So he said in an interview in the Mauritius Times about a week ago. It's not the first time he is worried about our savings rate. In 2005 he was worried sick about how much we were setting aside as a country. Just before starting his 'reforms'. It is a fact that over the 15 years before 2005, Mauritius enjoyed a healthy savings rate that averaged more than 26%. But between 2006 and 2010, that is a few years after bean-counting had taken centre stage, our savings rate had collapsed by 7.5% to an average of 17.1%. He didn't seem especially worried about that while he was in the driver seat. But he is now. Isn't that funny?
He's also worried about poverty and inequality. Let's look at how the poor's biggest enemy -- inflation -- behaved during the first few years of Paglanomics: average inflation was 70% higher than what it was under the government that preceded him!
He's also worried about poverty and inequality. Let's look at how the poor's biggest enemy -- inflation -- behaved during the first few years of Paglanomics: average inflation was 70% higher than what it was under the government that preceded him!
The most recent HBS (Household Budget Surveys) numbers have also confirmed what anyone who understands the effect of reducing top tax rates has on inequality. And yet flattening the tax structure was the biggest plank of the economic mess of Mr. Sithanen. It didn't only make Mauritius more unequal: it also reduced our growth rate significantly.
