The Economic and Social Structure of Mauritius by Meade James E.;

Author:Meade, James E.;
Language: eng
Format: epub
ISBN: 614879
Publisher: Taylor & Francis Group

CHAPTER 6

Industry

GENERAL CONSIDERATIONS

6:1. Whilst we are confident that action on the lines set out in Chapter 5 will lead to an increase of employment in agriculture, we have already argued that any substantial increase in productive employment can be achieved only through the institution and expansion of manufactures (paragraph 2:51). In this chapter we survey the possibilities of such expansion, and it is clear from this survey that, given enterprise and initiative on the part of private businessmen in Mauritius and given a strengthening of the relevant parts of the administration, some measure of industrial expansion should be possible. It is equally clear, however, that there are many difficulties limiting the rate at which such expansion can take place and that Mauritius cannot hope by industrialisation to solve her population problem, unless the rate of growth of the population is itself greatly restrained.

6:2. Before examining the particular industries, which we consider offer some hope of development in Mauritius, we would like first to outline some of the conditions which any industry, no matter where, needs for its inception and successful operation. There are six main factors to be considered:—

(1) raw materials,

(2) markets,

(3) capital,

(4) management,

(5) trained labour, and

(6) services, particularly electric power.

If industries are not to be wholly controlled by government, entrepreneurs are also vital—that is to say, men who can see the possibility of financial reward by starting new enterprises, are prepared to risk their own money in so doing, and are capable of assembling the necessary elements into a viable whole. There is no lack of such men in Mauritius. The record of the sugar industry in recent years shows what can be done, although it is to be regretted that so much energy and imagination has been devoted to one single end, to the neglect of other avenues of expansion. Mauritius does not lack ideas—in fact, we have found it difficult in the industrial sphere to suggest anything that has not already been thought of—and we believe strongly that given the right inducements, many of them can be brought to fruition. These inducements lie largely in the hands of the government to supply.

6:3. In the above list, raw materials and markets have been placed first, because in Mauritius they are exceptionally important. The island has been well enough surveyed to make it certain that it contains no mineral resources worth exploiting. The industries can therefore only be based on materials either derived from its own animal and vegetable production, or else imported in a raw or semi-processed state. The very smallness of the country necessarily imposes limitations on the first, while its remoteness from sources must make imported raw materials, particularly those of high bulk and low prime cost, more expensive than in most other parts of the world. Further, the home market is still not large enough to support profitably and without tariff protection many of the commoner manufacturing industries.1 The very substantial growth of the Mauritian population which will inevitably take place in the next decade

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