Monday, June 15, 2009

How to Fix our BOP Problems

That's kind of simple and, no, we don't need to depreciate our rupee as one ex-Governor has again been suggesting. We just need to reduce imports and increase exports. First, imports.

In 2008, we imported for Rs8.5 billion of fish and fish preparations, Rs3 billion of milk, Rs2 billion of vegetables and fruits, Rs1.5 billion of meat, Rs6 billion of road vehicles and Rs24 billion of petroleum products. That just doesn't sound right. If you recall, our exclusive economic zone is more than a 1,000 times larger than our land area or if you prefer each Mauritian can be supported by 1 square kilometre of sea (although it would make more sense to speak in terms of cubic kilometres, right?). So am positive we can cross that one out in a few years. There is a milk project underway so imports should decrease there too. As far as vegetables go we could adopt a few of Kreppalloo Sunghoon's recommendations: subsidise fertilizers, remove VAT on agricultural machinery and create a land bank to optimise the use of arable land. Likewise I am sure we can do something about all the meat we're bringing over from abroad by getting Rodrigues into the loop. Finally, we can reduce both the amount of fuel and road vehicles we import by having a sufficiently comfortable public transportation system. Having it run till 2 a.m. everyday will also make our economy more dynamic.

As far as exports go we should favour those that will provide meaningful jobs to a maximum of our fellow citizens. We don't need entrepreneurs of the sweat-shop variety whose greed knows no bounds.

Mr. Speaker, Sir, I now commend the Bill to the House.

P.S: BOP = Balance of Payments.

11 comments:

Kranti said...

You are right. But, as we all know the vested interests who finance the political party won't be happy to allow Mauritius to be self-sufficient! And the political folks will follow suit being at the beck and call of the vested interests.

While everybody was thinking that Government could have trained more and more nurses and export to UK,USA, Canada, Australia, etc, the Minister of Health was crying instead of doing what everybody was thinking - rather they were waiting for Appollo (we all know who is the facilitator) to do so.

Sanjay Jagatsingh said...

Hmm. At one point in time people will realise how much having a regular supply of food is more important than wanting everybody to see you at the wheel of a gas-guzzling Hummer.

Sanjay Jagatsingh said...

Danesswar Sarjua has been proposing a series of detailed plans to do just that. Here's the latest installment.

Anonymous said...

Mr Sarjua's practical insight expresses what can and cannot be achieved depends on whether bureaucrats and rent seekers or visionaries are in the driving seat.

akagugo said...

@ SJ:
Mr Sarjua's idea of growing the breadfruit along roadsides is incredibly simple!
Man, it's so good that there must be some bureaucrat who'll find flaws in this: vehicles can collide with them, therefore the trees can cause fatalities and should not be allowed to be grown at road sides; it may encourage theft; fruits falling from the tree may cause a road hazard; harvest may encroach on traffic. Or anything spurious enough to frustrate real entrepreneurs like Mr Sarjua: he has neither enough capital nor land to beg for the roadsides, bankers will charge incredible interest rates for any loan he may qualify to take.
And our authorities dare to be surprised at the number of Mauritians keen to emigrate?

Sanjay Jagatsingh said...

Nek zafer simp mem ki bizin fer pu nu viv buku pli byen.

sunghoon Kreepalloo said...

I think, the time we, people, start doing things, just like, Surjua expressed in his letter to the Pm, without depending on politicians,I'm sure we'll change many things. It is just because we let politicians think they are the masters of our destiny that we fail to move forwards.It's time we start implementing concrete projects

Sanjay Jagatsingh said...

@Krepalloo: taye raze!!!

akagugo said...

Mieux vaut tard que jamais: l'express now proposes solutions to BOP problems.
Mé li invite Pierre pou mem dialog: arett gaspiyaz gourvement, lepep serr-ceintirr, gouvernment arett investi, les investisseurs d'abord, Rama-worship, Xavier-poukniying...

Sanjay Jagatsingh said...

Congratulations to 30% of the cane planters who have either stop cultivating this plant or gone growing vegetables.

Asleem said...

SJ for PM!
And thanks for the postScript, I was lost for a moment :P