Report

Facing the Global Financial Crisis – Policy Lessons from Small Mauritius

“The objective of the paper therefore is to assess the case of a small island developing
state like Mauritius where government has attempted to mitigate the negative consequences of the global economic crisis through an appropriate policy mix. So far, Mauritius has been resilient to the world economic downturn and is viewed as an
example for other developing and emerging economies. Our paper is structured as
follows. In section 2, we analyse the various transmission channels via which the
crisis operates on the Mauritian economy. Section 3 discusses the macroeconomic
performance of Mauritius in the event of the crisis. Section 4 reviews the appropriate
policy mix implemented by government to increase the resilience and optimism of the
country to the present crisis. We finally conclude in section 5.”