Economic Governance and Management Chapter 4 towards Europe and South Africa. Furthermore, Britain did not try to develop the common services and links in education, transportation, finances and political administration, among others, with Mauritius and its colonies in Eastern Africa as it did with its colonies in Central and Southern Africa. Thus, while the political and intellectual elites in Eastern and Southern Africa knew, and had close ties with, their counterparts in neighbouring African countries, this was not the case with Mauritius and its neighbours in mainland Africa. In addition, while there was a significant degree of cooperation and coordination in the fight for independence between the countries of Eastern and Southern Africa, this was not the case with Mauritius and its neighbours on mainland Africa. 623. 624. 625. 232 A particular source of mistrust between Mauritius and the rest of Africa was the relations between Africa and apartheid South Africa. Most African countries in East and Southern Africa were vocally, and in some cases actively, hostile to the apartheid regime in South Africa, with which they rejected any public and formal contacts. In contrast, Mauritius was largely silent in the fight against apartheid South Africa, with which it cultivated close economic ties. In fact, trade with, and investments from, apartheid South Africa contributed partly to the early and rapid economic growth of Mauritius. Many African countries resented the ties between Mauritius and apartheid South Africa. They saw the links as a betrayal of the African struggle for independence and dignity. Some of this resentment continues to colour the attitudes of some Eastern and Southern African countries towards Mauritius. However, it must be noted that Mauritius has made considerable progress in gaining acceptance from other African countries. Its welcome in various African institutions, especially the AU, the SADC and COMESA, shows this. This is largely because of its active diplomacy and its economic success, which is seen as something worth emulating by many African countries. One problem that may surface, if Mauritius does not handle it properly, is the imbalance in economic relations between the island and its African neighbours. Mauritius enjoys a healthy trade surplus with several of its neighbours. Mauritius is also actively engaged in expanding its exports and promoting its investments in several neighbouring countries, especially Mozambique and Madagascar. This may cause resentment, because other African countries see this as benefiting Mauritius largely and may affect relations between Chapter 4 Economic Governance and Management Mauritius and the rest of Africa negatively. The authorities in Mauritius must be sensitive to this issue and try to ensure that its African neighbours perceive mutual economic benefits in the relations between them. 626. One feature in the approach to regional integration that impressed the CRM was the existence of structures and processes to coordinate policies and harmonise positions on regional integration by stakeholders. This happens in the Regional Integration Council, chaired by MoFARIIT. The participation of the private sector in this process is particularly noteworthy. It makes an input on all matters dealing with regional integration and trade and participates in all related meetings and negotiations. The CRM was told that the close symbiotic relationship between the government and the private sector is such that the government sometimes designates representatives of the private sector to negotiate with foreign partners on behalf of the country and the government. Other African countries may wish to emulate this practice. 627. The CRM thinks that a major challenge facing Mauritius is reconciling membership of the SADC and COMESA. Both organisations aim ultimately at forming an economic union. While there is a great deal of overlap in the membership between the two organisations, membership of the two is not identical. More importantly, the stages and timetable for creating an economic union are different, and so are specific provisions for trade liberalisation, external tariffs and economic convergence. There are, therefore, conflicts between the regional integration agendas of the two institutions and these will only become more acute as the integration process intensifies and accelerates. 628. The authorities in Mauritius and the leaders of the two organisations are aware of the possible differences between the two. As a result, they established a committee to look into rationalising and harmonising the integration programmes of the SADC, COMESA and the East African Community to which some members of the SADC and COMESA also belong. The Mauritian authorities are optimistic about the prospects for harmonisation and rationalisation between the SADC and COMESA. In case this optimism proves unfounded, the Mauritian authorities know that they will have to choose between the SADC and COMESA. The CRM believes that the Mauritian authorities would like to avoid having to make this choice, as they have major trading partners and economic interests in both organisations that they would like to retain. Still, such a choice may be inevitable, and 233

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