![[Paul Lismore] Why Mauritius is likely to follow Sri Lanka on the road to bankruptcy...](https://www.zinfos-moris.com/photo/art/grande/63447523-45738056.jpg?v=1648736269 "[Paul Lismore] Why Mauritius is likely to follow Sri Lanka on the road to bankruptcy...")
![[Paul Lismore] Why Mauritius is likely to follow Sri Lanka on the road to bankruptcy...](https://www.zinfos-moris.com/photo/art/default/63447523-45738056.jpg?v=1648736271 "[Paul Lismore] Why Mauritius is likely to follow Sri Lanka on the road to bankruptcy...")
What follows is an article that a friend sent me yesterday and which details the " worst-ever economic crisis, triggering food and fuel shortages and protests" in Sri Lanka.
Figures released by the Audit Office recently showed that no less than 47% of all national income in Mauritius now goes towards paying the National Debt and various pensions....which leaves only 53% of our GDP for investment and all the freebies that we enjoy and that we mostly take for granted, like free education, free health service, free this, free that, the inevitable commissions for our thieves in shiny suits take on every procurement, and the billions stolen by the 'patriots' every year...
I have edited the word Sri Lanka and replaced it with Mauritius, and those readers with more than 2 brain cells will be able to notice the similarities between our situation and the atrocious state of the Sri Lankan economy, and its severe social ramifications...Not everything is strictly comparable, of course..For example, fuel prices have not increased 3 times in Mauritius in the last 3 months...
" Mauritius faces its worst-ever economic crisis, triggering food and fuel shortages and protests.
In the past three months, fuel prices have increased three times, while essential food items have doubled. Mauritius is facing its worst-ever economic crisis, which has driven up prices and triggered food and fuel shortages across the country.
Since the beginning of March, the Mauritian rupee has fallen by almost 45% against the US dollar and its foreign exchange reserves have fallen to crisis levels. Mauritius imports a lot of essential items, but its inability to pay for them has resulted in shortages of food, fuel and baby milk. While the country relied heavily on borrowing from China (and India), which may have helped in the short term, it is now on the verge of sovereign debt default. Power cuts used to plug fuel crisis The economic crisis has sparked protests across the country. (In Mauritius too, soon...)
In February, essential food inflation rose by 25% and overall inflation is close to 18%, while people have been forced to queue for hours to buy fuel, amid rocketing prices. Unable to buy fuel, the Ministry of Power announced a six to seven-hour daily power cut across the country, while supplies for buses and lorries have also been rationed. The war in Ukraine has also caused world oil prices to rise, making it difficult for Mauritius to buy.
Why is the crisis happening? Mauritius' deep-rooted economic crisis has remained unaddressed for decades by successive governments.
Instead of addressing the issue head on it took the easier route in borrowing to tide over problems and now has mounting debt and interest payments of almost $12 billion. This year, it is due to make $4 billion of such payments, further depleting its reserves. Tourism generates more than $4 billion a year, but the industry was hit hard by the COVID pandemic.
The Jugnauth government's reckless and mismanaged economic policies has exaggerated the crisis and has been blamed for the mess the country is in. Tax cuts, severe import restrictions and the reluctance to bring in prudent economic reforms laid bare the structural deficiency in the government's economic policy. With a severe balance of payment crisis, international agencies downgraded the country, further hampering any chances of foreign investment.
The country is in a 'debt trap'
Mauritius has now asked China and India to restructure its debt payments and for credit support.
The government has sought a credit line of $1.5 billion from India to import essentials. This amount is in addition to the $1 billion extended by India last month.
The country is set to reach out to the International Monetary Fund (IMF) and other countries for relief.
However, the magnitude of the crisis is such that these loans may not be sufficient to get out of the balance of payment problems, as the current deficit is gigantic. But for the moment, it's ordinary Mauritians who will have to bear the brunt of skyrocketing prices and shortages of essential products for a long time to come. "
As I said, the situation in Sri Lanka and the figures mentioned above do not mirror the situation in Mauritius. But I am sure you get a fair idea of the terrible mess that we find ourselves in Mauritius...
