Africa. Mauritius has been actively involved in trying to resolve political conflicts in Comoros and Madagascar and has participated in several election-monitoring activities of the AU. Mauritius has also opened its education and training centres to students and trainees from Africa. It should increase these efforts. In addition, Mauritius has sent trained staff to live and work in a number of African countries. A few Mauritians also have family ties in Africa. This makes sense for historical reasons and because, like every other country, Mauritius does not want to be isolated, especially from its closest neighbours. 619. Still, the balance tilts more towards the pursuit of economic interests. This is not surprising, as the vast majority of Mauritians trace their ancestry to India, China and Europe and have stronger cultural, social and linguistic ties with these countries. Mauritius is also far from the African mainland and the ocean separates it from the rest of the continent. 620. The authorities do not see the limited political, social and cultural ties with Africa as a problem. However, lessons from efforts to integrate regions in Africa and other parts of the world show that the focus on economic issues alone is a fragile base on which to build regional integration. Economic gains are not always forthcoming for all groups at all times. The CRM shares this view. A focus on purely economic calculations and gains often leads to acrimonious negotiations and disputes over the distribution of benefits and an unwillingness to make sacrifices for the long-term goal of integrating regions. Political, social and cultural ties and a sense of identity are therefore often necessary to sustain this process during difficult times. 621. It is important to note that some of its neighbours did not always perceive Mauritius as a welcome partner in the process of regional economic integration. Some of Mauritius’s neighbours still have a lukewarm attitude towards it. Several factors account for this. 622. The Indian, white and Chinese communities of Mauritius hold most political and economic power in the country. Chapter 3 showed that people of African origin play a small role in these sectors. Furthermore, there were few links between Mauritius and its neighbours on the continent of Africa during the colonial period. This was because of the geographical distance between Mauritius and mainland Africa and the economic structure of Mauritius, which was oriented largely 231