Electoral Reform vs. Economic Stability: Priorities for Mauritius’ Future

Editorial

Mauritius stands at a pivotal juncture. The government, led by the Alliance du Changement (ADC), has inherited a deeply fragile economy and an intricate political system. Amidst economic turmoil, there is a growing call for electoral reform, spearheaded by MMM leader Paul Berenger, who has once again raised the issue of proportional representation (PR) as a means to secure his party’s future in an increasingly complex political landscape. However, the question remains: should electoral reform be a priority for the ADC government at this time, or should their focus be squarely on stabilizing the economy and addressing the structural weaknesses that threaten the nation’s long-term prosperity?

The Push for Electoral Reform

Electoral reform is a complex and contentious issue in Mauritius, and recent calls for change have brought it back to the national conversation. Paul Berenger has used the current political context as a platform to push for reforms that would secure his party’s position in a future PR electoral system. The call for such reform is rooted in the belief that the current system, which includes a mix of First-Past-The-Post (FPTP) and the controversial Best Loser System (BLS), does not adequately reflect parties’ electoral performance.

Prime Minister Navin Ramgoolam has, so far, remained silent on Paul Berenger’s direct remarks, offering only a vague promise of introducing “a dose of PR” aimed at ensuring better gender representation in Parliament. While gender representation is undoubtedly an important issue, this response fails to address the broader complexities and deeper concerns regarding the electoral system, as articulated by the MMM leader and current ally of Navin Ramgoolam in government. Is that calculated on the part of the Labour Party leader?

The electoral reform debate has been ongoing for more than two decades, with numerous commissions set up to investigate and propose changes. Despite all this effort, a viable and universally acceptable solution has yet to materialize. The current system, in which the BLS allocates seats based on community representation, remains controversial and widely regarded as a relic of an outdated political framework. The idea of abolishing the BLS will undoubtedly raise a host of legal and constitutional questions that must be carefully considered before any meaningful reform can take place.

The questions are numerous and complex: Can Parliament remove provisions of the Constitution considered fundamental, such as the principle of minority representation? Could such changes be legally challenged by the judiciary or minority groups in international courts? Should the state risk abandoning the BLS without a proper substitute to ensure minority representation? These are the thorny issues that need resolution before any electoral reform can proceed.

Economic Crisis: A Nation on the Brink

While the issue of electoral reform grabs attention, the Mauritian economy remains a significant concern. The ADC government inherited an economy crippled by systemic weaknesses that include an unsustainable pension system, a highly indebted model dependent on consumption, and high inflation. A “ticking time bomb” of financial instability looms over the nation, with low returns and unsustainable promises threatening the future of the pension system. Meanwhile, questions surrounding the true valuation of assets held by the Mauritius Investment Corporation (MIC) raise concerns about potential financial mismanagement and inflated national accounts.

Despite a landslide electoral victory, the government’s response to these economic challenges has been mixed. While some initial progress was made in restoring democratic freedoms and upholding the rule of law, much-needed structural reforms have been sidelined in favour of politically safer, short-term actions. Measures such as price stabilization and managing credit ratings may have offered temporary relief, but they fail to address the root causes of Mauritius’ economic problems. This inaction reflects a failure to break free from the cycle of institutional decay that has plagued the country for decades.

The economy’s underlying vulnerabilities—particularly the structural weaknesses in key sectors—have been further exacerbated by the persistence of patronage politics. Appointments to State-Owned Enterprises (SOEs) remain politically motivated, stifling competition and preventing the development of a more dynamic, competitive market. This, in turn, has kept economic growth well below its potential, and the powerful oligopolies that dominate the private sector continue to impede real progress.

Shifting Focus: Three Fundamental Priorities for the ADC Government

In this week’s interview, economist and financial risk manager Sameer Sharma is of the view that, at this critical moment, the government must shift its focus from the distractions of electoral reform to three fundamental priorities that will determine the nation’s future.

The challenges facing the ADC government are clear: a failing economy, an unsustainable pension system, institutional decay, and a political system that is increasingly disconnected from the reality of the people it is meant to serve.

1. Fiscal and Pension Sustainability: The first priority for the government should be achieving fiscal and pension sustainability. Mauritius faces a significant long-term challenge in managing its pension system, which is currently a ticking time bomb. Low returns and unsustainable promises are pushing the system to the brink of collapse, threatening the economic security of future generations.

The government must implement phased pension reform over the next decade, establishing a professionally managed, funded Retirement Fund based on a Liability Driven Investment (LDI) framework, says S. Sharma. Such a reform would provide a sustainable financial future for retirees while relieving pressure on the national budget. The introduction of a funded pension system would also have the added benefit of improving investor confidence, reducing the burden on public finances, and ensuring the nation’s long-term financial stability.

2. Structural Reengineering and Privatization: The second priority should be structural reengineering of the economy, particularly through the privatisation or restructuring of dysfunctional SOEs. State-Owned Enterprises have long been a source of political patronage and inefficiency, often serving the interests of the political elite rather than the public. The government must break this link by implementing merit-based recruitment and performance-linked accountability across the public sector.

In addition to restructuring SOEs, the government must also tackle the issue of market concentration. Powerful oligopolies in sectors such as telecommunications, utilities, and retail continue to stifle competition and keep prices artificially high. By breaking up these monopolies and promoting competition, the government can create a more dynamic and inclusive economy that benefits all Mauritians, not just a select few.

3. Restoring Institutional Credibility: The third priority should be the restoration of institutional credibility. The lack of independence within key institutions undermines their ability to make objective, evidence-based decisions. If the ADC government is to address Mauritius’ deep economic challenges, it must restore the credibility of its strategic public institutions by granting them full independence and ensuring that they operate free from political interference.

In addition to institutional reforms, the government must prioritize transparency and accountability in public service appointments. Merit-based recruitment and performance-linked accountability should become the standard across all government departments and SOEs. Only by doing so can the ADC government hope to overcome the legacy of patronage politics and build a more effective and responsive state.

A Nation at a Crossroads

Electoral reform is an important issue, but it is not the most pressing one facing the nation. The ADC government must prioritize the economy, focusing on fiscal sustainability, pension reform, structural reengineering, and restoring institutional credibility. Only by addressing these cores issues can Mauritius hope to build a more sustainable, inclusive, and prosperous future.

If the government can deal with these challenges with decisiveness and integrity, it will not only secure the nation’s economic future but also create the conditions for a more stable and accountable political system. Electoral reform, while important, should not be allowed to distract from the urgent task of securing the nation’s future.

Mauritius Times ePaper Friday 28 November 2025