As for protests around the country, this too will happen in Mauritius...and is one of the main reasons for the government to limit public gatherings to only 50...
Now, if only our "patriotic" ministers and no less "patriotic" civil servants could go on mission more often to Dubai, in order to achieve fuck all...
Figures released by the Audit Office recently showed that no less than 47% of all national income in Mauritius now goes towards paying the National Debt and various pensions....which leaves only 53% of our GDP for investment and all the freebies that we enjoy and that we mostly take for granted, like free education, free health service, free this, free that, the inevitable commissions for our thieves in shiny suits take on every procurement, and the billions stolen by the 'patriots' every year...
I have edited the word Sri Lanka and replaced it with Mauritius, and those readers with more than 2 brain cells will be able to notice the similarities between our situation and the atrocious state of the Sri Lankan economy, and its severe social ramifications...Not everything is strictly comparable, of course..For example, fuel prices have not increased 3 times in Mauritius in the last 3 months...
" Mauritius faces its worst-ever economic crisis, triggering food and fuel shortages and protests.
In the past three months, fuel prices have increased three times, while essential food items have doubled. Mauritius is facing its worst-ever economic crisis, which has driven up prices and triggered food and fuel shortages across the country.
Since the beginning of March, the Mauritian rupee has fallen by almost 45% against the US dollar and its foreign exchange reserves have fallen to crisis levels. Mauritius imports a lot of essential items, but its inability to pay for them has resulted in shortages of food, fuel and baby milk. While the country relied heavily on borrowing from China (and India), which may have helped in the short term, it is now on the verge of sovereign debt default. Power cuts used to plug fuel crisis The economic crisis has sparked protests across the country. (In Mauritius too, soon...)
In February, essential food inflation rose by 25% and overall inflation is close to 18%, while people have been forced to queue for hours to buy fuel, amid rocketing prices. Unable to buy fuel, the Ministry of Power announced a six to seven-hour daily power cut across the country, while supplies for buses and lorries have also been rationed. The war in Ukraine has also caused world oil prices to rise, making it difficult for Mauritius to buy.
Why is the crisis happening? Mauritius' deep-rooted economic crisis has remained unaddressed for decades by successive governments.
Instead of addressing the issue head on it took the easier route in borrowing to tide over problems and now has mounting debt and interest payments of almost $12 billion. This year, it is due to make $4 billion of such payments, further depleting its reserves. Tourism generates more than $4 billion a year, but the industry was hit hard by the COVID pandemic.
The Jugnauth government's reckless and mismanaged economic policies has exaggerated the crisis and has been blamed for the mess the country is in. Tax cuts, severe import restrictions and the reluctance to bring in prudent economic reforms laid bare the structural deficiency in the government's economic policy. With a severe balance of payment crisis, international agencies downgraded the country, further hampering any chances of foreign investment.
The country is in a 'debt trap'
Mauritius has now asked China and India to restructure its debt payments and for credit support.
The government has sought a credit line of $1.5 billion from India to import essentials. This amount is in addition to the $1 billion extended by India last month.
The country is set to reach out to the International Monetary Fund (IMF) and other countries for relief.
However, the magnitude of the crisis is such that these loans may not be sufficient to get out of the balance of payment problems, as the current deficit is gigantic. But for the moment, it's ordinary Mauritians who will have to bear the brunt of skyrocketing prices and shortages of essential products for a long time to come. "
As I said, the situation in Sri Lanka and the figures mentioned above do not mirror the situation in Mauritius. But I am sure you get a fair idea of the terrible mess that we find ourselves in Mauritius...
As for protests around the country, this too will happen in Mauritius...and is one of the main reasons for the government to limit public gatherings to only 50...
Now, if only our "patriotic" ministers and no less "patriotic" civil servants could go on mission more often to Dubai, in order to achieve fuck all...
