Historically, Mauritius voters have a reputation for speaking in absolute terms. They lived up to it last month, when they chose Navin Ramgoolam, the candidate of the Alliance du Changement (ADC) coalition, to form a new government as prime minister.
Ramgoolam’s victory against incumbent Pravind Jugnauth was a rout. The ADC won 60 of 62 seats in the National Assembly, underscoring public exasperation with Jugnauth’s seven-year rule.
Although the return of Ramgoolam, 77, who had served three previous terms as prime minister, was a shocker, the rising cost of living, a pension crisis, corruption, the muzzling of freedoms, and other grievances made the island nation a fertile ground for his win. The real task will be honoring his promises for significant changes in governance and socio-economic management, observes Pritish Behuria, associate professor at the University of Manchester’s Global Development Institute.
Ramgoolam’s goals include dismantling the country’s spying system, so that “Mauritians will be free to talk.” Another priority is addressing the cost of living by stopping the rupee’s freefall and ending a value-added tax on basic commodities.
The currency’s nosedive has been a major concern, with its value dropping 30% over the past five years. The trend has continued for the better part of this year. A public debt burden of about $10 billion isn’t making the situation any easier.
An urgent need to stabilize the macroeconomic front has already prompted Ramgoolam to make an immediate change at the Bank of Mauritius. Following his recommendation, Rama Krishna Sithanen has taken over as central bank governor, replacing Harvesh Seegolam, who was serving his third tour in the post.
A former finance minister, Sithanen is credited for financial reforms that achieved economic diversification. “Sithanen faces the burden of steadying the currency to reduce the negative spillover of higher cost-of-living pressure on the economy,” notes Churchill Ogutu, an economist at Mauritius-based IC Group.
