Politicians are Considering Mauritius’ Economic Direction

For the last two decades, the country’s economic growth has depended heavily on its offshore sector – the provision of financial services by banks to foreign firms. As an isolated country located in the south-western Indian Ocean, Mauritius has linked itself to global financial sectors by easing the flow of capital into and out of its economy. It has signed double taxation avoidance agreements with other countries, and its capital gains taxes are attractively low. Tax haven strategies have allowed countries such as Mauritius to gain huge amounts of foreign exchange. But in a recent paper researchers argue that these strategies may not have the same appeal in years to come. This leaves Mauritius at a crossroads once again.

THE CONVERSATION